Chapter 11: PowerPoint 11.1 Chapter 11: Motivating Employees John W. Slocum, Jr. Susan E. Jackson Don Hellriegel COMPETENCY-BASED MANAGEMENT 11 th Edition

Chapter 11: PowerPoint 11.2 Learning Goals 1.Describe four approaches that can be used to explain employee motivation and satisfaction 2.Explain how managers can use goals and rewards to improve performance 3.Describe how jobs can be designed to be motivational and satisfying (continued)

Chapter 11: PowerPoint State how the organization context affects motivation and satisfaction 5.Describe how the needs of individuals can affect their work 6.Describe how understanding motivation can help managers improve employee performance and satisfaction Learning Goals (cont’d)

Chapter 11: PowerPoint 11.4  Motivation: a psychological state that exists whenever internal and/or external forces stimulate, direct, or maintain behaviors  Satisfaction: a psychological state that indicates how people feel about their situation, based on their evaluation of the situation

Chapter 11: PowerPoint 11.5 Manager Behavior Job Design Organization Context Individual Differences Employee Motivation Employee Satisfaction Consequences for employers and employees  Improved individual and team performance  Satisfied customers  High morale  Reduced turnover

Chapter 11: PowerPoint 11.6  Practical actions by managers to enhance motivation 1.Inspire employees through one-on-one communication 2.Set specific and challenging goals that employees accept and will strive to achieve 3.Provide employees with praise, recognition, or other rewards

Chapter 11: PowerPoint 11.7 Job Design Approach to Employee Satisfaction and Motivation  Job characteristics theory: employees are more satisfied and motivated when their jobs are meaningful, when jobs create a feeling of responsibility, and when jobs are designed to ensure that some feedback is available (continued)

Chapter 11: PowerPoint 11.8  Organization context include many elements:  Organizational design (structure)  Pay plans  Culture  Two basic Theories of Organizational approach  Two-factor theory  Equity Theory

Chapter 11: PowerPoint 11.9 Introduce by Fredrick Herzberg To understand the situation interviewed 200 accountants and engineers He ask them to describe job experience that describe good and bad feelings  Two-factor theory: two separate and distinct aspects of the work context are responsible for motivating and satisfying employees

Chapter 11: PowerPoint  Hygiene factors: the non-task characteristics of the work environment (the organizational context) that create dissatisfaction Compensation, Level of responsibility, Working condition, Company policies, Supervision, Coworkers, Salary, formal status, and job security Assumptions  To motivate people absence of dissatisfaction is essential but not sufficient  Hygiene factors won’t generate satisfaction  Help create a work setting to motivate people  Hygiene factors

Chapter 11: PowerPoint  Motivator factors: aspects of the organizational context that create positive feelings among employees Achievement, the challenge of the work itself, responsibility, recognition, advancement Assumptions  Presence of motivators alone doesn’t mean employees are motivate  Motivators lead to superior performance only if no dissatisfiers are present  Motivator factors

Chapter 11: PowerPoint High Motivation No Motivation and No Dissatisfaction Dissatisfaction HygienesMotivators Low High

Chapter 11: PowerPoint Assumptions of the Two-Factor Theory  Motivators and hygiene factors are similar for all employees  Individual differences among employees are not recognized  Employers should be able to motivate all employees in same way (from other research support this idea)

Chapter 11: PowerPoint Organizational Approach: Treating People Fairly  Equity theory: employees judge whether they’ve been treated fairly by comparing the ratio of their outcomes and inputs to the ratios of others doing similar work  Equity Theory explains how employees think and behave when they feel unfairly treated at work.  Equity Ratio: outcomes/ inputs  Inputs: what an employee gives to the job (e.g., time, effort, education, and commitment to the organization)  Outcomes: what an employee gets out of doing the job (e.g., the feelings of meaningfulness and responsibility associated with the job, promotions, and increased pay)

Chapter 11: PowerPoint Organizational Approach: Equity Theory—Examples of Equity Perceptions Situation A Situation B Ally’s Equity Perception Andy’s Equity Perception ComparisonAllyAndy Outcome: $500 Input: 50 hours work Outcome: $800 Input: 80 hours work Outcome: $500 Input: 50 hours work Outcome: $500 Input: 60 hours work $500/50 = $800/80 = $10/hour $500/50 > $500/60 Equitable Feels over- rewarded (inequitable) Feels under- rewarded (inequitable)

Chapter 11: PowerPoint Organizational Approach: Equity Theory— Possible Reactions to Perceived Inequity  Increase outputs  Decrease outputs  Change compensation (outcome) through legal or other actions  Modify comparison by choosing another person or group to evaluate oneself against  Distort reality by rationalizing that the inequities are justified  Leave the situation (quit job)

Chapter 11: PowerPoint  Consider employees’ need to be the basis for differences in motivation and satisfaction  Hierarchy of needs: describes the order in which people seek to satisfy their desires ( Abraham Maslow) Tension becomes a motivating force Satisfying the bottom level hierarchy comes first  Need: feeling of deficiency in some aspect of a person’s life that creates an uncomfortable tension

Chapter 11: PowerPoint  Physiological needs: food, clothing, and shelter, which people try to satisfy before all others (Most basic level)  Security needs: desire for safety and stability, and the absence of pain, threat, and illness  Affiliation needs: desire for friendship, love, and belonging (continued)

Chapter 11: PowerPoint  Esteem needs: desire for self-respect, a sense of personal achievement, and recognition from others  Self-actualization needs: desire for personal growth, self-fulfillment, and the realization of the individual’s full potential

Chapter 11: PowerPoint  Satisfaction-progression hypothesis: a need is a motivator until it becomes satisfied  Until basic needs are satisfied, people won’t be concerned with higher level needs  When need satisfied it become a motivator and another need emerge  Frustration-regression hypothesis: when an individual is frustrated in meeting higher level needs, the next lower level needs reemerge and again direct behavior  Moving Up  Moving Down

Chapter 11: PowerPoint Self- Actualization Esteem Affiliation Security Physiological Satisfaction-Progression Frustration-Regression

Chapter 11: PowerPoint  Clearly communicate the organization’s mission to employees and explain how their contribution to the organization will help the organization realize its mission (continued)  State the behaviors and performance achievements that are desired and explain how they will be rewarded  Design jobs with high motivating potential  Provide frequent and constructive feedback

Chapter 11: PowerPoint  Provide rewards for desired behaviors and outcomes  Provide rewards that employees value  Provide equitable rewards  Recognize that each person is unique