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Introduction to Business (BUS 101)

Lecture 9Motivating Employees

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Maslow’s hierarchy of needs: Motivation arises from need.

Physiological needs: Basic survival needs, such as the need for food, water and shelter.

Safety needs: The need to feel secure at work and at home.

Social needs: The need to feel loved, accepted, and part of a group.

Esteem needs: The need for recognition and acknowledgement from others, as well as self-respect and a sense of status or importance.

Self-actualization needs: The need to develop to one’s fullest pottential.

People are motivated to satisfy unmet needs. Needs that have already been satisfied no longer provide motivation.

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Maslow’s hierarchy of needs

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Herzberg’s motivating factors

Motivators Hygiene (Maintenance) Factors

These factors can be used to motivate workers

These factors can cause dissatisfaction, but changing them will have little motivational effect.

Work itself Company policy and administration

Achievement Supervision

Recognition Working condition

Responsibility Interpersonal relations

Growth and advancement Salary, status and job security

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Comparison of McGregor’s Theory X and Y, and Ouchi’s Theory Z

Theory X Theory Y Theory Z

Employees dislike work and will try to avoid it.

Employees view work as a natural part of life.

Employee involvement is the key to increased productivity.

Employees prefer to be controlled and directed.

Employees prefer limited control and direction.

Employee control is implied and informal.

Employees seek security, not responsibility.

Employees will seek responsibility under proper work conditions.

Employees prefer to share responsibility and decision making.

Employees must be intimidated by managers to perform.

Employees perform better in nonintimidating environment.

Employees perform better in environments that foster trust and cooperation.

Employees are motivated by financial rewards.

Employees are motivated by many different needs.

Employees need guaranteed employment and will accept slow evaluation.

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Goal-setting theory versus management by objectives (MBO)

Goal-setting theory says setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted and accompanied by feedback, and if conditions in the organization pave the way for achievement.

Management by objective (MBO) is a system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and mid-level managers, supervisors, and employees.

The central idea of MBO is that employees need to motivate themselves. Problems arise when goals are not agreed on together.

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Expectancy Theory: According to Victor Vroom, employee expectation can affect motivation. Thee amount of effort employees exert on a specific task depends on their expectation of the outcome.

Employees ask three questions before committing their maximum effort to a task:

1. Can I accomplish the task?2. If I do accomplish it, what’s my reward?3. Is the reward worth the effort?

Researcher David Nadler and Edward Lawler suggested that managers follow five steps to improve employee performance.

1. Determine what rewards employees value.2. Determine each employee’s desired performance standard.3. Ensure that performance standards are attainable.4. Guarantee rewards tied to performance.5. Be certain that employees consider the rewards adequate.

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Putting theory into action

Job enrichment is a motivational strategy that emphasizes motivating the worker through the job itself. Job enrichment grew from Maslow’s and Herzberg’s work.

Five characteristics of enriched job Skill variety: The extend to which job demands different skills. Task identity: The degree to which the job requires doing a task with a visible

outcome from beginning to end. Task significance: The degree to which the job has a substantial impact on the

lives or work of others in the company. Autonomy: The degree of freedom, independence, and discretion in

scheduling work and determining procedures. Feedback: The amount of direct and clear information given about job

performance.

Job enlargement is a job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment.

Job rotation is also a job enrichment strategy that involves moving employees from one job to another.

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Motivating through open communicationOpen communication helps both managers and employees understand the objectives and work together to achieve them.

How can managers encourage open communication? Create an organizational culture that rewards listening. Train supervisors and managers to listen. Use effective questioning techniques. Remove barriers to open communication. Avoid vague and ambiguous communication. Make it easy to communicate. Ask employees what is important to them.

Letting people know you appreciate their work is usually more powerful than giving a rise or bonus alone.Personalizing motivation - The same things don’t motivate all employees.Across Globe, Across generation.

Any question/comment/suggestion?