Chapter 2

1. Chapter 2 Engaging and motivating employees and managing organisational change

2. Lecture objectives • Motivating employees • Positive leaders & positive work environments • Psychological contract • Motivating during times of change • Emotional intelligence • CHRM decision-making framework in action • Conclusion

3. Motivating employees • Work Motivation is defined as the stimulation of effort required to achieve and maintain organisational goals • No two people are alike • Unique values, attitudes, beliefs, strengths,expectations and ideas • Unlike other resources (financial and technical), human resources are very difficult to predict • Management must direct employee behaviour towards organisational goals • Understanding why people work is essentialto this task

4. Motivating employees • Positive leaders:work with employees’ strengths, quickly address negative behaviours that may arise, as part of promoting a PWE. • Positive work environment (PWE): where employees feel supported and fairly rewarded, have self-efficacy and integrity, and perceive an environment of trust and organisational justice.

5. Motivating employees through HRM • Intrinsic factors • Soft factors (e.g., friendly work environment) • Extrinsic factors • Hard factors (e.g., money, status, big office) A balance between the two is generally preferred

6. Hard and Soft HRM paradox • Hard and soft HRM reflect focus on ‘managerial control strategies’ versus the ‘nature of people’ • Hard HRM • Humans are viewed as costs (McGregor’s Theory X) • Soft HRM • Humans are viewed as people (Theory Y) • A combination of the two may be used, although soft HRM is preferred as it values people as an organisation’s most valuable assets.

7. Integration of hard and soft HRM

8. Theories of motivation • Traditional views of motivation were based on scientific management and later on human relations • Content theories: Humans have certain wants and needs that direct behaviour • Process theories: Highlight thought patterns that underlie decisions of whether or not to engage in certain behaviour • Be aware of limitations of each theory

9. Maslow’s hierarchy

10. Psychological contracts and motivation • Psychological contracts: intangible, informal contracts that the employee perceives constitute their employment relationship • Transactional • Relational • Ideology infused • Psychological contracts can impact upon employees’ discretionary behaviours (and their motivation to work)

11. HR ethics, psychological contracts and motivation • Deontological theory: Business is ethical when treating people with respect is the goal. • Utilitarian theory: Business is ethical when people are the means to maximise positive business consequences for the majority of stakeholders (e.g. shareholders) • Stakeholder theory: business is ethical when all stakeholders mutually benefit (e.g. employees, shareholders, customers, suppliers, unions and the local community)

12. Organisational justice perceptions • Distributional justice: Justice perceptions regarding the fairness of the distribution of resources within the organisation • Procedural justice: Justice perceptions regarding the procedures that are used within the organisation • Interactional justice: Justice perceptions regarding interpersonal interactions (e.g. honesty, politeness, and dignity) • Especially critical in time of constant changes

13. Diversity • Diverse workplaces (e.g. race, gender, sexual orientation, age, disabilities, lifestyle and values) Key cultural orientations: • Individualists: typically associated with Western cultures such as Australia, U.S. and NZ (Hofstede, 1980); satisfying individual goals • Collectivists: typically associated with Eastern cultures such as China, Thailand and Japan (Hofstede, 1980); seek to benefit the group and community

14. Motivation during times of change • Organisational change: any alteration which causes a shift in the status quo, affecting the structure and resources of an organisation • Organisational change affects the ability to engage and motivate employees • Employee motivation levels may change at any time as can the focus of motivation (e.g., productive vs. counterproductive behaviours) • Continual monitoring is necessary

15. Types of organisational change • Planned:Any deliberate, structured execution of a shift in the status quo • Unplanned:Unanticipated change which is generally forced upon the company • Incremental:A series of small changes • Radical:Large-scale and drastic change. There are five stages of radical change: • Planning, enabling, launching, catalysing and maintaining

16. HRM strategies for change • Change success depends a great deal on the attitude that an organisation adopts towards its employees during the change process. • Change initiatives that adopt a caring attitude towards employees, together with a concern for economic results tend to be more successful than initiatives that simply focus on economic results. • Communication, Voice, and Justice • Cultivation of a culture of emotional awareness (e.g. emotional intelligence)

17. The CHRM decision-making framework

18. Step 1Screening HR-environmental factors • Monitor/analyse data (past, present and future): e.g. Unfriendly CEO and senior management in the past; redundancies • Internal/organisational environment: e.g. Diversity-closed culture (gender bias?) • External environment: e.g. Stricter Airline Regulations since 2001

19. Step 2Detect HR potential problem or opportunity • Lack of employee motivation • Low absenteeism and high turnover • Gender discrimination claims

20. Step 3Verify /falsify potential problem or opportunity • Motivational factors • Management style • Redundancy effects

21. Step 4Devise plan and success criteria • Change the management style to develop respect for and trust from employees • Ask employees what motivates them to work (learn about their values) • Identify employees’ thoughts, fears and concerns relating to the redundancies • Identify and address areas where employees perceive discrimination

22. Step 5Implement the plan • Develop an employee motivation, perceived discrimination and redundancies related questionnaire within 4 weeks • Have employees answer the questionnaire within the following 2 weeks • Once the questionnaire content is analysed, change management styles to respond to needs in the areas of perceived gender discrimination, redundancy effects and motivation

23. Step 6Evaluate against success criteria • Distribute the questionnaire on an annual basis and examine trends • Identify percentage of reduction in employee absenteeism, turnover and discriminatory claims

24. Conclusion • Engaging and motivating employees is an important part of the SHRM process • People work (and are motivated) for different reasons • Positive leaders, psychological contracts and cultural orientations are all critical in motivating and engaging employees in their work • Organisational change can impact on employee motivation and behaviour • HR managers must continually monitor the workplace

25. The Psychological Contract from two perspectives – leader and employee • http://www.youtube.com/watch?v=EUdH9KmWenc&feature=related • http://www.youtube.com/watch?v=iD9jLSWUlC8&feature=related • Models of Motivation http://www.youtube.com/watch?v=CF2c1q_OvdE http://www.youtube.com/watch?v=o87s-2YtG4Y http://www.youtube.com/watch?v=fd3-Esb-m3o&feature=related