2. Chapter Seven Motivating and Managing People and Groups in Business Organizations © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Introduction to Business

3. 7 - 3 Learning Objectives 1.Understand the nature and sources of work motivation and appreciate that motivation is under the voluntary control of an employee. 2.Describe five different theories of work motivation and identify how they work together to determine work motivation. 3.Identify the characteristics of groups and teams and distinguish between important types of groups and teams.

4. 7 - 4 Learning Objectives 4.Explain the factors that create high-performing groups and teams. 5.Identify the sources of organizational conflict and understand how bargaining and negotiation are used to resolve conflicts between people and groups.

5. 7 - 5 Motivation in Business Organizations Work motivation -the psychological force within people that arouses their interest, directs their attention, and causes them to persist to achieve their work goals

6. 7 - 6 Voluntary Employee Behavior Figure 7.1

7. 7 - 7 Maslow’s Needs Hierarchy Theory -a theory that specifies why and how people try to satisfy their needs through their behavior at work

8. 7 - 8 Maslow’s Hierarchy of Needs Figure 7.2

9. 7 - 9 Maslow’s Needs Hierarchy Theory Self-actualization -the desire for personal self-fulfillment, that is, a person’s desire to become the best he or she is capable of becoming

10. 7 - 10 Expectancy Theory -a theory that argues that the motivation of employees depends upon whether or not they believe that performing at a high level will lead to the rewards they desire

11. 7 - 11 Factors Affecting the Effort-to- Performance Linkage Employees’ past experiences provide them with information about how likely they are to succeed at a particular task Employees need to believe that nothing in the work situation outside their control will prevent their hard work from successful performance

12. 7 - 12 Factors Affecting the Effort-to- Performance Linkage Self-efficacy -the belief a person holds about his ability to succeed at a certain task or in a particular situation

13. 7 - 13 Linkages in Expectancy Theory Figure 7.3

14. 7 - 14 Question? Which motivation theory argues that employees will be motivated to achieve a goal only if they believe they will be rewarded equitably relative to their co- workers? A.Expectancy theory B.Goal-setting theory C.Equity theory D.Job enrichment theory

15. 7 - 15 Factors Affecting Performance-to- Outcome Linkage Different employees value different outcomes differently Employees must believe that nothing in the work setting outside their control will prevent them from obtaining the valued outcomes they seek

16. 7 - 16 Factors Affecting Performance-to- Outcome Linkage Even if employees have strong effort-to- performance and performance-to-outcome expectancies, this does not guarantee they will be motivated to behave the way the company desires

17. 7 - 17 Goal-Setting Theory -a theory that suggests that if goals are to motivate employees, they should be specific, challenging, measurable, results oriented, and have a specified timeframe for completion See an example of a company’s financial goalsfinancial goals

18. 7 - 18 Goal-Setting Theory Work goal -something specific an employee is trying to accomplish when doing a job

19. 7 - 19 Five Characteristics of Motivating Goals Figure 7.4

20. 7 - 20 Why Goal Setting Increases Motivation 1.A goal directs and focuses an employee’s efforts toward achieving that goal 2.A goal motivates an employee to be persistent 3.Helps develop personal goal-attainment strategies that make employees more effective over time

21. 7 - 21 A Hierarchy of Company Goals Figure 7.5

22. 7 - 22 Management by Objectives -a work-performance review system that involves setting specific and challenging goals and then reviewing employees’ progress towards achieving those goals

23. 7 - 23 Motivation through Goal Setting and Management by Objectives Figure 7.6

24. 7 - 24 Stretch Goals and Job Learning Stretch goals -highly ambitious goals put in place to motivate employees to perform at higher levels

25. 7 - 25 Equity Theory -a theory that argues that employees will be motivated to achieve a goal only if they believe they will be rewarded equitably relative to their co-workers

26. 7 - 26 Equity Theory in Action Figure 7.7

27. 7 - 27 Job Enrichment Theory -a theory that employees will be more motivated if they have more control over the way they do their jobs

28. 7 - 28 Question? What is motivating employees by expanding the range of tasks they do? A.Job rotation B.Job enlargement C.Empowerment D.Job replacement

29. 7 - 29 Job Enrichment Theory Job enlargement -motivating employees by expanding the range of tasks they do Empowerment -expanding employees’ tasks and responsibilities to allow them more freedom and autonomy over the way work is performed

30. 7 - 30 Job Enrichment Theory Self-managed teams -groups of employees who are given the responsibility to supervise their own activities and to monitor the quality of the goods and services they provide

31. 7 - 31 What is a Group or Team? Group -a collection of people who follow similar work rules and norms and work towards a common, specific, and measurable goal

32. 7 - 32 What is a Group or Team? Team -a group of people who are jointly responsible for creating, managing, and changing work rules and norms to find better ways to achieve current and future goals

33. 7 - 33 Patterns of Interaction between Employees, Groups, and Teams Figure 7.8

34. 7 - 34 Types of Groups and Teams Functional team -people grouped together by virtue of their expertise, typically, by departments Cross-functional team -a group of people from a company’s various functions who pool their talents to increase the organization’s efficiency and effectiveness

35. 7 - 35 Types of Groups and Teams Top management team -a group consisting of the top managers of a company’s major functions or business units Virtual teams -teams whose members are connected by e-mail, the Internet, instant messaging, wireless laptops, and video conferencing

36. 7 - 36 Why Do Employees Perform at a Higher Level When They Work in Groups? 1.When people work in teams, their shared identity and need for achievement can make them want to work harder 2.Groups and teams frequently monitor the performance of their members 3.Teams often facilitate the division of labor and specialization

37. 7 - 37 Conflict, Bargaining, and Negotiation Organizational conflict -the discord that ensues when stakeholders thwart each other’s attempts to achieve their goals and objectives

38. 7 - 38 Types of Conflict Interpersonal -conflict between two or more people in a company Intragroup -conflict that arises within a group, team, or department Intergroup -occurs between groups, teams, or departments

39. 7 - 39 Sources of Conflict Incompatible goals Complex task interdependencies Incompatible reward systems Scarce resources

40. 7 - 40 Sources of Organizational Conflict Figure 7.9

41. 7 - 41 Resolving Conflict through Negotiation and Bargaining Negotiation and Bargaining -a technique managers use to increase the chances that conflicting parties will reach a compromise

42. 7 - 42 Resolving Conflict through Negotiation and Bargaining Emphasize common goals Focus on the problem, not the people Create opportunities for joint gain Focus on what is fair

43. 7 - 43 Video: The Container Store Garrett Boone, Co-Founder and CEO explains that the company’s operating philosophy of The Container Store can be captured in the following maxim: “1 great person = 3 good people.” What examples from The Container Store support Maslow’s motivational need for self-actualization?