BUS110 Chapter 10 - Motivating Employees

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*Chapter Ten

Motivating Employees

McGraw-Hill/Irwin ©2010 The McGraw-Hill Companies, All Rights Reserved

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*SERGEY BRIN & LARRY PAGE

Google

• Founded Google in 1998 in a friend’s garage.

• Their success is a result of constant innovation and motivating employees to pursue their own interests.

Profile

• Walls are painted in bright colors, offices are open and the Googleplex provides food and recreation activities for all employees.

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*The Value of Motivation

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Intrinsic vs. Extrinsic Rewards

Intrinsic = Intrinsic = InsideInside

Feeling of Job Feeling of Job WellWell DoneDone

PridePride

Sense of Sense of AchievemeAchieveme

ntnt

Extrinsic = OutsideExtrinsic = Outside

PraisePraiseRecognitionRecognition

PromotionPromotionss

GiftsGifts

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*INTRINSIC REWARDS

• Intrinsic Rewards -- Personal satisfaction felt for a job well done.

• Kinds of Intrinsic Rewards:

The Value of Motivation

- Pride in your performance

- Sense of achievement

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*EXTRINSIC REWARDS

• Extrinsic Rewards -- Something given as a recognition of good work.

• Kinds of Extrinsic Rewards:

- Pay Raises

- Promotions

- Awards

The Value of Motivation

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*FRINGE BENEFITS

Perks Offered to Employees at Top 50 Employers

Source: Business Week, www.businessweek.com

Recognizing a Job Well Done

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*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

1. Time

2. Methods of Work

3. Rules of Work

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Frederick Taylor: The Father of Scientific Management

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*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.

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*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.

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*HAWTHORNE STUDIES: PURPOSE AND RESULTS

• Researchers studied worker efficiency under different levels of light.

• Productivity increased regardless of light condition.

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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.

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*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.

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Motivation and Maslow’s Hierarchy of Needs

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*MASLOW’S

HIERARCHY of NEEDSLG3

Motivation and Maslow’s Hierarchy of Needs

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*HERZBERG’S

MOTIVATING FACTORS

• Herzberg’s research centered on two questions:

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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?

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*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.

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*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.

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*HERZBERG’S MOTIVATORS and

HYGIENE FACTORSLG4


Motivators Hygiene Factors

Work itselfCompany policy and

administration

Achievement Supervision

Recognition Working conditions

Responsibility Interpersonal relations

Growth and advancement

Salary, status and job security

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*COMPARISON of the THEORIES

of MASLOW and HERZBERGLG4


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*THEORY X and THEORY Y

• Douglas McGregor proposed 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.

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McGregor’s Theory X and Theory Y

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*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

• Only effective motivators are fear and money.

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*ASSUMPTIONS of

THEORY Y MANAGERS

• People like work, it’s a part of life.

• Workers seek goals they are committed toward.

• 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.

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*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.

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Ouchi’s Theory Z

• Type A focused on the individual.

• Theory Z is the hybrid approach of Types A and J.

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*THEORY Z

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Ouchi’s Theory Z

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*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.

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Goal-Setting Theory and Management by Objectives

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*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.

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*ORGANIZATIONS USING MBO

• Toyota Motor Company

• Emerson Electric Company

• U.S. Department of Defense

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*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.

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Reinforcing Employee Performance: Reinforcement Theory

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*REINFORCEMENT THEORY

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Reinforcing Employee Performance: Reinforcement Theory

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*ENRICHING JOBS

• Job Enrichment -- A motivational strategy that emphasizes motivating the worker through the job itself.

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Motivation Through Job Enrichment

• Based on Herzberg’s motivators, such as responsibility, achievement and recognition.

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*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.

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*KEY CHARACTERISTICS

of WORK

1. Skill Variety

2. Task Identity

3. Task Significance

4. Autonomy

5. Feedback

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*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.

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Motivating Through Open Communication

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*BIG MOTIVATORS for

SMALL BUSINESS(Spotlight on Small Business)

• Things like weekly trips to the movies and after-work parties help keep employees motivated.

• Communication, mentoring and group bonding are key elements to success.

• Open communication and increased responsibility for employees makes them feel a real part of the firm.

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*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

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*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.

Source: Wall Street Journal Research, September 2007.


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*WHAT’S GOOD for YOU

Most Positive Remedies for Employee Morale


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*WHAT’S BAD for YOU

Most Negative Actions for Employee Morale


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*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 Millenials (1980 – 2000)- Raised by indulgent parents, used to many

comforts like computers and cell phones

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Motivating Employees Across Generations

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*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.

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*MILLENIALS 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.

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*The BEST COMPANIES for

WORKERS

Source: Fortune Magazine, www.fortune.com

Company Location

NetApp Sunnyvale, California

Edward Jones St. Louis, Missouri

Boston Consulting Group Boston, Massachusetts

Google Mountain View, California

Wegmans Food Markets Rochester, New York

Cisco Systems San Jose, California


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Review Only

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*PROGRESS ASSESSMENT

• What are several steps firms can take to increase internal communications and motivation?

• What problems may emerge when firms try to implement participative management?

• Why is it important to adjust motivational styles to individual employees? Are there any general principles of motivation that today’s managers should follow?

Progress Assessment

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• What are the similarities and differences between Taylor’s time-motion studies and Mayo’s Hawthorne studies?

• How did Mayo’s findings influence scientific management?

• Explain the distinction between what Herzberg called motivators and hygiene factors.

Progress Assessment

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• Briefly explain the managerial attitudes behind Theories X, Y and Z.

• Explain goal-setting theory.

• Evaluate expectancy theory. When could expectancy theory apply to your efforts or lack of effort?

• Explain the principles of equity theory.

Progress Assessment

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*UPSET at UPS

(Legal Briefcase)

• UPS drivers work under strict rules and work requirements.

• Performance pressure has taken a toll on drivers who report increased stress, anxiety and back pain.

• UPS is employing new technologies and planning to increase productivity without overtaxing drivers.

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*ARE YOU STRESSED?

Warnings of Employee Stress

• Negative attitudes about work

• Drops in productivity

• Chronic lateness

• Absenteeism

• Careless with details

• Unable to work with others

• Withdrawal from co-workers

• Easily upset or angered


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*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.

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Meeting Employee Expectations: Expectancy Theory

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*EXPECTANCY THEORY

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*NADLER & LAWLER’S

MODIFICATION

• Researchers Nadler and Lalwer modified expectancy theory and suggested five steps for managers:1. Determine what rewards employees value.

2. Determine worker’s performance standard.

3. Make sure performance standards are attainable.

4. Tie rewards to performance.

5. Be sure employees feel rewards are adequate.

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*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.

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Treating Employees Fairly: Equity Theory

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*GREEN TEAM, GO!

(Thinking Green)

• Steve Sarowitz of Paylocity formed a “Green Team” to make the business more eco-friendly.

• The “Green Team” expanded company recycling, increased telecommuting and switched from paper cups to ceramic cups.

• Employees were excited by the challenge because it went beyond their traditional jobs.

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*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.

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Motivating Employees Across the Globe

• Low-Context cultures believe relationship building distracts from tasks.

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