1. Chapter 10
Motivating Employees
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2. MOTIVATION and Intrinsic vs. Extrinsic Rewards

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

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

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

6. Scientific Management
Frederick Taylor
Time-Motion
Henry L. Gantt
Gantt Charts
Gilbreths
Principle of Motion Economy
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7. 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

8. 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.

9. 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.
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10. 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.
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11. Behavioral Management
Mayo (Hawthorne)
Maslow
Herzberg
McGregor
Ouchi
Vroom

12. ELTON MAYO
HAWTHORNE STUDIES

13. Hawthorne Studies: Purpose
Conducted by Elton Mayo ( )
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.
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14. 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.
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15. HEIRARCHY OF HUMAN NEEDS
ABRAHAM MASLOW
HEIRARCHY OF HUMAN NEEDS

16. 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.
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17. 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

18. 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.
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19. 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

20. FREDERICK HERZBERG
MOTIVATING FACTORS

21. Herzberg’s Motivating Factors
Motivators
Hygiene Factors
See Learning Goal 2: Describe the Hawthorne studies, and relate their significance to management.
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22. 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.
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23. 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.
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24. 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.
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25. Herzberg’s Theory
Figure 10.5 Comparison of Maslow and Herzberg

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

27. DOUGLAS McGREGOR
THEORY X
THEORY Y

28. 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.

29. 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.
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30. 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.
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31. WILLIAM OUCHI
THEORY Z

32. 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.
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33. THEORY Z Ouchi’s Theory Z LG5
See Learning Goal 5: Differentiate among Theory X, Theory Y, and Theory Z.
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34. 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.

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

36. MANAGEMENT BY OBJECTIVES
PETER DRUCKER
MANAGEMENT BY OBJECTIVES

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

38. 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.
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39. 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.

40. VICTOR VROOM
EXPECTANCY THEORY

41. Employee-Oriented Motivational Techniques
Expectancy Theory
expectations of the outcome
See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories.
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42. 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.
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43. 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.
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44. Expectancy Theory
See Learning Goal 8: Describe the key principles of expectancy, reinforcement, and equity theories.
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45. 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.
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46. 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.
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47. Job-Oriented Motivational Techniques

48. Job-Oriented Motivational Techniques
Job Enrichment/Redesign
Job Simplification

49. 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.
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50. 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.
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51. 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.
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52. 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.
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53. Job-Oriented Motivational Techniques
Job Simplification

54. 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.
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55. Recognizing a Job Well Done

56. 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?
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57. 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.
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58. 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.
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59. 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.
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60. 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.
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61. 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.
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62. 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.
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63. 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.
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64. 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.
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65. 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