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Beyond Theory Z - Motivation in the Knowledge-Value Era by Joseph J. Haefner Engineering Management

Beyond Theory Z

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Employee motivation is a systemic phenomenon comprised of subgroups with discrete actionable elements.

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Page 1: Beyond Theory Z

Beyond Theory Z - Motivation in the Knowledge-Value Era

by

Joseph J. HaefnerEngineering Management

Page 2: Beyond Theory Z

Abstract

Employee motivation in the emerging knowledge-value era is an extension of Maslow’s Theory Z. Recent research on motivation has identified theory Z factors affecting employee motivation and performance. The storyboard displays the result of replacing Theory X motivation techniques with Theory Z motivation techniques in a $10,000,000 Production throughput success.

Copyright 2008 JJ Haefner

Page 3: Beyond Theory Z

Cost Penalty

Annual Throughput Per Shift

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

A B C

Shift

$10,000,000 Lost

LossLoss

Copyright 2008 JJ Haefner

Page 4: Beyond Theory Z

Theory X Does Not EngageLeadership Environment Individual Positive

Enabling Formulation Org. Values & Dynamics Self-efficacy Valued Work

Task Significance Interest Alignment Prosocial Motivation Enlightened HR Policy

Natural Work Units Trust Commitment Fact-based Management

Intellectual Stimulation Autonomy Self-monitoring Quality Systems

Regulatory Foci Shared Norms Agreeableness Consistency in Task Significance & Performance

Participative Decision-Making

Normative Intrinsic Positive Mood & Attitude High Perceived Utility

Job Design Group Rewards Intrinsic Motivation High Task Interdependence

Extrinsic Motivation Self-determination Task Simplicity

Goal Setting Goal Regulation Low Formalization

Copyright 2008 JJ Haefner

Page 5: Beyond Theory Z

Systemic Motivation• The basis for motivation is much more

than Theory X (workers cannot be trusted), and Theory Y (workers can be empowered).

• Motivation is a systemic phenomenon with elements in:– Leadership– Environment– Individual Psychology

Copyright 2008 JJ Haefner

Page 6: Beyond Theory Z

Leadership

• Enabling formulation• Task significance forming natural work units• Intellectual stimulation• Regulatory foci• Participative decision-making • Job design• Extrinsic motivation• Goal setting

Copyright 2008 JJ Haefner

Page 7: Beyond Theory Z

Environment

• Social interaction and normative values• Interest alignment• Trust.• Autonomy• Shared norms• Normative intrinsic motivation• Interaction of reward system and socialization

regime

Copyright 2008 JJ Haefner

Page 8: Beyond Theory Z

Individual Psychology• Self-efficacy• Prosocial motivation• Commitment.• Self-monitoring• Goal regulation• Agreeableness• Positive mood• Intrinsic motivation• Self-determination

Copyright 2008 JJ Haefner

Page 9: Beyond Theory Z

Motivation Deterrence

• Employer undervaluing work results.• Punitive focus.• “Impression” management, non-fact based.• Not using Total Quality Management practices.• Inconsistent relationship between task

significance and job performance.• Perceived task utility is low.• Task interdependence is low.• Task complexity.• High task formalization

Copyright 2008 JJ Haefner

Page 10: Beyond Theory Z

Low to High Motivational Saturation

0.00

0.50

1.00Non-Deterrent

Leadership

Environment

Individual0.00

0.20

0.40

0.60

0.80

1.00

Non-Deterrent

Leadership

Environment

Individual

The improvement began with Enabling Management & Intellectual Stimulatione.g. technical skills.

Interest alignment, and trust created the positive synergy to release other latent motivational behaviors.

Copyright 2008 JJ Haefner

Page 11: Beyond Theory Z

Motivational Engagement SuccessLeadership Environment Individual Positive

Enabling Formulation Social Interaction Self-efficacy Valued Work

Task Significance Interest Alignment Prosocial Motivation Enlightened HR Policy

Natural Work Units Trust Commitment Fact-based Management

Intellectual Stimulation Autonomy Self-monitoring Quality Systems

Regulatory Foci Shared Norms Agreeableness Consistency in Task Significance & Performance

Participative Decision-Making

Normative Intrinsic Positive Mood & Attitude High Perceived Utility

Job Design Group Rewards Intrinsic Motivation High Task Interdependence

Extrinsic Motivation Self-determination Task Simplicity

Goal Setting Goal Regulation Low Formalization

Copyright 2008 JJ Haefner

Page 12: Beyond Theory Z

Cost Benefit

Shift C Employees Became Self-Motivated And Broke Production Records

Over $10,000,000 Yield Improvement

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

A B C

Shift

LossRecovery

Motivation Bonus

[email protected] 2008 JJ Haefner