1. 1 Chapter Eleven
Motivating
and Satisfying Employees
2 Learning Objectives
1.Explain what motivation is.
2.Understand some major historical perspectives on motivation.
3.Describe three contemporary views of motivation: equity theory, expectancy
theory, and goal-setting theory.
4.Explain several techniques for increasing employee motivation.
3 What Is Motivation?
• The individual internal process that energizes, directs, and sus tains behavior; the
personal “force” that causes us to behave in a particular way
• Morale
– An employee’s feelings about his or her job and superiors and about the firmitself
– High morale results from the satisfaction of needs or as a result of the job and leads to dedication
and loyalty
– Low morale leads to shoddy work, absenteeism, and high turnover rates
4 Historical Perspectives on Motivation
• Scientific Management
– The application of scientific principles to the management of work and workers
– Frederick W. Taylor
• Observed “soldiering” by workers who feared losing their jobs if there were no work
• Job should be broken into separate tasks
• Management determines the best way and the expected output
• Management chooses and trains the best-suited person
• Management cooperates with workers
• Piece-rate system (pay per unit of output) is based on the belief that people work only for money
5 Taylor’s Piece -Rate System
• Workers who exceeded their quota were rewarded by being paid at a higher
rate per piece for all the pieces they produced
6 Historical Perspectives on Motivation (cont’d)
• The Hawthorne Studies
– Objective: to determine the effects of the work environment on employee productivity
– 1st experiment: productivity increased for both the experimental and control groups after lighting
was varied in the workplace
– 2nd experiment: workers under a piece-rate system produced at constant rates
– Conclusions: human factors were responsible
• Workers had a sense of involvement by participating in the experiment
• Groups influenced output through workers ’ desire for acceptance
– Human relations movement
• Employees who are happy and satisfied are motivated to perform better
7 Historical Perspectives on Motivation (cont’d)
• Maslow’s Hierarchy of Needs
– A sequence of human needs (personal requirements) in the order of their importance
• Physiological needs —survival
• Safety needs —physical and emotional safety
• Social needs —love and affection and a sense of belonging
• Esteem needs —respect, recognition, and a sense of our own accomplishment and worth
• Self -actualization needs —to grow and develop and become all that we are capable of being

2. 8 Maslow’s Hierarchy of Needs
9 Historical Perspectives on Motivation (cont’d)
• Herzberg’s Motivation-Hygiene Theory
– Satisfaction and dissatisfaction are separate and distinct dimensions
– Motivation factors
• Job factors that increase motivation but whose absence does not necessarily result in
dissatisfaction
– Hygiene factors
• Job factors that reduce dissatisfaction when present to an acceptable degree but that do not
necessarily result in higher levels of motivation.
10 Herzberg’s Motivation-Hygiene Theory
11 Historical Perspectives on Motivation (cont’d)
• Douglas McGregor
– Sets of assumptions about managerial attitudes and beliefs about worker behavior
• Theory X
– Generally consistent with Taylor’s scientific management
– Employees dislike work and will function only in a controlled wo environment
rk
• Theory Y
– Generally consistent with the human relations movement
– Employees accept responsibility and work toward organizational goals if they will also achieve
personal rewards
12
13 Historical Perspectives on Motivation (cont’d)
• Theory Z
– Some middle ground between Ouchi’s Type A (American) and Type J (Japanese)
practices is best for American business
– Emphasis is on participative decision making with a view of the organization as a
family
14 The Features of Theory Z
15 Historical Perspectives on Motivation (cont’d)
• Reinforcement Theory
– Behavior that is rewarded is likely to be repeated, whereas behavior that is punished is less likely
to recur
• Reinforcement: an action that follows directly from a particular behavior
• Types of reinforcement
– Positive reinforcement: strengthens desired behavior by providin a reward
g
– Negative reinforcement: strengthens desired behavior by eliminating an undesirable task or situation
– Punishment: an undesirable consequence of undesirable behavior
– Extinction: no response undesirable behavior in order to discour age its occurrence
16 Contemporary Views on Motivation
• Equity Theory
– People are motivated to obtain and preserve equitable treatment for themselves
– Equity: the distribution of rewards in direct proportion to the contribution of each employee to the
organization
– Workers compare their own input-to-outcome (reward) ratios to their perception of others’
– Workers who perceive an inequity may
• Decrease their inputs
• Try to increase outcome (ask for a raise)

3. • Try to get the comparison other to increase inputs or receive decreased outcomes
• Leave the work situation (quit)
• Switch to a different comparison other
17 Contemporary Views on Motivation (cont’d)
• Expectancy theory (Victor Vroom)
– Motivation depends on how much we want something and on how likely we think we
are to get it
– Implications are that managers must recognize that
• Employees work for a variety of reasons
• The reasons, or expected outcomes, may change over time
• It is necessary to show employees how they can attain the outcomes they desire
18 Expectancy Theory
19 Contemporary Views on Motivation (cont’d)
• Goal-Setting Theory
– Employees are motivated to achieve goals they and their managers establish
together
– Goals should be very specific, moderately difficult, and ones th at the employee will
be committed to achieve
– Rewards should be tied directly to goal achievement
20 Key Motivation Techniques
• Management by Objectives (MBO)
– Managers and employees collaborate in setting goals
21 Management by Objectives (cont’d)
1 Advantages
– Motivates employees by involving them actively
– Improves communication
– Makes employees feel like an important part of the organization
– Periodic review enhances control
2 Disadvantages
– Doesn’t work if the process doesn’t begin at the top of the organization
– Can result in excessive paperwork
– Some managers assign goals instead of collaborating on creating them
– Goals should be quantifiable
22 Key Motivation Techniques (cont’d)
• Job Enrichment
– Provides employees with more variety and responsibility in their jobs
• Job Enlargement
– The expansion of a worker’s assignments to include additional but similar tasks
• Job Redesign
– A type of job enrichment in which work is restructured to cultivate the worker-job
match
23 Key Motivation Techniques (cont’d)
• Behavior Modification
– A systematic program of reinforcement to encourage desirable behavior
• Steps in Behavior Modification
– Identify the target behavior to be changed
– Measure existing levels of the behavior

4. – Reward employees who exhibit the desired behavior
– Measure the target behavior to check for desired change
• If no change, consider changing reward system
• If change has occurred, maintain reinforcement
24 Key Motivation Techniques (cont’d)
• Flextime
– A system in which employees set their own work hours within employer-determined limits
– Typically, there are two bands of time
• Core time, when all employees are expected to be at work
• Flexible time, when employees may choose whether to be at work
– Benefits
• Employees ’ sense of independence and autonomy is motivating
• Employees with enough time to deal with nonwork issues are more productive and satisfied
– Drawbacks
• Supervisors’ jobs are complicated by having employees who come and go at different times
• Employees without flextime may resent coworkers who have it
25 Key Motivation Techniques (cont’d)
• Part-Time Work
– A permanent employment situation in which individuals work less than a standard workweek
– Disadvantage: often does not provide the benefits that come with a full-time position
• Job Sharing
– An arrangement whereby two people share one full-time position
– Companies can save on expenses by reducing benefits and avoiding employee turnover
– Employees gain flexibility but may lose benefits
– Sharing can be difficult if work is not easily divisible or if two people cannot work well together
26 Key Motivation Techniques (cont’d)
• Telecommuting
– Working at home all the time or for a portion of the work week
– Advantages
• Increased employee productivity
• Lower real estate and travel costs
• Reduced absenteeism and turnover
• Increased work/life balance and improved morale
• Access to additional labor pools
– Disadvantages
• Feelings of isolation
• Putting in longer hours
• Distractions at home
• Difficulty monitoring productivity
27 Key Motivation Techniques (cont’d)
• Employee Empowerment
– Making employees more involved in their jobs by increasing their participation in decision making
– Management must be involved to set expectations, communicate standards, institute periodic
evaluations, guarantee follow -up
– Benefits
• Increased job satisfaction
• Improved job performance
• Higher self -esteem
• Increased organizational commitment
– Obstacles
• Management resistance
• Workers ’ distrust of management
• Insufficient training
• Poor communication between management and employees
28 Key Motivation Techniques (cont’d)

5. • Self-Managed Work Teams
– Groups of employees with the authority and skills to manage themselves
– Requirements
• Organizational commitment to the team approach
• Clear team objectives
• Ongoing training and education
• A compensation system (e.g., gain sharing) for the accomplishmen t of team goals
– Benefits
• Higher employee morale
• Increased productivity
• Innovation
– Challenges
• Lack of support from managers and supervisors
• Insufficient training
• Initial costs of training and implementation
29 Key Motivation Techniques (cont’d)
• Employee Ownership
– Employees own the company they work for by virtue of being stockholders
– Benefits
• Employee incentive
• Increase employee involvement and commitment