Chap009 3


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  • Business: A Changing World Part 4 Chapter 9.
  • Chapter nine is devoted to the topic of motivating the workforce. This is an important topic for organizations to consider, because insufficient motivation will result in low productivity, high employee turnover, and an all-around less successful business. We will consider the early students that laid the groundwork for modern theories of motivation and describe strategies that managers use to motivate employees.
  • Human relations involves motivating employees to achieve organizational goals efficiently and effectively. Motivation is an inner drive that directs a person’s behavior towards a goal or satisfaction of a need. Managers must be careful not to motivate employees to do the wrong things or for the wrong reasons (e.g. taking excessive risks or cutting corners to achieve performance-based rewards). HR has become an increasingly important field as businesses try to understand how to boost morale, maximize productivity and creativity and motivate diverse employees to be more effective.
  • Motivation can be complicated–sometimes motivational factors will encourage employees to take excessive risks or engage in ethical misconduct in order to be rewarded for performance. On the other end, not motivating employees enough, or motivating them in the wrong ways will lead to underperformance. This slide list a number of important questions managers should ask themselves when seeking to motivate employees.
  • Human relations is concerned with the needs of employees, their goals and how they try to achieve them and the impact of those needs and goals on job performance. This slide shows the basic model of human motivation. When a human has a need, he or she will engage in goal-directed behavior designed to satisfy that need.
  • Morale is an employee’s attitude toward his or her job, employer and colleagues. Morale is a prominent aspect of human relations. High employee morale is an important goal to achieve within an organization.
  • A business always wants to seek out ways to improve employee morale. High morale results in higher productivity, returns to shareholders, worker productivity and loyalty. High morale also results in lower absenteeism and lower turnover. Low morale, on the other hand, contributes to absenteeism, high employee turnover and lack of commitment.
  • A business always wants to seek out ways to improve employee morale. This slide lists a number of known morale boosters.
  • Rewards are an important tool when seeking to boost employee morale. An intrinsic reward is the personal satisfaction and enjoyment you feel from attaining a goal. Extrinsic rewards are the benefits and recognition you receive from someone else. Extrinsic rewards are things like benefits and pay increases. Employees are motivated by different kinds of rewards, both extrinsic and intrinsic.
  • It can be highly difficult to motivate employees, and people are motivated by different things. Motivation can be such an amorphous thing that there are even motivation conventions that are entirely dedicated to suggesting ways to motivate workers. Click on the hyperlink (4:00) for a humorous video on employee motivation.
  • Compensation is sometimes not the best way to motivate employees. Other benefits like generous vacation times, flex schedules, on-site daycare and advancement opportunities are important motivators as well. Non-pay motivators can result in longer-lasting satisfaction and higher levels of employee loyalty to the organization.
  • The classic theory of motivation has its roots in the early 20 th century. It came out of a series of experiments conducted by Frederick Taylor and Lillian Gilbreth. They focused on work and productivity, thinking that money is the best motivator for employees. Taylor and Gilbreth suggested making work highly specialized and linking pay to output so that employees would make more money as they worked faster. This idea is still applied today, but we understand that motivation is more complicated than Taylor and Gilbreth thought.
  • The Hawthorne Studies were conducted by Elton Mayo at the Hawthorne Works Plant from 1924-1932. Mayo’s studies revealed that money is not the only motivator for employees. He found that psychological and human factors also influence productivity and employee behavior. His work marked the beginning of the field of human relations.
  • Since the early 20 th century a number of theories on employee motivation have emerged. They will be discussed in the following slides.
  • Abraham Maslow postulated that humans have five basic needs (shown in the slide). This pyramid arranges needs in the order in which people seek to attain them, the most basic being on the bottom.
  • Maslow’s theory states that people progress through a series of needs. As they achieve one, they move on to others. People must achieve the lower-level needs before achieving higher-level ones. Many people never achieve the higher order of needs, and people may slip from one category to the other depending on circumstances and times in their lives.
  • The Two-Factor Theory was developed in the 1950s by Frederick Herzberg. Herzberg’s Theory focuses on the job and the environment where work is done. Concluded that motivational factors can be divided into two groups. Maslow’s and Herzberg’s theories are very similar, even though they broke down motivational factors into different groups.
  • Theory X and Y were developed by Douglas McGregor. His theory contrasts two different views of management–Theory X being the traditional view of management and Theory Y being the humanistic view. Theory X assumes that workers do not like work and that they must be forced to do their jobs. This theory states that the average worker does not want responsibility and prefers direction.
  • Theory Y is a more humanistic view of management and paints a more generous portrait of employees’ motivations. Theory Y states that people like to work and will seek to assume responsibility and self-control in order to achieve objectives. Theory Y believes that people will commit to objectives if they know there is going to be a personal reward. Theory Y further states that most organizations are not fully utilizing the imagination and intelligence of their workers. Managers subscribing to theory Y will be more democratic and will not use fear as a primary motivator.
  • Theory Z was developed by William Ouichi and incorporates many Japanese ideas into U.S. management. Theory Z stresses employee participation in all aspects of company decision making. Managers subscribing to this theory will be participative, and employees will tend to feel like owners of the organization. However, economic downturns in the late 20 th and early 21 st centuries have led many to question Theory Z. Nevertheless, this theory spawned a number of other similar theories.
  • Theory Z was tremendously popular and spawned a number of innovations in the workplace. Quality circles, participative management, employee involvement and self-directed work teams are the main ideas that emerged out of application of Theory Z. A central idea behind Theory Z is making employees responsible for outcomes of their work.
  • Equity theory assumes that how much people are willing to contribute to an organization depends on their assessment of the fairness (equity) of the rewards they will receive in exchange. Equity theory, therefore, states that people want equal pay for equal work. Employees who feel they are being treated inequitably will not be motivated to work hard. While equity theory makes sense, it is more complicated in practice because people are not good at taking impartial stock of themselves or their work. A worker may not be accurately assessing his/her contributions to the organization.
  • Expectancy theory assumes that motivation depends not only on how much a person wants something, but also on how likely he or she is to get it. Someone who wants something and believes he or she will get it are highly motivated to do a good job because they want the reward.
  • Developed by psychologist B.F. Skinner, behavior modification involves encouraging appropriate actions by relating the consequences of behavior back to the behavior itself. Behavior modification employs reward and punishment. The idea is that behavior that is rewarded will tend to be repeated–rewarding good behavior tends to be a more effective behavior modification strategy in the long term. Skinner believed that behavior that is punished will tend to be eliminated, although punishing employees is not as effective in the long-run as rewarding because it can lead to dissatisfaction.
  • There are a number of strategies that organizations employ to eliminate employee boredom and to increase motivation. Job rotation is one of them. It involved moving employees from one job to another to relieve the boredom often associated with job specialization. The drawback to job rotation is that it does not eliminate the risk of boredom.
  • Job enlargement is adding more tasks to a job instead of treating each task as separate. Enlargement seeks to counteract the boredom that comes with job specialization. However, job enlargement requires training employees in new tasks, which takes time and money.
  • Job enrichment incorporates motivational factors like recognition and responsibility into the job. This idea was developed by Herzberg. It rewards employees for good performance and provides employees with feedback so they can improve performance when needed.
  • Patagonia is a company that does a great job of motivating its employees, keeping morale high, and inspiring strong employee loyalty. Part of how Patagonia achieves these feats is through a strong corporate culture and embracing core values of environmentalism, recycling, and reducing waste. Employees who work at Patagonia tend to embrace these same values and therefore feel proud to work for the company. Having a company whose principles you share can be a great motivator. Click on the logo for a video (15:00) on Patagonia, its values and how it attracts loyal employees.
  • Allowing for flexible work schedules is another way to motivate employees. Flexible scheduling can help improve employee’s work/life balance, encourage healthier behaviors and improve employee satisfaction. Flextime, compressed workweeks and job sharing are all tactics that help employees feel less hampered by their job and allow them to have healthier lifestyles. Allowing workers to work from home full or part-time is another strategy to improve motivation.
  • Motivating employees is an important function of managers because it can help an organization be more productive and produce higher-quality products. Organizations with low employee turnover also will have a more cohesive organizational culture and will save money on recruiting and training new employees. Managers can further nurture motivation by being honest, supportive, empathetic, accessible, fair and open.
  • Chap009 3

    1. 1. FHFMcGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
    2. 2. part Creating the Human 4 Resource Advantage CHAPTER 9 Motivating the Workforce CHAPTER 10 Managing Human ResourcesFHF 9-2
    3. 3. Human Relations The study of the behavior of individuals and groups in organizational settings Motivation  An inner drive that directs a person’s behavior towards a goal or satisfaction of a need FHF 9-3
    4. 4. Motivating the Workforce What motivates employees to perform? How can managers boost morale? How do you maximize worker performance? How can you encourage creativity and innovation? FHF 9-4
    5. 5. The Basic Model of Motivation When a need exists, an individual engages in goal-directed behavior designed to satisfy that need FHF 9-5
    6. 6. Morale[ ] An employee’s attitude toward his or her job, employer and colleagues Morale is a prominent aspect of human relations FHF 9-6
    7. 7. MoraleHigh MoraleHigher productivity, returns to shareholders, worker productivityand loyaltyLower absenteeism and employee turnoverLow MoraleContributes to absenteeism, high employee turnover and lack of commitment …continued on next page FHF 9-7
    8. 8. MoraleMorale BoostersRespectInvolvementAppreciationCompensationPromotionPleasant work environmentPositive organizational culture FHF 9-8
    9. 9. RewardsIntrinsic Rewards  The personal satisfaction and enjoyment you feel from attaining a goal  Feeling of accomplishmentExtrinsic Rewards  Benefits and/or recognition you receive from someone else  Awards, benefits, pay increasesIntrinsic and extrinsic rewards both are important in motivatingemployees to contribute to business goals FHF 9-9
    10. 10. Employee Motivation• It can be difficult to motivate employees• Motivation is difficult to define and varies from person to person• Motivation conventions exist that are dedicated to suggesting ways to motivate workers FHF 9-10
    11. 11. Work/Life BalanceMost employees are motivated by more than pay... Source: “Work-life Balance Tops Pay,” USA Today Snapshots, March 13, 2008, p. B1. FHF 9-11
    12. 12. Classic Theory of MotivationEarly 20th century Frederick W. Taylor & Lillian Gilbreth  Scientific focus on work tasks & productivity Money  Thought to be the sole motivator for workersSatisfactory pay & job security motivate employees to workhard FHF 9-12
    13. 13. Hawthorne Studies1924-1932 at the Hawthorne Works Plant  Elton Mayo • Postulated that physical conditions in workplace stimulate productivity  Findings show social and psychological factors influence productivity/moraleMarks beginning of concern for human relations in theworkplace FHF 9-13
    14. 14. Theories of Employee Motivation Maslow’s Hierarchy of Needs Herzberg’s Two-Factor Theory McGregor’s Theory X and Theory Y Theory Z Variations on Theory Z Equity Theory Expectancy Theory FHF 9-14
    15. 15. Maslow’s Hierarchy of Needs Source: Adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review 50 (1943), pp. 70–396. American Psychology Association. …continued on next page FHF 9-15
    16. 16. Maslow’s Hierarchy of Needs Physiological Needs  Basic needs for food, water, shelter Security Needs  Protection from physical and economic harm Social Needs  Need for love, companionship Esteem Needs  Self-respect and respect from others Self-actualization  Maximizing one’s full potential FHF 9-16
    17. 17. Herzberg’s Two-Factor TheoryHygiene Factors  Focus on the work setting, not the content of the work • Wages, working conditions, company policies, job securityMotivational Factors  Focus on content of the work itself • Achievement, recognition, involvement, responsibility, advancement FHF 9-17
    18. 18. McGregor’s Theory X and Theory YTheory XConsidered the traditional management viewAssumes that workers  Generally dislike work  Must be forced to do their jobs  Average worker avoids responsibility and prefers direction …continued on next page FHF 9-18
    19. 19. McGregor’s Theory X and Theory YTheory YConsidered the humanistic management viewAssumes  Expending physical effort is natural (people like to work)  People will assume responsibility and self-control to achieve objectives (workers want to satisfy social, esteem and self-actualization needs)  People will commit to objectives once they realize there will be a personal reward  Most organizations do not adequately utilize imagination, ingenuity, creativity and intelligence of workers FHF 9-19
    20. 20. Theory ZA management philosophy that stresses employeeparticipation in all aspects of company decision makingIncorporates many Japanese ideas about management (trustand intimacy) adapted for use in the U.S. FHF 9-20
    21. 21. Variations on Theory Z Quality Circles (or Quality-Assurance Teams) Participative Management Employee Involvement Self-Directed Work Teams (SDWT) All strive to give employees more control over their jobs Make them responsible for outcomes FHF 9-21
    22. 22. Equity Theory The assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness (equity) of the rewards they will receive in exchange  Equal pay for equal work  Employees who do not feel equitably treated may slack off on the job or steal to level the field FHF 9-22
    23. 23. Expectancy Theory Assumes that motivation depends not only on how much a person wants something, but also on how likely he or she is to get it  Someone who wants something and has a reasonable expectation to achieve it will be highly motivated FHF 9-23
    24. 24. Motivating EmployeesBehavior ModificationChanging behavior and encouraging appropriate actions byrelating the consequences of behavior to the behavior itself  Reward  Punishment FHF 9-24
    25. 25. Strategies for Motivating EmployeesJob RotationMovement of employees from one job to another torelieve the boredom often associated with jobspecialization  The drawback is that it does not totally eliminate risk of boredom …continued on next page FHF 9-25
    26. 26. Strategies for Motivating EmployeesJob EnlargementAddition of more tasks to a job instead of treatingeach task as separate  Seeks to counteract the boredom of division of labor  Many small firms use job enlargement  Requires training employees in new tasks …continued on next page FHF 9-26
    27. 27. Strategies for Motivating EmployeesJob EnrichmentIncorporating motivational factors (achievement,recognition, responsibility) into the job  Idea developed by Herzberg in the 1950s  Gives employees feedback on their performance  Rewards for good performance …continued on next page FHF 9-27
    28. 28. Values and MotivationMany employees are motivated by working fora company that shares their valuesPatagonia  Loyal, dedicated employees  Less than 4% employee turnover  Core values embrace reducing waste, recycling, environmentalism  Psychological success  Good health  Good work/life balance  Enjoying your job tasks  Money is not main motivator FHF 9-28
    29. 29. Strategies for Motivating EmployeesFlexible scheduling strategiesFlextime • Allows employees to choose their start and end timesCompressed Workweek • 40 hours in a 4-day workweekJob Sharing • Occurs when two people share the same job …continued on next page FHF 9-29
    30. 30. Importance of Motivational Strategies Fosters employee loyalty Boosts productivity Influences on pay, promotion, job design Nature of relationships Nature of the job itself Characteristics of the organization FHF 9-30