This document discusses motivating and satisfying employees in the workplace. It covers psychological contracts, job satisfaction, morale and various theories of motivation including Maslow's hierarchy of needs, expectancy theory and equity theory. It then discusses strategies to enhance job satisfaction like reinforcement, management by objectives, job enrichment and modified work schedules. Finally, it discusses managerial styles, contingency leadership approaches and trends in motivation and leadership for the 21st century.

1. Chapter 9
Understanding Employee
Motivating, Satisfying & Leadership
http://www.slideshare.net/Subjectmaterial

2. Sr. Chapter Chapter Heading
No.No.
1. 3 Understanding the Global context of business (031012)
2. 4 Conducting Business Ethically and Responsibly (250212)
3. 6 Organizing the Business Enterprise (030312)
4. 7 Understanding Entrepreneurship and Small Business (100312)
5. 8 Managing Human Resources (240312)
6. 9 Understanding Employee Motivating, Satisfying & Leadership (310312)
7. 11 Understanding Marketing Processes and Consumer Behavior
8. 16 Managing Quality and Productivity
9. 17 Managing Information Systems and Communication Technology
10. 19 Understanding Money and Banking
11. 20 Intermediate Term and Lease Financing

3. FINAL PROJECT
 GENERATE REVENUE
 REQUIRED
 SUBMIT GROUP NAMES
 SUBMIT IDEA
 DATE OF EXECUTION
3

4. Marks Distribution
50 Terminal Examination
20 Mid Term Examination
15 Quizzes
15 Final Assignment
4

5. 1. PSYCHOLOGICAL CONTRACTS IN ORGANIZATIONS
2. THE IMPORTANCE OF SATISFACTION AND MORALE
3. MOTIVATION IN THE WORKPLACE
 Classical theory
 Behavior theory
 Contemporary motivational theories
 Theory X & Y
 Maslow’s hierarchy of needs theory
 Two factor theory
 Expectancy theory
 Equity theory
4. STRATEGIES FOR ENHANCING JOB SATISFACTION AND
MORALE
 Reinforcement / Behavior modification theory
 MBO
 Job enrichment and job redesign
 Modified Work Schedules
5. MANAGERIAL STYLES AND LEADERSHIP
 Managerial Styles
 The contingency Approach to leadership
 Motivation and leadership in the 21st century

6. PSYCHOLOGICAL CONTRACT
A Set of Employment Expectations for
inducements in return of the employee’s
contributions
Contributions:
What does each employee contribute to the organization?
Inducements:
What will the organization provide to each employee in
return?

7. Satisfied Employees Are More Productive
and More Committed
Job Satisfaction:
Degree of enjoyment
employees derive from doing
TURNOVER
MORALE
their jobs
High Morale:
An overall positive employee
TURNOVER
attitude toward the workplace
MORALE
Low Turnover:
A low percentage of
employees leave each year

8. 3. MOTIVATION IN THE
WORKPLACE
 Motivation is getting others to do something because
they want to do it.
 The process which encourages and guides behavior.
 The act or process of stimulating to action, providing
an incentive or motive, especially for an act.
 Motivation is the internal drive to accomplish a
particular goal. In a work setting, motivation is what
makes people want to work.

9. THEORIES
 Classical Theory of Motivation: workers
are motivated solely by money
 Hawthorne effect: productivity tends to
increase when workers believe they are
receiving special attention from
management
9

10. McGregor’s Theories
Theory X and Theory Y
Theory X Theory Y
1. People are lazy. 1. People are energetic.
2. People lack ambition 2. People are ambitious
and dislike and seek
responsibility.
responsibility.
3. People can be
3. People are self- selfless.
centered. 4. People want to
4. People resist change. contribute to business
5. People are gullible growth and change.
and not very bright. 5. People are intelligent.

11. Maslow’s Hierarchy of Needs
General Organizational
Examples Examples
Self-
Self-
Self-Fulfillment Actualization
Actualization
Challenging Job
Needs
Needs
Status Job Title
Esteem Needs
Esteem Needs
Friendship Friends at Work
Social Needs
Social Needs
Stability Security Needs
Security Needs Pension Plan
Shelter PhysiologicalNeeds
Physiological Needs Salary

12. Two Factor Theory
Hygiene Factors Motivation Factors
• Supervisors • Achievement
• Working Conditions • Recognition
• Interpersonal Relations • The Work Itself
• Pay & Security • Responsibility
• Company Policies & • Advancement & Growth
Administration
Dissatisfaction Satisfaction

13. Expectancy Theory
Individual Individual Organizational Personal
Effort Performance Rewards Goals
Effort- Performance- Rewards-
Performance Reward Personal
Issue Issue Goals Issue

14. Equity Theory
Employees evaluate their treatment relative to the treatment
of others
Inputs: Employee contributions to their jobs
Outputs: What employees receive in return
The perceived ratio of contribution to return determines
perceived equity

15. STRATEGIES FOR ENHANCING JOB
SATISFACTION AND MORALE
 Reinforcement / Behavior modification theory
 MBO
 Participative management and empowerment
 Job enrichment and job redesign
 Modified Work Schedules
15

16. Reinforcement /
Behavior Modification Theory
Punishment
When negative consequences are attached
directly to undesirable behavior
Positive Reinforcement
When rewards are tied directly to
performance

17. Management by Objectives
Collaborative Goal-setting
Collaborative Communicating
Periodic
Goal Setting & Organizational Evaluation
Review
Planning Goals & Plans
Meeting
Setting
Verifiable Goals
& Clear Plans
Counseling
Identifying
Resources

18. Job Enrichment and Job Redesign
Job Enrichment: Adding one or more
motivating factors to job activities
Job Redesign: Designing a better fit between
workers and their jobs
 Combining tasks
 Forming natural work groups
 Establishing client relationships

19. Modified Work Schedules
 Work share programs
 Flextime programs and
alternative workplace
strategies
 Telecommuting and
virtual offices

20. Sample Flextime Scheduling
6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:00 6:00
A.M. A.M. A.M. A.M. A.M. A.M. NOON P.M. P.M. P.M. P.M. P.M. P.M.
Flexible Core Flexible Core Flexible
Time Time Time Time Time
Joe
Sue
Pat

21. Evaluating Modified Schedules and
Alternative Workplaces
Advantages Disadvantages
 More satisfied,  Challenging to
committed coordinate and
employees manage
 Less congestion  Poor fit for some
workers

22. MANAGERIAL STYLES AND
LEADERSHIP
Leadership:
The process of
motivating others
to work to meet
specific objectives

23. Five Fundamental Leadership
Practices
Challenge the process
Inspire a shared vision
Enable others to act
Model the way
Encourage the heart
Source: www.theleadershipchallenge.com

24. Managerial Styles
Autocratic Style
Democratic Style
Free-rein Style
Contingency Approach
The appropriate style in any situation is contingent on
the unique elements of that situation

25. Motivation and Leadership in the
Twenty-first Century
Motivation
Security and pay are
no longer enough
Leadership
 “Coach” mentality
 Diversity
 Flexibility