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Chapter 2Engaging and motivating employees and managing organisational change

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2nd edition)

Lecture objectives Motivating employees

Positive leaders & positive work environments

Psychological contract

Motivating during times of change

Emotional intelligence

CHRM decision-making framework in action

Conclusion


Motivating employees Work Motivation is defined as the stimulation of

effort required to achieve and maintain organisational goals

No two people are alike Unique values, attitudes, beliefs, strengths,

expectations and ideas Unlike other resources (financial and technical),

human resources are very difficult to predict

Management must direct employee behaviour towards organisational goals Understanding why people work is essential

to this task


Motivating employees

Positive leaders: work with employees’ strengths, quickly address negative behaviours that may arise, as part of promoting a PWE.

Positive work environment (PWE): where employees feel supported and fairly rewarded, have self-efficacy and integrity, and perceive an environment of trust and organisational justice.


Motivating employees through HRM

Intrinsic factors Soft factors (e.g., friendly work environment)

Extrinsic factors Hard factors (e.g., money, status, big office)

A balance between the two is generally preferred


Hard and Soft HRM paradox

Hard and soft HRM reflect focus on ‘managerial control strategies’ versus the ‘nature of people’

Hard HRM

Humans are viewed as costs (McGregor’s Theory X)

Soft HRM

Humans are viewed as people (Theory Y)

A combination of the two may be used, although soft HRM is preferred as it values people as an organisation’s most valuable assets.


Integration of hard and soft HRM


Theories of motivation Traditional views of motivation were based on

scientific management and later on human relations

Content theories: Humans have certain wants and needs that direct behaviour

Process theories: Highlight thought patterns that underlie decisions of whether or not to engage in certain behaviour

Be aware of limitations of each theory


Maslow’s hierarchy


Psychological contracts and motivation Psychological contracts: intangible, informal

contracts that the employee perceives constitute their employment relationship

Transactional

Relational

Ideology infused

Psychological contracts can impact upon employees’ discretionary behaviours (and their motivation to work)


HR ethics, psychological contracts and motivation

Deontological theory: Business is ethical when treating people with respect is the goal.

Utilitarian theory: Business is ethical when people are the means to maximise positive business consequences for the majority of stakeholders (e.g. shareholders)

Stakeholder theory: business is ethical when all stakeholders mutually benefit (e.g. employees, shareholders, customers, suppliers, unions and the local community)


Organisational justice perceptions

Distributional justice: Justice perceptions regarding the fairness of the distribution of resources within the organisation

Procedural justice: Justice perceptions regarding the procedures that are used within the organisation

Interactional justice: Justice perceptions regarding interpersonal interactions (e.g. honesty, politeness, and dignity)

Especially critical in time of constant changes


Diversity

Diverse workplaces (e.g. race, gender, sexual orientation, age, disabilities, lifestyle and values)

Key cultural orientations:

Individualists: typically associated with Western cultures such as Australia, U.S. and NZ (Hofstede, 1980); satisfying individual goals

Collectivists: typically associated with Eastern cultures such as China, Thailand and Japan (Hofstede, 1980); seek to benefit the group and community


Motivation during times of change Organisational change: any alteration which

causes a shift in the status quo, affecting the structure and resources of an organisation

Organisational change affects the ability to engage and motivate employees

Employee motivation levels may change at any time as can the focus of motivation (e.g., productive vs. counterproductive behaviours)

Continual monitoring is necessary


Types of organisational change

Planned: Any deliberate, structured execution of a shift in the status quo

Unplanned: Unanticipated change which is generally forced upon the company

Incremental: A series of small changes

Radical: Large-scale and drastic change. There are five stages of radical change:

Planning, enabling, launching, catalysing and maintaining


HRM strategies for change

Change success depends a great deal on the attitude that an organisation adopts towards its employees during the change process.

Change initiatives that adopt a caring attitude towards employees, together with a concern for economic results tend to be more successful than initiatives that simply focus on economic results.

Communication, Voice, and Justice

Cultivation of a culture of emotional awareness (e.g. emotional intelligence)


The CHRM decision-making framework


Step 1Screening HR-environmental factors

Monitor/analyse data (past, present and future):

e.g. Unfriendly CEO and senior management in the past; redundancies

Internal/organisational environment:

e.g. Diversity-closed culture (gender bias?)

External environment:

e.g. Stricter Airline Regulations since 2001


Step 2Detect HR potential problem or opportunity

Lack of employee motivation

Low absenteeism and high turnover

Gender discrimination claims


Step 3Verify /falsify potential problem or opportunity

Motivational factors

Management style

Redundancy effects


Step 4Devise plan and success criteria

Change the management style to develop respect for and trust from employees

Ask employees what motivates them to work (learn about their values)

Identify employees’ thoughts, fears and concerns relating to the redundancies

Identify and address areas where employees perceive discrimination


Step 5Implement the plan

Develop an employee motivation, perceived discrimination and redundancies related questionnaire within 4 weeks

Have employees answer the questionnaire within the following 2 weeks

Once the questionnaire content is analysed, change management styles to respond to needs in the areas of perceived gender discrimination, redundancy effects and motivation


Step 6Evaluate against success criteria

Distribute the questionnaire on an annual basis and examine trends

Identify percentage of reduction in employee absenteeism, turnover and discriminatory claims


Conclusion

Engaging and motivating employees is an important part of the SHRM process

People work (and are motivated) for different reasons

Positive leaders, psychological contracts and cultural orientations are all critical in motivating and engaging employees in their work

Organisational change can impact on employee motivation and behaviour

HR managers must continually monitor the workplace


The Psychological Contract from two perspectives – leader and employee

http://www.youtube.com/watch?v=EUdH9KmWenc&feature=related

http://www.youtube.com/watch?v=iD9jLSWUlC8&feature=related

Models of Motivation

http://www.youtube.com/watch?v=CF2c1q_OvdE

http://www.youtube.com/watch?v=o87s-2YtG4Y

http://www.youtube.com/watch?v=fd3-Esb-m3o&feature=related