1. Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. 1. Explain Taylor’s theory of scientific management. 2. Describe the Hawthorne studies and their significance to management. 3. Identify the levels of Maslow’s hierarchy of needs and apply them to employee motivation. 4. Distinguish between the motivators and hygiene factors identified by Herzberg. 5. Differentiate among Theory X, Theory Y, and Theory Z. LEARNING GOALS Chapter Ten 10-2

3. 6. Explain the key principles of goal-setting, expectancy, reinforcement, and equity theories. 7. Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition. 8. Show how managers personalize motivation strategies to appeal to employees across the globe and across generations. LEARNING GOALS Chapter Ten 10-3

4. INTRINSIC / EXTRINSIC REWARDS Intrinsic Rewards: The Value of Motivation  Pride in your performance  Sense of achievement  Extrinsic Rewards -- Personal satisfaction you feel when you perform well and complete goals.  Bonuses  Compensation  Fringe Benefits 10-4

5. TAYLOR’S SCIENTIFIC MANAGEMENT Scientific Management -- Studying workers to find the most efficient ways of doing things and then teaching people those techniques. Three Key Elements to Increase Productivity 1. Time 2. Methods of Work 3. Rules of Work Frederick Taylor: The Father of Scientific Management LG1 10-5

6. TAYLOR’S FOUR KEY PRINCIPLES 1. Study how a job is performed. Gather time & motion information. Check different methods. 2. Codify the best method into rules. 3. Choose workers whose skill matches the rules. 4. Establish a fair level of performance and pay. LG1 Frederick Taylor: The Father of Scientific Management 10-6

7. 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. 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. LG1 Frederick Taylor: The Father of Scientific Management 10-7

8. HAWTHORNE STUDIES: PURPOSE AND RESULTS Researchers studied worker efficiency under different levels of light. Productivity increased regardless of light condition. Elton Mayo and the Hawthorne Studies Researchers decided it was a human or psychological factor at play. Hawthorne Effect -- People act differently when they know they are being studied. LG2 10-8

9. MASLOW’S THEORY of MOTIVATION 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. Needs that have already been met do not motivate. If a need is filled, another higher-level need emerges. Motivation and Maslow’s Hierarchy of Needs LG3 10-9

10. HERZBERG’S MOTIVATING FACTORS Herzberg’s research centered on two questions: Herzberg’s Motivating Factors  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? LG4 10-10

11. 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. LG4 Herzberg’s Motivating Factors 10-11

12. JOB ENVIRONMENT Job environment factors maintained satisfaction, but did not motivate employees. LG4 Herzberg’s Motivating Factors Hygiene Factors -- Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased. 10-12

13. COMPARISON of the THEORIES of MASLOW and HERZBERG LG4 Herzberg’s Motivating Factors 10-13

14. REIGNITE EMPLOYEES’ DRIVE Simple Ways to Reinvigorate Work Life 1. Don’t work alone all the time; partners or teams make work more efficient and fun. 2. Redecorate your space to get away from the same- old, same-old. 3. Don’t complain; think of things to celebrate. LG4 Herzberg’s Motivating Factors Source: Fast Company, March 2010. Photo Courtesy of: Nels Highberg 10-14

15. THEORY X and THEORY Y Douglas McGregor proposed managers had two different sets of assumptions concerning workers. Their attitudes about motivating workers were tied to these assumptions. McGregor called them Theory X and Theory Y. Manager’s assume: Theory X - Workers dislike work and seek to avoid it. Theory Y - People like work, it’s a part of life. McGregor’s Theory X and Theory Y LG5 10-15

16. 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. Ouchi’s Theory Z Type A focused on the individual. Theory Z is the hybrid approach of Types A and J. LG5 10-16

17. 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. Goal-Setting Theory and Management by Objectives LG6 10-17

18. 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 in the organization. Need to monitor results and reward achievement. LG6 Goal-Setting Theory and Management by Objectives 10-18

19. 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. Meeting Employee Expectations: Expectancy Theory LG6 10-19

20. NADLER & LAWLER’S MODIFICATION Researchers Nadler and Lawler modified expectancy theory and suggested five steps for managers: 1. Determine what rewards employees value. 2. Determine workers’ performance standard. 3. Make sure performance standards are attainable. 4. Tie rewards to performance. 5. Be sure employees feel rewards are adequate. LG6 Meeting Employee Expectations: Expectancy Theory 10-20

21. USING 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. Extinction is a way of trying to stop behavior by not responding to it. Reinforcing Employee Performance: Reinforcement Theory LG6 10-21

22. 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 on a specific person or group. Perceived inequities can lead to reduced quality and productivity, absenteeism, even resignation. Treating Employees Fairly: Equity Theory LG6 10-22

23. ENRICHING JOBS Job Enrichment -- A motivational strategy that emphasizes motivating the worker through the job itself. Motivation Through Job Enrichment Based on Herzberg’s motivators, such as responsibility, achievement and recognition. LG7 10-23

24. KEY CHARACTERISTICS of WORK 1. Skill Variety 2. Task Identity 3. Task Significance 4. Autonomy 5. Feedback LG7 Motivation Through Job Enrichment 10-24

25. TYPES of JOB ENRICHMENT Job Enlargement -- A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment. Job Rotation -- A job enrichment strategy that involves moving employees from one job to another. LG7 Motivation Through Job Enrichment 10-25

26. 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. Motivating Through Open Communication LG7 10-26

27. KEEPING the LINES OPEN (Social Media in Business) Businesses can no longer limit themselves to traditional intranets. They must communicate with employees, not to them. Employees expect 24/7 access to what they need with what they have (smartphone, iPad, notebook). 10-27

28. 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 Recognizing a Job Well Done LG7 10-28

29. WORK WELL with OTHERS Keys for Productive Teamwork Have a common understanding of your task. Clarify roles and responsibilities. Set rules. Get to know each other. Communicate openly and often. LG7 Recognizing a Job Well Done 10-29

30. 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. Motivating Employees Across the Globe Low-Context cultures believe relationship building distracts from tasks. LG8 10-30

31. MOTIVATING ACROSS the GENERATIONS Baby Boomers (1946 – 1964)  Experienced great economic prosperity, job security, optimism about their future Generation X (1965 – 1980)  Raised in dual-career families, attended day care, feeling of insecurity about jobs Generation Y or Millennials (1980 – 2000)  Raised by indulgent parents, used to many comforts like computers and cell phones Motivating Employees Across Generations LG8 10-31

32. COMMUNICATION ACROSS the GENERATIONS Baby Boomers (1946 – 1964)  Prefer meetings and conference calls. Generation X (1965 – 1980)  Prefer email and will choose meetings only if there are no other options. Generation Y or Millennials (1980 – 2000)  Prefer to use technology to communicate, particularly through social media. Motivating Employees Across Generations LG8 10-32