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9erobbins ppt16
1.
ninth edition STEPHEN P.
ROBBINS © 2007 Prentice Hall, Inc.© 2007 Prentice Hall, Inc. All rights reserved.All rights reserved. PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook The University of West AlabamaThe University of West Alabama MARY COULTER MotivatingMotivating EmployeesEmployees ChapterChapter 1616
2.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â2 L E A R N I N G O U T L I N EL E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter. What Is Motivation?What Is Motivation? âą Define motivation.Define motivation. âą Explain motivation as a need-satisfying process.Explain motivation as a need-satisfying process. Early Theories of MotivationEarly Theories of Motivation âą Describe Maslowâs hierarchy of needs and how it can beDescribe Maslowâs hierarchy of needs and how it can be used to motivate.used to motivate. âą Discuss how Theory X and Theory Y managers approachDiscuss how Theory X and Theory Y managers approach motivation.motivation. âą Describe Herzbergâs motivation-hygiene theory.Describe Herzbergâs motivation-hygiene theory. âą Explain Herzbergâs views of satisfaction andExplain Herzbergâs views of satisfaction and dissatisfaction.dissatisfaction.
3.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â3 L E A R N I N G O U T L I N E (contâd)L E A R N I N G O U T L I N E (contâd) Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter. Contemporary Theories of MotivationContemporary Theories of Motivation âą Describe the three needs McClelland proposed as beingDescribe the three needs McClelland proposed as being present in work settings.present in work settings. âą Explain how goal-setting and reinforcement theoriesExplain how goal-setting and reinforcement theories explain employee motivation.explain employee motivation. âą Describe the job characteristics model as a way to designDescribe the job characteristics model as a way to design motivating jobs.motivating jobs. âą Discuss the motivation implications of equity theory.Discuss the motivation implications of equity theory. âą Contrast distributive justice and procedural justice.Contrast distributive justice and procedural justice. âą Explain the three key linkages in expectancy theory andExplain the three key linkages in expectancy theory and their role in motivation.their role in motivation.
4.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â4 L E A R N I N G O U T L I N E (contâd)L E A R N I N G O U T L I N E (contâd) Follow this Learning Outline as you read and study this chapter.Follow this Learning Outline as you read and study this chapter. Current Issues in MotivationCurrent Issues in Motivation âą Describe the cross-cultural challenges of motivation.Describe the cross-cultural challenges of motivation. âą Discuss the challenges managers face in motivatingDiscuss the challenges managers face in motivating unique groups of workers.unique groups of workers. âą Describe open-book management, employee recognition,Describe open-book management, employee recognition, pay-for-performance, and stock option programs.pay-for-performance, and stock option programs.
5.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â5 What Is Motivation?What Is Motivation? âą MotivationMotivation ï Is the result of an interaction between the person andIs the result of an interaction between the person and a situation; it is not a personal trait.a situation; it is not a personal trait. ï Is the process by which a personâs efforts areIs the process by which a personâs efforts are energized, directed, and sustained towards attainingenergized, directed, and sustained towards attaining a goal.a goal. ï¶ Energy:Energy: a measure of intensity or drive.a measure of intensity or drive. ï¶ Direction:Direction: toward organizational goalstoward organizational goals ï¶ Persistence:Persistence: exerting effort to achieve goals.exerting effort to achieve goals. ï Motivation works best when individual needs areMotivation works best when individual needs are compatible with organizational goals.compatible with organizational goals.
6.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â6 Early Theories of MotivationEarly Theories of Motivation âą Maslowâs Hierarchy of NeedsMaslowâs Hierarchy of Needs âą MacGregorâs Theories X and YMacGregorâs Theories X and Y âą Herzbergâs Two-Factor TheoryHerzbergâs Two-Factor Theory
7.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â7 Early Theories of MotivationEarly Theories of Motivation âą Maslowâs Hierarchy of Needs TheoryMaslowâs Hierarchy of Needs Theory ï Needs were categorized as five levels of lower- toNeeds were categorized as five levels of lower- to higher-order needs.higher-order needs. ï¶ Individuals must satisfy lower-order needs before they canIndividuals must satisfy lower-order needs before they can satisfy higher order needs.satisfy higher order needs. ï¶ Satisfied needs will no longer motivate.Satisfied needs will no longer motivate. ï¶ Motivating a person depends on knowing at what level thatMotivating a person depends on knowing at what level that person is on the hierarchy.person is on the hierarchy. ï Hierarchy of needsHierarchy of needs ï¶ Lower-order (external): physiological, safetyLower-order (external): physiological, safety ï¶ Higher-order (internal): social, esteem, self-actualizationHigher-order (internal): social, esteem, self-actualization
8.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â8 Exhibit 16â1Exhibit 16â1 Maslowâs Hierarchy of NeedsMaslowâs Hierarchy of Needs
9.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â9 Early Theories of Motivation (contâd)Early Theories of Motivation (contâd) âą McGregorâs Theory X and Theory YMcGregorâs Theory X and Theory Y ï Theory XTheory X ï¶ Assumes that workers have little ambition, dislike work, avoidAssumes that workers have little ambition, dislike work, avoid responsibility, and require close supervision.responsibility, and require close supervision. ï Theory YTheory Y ï¶ Assumes that workers can exercise self-direction, desireAssumes that workers can exercise self-direction, desire responsibility, and like to work.responsibility, and like to work. ï Assumption:Assumption: ï¶ Motivation is maximized by participative decision making,Motivation is maximized by participative decision making, interesting jobs, and good group relations.interesting jobs, and good group relations.
10.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â10 Early Theories of Motivation (contâd)Early Theories of Motivation (contâd) âą Herzbergâs Motivation-Hygiene TheoryHerzbergâs Motivation-Hygiene Theory ï Job satisfaction and job dissatisfaction are created byJob satisfaction and job dissatisfaction are created by different factors.different factors. ï¶ Hygiene factors:Hygiene factors: extrinsic (environmental) factors that createextrinsic (environmental) factors that create job dissatisfaction.job dissatisfaction. ï¶ Motivators:Motivators: intrinsic (psychological) factors that create jobintrinsic (psychological) factors that create job satisfaction.satisfaction. ï Attempted to explain why job satisfaction does notAttempted to explain why job satisfaction does not result in increased performance.result in increased performance. ï¶ The opposite of satisfaction is not dissatisfaction, but ratherThe opposite of satisfaction is not dissatisfaction, but rather no satisfaction.no satisfaction.
11.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â11 Exhibit 16â2Exhibit 16â2 Herzbergâs Motivation-Hygiene TheoryHerzbergâs Motivation-Hygiene Theory
12.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â12 Exhibit 16â3Exhibit 16â3 Contrasting Views of Satisfaction-DissatisfactionContrasting Views of Satisfaction-Dissatisfaction
13.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â13 Contemporary Theories of MotivationContemporary Theories of Motivation âą Three-Needs TheoryThree-Needs Theory âą Goal-Setting TheoryGoal-Setting Theory âą Reinforcement TheoryReinforcement Theory âą Designing Motivating JobsDesigning Motivating Jobs âą Equity TheoryEquity Theory âą Expectancy TheoryExpectancy Theory
14.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â14 Motivation and NeedsMotivation and Needs âą Three-Needs Theory (McClelland)Three-Needs Theory (McClelland) ï There are three major acquired needs that are majorThere are three major acquired needs that are major motives in work.motives in work. ï¶ Need for achievement (nAch)Need for achievement (nAch) â The drive to excel and succeedThe drive to excel and succeed ï¶ Need for power (nPow)Need for power (nPow) â The need to influence the behavior of othersThe need to influence the behavior of others ï¶ Need of affiliation (nAff)Need of affiliation (nAff) â The desire for interpersonal relationshipsThe desire for interpersonal relationships
15.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â15 Exhibit 16â4Exhibit 16â4 Examples of Pictures Used for Assessing Levels of nAch,Examples of Pictures Used for Assessing Levels of nAch, nAff, and nPownAff, and nPow
16.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â16 Motivation and GoalsMotivation and Goals âą Goal-Setting TheoryGoal-Setting Theory ï Proposes that setting goals that are accepted,Proposes that setting goals that are accepted, specific, and challenging yet achievable will result inspecific, and challenging yet achievable will result in higher performance than having no or easy goals.higher performance than having no or easy goals. ï Is culture bound to the U.S. and Canada.Is culture bound to the U.S. and Canada. âą Benefits of Participation in Goal-SettingBenefits of Participation in Goal-Setting ï Increases the acceptance of goals.Increases the acceptance of goals. ï Fosters commitment to difficult, public goals.Fosters commitment to difficult, public goals. ï Provides for self-feedback (internal locus of control)Provides for self-feedback (internal locus of control) that guides behavior and motivates performance (self-that guides behavior and motivates performance (self- efficacy).efficacy).
17.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â17 Exhibit 16â5Exhibit 16â5 Goal-Setting TheoryGoal-Setting Theory
18.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â18 Motivation and BehaviorMotivation and Behavior âą Reinforcement TheoryReinforcement Theory ï Assumes that a desired behavior is a function of itsAssumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced,consequences, is externally caused, and if reinforced, is likely to be repeated.is likely to be repeated. ï¶ Positive reinforcement is preferred for its long-term effects onPositive reinforcement is preferred for its long-term effects on performanceperformance ï¶ Ignoring undesired behavior is better than punishment whichIgnoring undesired behavior is better than punishment which may create additional dysfunctional behaviors.may create additional dysfunctional behaviors.
19.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â19 Designing Motivating JobsDesigning Motivating Jobs âą Job DesignJob Design ï The way into which tasks can be combined to formThe way into which tasks can be combined to form complete jobs.complete jobs. ï Factors influencing job design:Factors influencing job design: ï¶ Changing organizational environment/structureChanging organizational environment/structure ï¶ The organizationâs technologyThe organizationâs technology ï¶ Employeesâ skill, abilities, and preferencesEmployeesâ skill, abilities, and preferences ï Job enlargementJob enlargement ï¶ Increasing the jobâs scope (number and frequency of tasks)Increasing the jobâs scope (number and frequency of tasks) ï Job enrichmentJob enrichment ï¶ Increasing responsibility and autonomy (depth) in a job.Increasing responsibility and autonomy (depth) in a job.
20.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â20 Designing Motivating Jobs (contâd)Designing Motivating Jobs (contâd) âą Job Characteristics Model (JCM)Job Characteristics Model (JCM) ï A conceptual framework for designing motivating jobsA conceptual framework for designing motivating jobs that create meaningful work experiences that satisfythat create meaningful work experiences that satisfy employeesâ growth needs.employeesâ growth needs. ï Five primary job characteristics:Five primary job characteristics: ï¶ Skill variety:Skill variety: how many skills and talents are needed?how many skills and talents are needed? ï¶ Task identity:Task identity: does the job produce a complete work?does the job produce a complete work? ï¶ Task significance:Task significance: how important is the job?how important is the job? ï¶ Autonomy:Autonomy: how much independence does the jobholderhow much independence does the jobholder have?have? ï¶ Feedback:Feedback: do workers know how well they are doing?do workers know how well they are doing?
21.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â21 Exhibit 16â6Exhibit 16â6 Job Characteristics ModelJob Characteristics Model Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work (Glenview, IL: Scott, Foresman, 1977). With permission of the authors.
22.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â22 Exhibit 16â7Exhibit 16â7 Guidelines for Job RedesignGuidelines for Job Redesign Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work (Glenview, IL: Scott, Foresman, 1977). With permission of the authors.
23.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â23 Designing Motivating Jobs (contâd)Designing Motivating Jobs (contâd) âą Suggestions for Using the JCMSuggestions for Using the JCM ï Combine tasks (job enlargement) to create moreCombine tasks (job enlargement) to create more meaningful work.meaningful work. ï Create natural work units to make employeesâ workCreate natural work units to make employeesâ work important and whole.important and whole. ï Establish external and internal client relationships toEstablish external and internal client relationships to provide feedback.provide feedback. ï Expand jobs vertically (job enrichment) by givingExpand jobs vertically (job enrichment) by giving employees more autonomy.employees more autonomy. ï Open feedback channels to let employees know howOpen feedback channels to let employees know how well they are doing.well they are doing.
24.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â24 Motivation and PerceptionMotivation and Perception âą Equity TheoryEquity Theory ï Proposes that employees perceive what they get fromProposes that employees perceive what they get from a job situation (outcomes) in relation to what they puta job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomesin (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevantratio with the inputs-outcomes ratios of relevant others.others. ï¶ If the ratios are perceived as equal then a state of equityIf the ratios are perceived as equal then a state of equity (fairness) exists.(fairness) exists. ï¶ If the ratios are perceived as unequal, inequity exists and theIf the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded.person feels under- or over-rewarded. ï¶ When inequities occur, employees will attempt to doWhen inequities occur, employees will attempt to do something to rebalance the ratios (seek justice).something to rebalance the ratios (seek justice).
25.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â25 Motivation and Perception (contâd)Motivation and Perception (contâd) âą Equity Theory (contâd)Equity Theory (contâd) ï Employee responses to perceived inequities:Employee responses to perceived inequities: ï¶ Distort own or othersâ ratios.Distort own or othersâ ratios. ï¶ Induce others to change their own inputs or outcomes.Induce others to change their own inputs or outcomes. ï¶ Change own inputs (increase or decrease efforts) orChange own inputs (increase or decrease efforts) or outcomes (seek greater rewards).outcomes (seek greater rewards). ï¶ Choose a different comparison (referent) other (person,Choose a different comparison (referent) other (person, systems, or self).systems, or self). ï¶ Quit their job.Quit their job. ï Employees are concerned with both the absolute andEmployees are concerned with both the absolute and relative nature of organizational rewards.relative nature of organizational rewards.
26.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â26 Exhibit 16â8Exhibit 16â8 Equity TheoryEquity Theory
27.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â27 Motivation and Perception (contâd)Motivation and Perception (contâd) âą Equity Theory (contâd)Equity Theory (contâd) ï Distributive justiceDistributive justice ï¶ The perceived fairness of the amount and allocation ofThe perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what).rewards among individuals (i.e., who received what). â Influences an employeeâs satisfaction.Influences an employeeâs satisfaction. ï Procedural justiceProcedural justice ï¶ The perceived fairness of the process use to determine theThe perceived fairness of the process use to determine the distribution of rewards (i.e., how who received what).distribution of rewards (i.e., how who received what). â Affects an employeeâs organizational commitment.Affects an employeeâs organizational commitment.
28.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â28 Motivation and BehaviorMotivation and Behavior âą Expectancy Theory (Vroom)Expectancy Theory (Vroom) ï States that an individual tends to act in a certain wayStates that an individual tends to act in a certain way based on the expectation that the act will be followedbased on the expectation that the act will be followed by a given outcome and on the attractiveness of thatby a given outcome and on the attractiveness of that outcome to the individual.outcome to the individual. ï Key to the theory is understanding and managingKey to the theory is understanding and managing employee goals and the linkages among and betweenemployee goals and the linkages among and between effort, performance and rewards.effort, performance and rewards. ï¶ Effort:Effort: employee abilities and training/developmentemployee abilities and training/development ï¶ Performance:Performance: valid appraisal systemsvalid appraisal systems ï¶ Rewards (goals):Rewards (goals): understanding employee needsunderstanding employee needs
29.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â29 Exhibit 16â9Exhibit 16â9 Simplified Expectancy ModelSimplified Expectancy Model
30.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â30 Motivation and Behavior (contâd)Motivation and Behavior (contâd) âą Expectancy RelationshipsExpectancy Relationships ï Expectancy (effort-performance linkage)Expectancy (effort-performance linkage) ï¶ The perceived probability that an individualâs effort will resultThe perceived probability that an individualâs effort will result in a certain level of performance.in a certain level of performance. ï InstrumentalityInstrumentality ï¶ The perception that a particular level of performance willThe perception that a particular level of performance will result in the attaining a desired outcome (reward).result in the attaining a desired outcome (reward). ï ValenceValence ï¶ The attractiveness/importance of the performance rewardThe attractiveness/importance of the performance reward (outcome) to the individual.(outcome) to the individual.
31.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â31 Exhibit 16â10Exhibit 16â10 Integrating Contemporary Theories of MotivationIntegrating Contemporary Theories of Motivation
32.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â32 Current Issues in MotivationCurrent Issues in Motivation âą Cross-Cultural ChallengesCross-Cultural Challenges ï Motivational programs are most applicable in culturesMotivational programs are most applicable in cultures wherewhere individualismindividualism andand quality of lifequality of life are culturalare cultural characteristicscharacteristics ï¶ Uncertainty avoidance of some cultures inverts MaslowâsUncertainty avoidance of some cultures inverts Maslowâs needs hierarchy.needs hierarchy. ï¶ The need for achievement (nAch) is lacking in other cultures.The need for achievement (nAch) is lacking in other cultures. ï¶ Collectivist cultures view rewards as âentitlementsâ to beCollectivist cultures view rewards as âentitlementsâ to be distributed based on individual needs, not individualdistributed based on individual needs, not individual performance.performance. ï Cross-Cultural ConsistenciesCross-Cultural Consistencies ï¶ Interesting work is widely desired, as is growth, achievement,Interesting work is widely desired, as is growth, achievement, and responsibility.and responsibility.
33.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â33 Current Issues in Motivation (contâd)Current Issues in Motivation (contâd) âą Motivating Unique Groups of WorkersMotivating Unique Groups of Workers ï Motivating a diverse workforce through flexibility:Motivating a diverse workforce through flexibility: ï¶ Men desire more autonomy than do women.Men desire more autonomy than do women. ï¶ Women desire learning opportunities, flexible workWomen desire learning opportunities, flexible work schedules, and good interpersonal relations.schedules, and good interpersonal relations.
34.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â34 Current Issues in Motivation (contâd)Current Issues in Motivation (contâd) âą Flexible Work/Job schedulesFlexible Work/Job schedules ï Compressed work weekCompressed work week ï¶ Longer daily hours, but fewer daysLonger daily hours, but fewer days ï Flexible work hours (flextime)Flexible work hours (flextime) ï¶ Specific weekly hours with varying arrival, departure, lunchSpecific weekly hours with varying arrival, departure, lunch and break times around certain core hours during which alland break times around certain core hours during which all employees must be present.employees must be present. ï Job SharingJob Sharing ï¶ Two or more people split a full-time job.Two or more people split a full-time job. ï TelecommutingTelecommuting ï¶ Employees work from home using computer links.Employees work from home using computer links.
35.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â35 Current Issues in Motivation (contâd)Current Issues in Motivation (contâd) âą Motivating ProfessionalsMotivating Professionals ï Characteristics of professionalsCharacteristics of professionals ï¶ Strong and long-term commitment to their field of expertise.Strong and long-term commitment to their field of expertise. ï¶ Loyalty is to their profession, not to the employer.Loyalty is to their profession, not to the employer. ï¶ Have the need to regularly update their knowledge.Have the need to regularly update their knowledge. ï¶ Donât define their workweek as 8:00 am to 5:00 pm.Donât define their workweek as 8:00 am to 5:00 pm. ï Motivators for professionalsMotivators for professionals ï¶ Job challengeJob challenge ï¶ Organizational support of their workOrganizational support of their work
36.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â36 Current Issues in Motivation (contâd)Current Issues in Motivation (contâd) âą Motivating Contingent WorkersMotivating Contingent Workers ï Opportunity to become a permanent employeeOpportunity to become a permanent employee ï Opportunity for trainingOpportunity for training ï Equity in compensation and benefitsEquity in compensation and benefits âą Motivating Low-Skilled, Minimum-WageMotivating Low-Skilled, Minimum-Wage EmployeesEmployees ï Employee recognition programsEmployee recognition programs ï Provision of sincere praiseProvision of sincere praise
37.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â37 Current Issues in Motivation (contâd)Current Issues in Motivation (contâd) âą Designing Appropriate Rewards ProgramsDesigning Appropriate Rewards Programs ï Open-book managementOpen-book management ï¶ Involving employees in workplace decision by opening up theInvolving employees in workplace decision by opening up the financial statements of the employer.financial statements of the employer. ï Employee recognition programsEmployee recognition programs ï¶ Giving personal attention and expressing interest, approval,Giving personal attention and expressing interest, approval, and appreciation for a job well done.and appreciation for a job well done. ï Pay-for-performancePay-for-performance ï¶ Variable compensation plans that reward employees on theVariable compensation plans that reward employees on the basis of their performance:basis of their performance: â Piece rates, wage incentives, profit-sharing, and lump-sumPiece rates, wage incentives, profit-sharing, and lump-sum bonusesbonuses
38.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â38 Current Issues in Motivation (contâd)Current Issues in Motivation (contâd) âą Designing Appropriate Rewards ProgramsDesigning Appropriate Rewards Programs (contâd)(contâd) ï Stock option programsStock option programs ï¶ Using financial instruments (in lieu of monetaryUsing financial instruments (in lieu of monetary compensation) that give employees the right to purchasecompensation) that give employees the right to purchase shares of company stock at a set (option) price.shares of company stock at a set (option) price. ï¶ Options have value if the stock price rises above the optionOptions have value if the stock price rises above the option price; they become worthless if the stock price falls below theprice; they become worthless if the stock price falls below the option price.option price.
39.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â39 Exhibit 16â11Exhibit 16â11 Recommendations for Designing Stock OptionsRecommendations for Designing Stock Options * Vesting refers to the time that must pass before a person can exercise the option. Source: P. Brandes, R. Dharwadkar, and G.V. Lemesis, âEffective Employee Stock Option Design: Reconciling Stakeholder, Strategic, and Motivational Factors,â Academy of Management Executive, February 2003, p. 84.
40.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â40 Exhibit 16â11 (contâd)Exhibit 16â11 (contâd) Recommendations for Designing Stock OptionsRecommendations for Designing Stock Options Source: P. Brandes, R. Dharwadkar, and G.V. Lemesis, âEffective Employee Stock Option Design: Reconciling Stakeholder, Strategic, and Motivational Factors,â Academy of Management Executive, February 2003, p. 84.
41.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â41 From Theory to Practice:From Theory to Practice: Guidelines for Motivating EmployeesGuidelines for Motivating Employees âą Use goalsUse goals âą Ensure that goals areEnsure that goals are perceived as attainableperceived as attainable âą Individualize rewardsIndividualize rewards âą Link rewards toLink rewards to performanceperformance âą Check the system forCheck the system for equityequity âą Use recognitionUse recognition âą Show care and concernShow care and concern for employeesfor employees âą Donât ignore moneyDonât ignore money
42.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â42 Terms to KnowTerms to Know âą motivationmotivation âą hierarchy of needs theoryhierarchy of needs theory âą physiological needsphysiological needs âą safety needssafety needs âą social needssocial needs âą esteem needsesteem needs âą self-actualization needsself-actualization needs âą Theory XTheory X âą Theory YTheory Y âą motivation-hygiene theorymotivation-hygiene theory âą hygiene factorshygiene factors âą motivatorsmotivators âą three-needs theorythree-needs theory âą need for achievementneed for achievement (nAch)(nAch) âą need for power (nPow)need for power (nPow) âą need for affiliation (nAff)need for affiliation (nAff) âą goal-setting theorygoal-setting theory âą self-efficacyself-efficacy âą reinforcement theoryreinforcement theory âą reinforcersreinforcers âą job designjob design âą job scopejob scope âą job enlargementjob enlargement
43.
© 2007 Prentice
Hall, Inc. All rights reserved. 16â43 Terms to Know (contâd)Terms to Know (contâd) âą job enrichmentjob enrichment âą job depthjob depth âą job characteristicsjob characteristics model (JCM)model (JCM) âą skill varietyskill variety âą task identitytask identity âą task significancetask significance âą autonomyautonomy âą feedbackfeedback âą equity theoryequity theory âą referentsreferents âą distributive justicedistributive justice âą procedural justiceprocedural justice âą expectancy theoryexpectancy theory âą compressed workweekcompressed workweek âą flexible work hours (flextime)flexible work hours (flextime) âą job sharingjob sharing âą telecommutingtelecommuting âą open-book managementopen-book management âą employee recognitionemployee recognition programsprograms âą pay-for-performancepay-for-performance programsprograms âą stock optionsstock options
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