1. Motivating Employees Business Organization and Management 120

2. Importance of Motivation “If work is such fun, how come the rich don’t do it?” - Groucho Marx Intrinsic reward – personal satisfaction you feel when you perform well and complete goals Extrinsic reward – something given to you by someone else as recognition for good work –Pay increases, praise, promotions

3. Maslow’s Hierarchy of Needs Based on the idea that motivation comes from need. If a need is met, it’s no longer a motivator, so a higher-level need becomes the motivator. –E.g. if you eat a full-course dinner, hunger would not be a motivator and your attention can turn to safety needs Higher-level needs demand the support of lower- level needs. –If you are thirsty, it will take you back to the physiological need

5. Herzberg’s Motivating Factors Herzberg’s study asked workers to rank various job- related factors in order of importance relative to motivation. 1.Sense of accomplishment 2.Earned recognition 3.Interest in the work itself 4.Opportunity for growth 5.Opportunity for advancement 6.Importance of responsibility 7.Peer and group relationships 8.Pay 9.Supervisor’s fairness 10.Company policies and rules 11.Status 12.Job security 13.Supervisor’s friendliness 14.Working conditions

6. Herzberg’s Motivating Factors Herzberg noted that the factors receiving the most votes were clustered around job content. Workers like to feel that they contribute to the company. Motivators – job factors that cause employees to be productive and that give them satisfaction Hygiene factors – job factors that can cause dissatisfaction if missing but that do no necessarily motivate if increased.

7. Herzberg’s Motivating Factors Motivators (These factors can be used to motivate workers) Hygiene (Maintenance Factors) (These factors can cause dissatisfaction, but changing them will have little motivational effect) Work itself Achievement Recognition Responsibility Growth and advancement Company policy and administration Supervision Working conditions Interpersonal relations (co- workers) Salary, status and job security

8. McGregor’s Theory X and Theory Y McGregor observed that managers’ attitudes generally fall into one of two entirely different sets of managerial assumptions – Theory X and Theory Y.

9. McGregor’s Theory X and Theory Y Theory X assumptions –The average person dislikes work and will avoid it if possible –Because of this dislike, workers must be forced, controlled, directed, or threatened with punishment to make them put forth the effort to achieve the organization’s goals –The average worker prefers to be directed, wishes to avoid responsibility, has relatively little ambition and wants security. –Primary motivators are fear and money.

10. McGregor’s Theory X and Theory Y Theory Y –Most people like to work; it is as natural as play or rest. –Most people naturally work towards goals to which they are committed. –The depth of a person’s commitment to goals depends on the perceived rewards for achieving them. –Under certain conditions, most people not only accept but also seek responsibility. –People are capable of using a relatively high degree of imagination, creativity, and cleverness to solve problems. –In industry, the average person’s intellectual potential is only partially realized. –People are motivated by a variety of rewards.

11. McGregor’s Theory X and Theory Y Theory X managers suspect that employees cannot be fully trusted and need to be closely supervised. They are busy, tell people what to do and how to do it. The trend in many businesses is towards Theory Y managers.