CHAPTER 10: MOTIVATING EMPLOYESS & TEAM BUILDING

1. INTRO: Hot Topic! CHAPTER 10:MOTIVATING EMPLOYESS & TEAM BUILDING

2. Overview • The importance of satisfaction among employees: • Happy workers => happy customers => successful businesses (profit) • People are motivated by a variety of things • Intrinsic reward [personal satisfaction] • Extrinsic reward [given to you by someone]

3. Traditional Theories of Motivation • Frederick Taylor • American “efficiency engineer” • The Principles of Scientific Management, 1911 • Goal: to increase worker productivity (to benefit firm/worker) • There is 1 best way to perform each task – observe/study performance to find that best way. • Time-motion studies (shovel studies) • Focus on EFFICIENCY • “Father of Scientific Management”

4. Followers of Taylor • Gantt • Developed charts to plot every detail of work in advance • Frank & Lillian Gilbreth • Used Taylor’s ideas to study bricklaying • Principle of Motion Economy • => every job broken down into specific motions (therblig) • Analyze each motion to improve efficiency

5. Summary, Scientific Management • People are like machines • People motivated by money • No thoughts about psychological/human aspects of work • UPS

6. Elton Mayo • Hawthorne Studies, 1927-1933 • Test amount of lighting needed for optimum productivity at electric plant • Why did results confuse researchers? • Profound change in management thinking: • Hawthorne effect = people behave differently when they know they’re being studied. • Shift: away from Taylor toward human-based management • Pay was found to be ineffective motivator

7. Maslow • People are motivated to satisfy unmet NEEDS • Needs have a hierarchy of importance • Satisfied needs no longer motivate

8. Herzberg • What can managers do (with the job itself) to motivate employees? • A “modern-day” look at Taylor’s theory • Study (1960s) asked workers to rank job-related motivating factors (list, pg. 265) • Job content = most motivating • Sense of achievement, responsibility, etc. • Job environment factors = less motivating • Good pay, job security, friendly managers Absence = demotivating • Presence = not motivating

9. Conclusions of Herzberg • Two types of factors (pg. 266): • MOTIVATORS • Lead to productive, satisfied employees • HYGIENE (MAINTENANCE) FACTORS • Cause dissatisfaction if missing; but do not motivate if increased • “The number one motivator is not money, but a sense of achievement and recognition for a job well-done.” • Compare to Maslow’s Theory (pg. 267)

10. Job Enrichment • Extension of Maslow & Herzberg Theories • MOTIVATIONAL STRATEGY emphasizes motivating workers through the job itself. • Completion of task from start to end (job enlargement) • Opportunities for personal achievement, challenge, recognition, variety (job rotation) • How is this related to Maslow’s theory? • 5 characteristics of work are important (pg. 268) • Opposite of job simplification

11. McGregor’s Theory X and Theory Y • How do managers feel about their workers? • This will determine how they motivate them. • Theory X managers believe: • Employees do not like to work • They do not like responsibility • They must be forced, controlled, threatened with punishment to perform • They are motivated by fear and money

12. Theory Y • Theory Y managers believe: • Employees like to work • They seek and like to be given responsibilities • They are creative, committed to goals • They are motivated by a variety of rewards • Emphasis on relaxed managerial atmosphere • Empowerment is key • Trend in U.S. is toward Theory Y

13. William Ouchi • Studied success of Japanese companies • Japanese management approach = Type J • Lifetime employment, collective decision-making and responsibility, concern for workers • Focus on trust, groups, family • American management approach = Type A • Short-term employment, individual decision-making and responsibility • Focus on individual rights, achievements

14. Ouchi’sTheoryZ • Not practical for American managers to adopt strategies based on another country’s culture • Theory Z = a Hybrid (Blends J & A) pg. 272 • Since economic decline, Japan rethinking managerial approaches • Ex: Hitachi • Has conformity hurt Japanese businesses? • Will they move to Hybrid Theory Z in future?

15. MBO (Management by Objectives) • Goal-setting Theory: setting ambitious but attainable goals will motivate workers • Everyone should be involved in goal-setting and implementation • Peter Drucker developed: MBO, a system to help employees motivate themselves. (pg. 273) • Helping vs. Coaching • Central idea of MBO?

16. Vroom’s Expectancy Theory • Employee expectations can affect motivation • Three questions that are asked (pg. 274) Reinforcement Theory • Motivation is a result of carrot-and-stick approach (reward/punishment) • We act to receive rewards and avoid punishment Equity Theory • Motivation affected by fairness we perceive

17. 1, 2, 3 Southwest Airlines4, 5, 6 Apple7, 8, 9 Google10, 11 Wegman’s12, 13 Enterprise Rent-A-Car14, 15, 16 Starbucks17, 18, 19 Zappos20, 21, 22 UPS or Disney