Ferrell Hirt Ferrell M: Business 2nd Edition FHF

Motivating the Workforce 10 Motivating the Workforce FHF McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Human Relations The study of the behavior of individuals and groups in organizational settings Motivation An inner drive that directs a person’s behavior towards goals FHF 10-3

Motivating the Workforce What motivates employees to perform? How can managers boost morale? How do you maximize worker performance? How can you encourage creativity and innovation? FHF 10-4

The Basic Model of Motivation When a need exists, an individual engages in goal-directed behavior designed to satisfy that need FHF 10-5

An employee’s attitude toward his or her job, employer and colleagues Morale [ ] An employee’s attitude toward his or her job, employer and colleagues Morale is a prominent aspect of human relations FHF 10-6

Morale (continued) High morale Low Morale Higher productivity, returns to shareholders and worker productivity Low Morale Contributes to absenteeism, high employee turnover, and lack of commitment A business always wants to seek out ways to improve employee morale Morale (continued) FHF 10-7

Morale (continued) Morale Boosters Respect Involvement Appreciation Compensation Promotion Pleasant work environment Positive organizational culture Morale (continued) FHF 10-8

Daily Motivation Motivation is so important, iPhone even offers an app for it Daily Motivation offers inspiring quotes every day FHF 10-9

Most employees are motivated by more than pay... Compensation is sometimes not the best way to motivate employees– other benefits like flex schedules, and advancement opportunities are important motivators as well Source: “Work-Life Balance Tops Pay,” USA Today, March 13, 2008, A1. Work/Life Balance FHF 10-10

Classic Theory of Motivation Early 20th century Taylor & Gilbreth Scientific focus on work tasks & productivity Money Thought to be the sole motivator for workers Satisfactory pay & job security Motivate employees to work hard FHF 10-11

Hawthorne Studies Elton Mayo 1924-1932 at the Hawthorne Works Plant Elton Mayo Postulated that physical conditions in workplace stimulate productivity Findings show social and psychological factors influence productivity/morale Not work conditions Marks beginning of concern for human relations in the workplace FHF 10-12

Maslow’s Hierarchy of Needs This pyramid organizes needs into the order in which people seek to attain them, the most basic being on the bottom. FHF 10-13

Maslow’s Hierarchy of Needs Physiological needs Basic needs for food, water, shelter Security needs Protection from physical & economic harm Social needs Need for love, companionship Esteem needs Self-respect and respect from others Self-actualization Maximizing one’s full potential Many people never achieve the higher order of needs, and people may slip from one category to the other depending on circumstances and times in their lives. FHF 10-14

Herzberg’s Two-Factor Theory Hygiene factors Focus on the work setting not the content of the work Wages, working conditions, company policies, job security Motivational factors Focus on content of the work itself Achievement, recognition, involvement, responsibility, advancement Developed in the 1950s Herzberg’s Theory focuses on the job and the evironment where work is done FHF 10-15

McGregor’s Theory X and Theory Y Traditional view Assumes that workers generally dislike work and must be forced to do their jobs Theory Y Humanistic view Assumes workers like to work and seek out responsibility to satisfy social, esteem, and self-actualization needs Contrasts two different views of management FHF 10-16

Z Theory A management philosophy that stresses employee participation in all aspects of company decision making Variations on Theory Z Participative Management Employee Involvement Self-Directed Work Teams (SDWT) Developed by William Ouichi Has spawned a number of other theories FHF 10-17

Variations on Theory Z Quality circles 5-8 people who meet to discuss ways to improve work Participative management/ self-directed work teams High level of employee control Make employees responsible for outcomes of their decisions Variations on Theory Z FHF 10-18

Equity Theory The assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness (equity) of the rewards they will receive in exchange Perception that everyone is treated equally Equal pay for equal work FHF 10-19

Expectancy Theory Assumes that motivation depends not only on how much a person wants something but also on how likely he or she is to get it Someone who wants something and has a reasonable expectation to achieve it will be highly motivated FHF 10-20

Motivating Employees Behavior Modification FHF Changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself Reward Punishment Developed by psychologist B.F. Skinner Behavior that is rewarded will tend to be repeated– rewarding good behavior tends to be a more effective behavior modification strategy in the long term Behavior that is punished will tend to be eliminated FHF 10-21

Strategies for Motivating Employees Job rotation Movement of employees from one job to another to relieve the boredom often associated with job specialization Drawback is that is does not totally eliminate risk of boredom Toyota practices job rotation Workers change tasks every 2 hours Reduces repetitive stress injuries and mental fatigue Click on the hyperlink to go to Toyota’s Global website FHF 10-22

Strategies for Motivating Employees Job enlargement Addition of more tasks to a job instead of treating each task as separate Seeks to counteract the boredom of division of labor Many small firms use job enlargement Requires training employees in new tasks FHF 10-23

Strategies for Motivating Employees (continued) Job enrichment Incorporating motivational factors (achievement, recognition, responsibility) into the job Idea developed by Herzberg in the 50s Gives employees feedback on their performance Rewards good performance Strategies for Motivating Employees (continued) FHF 10-24

Strategies for Motivating Employees (continued) Flexible scheduling strategies Flextime Allows employees to choose their start and end times Compressed workweek 40 hours in a 4-day workweek Job sharing Occurs when two people share the same job Strategies for Motivating Employees (continued) FHF 10-25

Motivation Fosters employee loyalty Boosts productivity Influences on pay, promotion, job design Nature of relationships Nature of the job itself Characteristics of the organization BMW keeps employee morale high Open communication is important Keep a sense of humor, even when times are tough Click on the hyperlink for an interview with Jim O’Donnell, President of BMW (Length: 4:23) He discusses the importance of open communication when seeking to keep employee morale high; importance of humor Also discusses the company’s strategy for long-term customer retention FHF 10-26

FHF 10-27