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Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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Page 1: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Motivating Employees

Chapter 10

Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Page 2: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

1. Explain Taylor’s theory of scientific management.

2. Describe the Hawthorne studies and their significance to management.

3. Identify the levels of Maslow’s hierarchy of needs and apply them to employee motivation.

4. Distinguish between the motivators and hygiene factors identified by Herzberg.

5. Differentiate among Theory X, Theory Y, and Theory Z.

LEARNING GOALSChapter Ten

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Page 3: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

6. Explain the key principles of goal-setting, expectancy, reinforcement, and equity theories.

7. Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition.

8. Show how managers personalize motivation strategies to appeal to employees across the globe and across generations.

LEARNING GOALSChapter Ten

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Page 4: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

INTRINSIC / EXTRINSIC REWARDS

• Intrinsic Rewards:

The Value of Motivation

- Pride in your performance

- Sense of achievement

- Extrinsic Rewards -- Personal satisfaction you feel when you perform well and complete goals.

- Bonuses

- Compensation

- Fringe Benefits

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Page 5: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

TAYLOR’S SCIENTIFIC MANAGEMENT

• Scientific Management -- Studying workers to find the most efficient ways of doing things and then teaching people those techniques.

• Three Key Elements to Increase Productivity

1. Time

2. Methods of Work

3. Rules of Work

Frederick Taylor: The Father of Scientific Management

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Page 6: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

TAYLOR’S FOUR KEY PRINCIPLES

1. Study how a job is performed.• Gather time & motion information.• Check different methods.

2. Codify the best method into rules.

3. Choose workers whose skill matches the rules.

4. Establish a fair level of performance and pay.

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Frederick Taylor: The Father of Scientific Management

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Page 7: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

TIME-MOTION STUDIES

• Time-Motion Studies -- Studies of which tasks must be performed to complete a job and the time needed to do each task.

• Led to the development of the Principle of Motion Economy -- Every job can be broken down into a series of elementary motions; developed by Frank and Lillian Gilbreth.

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Frederick Taylor: The Father of Scientific Management

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Page 8: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

HAWTHORNE STUDIES: PURPOSE AND RESULTS

• Researchers studied worker efficiency under different levels of light.

• Productivity increased regardless of light condition.

Elton Mayo and the Hawthorne Studies

• Researchers decided it was a human or psychological factor at play.

• Hawthorne Effect -- People act differently when they know they are being studied.

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Page 9: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

MASLOW’S THEORY of MOTIVATION

• Hierarchy of Needs -- Theory of motivation based on unmet human needs from basic physiological needs to safety, social and esteem needs to self-actualization needs.

• Needs that have already been met do not motivate.

• If a need is filled, another higher-level need emerges.

Motivation and Maslow’s Hierarchy of Needs

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Page 10: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

HERZBERG’S MOTIVATING FACTORS

• Herzberg’s research centered on two questions:

Herzberg’s Motivating Factors

- What factors controlled by managers are most effective in increasing worker motivation?

- How do workers rank job-related factors in order of importance related to motivation?

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JOB CONTENT

• Herzberg found job content factors were most important to workers – workers like to feel they contribute to the company.

• Motivators -- Job factors that cause employees to be productive and that give them satisfaction.

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Herzberg’s Motivating Factors

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JOB ENVIRONMENT

• Job environment factors maintained satisfaction, but did not motivate employees.

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Herzberg’s Motivating Factors

• Hygiene Factors -- Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased.

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COMPARISON of the THEORIES of MASLOW and HERZBERGLG4

Herzberg’s Motivating Factors

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REIGNITE EMPLOYEES’ DRIVE Simple Ways to Reinvigorate Work Life

1. Don’t work alone all the time; partners or teams make work more efficient and fun.

2. Redecorate your space to get away from the same-old, same-old.

3. Don’t complain; think of things to celebrate.

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Herzberg’s Motivating Factors

Source: Fast Company, March 2010. Photo Courtesy of: Nels Highberg

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Page 15: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

THEORY X and THEORY Y

• Douglas McGregor proposed managers had two different sets of assumptions concerning workers.

• Their attitudes about motivating workers were tied to these assumptions.

• McGregor called them Theory X and Theory Y. Manager’s assume:

• Theory X - Workers dislike work and seek to avoid it.

• Theory Y - People like work, it’s a part of life.

McGregor’s Theory X and Theory Y

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THEORY Z

• William Ouchi researched cultural differences between the U.S. (Type A) and Japan (Type J).

• Type J committed to the organization and group.

Ouchi’s Theory Z

• Type A focused on the individual.

• Theory Z is the hybrid approach of Types A and J.

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GOAL-SETTING THEORY

• Goal-Setting Theory -- Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.

Goal-Setting Theory and Management by Objectives

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APPLYING GOAL-SETTING THEORY

• Management by Objectives (MBO) -- Involves a cycle of discussion, review and evaluation of objectives among top and middle-level managers, supervisors and employees.

• Managers formulate goals in cooperation with everyone in the organization.

• Need to monitor results and reward achievement.

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Goal-Setting Theory and Management by Objectives

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Page 19: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

EXPECTANCY THEORY in MOTIVATION

• Expectancy Theory -- The amount of effort employees exert on a specific task depends on their expectations of the outcome.

• Employees ask:- Can I accomplish the task?

- What’s my reward?

- Is the reward worth the effort?

• Expectations can vary from person to person.

Meeting Employee Expectations: Expectancy Theory

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Page 20: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

NADLER & LAWLER’S MODIFICATION

• Researchers Nadler and Lawler modified expectancy theory and suggested five steps for managers:1. Determine what rewards employees value.

2. Determine workers’ performance standard.

3. Make sure performance standards are attainable.

4. Tie rewards to performance.

5. Be sure employees feel rewards are adequate.

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Meeting Employee Expectations: Expectancy Theory

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Page 21: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

USING REINFORCEMENT THEORY

• Reinforcement Theory -- Positive and negative reinforcers motivate a person to behave in certain ways.

• Positive reinforcement includes praise, pay increases and recognition.

• Negative reinforcement includes reprimands, reduced pay, and layoff or firing.

• Extinction is a way of trying to stop behavior by not responding to it.

Reinforcing Employee Performance: Reinforcement Theory

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EQUITY THEORY

• Equity Theory -- Employees try to maintain equity between inputs and outputs compared to others in similar positions.

• Workers often base perception of their outcomes on a specific person or group.

• Perceived inequities can lead to reduced quality and productivity, absenteeism, even resignation.

Treating Employees Fairly: Equity Theory

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ENRICHING JOBS

• Job Enrichment -- A motivational strategy that emphasizes motivating the worker through the job itself.

Motivation Through Job Enrichment

• Based on Herzberg’s motivators, such as responsibility, achievement and recognition.

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Page 24: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

KEY CHARACTERISTICS of WORK

1. Skill Variety

2. Task Identity

3. Task Significance

4. Autonomy

5. Feedback

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Motivation Through Job Enrichment

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Page 25: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

TYPES of JOB ENRICHMENT

• Job Enlargement -- A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment.

• Job Rotation -- A job enrichment strategy that involves moving employees from one job to another.

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Motivation Through Job Enrichment

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Page 26: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

USING OPEN COMMUNICATION

• Create a culture that rewards listening.

• Train managers to listen.

• Use effective questioning techniques.

• Remove barriers to open communication.

• Ask employees what’s important to them.

Motivating Through Open Communication

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Page 27: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

KEEPING the LINES OPEN(Social Media in Business)

• Businesses can no longer limit themselves to traditional intranets.

• They must communicate with employees, not to them.

• Employees expect 24/7 access to what they need with what they have (smartphone, iPad, notebook).

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Page 28: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

RECOGNIZING GOOD WORK

• Raises are not the only ways to recognize an employee’s performance. Recognition can also include:

- Paid time off

- Flexible scheduling

- Work from home opportunities

- Paid child or elder care

- Stock options or profit sharing

- Company awards

- Company events or teams

Recognizing a Job Well Done

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Page 29: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

WORK WELL with OTHERSKeys for Productive Teamwork

• Have a common understanding of your task.

• Clarify roles and responsibilities.

• Set rules.

• Get to know each other.

• Communicate openly and often.

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Recognizing a Job Well Done

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Page 30: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

MOTIVATING EMPLOYEES ACROSS the GLOBE

• Cultural differences make worker motivation a challenging task for global managers.

• High-Context cultures require relationships and group trust before performance.

Motivating Employees Across the Globe

• Low-Context cultures believe relationship building distracts from tasks.

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Page 31: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

MOTIVATING ACROSS the GENERATIONS

• Baby Boomers (1946 – 1964)- Experienced great economic prosperity, job

security, optimism about their future

• Generation X (1965 – 1980)- Raised in dual-career families, attended day care,

feeling of insecurity about jobs

• Generation Y or Millennials (1980 – 2000)- Raised by indulgent parents, used to many

comforts like computers and cell phones

Motivating Employees Across Generations

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Page 32: Motivating Employees Chapter 10 Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

COMMUNICATION ACROSS the GENERATIONS

• Baby Boomers (1946 – 1964)- Prefer meetings and conference calls.

• Generation X (1965 – 1980)- Prefer email and will choose meetings only if there

are no other options.

• Generation Y or Millennials (1980 – 2000)- Prefer to use technology to communicate,

particularly through social media.

Motivating Employees Across Generations

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