Chapter Twelve

1. PRIDE HUGHES KAPOOR INTRODUCTION TO BUSINESS ELEVENTH EDITION Chapter Twelve Motivating and Satisfying Employees and Teams 12 | 1

2. Learning Objectives • Explain what motivation is. • Understand some major historical perspectives on motivation. • Describe three contemporary views of motivation: equity theory, expectancy theory, and goal-setting theory. • Explain several techniques for increasing employee motivation. • Understand the types, development, and uses of teams. 12 | 2

3. What Is Motivation? • The individual internal process that energizes, directs, and sustains behavior; the personal “force” that causes us to behave in a particular way • Morale • An employee’s feelings about his or her job, superiors, and about the firm itself • High morale results from the satisfaction of needs or as a result of the job and leads to dedication, loyalty, and the desire to do the job well • Low morale leads to shoddy work, absenteeism, and high turnover rates 12 | 3

4. The Ten Best Companies to Work For Table 12.1 Source: “Top 100 Companies to Work For,” Fortune, February 8, 2010, pp. 75-77. 12 | 4

5. Historical Perspectives on Motivation • Scientific Management • The application of scientific principles to management of work and workers • Frederick W. Taylor • Observed workers who “soldiered” or worked slowly 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 12 | 5

6. 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 Figure 12.1 12 | 6

7. 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 12 | 7

8. Historical Perspectives on Motivation (cont’d) • Maslow’s Hierarchy of Needs • A sequence of human needs 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 12 | 8

9. Maslow’s Hierarchy of Needs Figure 12.2 12 | 9

10. 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 12 | 10

11. Herzberg’s Motivation-Hygiene Theory Figure 12.3 12 | 11

12. Historical Perspectives on Motivation (cont’d) • Douglas McGregor • Sets of assumptions about managerial attitudes and beliefs regarding worker behavior • Theory X • Generally consistent with Taylor’s scientific management • Employees dislike work and will function only in a controlled work environment • 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 | 12

13. Theory X and Theory Y Table 12.2 12 | 13

14. 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 12 | 14

15. The Features of Theory Z Figure 12.4 12 | 15

16. 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 providing a reward • Negative reinforcement: strengthens desired behavior by eliminating an undesirable task or situation • Punishment: an undesired consequence of undesirable behavior • Extinction: no response to undesirable behavior in order to discourage its occurrence 12 | 16

17. 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) • Try to get the comparison other to increase inputs or receive decreased outcomes • Leave the work situation (quit) • Switch to a different comparison other 12 | 17

18. 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 • Implies 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 12 | 18

19. Expectancy Theory Figure 12.5 12 | 19

20. 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 that the employee will be committed to achieve • Rewards should be tied directly to goals achievement 12 | 20

21. How Does Your Employer Motivate Workers? Source: Dice Salary survey of 16,908 technology workers, USA Today, February 22, 2010, p. 1B. 12 | 21

22. Key Motivation Techniques • It takes more than a generous salary to motivate employees. Companies are trying to motivate employees by satisfying less tangible needs. • Simple, low or no cost approaches such as: • Celebrate birthdays and other important events • Nominations for a formal award program • Support flexible work schedules • Publicly post thank you letters from customers Sources: Texas A&M University Human Resources Department, http://wmployees.tamu.edu/docs/employment/classComp;/614recognitionIdeas.pdf; HRWorld, http://www.hrworld.com/features/25-employee-rewards/; Michigan Office of Great Workplace Development, http://www.michigan.gov/documents/firstgentlemen/50_242400_7.pdf. 12 | 22

23. 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 Key Motivation Techniques (cont’d) Advantages • Motivates employees by actively involving them • Improves communication • Makes employees feel like an important part of the organization • Periodic review enhances control Management by Objectives–managers and employees collaborate in setting goals, clarify employee roles 12 | 23

24. 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 12 | 24

25. 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 • 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 12 | 25

26. 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 12 | 26

27. Key Motivation Techniques (cont’d) • Part-time work • Permanent employment in which individuals work less than a standard work week • 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 12 | 27

28. 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 12 | 28

29. 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 12 | 29

30. Key Motivation Techniques (cont’d) • Employee ownership • Employees own the company they work for by virtue of being stockholders • Directly reward employees for success • Benefits • Considerable employee incentive • Increased employee involvement and commitment • Obstacles • Problems between management and employees can still occur 12 | 30

31. Teams and Teamwork • Teams • Two or more workers operating as a coordinated unit to accomplish a specific task or goal • Types of teams • Problem-Solving • Virtuoso • Self-Managed • Cross-Functional • Virtual • Stages of team development • Forming • Storming • Norming • Performing • Adjourning 12 | 31

32. Advantages and Disadvantages of Self-Managed Teams Figure 12.6 12 | 32

33. Teams and Teamwork (cont’d) • Roles within a team • Task-specialist role • Socio-emotional role • Dual role • Nonparticipant role • Team cohesiveness • For a team to be successful, members must learn how to resolve and manage conflict 12 | 33

34. Teams and Teamwork (cont’d) • Team conflict and how to resolve it • Middle ground resolution satisfies each party to some extent • Benefits and limitations of teams • Reduces turnover and costs, increases production, quality, customer service, job satisfaction • Reorganizing into teams can be stressful and time consuming with no guarantee it will develop effectively 12 | 34

35. Stages of Team Development Figure 12.7 12 | 35