INTRODUCTION TO BUSINESS

1. INTRODUCTION TO BUSINESS CHAPTER 10 Motivating Employees

2. Final Exam • Time? • Place? • What to bring? • Which chapters? • How to study – ?

3. Chapter Outline • How can motivation increase the value of a firm? • Theories on motivation. • How can a firm motivate disgruntled employees? • How can a firm enhance job satisfaction and thereby enhance motivation?

4. The Value of Motivation • Motivation is as important as the proper skills. • Work environment should motivate employees.

5. Theories • Motivation of employees is influenced by job satisfaction–the degree to which employees are satisfied with their jobs • Hawthorne Studies Equity • Maslow Reinforcement • Herzberg (+ and -) • X,Y,Z • Expectancy

6. Group Activity • 1. Name of Theory • 2. Definition: 10 words or less • 3. At least 2 colors used • 4. PICTURE expressing main point of theory

7. Theories on Motivation • Job satisfaction: the degree to which employees are satisfied with their jobs. • Hawthorne Studies • Maslow’s Hierarchy of Needs: needs are ranked in five general categories. Once a given category of needs is achieved, people become motivated to reach the next category.

8. Theories on MotivationSummary of the Hawthorne Studies

9. Theories on MotivationMaslow’s Hierarchy of Needs

10. Theories on Motivation • Physiological needs: the basic requirements for survival. • Safety needs: job security and safe working conditions. • Social needs: the need to be part of a group. • Esteem needs: respect, prestige, and recognition. • Self-actualization: the need to fully reach one’s potential.

11. Theories on Motivation • Herzberg’s Job Satisfaction Study • Hygiene factors: work-related factors that can fulfill basic needs and prevent job dissatisfaction. • Motivational factors: work-related factors that can lead to job satisfaction and motivate employees. • McGregor’s Theory X and Theory Y • Theory Z

12. Theories on Motivation

13. Managers commonly attempt various methods of motivating their employees, such as offering small rewards and recognition to employees who have achieved high performance. Recognition can increase employee job satisfaction. Theories on Motivation

14. Summary of Herzberg’s Job Satisfaction Study

15. Theories on Motivation

16. Theories on MotivationSummary of McGregor’s Theories X and Y

17. Theories on Motivation • Expectancy Theory • Holds that an employee’s efforts are influenced by the expected outcome (reward) for those efforts. • Equity Theory • Suggests that compensation should be equitable or in proportion to each employee’s contribution.

18. Theories on MotivationExample of Equity Theory

19. Theories on Motivation • Reinforcement Theory: suggests that reinforcement can influence behavior. • Positive reinforcement motivates employees by providing rewards for high performance. • Negative reinforcement motivates employees by encouraging them to behave in a manner that avoids unfavorable consequences.

20. Theories on MotivationSummary of Reinforcement Theory

21. Theories on Motivation • Motivational Guidelines Offered by Theories • Employees commonly compare their compensation and perceived contribution with others. • Even if employees are offered high compensation, they will not necessarily be very satisfied. • Employees may be motivated if they believe that it is possible to achieve a performance level that will result in a desirable reward.

22. Motivating Disgruntled Employees • A firm may not be able to motivate some employees, regardless of its efforts. • If the disgruntled employees are not motivated, they may seek employment elsewhere. • Firms should force disgruntled employees to do their jobs and should fire them if they are unwilling to perform.

23. Motivating Disgruntled EmployeesComparison of Motivation Theories

24. How Firms Can Enhance Job Satisfaction and Motivation • Job Enrichment Programs: programs designed to increase the job satisfaction of employees. • Adequate Compensation Program • Merit system: a compensation system that allocates raises according to performance (merit).

25. How Firms Can Enhance Job Satisfaction and Motivation • Across-the-board system: a compensation system that allocates similar raises to all employees. • Incentive plans: provide employees with various forms of compensation if they meet specific performance goals. • Examples of Compensation Programs

26. How Firms Can Enhance Job Satisfaction and Motivation • Developing a Proper Compensation Plan • Align the compensation plan with business goals • Align compensation with specific employee goals • Establish achievable goals for employees • Allow employee input on the compensation plan

27. How Firms Can Enhance Job Satisfaction and Motivation • Job Security • Flexible Work Schedule • Flextime programs: programs that allow for a more flexible work schedule. • Compressed workweek: compresses the workload into fewer days per week. • Job sharing: two or more persons share a particular work schedule.

28. How Firms Can Enhance Job Satisfaction and Motivation • Employee Involvement Programs • Job enlargement: a program to expand (enlarge) the jobs assigned to employees. • Job rotation: a program that allows a set of employees to periodically rotate their job assignments. • Empowerment and Participative Management • Empowerment: allowing employees the power to make more decisions

29. How Firms Can Enhance Job Satisfaction and Motivation • Participative management: employees are allowed to participate in various decisions made by their supervisors or others. • Management by objectives (MBO): allows employees to participate in setting their goals and determining the manner in which they complete their tasks. • Teamwork: a group of employees with varied job positions have the responsibility to achieve a specific goal.

30. When employees work in teams, they may enjoy their work to a greater degree. In addition, teams may lead to more social interaction, which can also increase job satisfaction. How Firms Can Enhance Job Satisfaction and Motivation

31. How Firms Can Enhance Job Satisfaction and Motivation • Open-book management: a form of employee involvement that educates employees on their contribution to the firm and enables them to periodically assess their own performance levels. • Comparison of Methods Used to Enhance Job Satisfaction • Firms That Achieve the Highest Job Satisfaction Level

32. Methods Used to Enhance Job Satisfaction

33. It’s everywhere Determine major It’s required To get an “A” To get a job Money Global issues SAVE THE WORLD To have a challenge Because I like it Passion To own my own business Family thought I should General understanding of principles Why Study Business?

34. BA 101 Course Objectives The creation and organization of a business; Basic vocabulary and understanding of each functional area within a business (marketing, finance, accounting, production, distribution, and human resources); The relationship among these functional areas; Team building and small group development; and The global dimensions of business.

35. Goals for this Class • Know where you stand (earn A’s) • Groups “get along” & RESPECT each other • Fairness (please ask when/if you don’t understand grading) • Ignite PASSION for Business • All 5’s (standing ovation optional) • Learn and have FUN

36. Course Evaluation • Volunteer to collect and take to SBA 560? • Use #2 pencil or blue/black ink • Scale – bad is 1, good is 5 (furthest edge of paper) • Please do add comments • After evals. I will return (in seven minutes) and give the last quiz …. • Hopefully we will have time for a Q&A for final project questions and elevator pitches • Thanks for a GREAT class!