1. FHF McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. part CHAPTER 10 Managing Human Resources 4 FHF 9-2 CHAPTER 9 Motivating the Workforce

3. FHF Human Relations  The study of the behavior of individuals and groups in organizational settings Motivation  An inner drive that directs a person’s behavior towards a goal or satisfaction of a need 9-3

4. FHF Motivating the Workforce  What motivates employees to perform?  How can managers boost morale?  How do you maximize worker performance?  How can you encourage creativity and innovation? 9-4

5. FHF The Basic Model of Motivation 9-5 When a need exists, an individual engages in goal- directed behavior designed to satisfy that need

6. [] FHF MoraleMorale An employee’s attitude toward his or her job, employer and colleagues Morale is a prominent aspect of human relations 9-6

7. FHF MoraleMorale High Morale  Higher productivity, returns to shareholders, worker productivity and loyalty  Lower absenteeism and employee turnover Low Morale  Contributes to absenteeism, high employee turnover and lack of commitment 9-7 …continued on next page

8. FHF MoraleMorale Morale Boosters Respect Involvement Appreciation Compensation Promotion Pleasant work environment Positive organizational culture 9-8

9. FHF RewardsRewards Intrinsic Rewards  The personal satisfaction and enjoyment you feel from attaining a goal  Feeling of accomplishment Extrinsic Rewards  Benefits and/or recognition you receive from someone else  Awards, benefits, pay increases  Intrinsic and extrinsic rewards both are important in motivating employees to contribute to business goals 9-9

10. FHF Employee Motivation It can be difficult to motivate employees Motivation is difficult to define and varies from person to person Motivation conventions exist that are dedicated to suggesting ways to motivate workers Motivation conventions 9-10

11. FHF Work/Life Balance Most employees are motivated by more than pay... 9-11 Source: “Work-life Balance Tops Pay,” USA Today Snapshots, March 13, 2008, p. B1.

12. FHF Classic Theory of Motivation Early 20th century Frederick W. Taylor & Lillian Gilbreth  Scientific focus on work tasks & productivity Money  Thought to be the sole motivator for workers  Satisfactory pay & job security motivate employees to work hard 9-12

13. FHF Hawthorne Studies 1924-1932 at the Hawthorne Works Plant  Elton Mayo Postulated that physical conditions in workplace stimulate productivity  Findings show social and psychological factors influence productivity/morale  Marks beginning of concern for human relations in the workplace 9-13

14. FHF Theories of Employee Motivation  Maslow’s Hierarchy of Needs  Herzberg’s Two-Factor Theory  McGregor’s Theory X and Theory Y  Theory Z  Variations on Theory Z  Equity Theory  Expectancy Theory 9-14

15. FHF Maslow’s Hierarchy of Needs 9-15 Source: Adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review 50 (1943), pp. 70–396. American Psychology Association. …continued on next page

16. FHF Maslow’s Hierarchy of Needs  Physiological Needs  Basic needs for food, water, shelter  Security Needs  Protection from physical and economic harm  Social Needs  Need for love, companionship  Esteem Needs  Self-respect and respect from others  Self-actualization  Maximizing one’s full potential 9-16

17. FHF Herzberg’s Two-Factor Theory Hygiene Factors  Focus on the work setting, not the content of the work Wages, working conditions, company policies, job security Motivational Factors  Focus on content of the work itself Achievement, recognition, involvement, responsibility, advancement 9-17

18. FHF McGregor’s Theory X and Theory Y Theory X  Considered the traditional management view  Assumes that workers Generally dislike work Must be forced to do their jobs Average worker avoids responsibility and prefers direction 9-18 …continued on next page

19. FHF McGregor’s Theory X and Theory Y Theory Y  Considered the humanistic management view  Assumes Expending physical effort is natural (people like to work) People will assume responsibility and self-control to achieve objectives (workers want to satisfy social, esteem and self-actualization needs) People will commit to objectives once they realize there will be a personal reward Most organizations do not adequately utilize imagination, ingenuity, creativity and intelligence of workers 9-19

20. FHF Theory Z A management philosophy that stresses employee participation in all aspects of company decision making  Incorporates many Japanese ideas about management (trust and intimacy) adapted for use in the U.S. 9-20

21. FHF Variations on Theory Z  Quality Circles (or Quality-Assurance Teams)  Participative Management  Employee Involvement  Self-Directed Work Teams (SDWT)  All strive to give employees more control over their jobs  Make them responsible for outcomes 9-21

22. FHF Equity Theory  The assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness (equity) of the rewards they will receive in exchange  Equal pay for equal work  Employees who do not feel equitably treated may slack off on the job or steal to level the field 9-22

23. FHF Expectancy Theory  Assumes that motivation depends not only on how much a person wants something, but also on how likely he or she is to get it  Someone who wants something and has a reasonable expectation to achieve it will be highly motivated 9-23

24. FHF Motivating Employees Behavior Modification  Changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself  Reward  Punishment 9-24

25. FHF Strategies for Motivating Employees Job Rotation  Movement of employees from one job to another to relieve the boredom often associated with job specialization  The drawback is that it does not totally eliminate risk of boredom 9-25 …continued on next page

26. FHF Strategies for Motivating Employees Job Enlargement  Addition of more tasks to a job instead of treating each task as separate  Seeks to counteract the boredom of division of labor  Many small firms use job enlargement  Requires training employees in new tasks 9-26 …continued on next page

27. FHF Strategies for Motivating Employees Job Enrichment  Incorporating motivational factors (achievement, recognition, responsibility) into the job  Idea developed by Herzberg in the 1950s  Gives employees feedback on their performance  Rewards for good performance 9-27 …continued on next page

28. FHF Values and Motivation Many employees are motivated by working for a company that shares their values  Patagonia Loyal, dedicated employees Less than 4% employee turnover Core values embrace reducing waste, recycling, environmentalism Psychological success Good health Good work/life balance Enjoying your job tasks Money is not main motivator 9-28

29. FHF Strategies for Motivating Employees Flexible scheduling strategies  Flextime Allows employees to choose their start and end times  Compressed Workweek 40 hours in a 4-day workweek  Job Sharing Occurs when two people share the same job 9-29 …continued on next page

30. FHF Importance of Motivational Strategies Fosters employee loyalty Boosts productivity Influences on pay, promotion, job design Nature of relationships Nature of the job itself Characteristics of the organization 9-30