Motivating Employees

2. 11 Motivating Employees In business, willingness is just as important as ability. —Paul G. Hoffman

3. How Does Motivation Work? • Familiarity with the best-known theories can help supervisors think of ways to motivate employees. • None of the theories are perfect, but all give supervisors some guidance. Motivation + Ability = Performance 11-3 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

4. Content Theories • Content theories focus on the content of the motivators. • Three researchers whose content theories of motivation are widely used: • Abraham Maslow • David McClelland • Frederick Herzberg 11-4 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

5. Maslow’s Hierarchy of Needs 11-5 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

6. Share of 945 U.S. Companies Offering Flexible Work Options 11-6 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

7. McClelland’s Achievement-Power-Affiliation Theory • The need for achievement – the desire to do something better than it has been done before. • The need for power – the desire to control, influence, or be responsible for other people. • The need for affiliation – the desire to maintain close and friendly personal relationships. 11-7 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

8. Herzberg’s Two-Factor Theory • Hygiene Factors • Company policy and administration • Supervision • Relationship with supervisor • Relationship with peers • Working conditions • Salary and benefits • Relationship with subordinates • Motivating Factors • Opportunity for achievement • Opportunity for recognition • Work itself • Responsibility • Advancement • Personal growth 11-8 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

9. Process Theories • Process theories look at the process of motivation instead of specific motivators. • Two major process theories: • Vroom’s expectancy-valency theory • Skinner’s reinforcement theory 11-9 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

10. Vroom’s Expectancy-Valence Theory • Victor Vroom decided that the degree to which people are motivated to act in a certain way depends on two things: • Valence – the value a person places on the outcome of a particular behavior. • Expectancy – the perceived probability that the behavior will lead to the outcome. Strength of Motivation =Perceived Value of Outcome xPerceived Probability of Outcome Resulting 11-10 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

11. Skinner’s Reinforcement Theory • The reinforcement theory maintains that people’s behavior is influenced largely by the consequences of their past behavior. • Reinforcement theory implies that supervisors can encourage or discourage a particular kind of behavior by the way they respond to the behavior. • Reinforcement • Punishment 11-11 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

12. Motivation Theories and the Law • Federal laws set requirements for overtime pay, rest breaks, health insurance for retirees, and many other areas. • The Family and Medical Leave Act can pose a significant challenge to planning and scheduling because of an employee’s leave. 11-12 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

13. Money as a Motivator • When money motivates • Money motivates people when it meets their needs. • Pay plans using financial incentives • Piecework system • Production bonus system • Commissions • Payments for suggestions 11-13 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

14. Group Incentive Plans • Profit-sharing plan • Under this kind of plan, the company sets aside a share of its profits earned during a given period and divides these profits among the employees. • Gainsharing • The company encourages employees to participate in making suggestions and decisions about improving the way the company or work group operates. As performance improves, employees receive a share of the greater earnings. Group incentive plan A financial incentive plan that rewards a team of workers for meeting or exceeding an objective. 11-14 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

15. Secrecy of Wage and Salary Information • In private (nongovernment) organizations, employees generally do not know one another’s earnings. • Government employees’ earnings are public information. • In private organizations, a typical compromise between maintaining privacy and sharing information is for the organization to publish pay ranges so employees know what they can potentially expect to earn. 11-15 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

16. How Supervisors Can Motivate • Making work interesting • Job rotation • Job enlargement • Job enrichment • Having high expectations • Pygmalion effect • Providing rewards that are valued • The content theories of motivation indicate that a variety of rewards may motivate, but that not all employees will value the same rewards at the same time 11-16 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

17. How Supervisors Can Motivate (continued) • Relating rewards to performance • The rewards a supervisor uses should be linked to employee performance. • Rewards are most likely to motivate employees when the employees view them as achievable. • Treating employees as individuals • A supervisor who wishes to succeed at motivating has to remember that employees will respond in varying ways. • When a particular type of motivation does not seem to work with an employee, a supervisor should try some other motivator to see if it better matches the employee’s needs. 11-17 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

18. Job Characteristics Rated Important by U.S. Workers 11-18 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

19. How Supervisors Can Motivate (continued) • Encouraging employee participation • Employees tend to feel more committed when they can contribute to decisions and solutions. • Asking subordinates for their advice about how tasks should be accomplished is another way to increase their involvement. • Providing feedback • Part of a supervisor’s job is to give employees feedback about their performance. • Praise is an important kind of feedback. 11-19 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

20. Summary • To perform well, employees must be motivated. • Content theories of motivation attempt to identify what motivates people. • Maslow’s hierarchy of needs • McClelland’s achievement-power-affiliation theory • Herzberg’s two-factor theory • Process theories explain how motivation works through its process. • Money motivates people when it meets their needs. 11-20 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

21. Summary (continued) • The way a pay plan is structured can influence the degree to which employees are motivated to perform well. Some pay plans offer bonuses, commissions, or other kinds of pay for meeting or exceeding objectives. • Supervisors can motivate employees by making work interesting,having high expectations of employees, providing rewards that are valued, relating rewards to performance, treating employees as individuals, encouraging employee participation, and providing feedback, including praise. • By publishing pay ranges, employees do not know how much specific individuals earn, but the ranges show what they can expect to earn if they get a raise, promotion, or transfer to another position. 11-21 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.