1. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17-1 8

2. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17-2 The Motivation Process – Defining Motivation Motivation: is the inner state that causes an individual to behave in a way that ensures the accomplishment of some goals. Manager understand members’ behavior Manager is able to influence members’ behavior Accomplish Organizational Objectives MotivationInfluence Behavior ↑Productivity Reach Org Goals

3. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17-3 Motivating Organization Members People are motivated to perform behavior that satisfies their personal needs Motivation (from managerial point of view): is the process of furnishing organization memebers with the opportunity to satisfy their needs by performing productive behavior within the organization Motivation is one of the four primary interrelated activities of the influencing function (performed by managers to guide the behavior of org. members toward the attainment of org. objectives) In reality: managers do not motivate people, but They create environment in which org. members motivate themselves

4. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17-4 Motivating Organization Members Strategies for Motivating Organization Members:  Managerial Communication  Theory X–Theory Y  Job Design  Behavioral modification  Likert’s Management Systems  Monetary incentives  Nonmonetary incentives Each strategy is aimed at satisfying subordinates’ needs through appropriate organizational behavior. Most managers combine some of these strategies to be more effective, because no single strategy will always be the best.

5. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17-5 Strategies for Motivating Organization Members Managerial Communication: To communicate well & often with organization members is the most basic motivation strategy. Why? Because effective manager-subordinate communication can satisfy basic human needs (e.g. recognition, sense of belonging, security…etc) (beside that communication is the primary means of conducting organizational activities) Example 1: if a manager tries to be know better about the subordinates. Example 2: a praising message to a subordinate for a job well done

6. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17-6 Strategies for Motivating Organization Members Theory X –Theory Y: Theory X: Negative (bad) assumptions about people (e.g. assume that they dislike work, and will avoid it whenever they can). Managers often use it. Theory Y: Positive (good) assumption about people (e.g. assume that they have self-direction, and self-control in meeting their objectives). Managers should strive (try their best) to use it. Why? Because it is more successful in satisfying the human needs of most organizational members. Therefore, more motivational

7. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17-7 Strategies for Motivating Organization Members Theory X –Theory Y: Production might be increase by using either Theory X or Theory Y depending on the situation a manager faces. Theory Z: An effectiveness dimension It implies that managers who use either Theory X or Theory Y can be successful, depending on their situation

8. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17-8 Strategies for Motivating Organization Members Monetary Incentives (Money-based Compensation) Examples: Employee Stock Ownership Plans (ESOPs) By offering shares of company stock as a benefit Stock bonuses → think like an owner → successful org. Lump-sum Bonuses (one-time cash payments), Gain Sharing Team members receive a bonus when their team exceeds a goal Link pay closely to performance Putting employees’ pay at risk (link total wage to sales) → makes expenses more controllable during downturn Important : (1) communication to all employees (2) describe org. goals (3) explain how behavior help reaching these goals

9. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17-9 Strategies for Motivating Organization Members Nonmonetary Incentives Examples: Promoting from within Advertise jobs internally before going outside Emphasize Quality Most workers are unhappy when they know they produce bad products