Chapter 13

Motivating Employees

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LEARNING OUTLINE• What Is Motivation?

• Define motivation.

• Explain motivation as a need-satisfying process

• Early Theories of Motivation Describe the five levels in Maslow’s hierarchy and how Maslow’s hierarchy can be used in motivational efforts. Discuss how Theory X and Theory Y managers approach motivation. Describe Herzberg’s motivation-hygiene theory. Explain Herzberg’s views of satisfaction and dissatisfaction.

• Contemporary Theories of Motivation Describe the job characteristics model as a way to design motivating jobs. Discuss the motivation implications of equity theory. Contrast distributive justice and procedural justice. Explain the three key variables in expectancy theory and their role in motivation.

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LEARNING OUTLINE (cont’d)

Current Issues in Motivation

Describe the cross-cultural challenges of motivation.

Discuss the challenges managers face in motivating unique groups of employees.

Describe open-book management and employee recognition, pay-for-performance, and stock option programs.

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Every accomplishment starts with the decision to try- Anonymous

“I do not try to dance better than anyone else. I only try to dance better than myself.”- Mikhail Baryshnikov

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What Is Motivation

Motivation willingness to apply high levels of effort to satisfy

individual needs

• Effort: a measure of drive (high low)

• Need: personal reason

• Direction: toward personal / career or organizational goals

Are you a motivated person?

• What motivates you to:1. Go to work2. Get an education3. Come to my class

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Motivation..

Personal needs compatible with organizational goals

Analytical Accounting, Finance , Operations depts.

Creative Marketing, product development, advertising

Innovation R&D., Eng., PD, new business

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Social interaction Coordination, Management, HR

Early Theories of Motivation

Maslow’s Hierarchy of Needs Theory

• McGregor’s Theory X, Y

• Herzberg’s Motivation-Hygiene theory

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Maslow’s Hierarchy of Needs(1960s, 1970s)

Self-

Actualization

Esteem

Social

Safety

Physiological Food, shelter

Security

belongingnes, acceptance

Status, recognition

Growth, challenge

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New challenges,

growth

group, team work

Maslow’s hierarchy..

• Maslow’s Hierarchy of Needs (Physiological, safety, social, esteem, self actualization)

So what does this mean for employers (Managers)

wages, salaries benefits

(health, retirement,

safe working env.)

Job title, stock

options

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McGregor’s Theory X and Theory Y

Theory X • Assumes employees have little ambition,

dislike work, avoid responsibility, and require close supervision

Theory Y• Assumes employees can exercise self-direction,

desire responsibility, and like to work

• Motivation is maximized by participative decision making, interesting jobs, and good group relations

So, how do you motivate?

More close supervision, more task oriented

Practice____Leadershipstyle

So, how do you motivate?

More team work, job redesign, set realistic goals

Practice____Leadershipstyle

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Early Theories of Motivation

Maslow’s Hierarchy of Needs Theory

McGregor’s Theory X, Y

• Herzberg’s Motivation-Hygiene theory

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Herzberg’s Motivation-Hygiene

• Achievement• Recognition• Work Itself

Responsibility• Advancement• Growth

Motivators Hygiene Factors

• Supervision• Company Policy• Relationship with Supervisor• Working Conditions• Salary• Relationship with Peers• Personal Life• Relationship with

Subordinates• Status• Security

Extremely Satisfied NeutralExtremely Dissatisfied

Intrinsic Extrinsic

So to motivate…focus on intrinsic factors12

Early Theories of Motivation

1. Maslow’s Hierarchy of Needs Theory

2. McGregor’s Theory X, Y

3. Herzberg’s Motivation-Hygiene theory

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Contemporary Theories of Motivation

1.Job Design2.Equity Theory 3.Expectancy Theory

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Contemporary Approach…Job designJob Design Combining tasks to form complete jobs

A.Job Enlargement Increasing the scope (number of tasks) in a job

For example:

Receptionist – answer phone calls, direct/seat people, sign packages.• How can it be redesigned ?

B. Job Enrichment Increasing responsibility and autonomy (depth)

• How can the receptionist’ s job be enriched ?

A & B alone not sufficient to motivate

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Job Characteristics Model(JCM)

1. Skill variety: use various skills and talents 2. Task identity: whole identifiable piece of work3. Task significance: meaningful impact4. Autonomy: independence, ownership5. Feedback: performance

How can we use this JCM to make the Receptionist’s job more motivating ?

In addition to job enlargement & job enrichment,

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Motivation and Perception

• Equity Theory employees perceive their worth based on the ratio of

job situation (outcomes) to what they put in (inputs) and compare with the inputs-outcomes ratios of relevant others

• If the ratios are perceived as equal then a state of equity (fairness) exists

• If the ratios are perceived as unequal, inequity exists and the person feels under - or over rewarded

• When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice)

1. Job Design Equity Theory3. Expectancy Theory

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Motivation, Perception and Behavior

• Expectancy Theory Individuals act based on the expectation that a given

outcome will follow and whether that outcome is attractive

Key to the theory is understanding and managing employee goals and the link between effort with performance/rewards

• Perception that an individual’s efforts will result in a certain level of performance

• Perception that a particular level of performance will result in attaining a desired outcome (reward)

• Attractiveness/importance of the performance reward to the individual

Relationship:

1. Job Design2. Equity Theory Expectancy Theory

Integrating the theories

1. Equity – fairness, equitable

2. Expectancy – efforts performance, rewards attractivness of rewards

3. Job design - JCM

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Motivating - Issues and Challenges

1. Cross-cultural• Is the Maslow Hierarchy applicable in all

cultures ?

• Collectivist cultures view rewards as “entitlements” to be distributed based on individual needs, not individual performance

2. Diverse groups• men and women• Professional (accounting, engineering,

doctors)• Public sector employees• Unionized employees• Contingent • Low-skilled

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Issues and challenges…

1. Men/women• Men – more autonomy than women

• Women – more learning opportunities, flexible schedules, and good interpersonal relations

2. ProfessionalsCharacteristics• Strong and long-term commitment to their field of

expertise• Loyalty to their profession (accounting,

engineering, doctors, teachers, nurses, IT)• Have the need to regularly update their knowledge• Don’t define their workweek 8:00 am to 5:00 pm

• Motivators• Job challenge• Organizational support of their work

• men and women• Professional• Public sector employees• Unionized employees• Contingent • Low-skilled

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• men and women• Professional• Public sector employees• Unionized employees• Contingent • Low-skilled

3. Public Sector• Productivity is more difficult to measure because the

work carried out is often of a service nature• Harder to make link between rewards and productivity• Setting goals significantly improves motivation of

public sector employees

4. Unionized Environment

5. Contingent Workers• Becoming permanent employee• Opportunity for training• Equity in compensation and benefits

6. Low-Skilled, Minimum-Wage Employees• Employee recognition programs• Praise• Money ? (overtime?)

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From Theory to Practice

Recognize individual differences

Guidelinesfor Motivating

Employees

Link rewards to performance

Individualize rewards

Match people to jobs

Check the system for equity

Use recognition

Don’t ignore money

Set S.M.A.R.T goals

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Review summary

Early Theories• Maslow

• Theory X , Y

• Motivators – Hygiene

Contemporary Theories• Job design

• Equity

• Expectancy

Current issues/challenges – how to motivate

• Cross cultural

• Unionized

• Public sector, Professionals

• Low-skilled

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Review HW Questions

1. Compare and contrast the early theories and the contemporary theories. Do they reflect the needs of the time.

2. Maslow’s theory may have a North American bias. Explain how Maslow’s hierarchy of needs can differ in other societies.

3. Give examples of how the “nature of the job” itself can be a motivational factor.

4. Can motivational factors differ according to employee type? Explain.

5. How does Jack Welch’s HR practices complement /or support motivational factors?