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© Pearson Education Limited 2015 11-1
Chapter11Motivating and Rewarding Employees
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.
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© Pearson Education Limited 2015 11-3
11.1Define and explain
motivation.
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
© Pearson Education Limited 2015 11-5
11.2Compare and
contrast early
theories of
motivation.
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
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
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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
Herzberg’s Two-Factor Theory
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Satisfaction vs. Dissatisfaction
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He stated that removing dissatisfying characteristics from a job would
not necessarily make that job more satisfying (or motivating)
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.
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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.
© 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.
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
Influences on Job Performance
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• Feedback
• Goal commitment
• Adequate self-efficacy
• National culture
Job Characteristics Model(JCM)
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This model can help managers design jobs that motivate
Feel
Important,
valuable,
worthwhile
Job Design and Motivation
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Internal rewards are obtained when an employee learns that he or she personally has performed well on a task he or she cares about.
Guidelines for Job Redesign(omit)
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Equity Theory
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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.
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.
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Integrating Motivation Theories
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goal-setting theory
Expectancy theory
need theories
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11.4Discuss current
issues in motivating
employees.
Current Issues
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issues—motivating in tough economic circumstances,
managing cross-cultural challenges, motivating unique
groups of workers, and designing appropriate rewards
programs.
Country Culture and Motivation
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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
Cross-Cultural Differences & Consistencies
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Equity theory- workers are highly sensitive to equity in reward allocations
Two-factor theory- by Herzberg - universal to some degree
Unique Groups of Workers
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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.
Designing Appropriate Rewards Programs
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• 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
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 )
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Low-Cost Rewards Program
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• Clarify role in organization
• Keep communication open
• Show individual company cares
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Chapter12Leadership and Trust
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.
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12.1Define leader and
leadership.
Leaders and Leadership
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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.
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12.2Compare and
contrast early
leadership
theories.
Trait Theories of Leadership
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What Traits Do Leaders Have?
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Behavioral Theories of Leadership
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University of Iowa and Ohio State Studies
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University of Michigan Study and Managerial Grid
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Situational Leadership
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Which leadership styles might be suitable in different situations, and what are those different situations?
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12.3Describe the four
major contingency
leadership
theories.
Least-Preferred Coworker Questionnaire
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The Fiedler Model
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Situational Leadership Theory
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Why does a leadership theory focus on the followers?
What does readiness mean?
Situational Leadership Theory (cont.)
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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.
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