Chapter 10 Motivating Employees 10-1

MOTIVATION and Intrinsic vs. Extrinsic Rewards

Extrinsic Rewards Extrinsic Rewards -- Something given as a recognition of good work. Kinds of Extrinsic Rewards: Pay Raises Promotions Awards

Intrinsic Rewards Intrinsic Rewards -- Personal satisfaction felt for a job well done. Kinds of Intrinsic Rewards: Pride in your performance Sense of achievement

Evolution of Human Relations Concepts Behavioral Management Hawthorne (Mayo) Maslow Herzberg McGregor Ouchi Vroom Scientific Management Frederick Taylor Henry L. Gantt Gilbreths

Scientific Management Frederick Taylor Time-Motion Henry L. Gantt Gantt Charts Gilbreths Principle of Motion Economy therblig

Taylor’s Scientific Management Scientific Management -- Studying workers to determine the most efficient ways of doing things and then teaching those techniques. Three Key Elements to Increase Productivity Time Methods of Work Rules of Work

Taylor’s Four Key Principles Study how a job is performed. Gather time & motion information. Check different methods. Codify the best method into rules. Choose workers whose skill matches the rules. Establish a fair level of performance and pay.

TAYLOR and UPS UPS drivers work under strict rules and work requirements, e.g., How to get out of their trucks: Right foot first How fast to walk: 3 ft per second How to hold their keys: Teeth up, third finger See Learning Goal 1: Explain Taylor’s scientific management. 10-9

Time-Motion Studies Time-Motion Studies -- Studies of which tasks must be performed to complete a job and the time needed to do each task. Henry L. Gantt Led to the development of the Principle of Motion Economy -- Every job can be broken down into a series of elementary motions; developed by Frank and Lillian Gilbreth. therblig

Behavioral Management Mayo (Hawthorne) Maslow Herzberg McGregor Ouchi Vroom

ELTON MAYO HAWTHORNE STUDIES

Hawthorne Studies: Purpose Conducted by Elton Mayo (1927-1933) First Experiment: Determine if lighting was a factor in productivity. Researchers studied worker efficiency under different levels of light. Productivity increased regardless of light condition. Next Experiments: Determine if other factors affected productivity. See Learning Goal 2: Describe the Hawthorne studies, and relate their significance to management. See text pages: 262-263

Hawthorne Studies: Results Researchers decided it was a human or psychological factor at play. Hawthorne Effect -- People act differently when they know they are being studied. These studies encouraged the study of Human Motivation. See Learning Goal 2: Describe the Hawthorne studies, and relate their significance to management. See text pages: 262-263

HEIRARCHY OF HUMAN NEEDS ABRAHAM MASLOW HEIRARCHY OF HUMAN NEEDS

Maslow’s Hierarchy of Needs Hierarchy of Needs -- Theory of motivation based on unmet human needs from basic physiological needs to safety, social and esteem needs to self-actualization needs. See Learning Goal 2: Describe the Hawthorne studies, and relate their significance to management. See text pages: 262-263

Reaching Your Potential Independence Creativity Self-Expression Self-Actualization Needs Esteem Needs Responsibility Self-Respect Recognition Sense of Accomplishment Social Needs Companionship Acceptance Love and Affection Group Membership Safety Needs Security for Self an Possessions Avoidance of Risks Avoidance of Harm Avoidance of Pain Physiological Needs Food Clothing Shelter Comfort Self-Preservation

Maslow’s Theory of Motivation Needs that have already been met do not motivate. If a need is filled, another higher-level need emerges. If a need becomes unsatisfied, a person will retreat to satisfy that need. See Learning Goal 2: Describe the Hawthorne studies, and relate their significance to management. See text pages: 262-263

Reaching Your Potential Independence Creativity Self-Expression Self-Actualization Needs Esteem Needs Responsibility Self-Respect Recognition Sense of Accomplishment Social Needs Companionship Acceptance Love and Affection Group Membership Safety Needs Security for Self an Possessions Avoidance of Risks Avoidance of Harm Avoidance of Pain Physiological Needs Food Clothing Shelter Comfort Self-Preservation

FREDERICK HERZBERG MOTIVATING FACTORS

Herzberg’s Motivating Factors Motivators Hygiene Factors See Learning Goal 2: Describe the Hawthorne studies, and relate their significance to management. See text pages: 262-263

Herzberg’s Motivating Factors Herzberg’s research centered on two questions: What factors controlled by managers are most effective in increasing worker motivation? How do workers rank job-related factors in order of importance related to motivation? See Learning Goal 2: Describe the Hawthorne studies, and relate their significance to management. See text pages: 262-263

Job Content Herzberg found job content factors were most important to workers – workers like to feel they contribute to the company. Motivators -- Job factors that cause employees to be productive and that give them satisfaction. See Learning Goal 4: Distinguish between the motivators and hygiene factors identified by Herzberg. Herzberg’s article in the Harvard Business Review, “One More Time: How Do You Motivate Employees?” is a classic and explores his idea of job content in depth. 10-23

Job Environment Job environment factors maintained satisfaction but did not motivate employees. Hygiene Factors – Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased. See Learning Goal 2: Describe the Hawthorne studies, and relate their significance to management. See text pages: 262-263

Herzberg’s Theory Figure 10.5 Comparison of Maslow and Herzberg

Motivators vs. Hygiene (Maintenance) Factors Herzberg’s Theory Motivators vs. Hygiene (Maintenance) Factors Motivators: Job Content Hygiene Factors: Job Environment

DOUGLAS McGREGOR THEORY X THEORY Y

Theory X and Theory Y Douglas McGregor proposed that managers had two different sets of assumptions concerning workers. Their attitudes about motivating workers was tied to these assumptions. McGregor called them Theory X and Theory Y.

ASSUMPTIONS of THEORY X MANAGERS Workers dislike work and seek to avoid it. Workers must be forced or threatened with punishment to get them to perform. Workers prefer to be directed and avoid responsibility. Primary motivators are fear and money. See Learning Goal 5: Differentiate among Theory X, Theory Y, and Theory Z. 10-29

ASSUMPTIONS of THEORY Y MANAGERS People like work, it’s a part of life. Workers seek goals to which they are committed. Commitment to goals depends on perceived rewards. People can use creativity to solve problems. Intellectual capacity is only partially realized. People are motivated by a variety of rewards. See Learning Goal 5: Differentiate among Theory X, Theory Y, and Theory Z. 10-30

WILLIAM OUCHI THEORY Z

THEORY Z William Ouchi researched cultural differences between the U.S. (Type A) and Japan (Type J). Type J committed to the organization and group. Type A focused on the individual. Theory Z is the hybrid approach of Types A and J. See Learning Goal 5: Differentiate among Theory X, Theory Y, and Theory Z. Demographic changes, the worst recession in their country’s history and fierce global competition have forced Japanese managers to reevaluate the way they conduct business. The effects of the 2011 earthquake on Japanese businesses reinforced the need to change. 10-32

THEORY Z Ouchi’s Theory Z LG5 See Learning Goal 5: Differentiate among Theory X, Theory Y, and Theory Z. 10-33

Japanese Management Approach Ouchi’s Theory Z Type J Japanese Management Approach Lifetime employment Consensual decision making Collective responsibility for the outcomes of decisions Slow evaluations & promotions Nonspecialized career paths Holistic concern for employees Type A American Management Approach Short-term employment Individual decision making Individual responsibility for the outcomes of decisions Rapid evaluation & promotion © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Ouchi’s Theory Z Long-Term Employment Collective Decision-making Individual Responsibility Slow Evaluation/ Promotion Specialized Career Path Holistic Concern for Employees

MANAGEMENT BY OBJECTIVES PETER DRUCKER MANAGEMENT BY OBJECTIVES

Management By Objectives (MBO) Peter Drucker Goal-Setting Theory Employees Motivate Themselves

GOAL-SETTING THEORY Goal-Setting Theory -- Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions. See Learning Goal 6: Explain the key principles of goal-setting, expectancy, reinforcement, and equity theories. 10-38

Applying Goal-Setting Theory Management by Objectives (MBO) -- Involves a cycle of discussion, review and evaluation of objectives among top and middle-level managers, supervisors and employees. Managers formulate goals in cooperation with everyone. Need to monitor results and reward achievement.

VICTOR VROOM EXPECTANCY THEORY

Employee-Oriented Motivational Techniques Expectancy Theory expectations of the outcome See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Nadler & Lawler’s Modification Researchers Nadler and Lawler modified expectancy theory and suggested five steps for managers: Determine what rewards employees value. Determine worker’s performance standard. Make sure performance standards are attainable. Tie rewards to performance. Be sure employees feel rewards are adequate. See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Expectancy Theory in Motivation Expectancy Theory -- The amount of effort employees exert on a specific task depends on their expectations of the outcome. Employees ask: Can I accomplish the task? What’s my reward? Is the reward worth the effort? Expectations can vary from person to person. See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Expectancy Theory See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Reinforcement Theory Reinforcement Theory -- Positive and negative reinforcers motivate a person to behave in certain ways. Positive reinforcement includes praise, pay increases and recognition. Negative reinforcement includes reprimands, reduced pay, and layoff or firing. See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Equity Theory Equity Theory -- Employees try to maintain equity between inputs and outputs compared to others in similar positions. Workers often base perception of their outcomes to a specific person or group. Perceived inequities can lead to reduced quality and productivity, absenteeism even resignation. See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Job-Oriented Motivational Techniques

Job-Oriented Motivational Techniques Job Enrichment/Redesign Job Simplification

ENRICHING JOBS Job Enrichment -- A motivational strategy that emphasizes motivating the worker through the job itself. Based on Herzberg’s motivators, such as responsibility, achievement and recognition. See Learning Goal 7: Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition. Herzberg argued factors such as responsibility, achievement and recognition were more important motivational factors in the long run than pay. He believed that if you wanted to motivate employees you should focus on enriching the job. 10-49

Types of Job Enrichment Job Enlargement -- A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment. Skill Variety Task Identity Task Significance See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Types of Job Enrichment Job Rotation -- A job enrichment strategy that involves moving employees from one job to another. See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

ENRICHMENT by WAY of FLEXIBILITY 60% of employees think they can be productive and efficient outside of the office. 66% of employees would take a lower-paying job if it came with more flexibility. 59% of employees say their company doesn’t have a formal out-of-office work policy. See Learning Goal 7: Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition. Enrichment by Way of Flexibility Many employees see time outside of the office as a perk. This may include work from home, library or remote location. Some companies are following this trend. However, the majority of people surveyed said their company still doesn‘t offer the possibility. Ask students: Would you take a job with lower pay if it meant you could work remotely? Would you prefer to work only in the office? Source: Entrepreneur, May 2011. 10-52

Job-Oriented Motivational Techniques Job Simplification

USING OPEN COMMUNICATION Create a culture that rewards listening. Train managers to listen. Use effective questioning techniques. Remove barriers to open communication. Ask employees what’s important to them. See Learning Goal 7: Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition. 10-54

Recognizing a Job Well Done

RECOGNIZING GOOD WORK Raises are not the only ways to recognize an employee’s performance. Recognition can also include: Paid time off Flexible scheduling Work from home opportunities Paid child or elder care Stock options or profit sharing Company awards Company events or teams See Learning Goal 7: Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition. Remember rewarding performance can come in different formats than money. What are other ways to recognize good performance? 10-56

Motivating Employees Across the Globe Cultural differences make worker motivation a challenging task for global managers. High-Context cultures require relationships and group trust before performance. Low-Context cultures believe relationship building distracts from tasks. See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

IMPORTANCE of CULTURAL COMPENTENCY A better understanding of cultures helps managers increase customer satisfaction and loyalty. It’s not just knowing other languages, it’s knowing what’s proper. UPS operates in over 200 countries successfully by emphasizing diversity. See Learning Goal 8: Show how managers personalize motivation strategies to appeal to employees across the globe and across generations. 10-58

TAYLOR and UPS UPS drivers work under strict rules and work requirements, e.g., How to get out of their trucks: Right foot first How fast to walk: 3 ft per second How to hold their keys: Teeth up, third finger See Learning Goal 1: Explain Taylor’s scientific management. 10-59

Motivating Across the Generations Baby Boomers (1946 – 1964) Experienced great economic prosperity, job security, optimism about their future. See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Motivating Across the Generations Generation X (1965 – 1980) Raised in dual-career families, attended day care, feeling of insecurity about jobs See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Generation X in the Workplace Desire economic security but focus more on career security more than job security. Good motivators as managers due to emphasis on results rather than work hours. Tend to be flexible and good at collaboration and consensus building. Very effective at giving employee feedback and praise. See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Motivating Across the Generations Generation Y or Millennials (1980 – 2000) Raised by indulgent parents, used to many comforts like computers and cell phones See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Millennials in the Workplace Tend to be impatient, skeptical, blunt and expressive. Are tech-savvy and able to grasp new concepts. Able to multi-task and are efficient. Highlight a strong sense of commitment. Place a high value on work-life balance. Fun and stimulation are key job requirements. See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories. See text pages: 274-276

Tips for Motivating Employees Thank employees for good job Listen to employees Give feedback Give rewards Keep them informed Allow for input Training opportunities Remember important dates Have and abide by policies Celebrate goal accomplishment Also available on a Transparency Acetate See Learning Goal 9: Explain how open communication builds teamwork, and describes how managers are likely to motivate teams in the future. Motivating Employees This slide offers simple tips for motivating employees in your business. In reality these tips can be applied to any interpersonal relationships. A motto to remember is the Golden Rule: Treat others like you want to be treated. Ask the students to use the different motivational theories such as Maslow’s or Herzberg’s to see how these tips would get classified. Source: Allfoodbusiness.com