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© Pearson Education Limited 2015 11-1 Chapter 11 Motivating and Rewarding Employees

Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

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Page 1: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

© Pearson Education Limited 2015 11-1

Chapter11Motivating and Rewarding Employees

Page 2: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Learning Outcomes

• Define and explain motivation.

• Compare and contrast early theories of motivation.

• Compare and contrast contemporary theories of motivation.

• Discuss current issues in motivating employees.

© Pearson Education Limited 2015 11-2

Page 3: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

© Pearson Education Limited 2015 11-3

11.1Define and explain

motivation.

Page 4: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

What is Motivation? : the process by which a

person’s efforts are energized, directed, and sustained toward attaining a goal

• Three Key elements:

1. Energy : a measure of intensity or drive

2. Direction : toward, and consistent with, organizational

goals.

3. Persistence : keep putting forth effort to achieve

those goals.

© Pearson Education Limited 2015 11-4

Page 5: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

© Pearson Education Limited 2015 11-5

11.2Compare and

contrast early

theories of

motivation.

Page 6: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Maslow’s Hierarchy of Needs

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Security & protection

from harm

food, drink, shelter, sex, sleep,

and other physical requirements

affection, belongingness, acceptance, and friendship

internal esteem factors such as

self-respect, autonomy, and

achievement, and external esteem

factors such as status, recognition,

and attention

Page 7: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

McGregor’s Theory X and Theory Y

Theory X:

•Little ambition

•Dislike work

•Avoid responsibility

•Must be closely controlled

Theory Y:

•Enjoy work

•Seek and accept responsibility

•Exercise self-direction

© Pearson Education Limited 2015 11-7

Unfortunately, no evidence confirms that either set of assumptions is

valid or that being a Theory Y manager is the only way to motivate

employees

Page 8: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Herzberg’s Two-Factor Theory

© Pearson Education Limited 2015 11-8

Page 9: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Satisfaction vs. Dissatisfaction

© Pearson Education Limited 2015 11-9

He stated that removing dissatisfying characteristics from a job would

not necessarily make that job more satisfying (or motivating)

Page 10: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

McClelland’s Three-Needs Theoryemployees can be trained to stimulate their achievement need by being in situations where they have personal responsibility, feedback, and moderate risks.

© Pearson Education Limited 2015 11-10

Three acquired needs are work motives:

1. Need for achievement(nAch) - the drive to

succeed and excel in relation to a set of standards

2. Need for power(nPow) - the need to make others

behave in a way that they would not behave otherwise

3. Need for affiliation(nAff) - the desire for friendly

and close interpersonal relationships.

The other two needs in this theory haven’t been researched as extensively.

Page 11: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

© Pearson Education Limited 2015 11-11

11.3 Compare and

contrast

contemporary

theories of

motivation : goal-setting theory, job design theory, equity theory, and expectancy theory.

Page 12: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Goal-Setting Theory

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Self-efficacy refers to an individual’s

belief that he or she is capable of

performing a task

people do better if they get

feedback on how well

they’re progressing toward

their goals

Page 13: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Influences on Job Performance

© Pearson Education Limited 2015 11-13

• Feedback

• Goal commitment

• Adequate self-efficacy

• National culture

Page 14: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Job Characteristics Model(JCM)

© Pearson Education Limited 2015 11-14

This model can help managers design jobs that motivate

Feel

Important,

valuable,

worthwhile

Page 15: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Job Design and Motivation

© Pearson Education Limited 2015 11-15

Internal rewards are obtained when an employee learns that he or she personally has performed well on a task he or she cares about.

Page 16: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Guidelines for Job Redesign(omit)

© Pearson Education Limited 2015 11-16

Page 17: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Equity Theory

© Pearson Education Limited 2015 11-17

Distributive justice is the perceived fairness of the amount and

allocation of rewards among individuals. Procedural justice is the

perceived fairness of the process used to determine the distribution of

rewards.

Page 18: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Expectancy Theory : an individual tends to act in a certain

way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

© Pearson Education Limited 2015 11-18

Page 19: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Integrating Motivation Theories

© Pearson Education Limited 2015 11-19

goal-setting theory

Expectancy theory

need theories

Page 20: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

© Pearson Education Limited 2015 11-20

11.4Discuss current

issues in motivating

employees.

Page 21: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Current Issues

© Pearson Education Limited 2015 11-21

issues—motivating in tough economic circumstances,

managing cross-cultural challenges, motivating unique

groups of workers, and designing appropriate rewards

programs.

Page 22: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Country Culture and Motivation

© Pearson Education Limited 2015 11-22

Managers can’t assume that motivational programs that work in one geographic location are going to work in others.

Think Maslow’s need hierarchy; achievement need

Page 23: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Cross-Cultural Differences & Consistencies

© Pearson Education Limited 2015 11-23

Equity theory- workers are highly sensitive to equity in reward allocations

Two-factor theory- by Herzberg - universal to some degree

Page 24: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Unique Groups of Workers

© Pearson Education Limited 2015 11-24

Motivating:

1. Diverse employees – consider flexibility

2. Professionals - professionals is different from

motivating nonprofessionals. Professionals have a strong and long-term commitment to their field of expertise, they need to keep current and regularly update their knowledge, and, because of their commitment to their profession, they work beyond a 40-hour week.

3. Contingent workers- might be motivated by the

opportunity to become a permanent employee or an

opportunity for training.

Page 25: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Designing Appropriate Rewards Programs

© Pearson Education Limited 2015 11-25

• Open-book management : opening up the

financial statements (the “books”) so that employees will be motivated to make better decisions about their work and be better able to understand the implications of what they do

• Employee recognition programs can motivate

employees by providing personal attention and expressions of interest, approval, and appreciation for a job well done

Page 26: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Pay-for-Performance : making some or all an

employee’s pay conditional on some performance

–variable compensation plans (Piece-rate pay plans based on workers’ productivity, wage incentive plans, profit-sharing, and lump sum bonuses )

© Pearson Education Limited 2015 11-26

Page 27: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Low-Cost Rewards Program

© Pearson Education Limited 2015 11-27

• Clarify role in organization

• Keep communication open

• Show individual company cares

Page 28: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

11-28© Pearson Education Limited 2015

Page 29: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

© Pearson Education Limited 2015 12-29

Chapter12Leadership and Trust

Page 30: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Learning Outcomes

• Define leader and leadership.

• Compare and contrast early leadership theories.

• Describe the four major contingency leadership theories.

• Describe modern views of leadership and the issues facing today’s leaders.

• Discuss trust as the essence of leadership.

© Pearson Education Limited 2015 12-30

Page 31: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

© Pearson Education Limited 2015 12-31

12.1Define leader and

leadership.

Page 32: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Leaders and Leadership

© Pearson Education Limited 2015 12-32

Leader:

Someone who can influence others and who has managerial authority.

Leadership:

The process of leading a group and influencing that group to achieve its goals.

Page 33: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

© Pearson Education Limited 2015 12-33

12.2Compare and

contrast early

leadership

theories.

Page 34: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Trait Theories of Leadership

© Pearson Education Limited 2015 12-34

Page 35: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

What Traits Do Leaders Have?

© Pearson Education Limited 2015 12-35

Page 36: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Behavioral Theories of Leadership

© Pearson Education Limited 2015 12-36

Page 37: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

University of Iowa and Ohio State Studies

© Pearson Education Limited 2015 12-37

Page 38: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

University of Michigan Study and Managerial Grid

© Pearson Education Limited 2015 12-38

Page 39: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Situational Leadership

© Pearson Education Limited 2015 12-39

Which leadership styles might be suitable in different situations, and what are those different situations?

Page 40: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

© Pearson Education Limited 2015 12-40

12.3Describe the four

major contingency

leadership

theories.

Page 41: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Least-Preferred Coworker Questionnaire

© Pearson Education Limited 2015 12-41

Page 42: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

The Fiedler Model

© Pearson Education Limited 2015 12-42

Page 43: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Situational Leadership Theory

© Pearson Education Limited 2015 12-43

Why does a leadership theory focus on the followers?

What does readiness mean?

Page 44: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

Situational Leadership Theory (cont.)

© Pearson Education Limited 2015 12-44

Page 45: Motivating and Rewarding Employeescontents.kocw.net/KOCW/document/2016/chungang/huryeon/8.pdf · McClelland’s Three-Needs Theory employees can be trained to stimulate their achievement

1. Telling (high task–low relationship), in which the leader defines roles and tells people what, how, when, and where to do various tasks;

2. Selling (high task–high relationship), in which the leader provides both directive and supportive behavior;

3. Participating (low task–high relationship), in which the leader and followers share in decision making and the main role of the leader is facilitating and communicating;

4. Delegating (low task–low relationship), in which the leader provides little direction or support.

The final component in the model is the four stages of follower readiness:• R1: People are both unable and unwilling to take responsibility for doing

something. Followers aren’t competent or confident.• R2: People are unable but willing to do the necessary job tasks. Followers are

motivated but lack the appropriate skills.• R3: People are able but unwilling to do what the leader wants. Followers are

competent but don’t want to do something.• R4: People are both able and willing to do what is asked of them.

• SLT essentially views the leader-follower relationship like that of a parent and a child, in which a parent needs to relinquish control when a child becomes more mature and responsible. As followers reach higher levels of readiness, the leader responds not only by decreasing control over their activities but also by decreasing relationship behaviors.

© Pearson Education Limited 2015 1-45