1. Chapter 9 Copyright © 2011 by Nelson Education Ltd. 1 Motivating Employees Prepared by Norm Althouse University of Calgary Prepared by Norm Althouse University of Calgary

2. Chapter 9 Learning Outcomes 2 1 Explain the basic principles of Frederick Taylor’s concept of scientific management. 2 Summarize what Elton Mayo’s Hawthorne studies revealed about worker motivation. 3 Discuss Maslow’s hierarchy of needs, and how these needs relate to employee motivation. 4 Identify how McGregor’s Theories X and Y, and Ouchi’s Theory Z are used to explain worker motivation. 5 Explain the basic components of Herzberg’s motivator-hygiene theory. 6 Describe how three contemporary theories of employee motivation offer insights into improving employee performance. 7 Discuss how managers can redesign existing jobs to increase employee motivation and performance. 8 List some of the initiatives organizations are using today to motivate and retain employees. Copyright © 2011 by Nelson Education Ltd.

3. Chapter 9 Employee Motivation 3 Employees who are motivated and work hard to achieve personal and organizational goals can become a crucial competitive advantage for a firm. Employees who are motivated and work hard to achieve personal and organizational goals can become a crucial competitive advantage for a firm. Copyright © 2011 by Nelson Education Ltd.

4. Chapter 9 Frederick Taylor’s Scientific Management 4 4.Divide work and responsibility according to who is better suited to each task. 4.Divide work and responsibility according to who is better suited to each task. 3. Encourage cooperation between workers and managers. 2. Scientifically select, train, teach, and develop workers. 1. Develop a scientific approach for each element of a person’s job. Basic Principles Copyright © 2011 by Nelson Education Ltd.

5. Chapter 9 The Hawthorne Studies 5 The phenomenon that employees perform better when they feel singled out for attention or feel that management is concerned about their welfare. The phenomenon that employees perform better when they feel singled out for attention or feel that management is concerned about their welfare. Hawthorne Effect Copyright © 2011 by Nelson Education Ltd.

6. Chapter 9 Maslow’s Hierarchy of Needs 6 Copyright © 2011 by Nelson Education Ltd. Physiological Safety Social Esteem Self-Actualization

7. Chapter 9 Maslow’s Hierarchy of Needs Copyright © 2008 by Nelson, a division of Thomson Canada Limited7

8. Chapter 9 McGregor’s Theories X and Y Copyright © 2011 by Nelson Education Ltd.8 Work is as natural as play or rest Workers can be motivated using positive incentives The average person seeks out responsibility Theory X Theory Y The average person dislikes work and will avoid it if possible People must be controlled, directed, or threatened with punishment The average person prefers to be directed, avoids responsibility, is unambitious, and wants security

9. Chapter 9 Ouchi’s Theory Z 9 Copyright © 2011 by Nelson Education Ltd. Theory Z Emphasizes:  Long-term employment  Slow career development  Moderate specialization  Group decision making  Individual responsibility  Informal control over the employee  Concern for workers

10. Chapter 9 Herzberg’s Motivator-Hygiene Theory 10 Copyright © 2011 by Nelson Education Ltd. Intrinsic job elements that lead to satisfaction Motivating Factors (Job satisfiers) Extrinsic elements of the work environment Hygiene Factors (Job dissatisfiers)

11. Chapter 9 Copyright © 2008 by Nelson, a division of Thomson Canada Limited11 Motivating Factors Achievement Recognition Work itself Responsibility Advancement Growth Company policy Supervision Working conditions Interpersonal relationships at work Salary and benefits Job security Hygiene Factors Motivating and Hygiene Factors

12. Chapter 9 Contemporary Views on Motivation 12 Goal-Setting Theory Equity Theory Expectancy Theory Copyright © 2011 by Nelson Education Ltd.

13. Chapter 9 Expectancy Theory 13 Copyright © 2011 by Nelson Education Ltd.

14. Chapter 9 Expectancy Theory Determine the rewards valued by each employee Determine the desired performance level Make the performance level attainable Link rewards to performance Determine what factors might counteract the effectiveness of an award Make sure the reward is adequate for the level of performance 14 Motivating Employees Copyright © 2011 by Nelson Education Ltd.

15. Chapter 9 Equity Theory a different position in the current organization a different organization or… to another employee’s experience inside the organization to another employee’s experience outside the organization 15 Employees evaluate their outcomes in relation to their inputs and compare to their past experience in… Employees evaluate their outcomes in relation to their inputs and compare to their past experience in… Copyright © 2011 by Nelson Education Ltd.

16. Chapter 9 Equity Theory (what are the choices?) 16 Leave the situation Look at situation from different perspective Distort their perception of others Distort their perception of themselves Change job benefits and income Change work habits Employee Choices if an Inequity Exists Employee Choices if an Inequity Exists Copyright © 2011 by Nelson Education Ltd.

17. Chapter 9 Goal-Setting Theory Specific goals lead to a higher level of performance More difficult goals lead to better performance Feedback on progress toward the goal enhances performance 17 An individual’s intention to work toward a goal is a primary source of motivation. An individual’s intention to work toward a goal is a primary source of motivation. Goal-Setting Theory Goal-Setting Theory Components Copyright © 2011 by Nelson Education Ltd.

18. Chapter 9 Reinforcing Behaviour 18 Positive Reinforcement PunishmentExtinction Negative Reinforcement Introduce ConsequenceRemove Consequence Increase/maintain behaviour Decrease/eliminate behaviour By introducing or removing consequences managers can encourage functional behaviours or discourage dysfunctional behaviours Copyright © 2011 by Nelson Education Ltd.

19. Chapter 9 Motivational Job Design 19 Options for Increasing Motivation Job Enlargement Job Enrichment Job Rotation Copyright © 2011 by Nelson Education Ltd.

20. Chapter 9 Work-Scheduling Options 20 Flextime Employees decide what their work hours will be Job Sharing Allows two individuals to split the tasks and hours of a workweek Telecommuting Employees work from home via a linked computer Compressed Workweek Fitting 40 hours into a shorter workweek Copyright © 2011 by Nelson Education Ltd.

21. Chapter 9 Incentives 21 Stock Options Bonuses Gain Sharing Profit Sharing Piece-Rate Plans Monetary Incentives Non- Monetary Incentives Recognition Empowerment Copyright © 2011 by Nelson Education Ltd.

22. Chapter 9 Trends in Employee Motivation 22 Nurturing Knowledge Workers Employee Ownership Education and Training Work-Life Benefits Copyright © 2011 by Nelson Education Ltd. Coping with the Rising Cost of Absenteeism