Motivating Employees Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Learning Goals Relate the significance of Taylor’s scientific management and the Hawthorne studies to management. Identify the levels of Maslow’s hierarchy of needs, and relate their importance to employee motivation. Distinguish between the motivators and hygiene factors identified by Herzberg. Explain how job enrichment affects employee motivation and performance. Describe the key principles of goal-setting, expectancy, reinforcement, and equity theories. Explain how open communication builds teamwork, and describe how managers are likely to motivate teams in the future. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Why Motivate Employees? The key to leadership success is: MOTIVATING OTHERS TO DO THEIR BEST. Losing an employee is costly. Motivating the right people to join and remain in the company is a major function of management. Intrinsic reward: personal satisfaction of a job well done. Extrinsic: outside recognition of a job well done. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Intrinsic vs. Extrinsic Rewards Extrinsic = Outside Recognition Praise Intrinsic = Inside Feeling of Job Well Done Promotions Pride Salary Increase Sense of Achievement Status Gifts Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Frederick Taylor Increase productivity by studying the most efficient ways of doing things and then teaching workers these methods. i.e., scientific management Three elements of his approach were: time, methods, and rules of work. Time-motion studies break down the tasks needed to do a job and measure the time needed to do each task. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Scientific Management SCIENTIFIC MANAGEMENT viewed people as MACHINES that needed to be properly programmed. There was little concern for the psychological or human aspects of work. Much emphasis in some companies is still placed on conformity to work rules rather than on creativity, flexibility, and responsiveness Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Hawthorne Effect Elton Mayo The Hawthorne studies' results encouraged researchers to study human motivation and the managerial styles that lead to more productivity. The Hawthorne Effect refers to the tendency for people to behave differently when they know they're being studied. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Hawthorne Effect Mayo hypothesized that human or psychological factors caused the productivity increases in the Hawthorne experiments: The workers in the test room thought of themselves as a social group. The workers were involved in the planning of the experiments. The workers enjoyed the special atmosphere and additional pay for the increased productivity. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Maslow’s Hierarchy of Needs Unsatisfied Physiological Needs Safety Needs Social Needs Esteem Needs Self- Actualization Satisfied Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Hierarchy of Needs- Maslow Physiological: Basic survival needs including the need to drink, eat, and be sheltered from heat and cold. Safety: The need to feel secure at work and at home. Social: The need to feel loved, accepted, and part of the group. Esteem: The need for recognition and acknowledgment from others, as well as self- respect and a sense of status. Self-Actualization: The need to develop to your fullest potential. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Herzberg’s Motivating Factors Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Job Enrichment Skill variety Task Identity Task significance Autonomy Feedback Job enlargement Job rotation Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Employee-Oriented Motivational Techniques Goal-setting theory Expectancy theory Reinforcement theory Equity theory Expectancy Theory Can I accomplish the task? If I do accomplish it, what's my reward? Is the reward worth the effort? Equity Theory When workers do perceive inequity, they will try to reestablish equitable exchanges. They can reduce or increase their efforts or rationalize the situation. In the workplace, inequity leads to lower productivity leads to lower productivity, reduced quality, increased absenteeism, and voluntary resignation. Equity judgments are based on perceptions, and are therefore subject to errors in perception. Organizations can try to deal with this by keeping salaries secret. However, the best remedy, in general, is clear and frequent communication. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Building Teamwork Create an organizational culture that rewards listening. Train managers and supervisors to listen. Remove barriers to open communication. Actively undertake to facilitate communication. Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson