Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 1 Chapter 10 Motivating and Rewarding Employees

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 2 Motivation and Individual Needs Willingness High level of effort Satisfaction of individual need

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 3 Drives Search Behaviour Tension Reduction of Tension Satisfied Need The Motivation Process (Exhibit 10-1) Unsatisfied Need

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 4 Equity Theory Perceived Ratio Comparison* Employee’s Assessment Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A Outcomes B Inputs B Outcomes B Inputs B Outcomes B Inputs B < = > Inequity (Under-Rewarded) Equity Inequity (Over-Rewarded) * Where A is the employee, and B is a relevant other or referent.

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 5 Equity Theory Propositions Given payment by time, over-rewarded employees will produce more than equitably-paid employees Given payment by quantity of production, over-rewarded employees will produce fewer but higher quality units than equitably paid employees Given payment by time, underrewarded employees will produce less or poorer quality output Given payment by quantity or production, underrewarded employees will produce a large number of low-quality units in comparison with equitably paid employees

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 6 Skill Variety Task Identity Task Significance Autonomy Feedback JOB DESIGN INFLUENCES MOTIVATION

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 7 Expectancy Theory 3. Attractiveness relationship 1. Effort-performance relationship 2. Performance-rewards relationship IndividualEffortIndividualPerformance IndividualGoals OrganizationalRewards 1 2 3

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 8 Integrating Contemporary Theories of Motivation Individual Goals Individual Effort Goals Direct Behaviour High nAch Ability Task Complexity Performance Evaluation Criteria Performance Criteria Reinforcement Dominant Needs Task Complexity Equity Comparison Organization Rewards Individual Performance

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 9 Motivating Minimum-Wage Employees Employee recognition Praise Empowerment

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 10 Motivating Professional and Technical Employees New assignments Challenges Autonomy Training and educational opportunities Recognition Simplify non-work life

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 11 Additional Suggestions for Motivating Employees _ Recognize individuals _ Match people to jobs _ Use goals _ Make goals attainable

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 12 Further Suggestions for Motivating Employees _ Individualize rewards _ Link rewards to performance _ Check the system for equity _ Don’t ignore money

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 13 Entrepreneurs and Motivation Motivation for entrepreneurs is critical Employee empowerment is key motivational tool Gradual process Delegation Job redesign