Busn 100 Chapter 10

1. Busn 100 Chapter 10 Motivation & Team: Managers and Employees

2. Goals • Explain Taylor’s scientific management • Describe the Hawthorne studies, and relate their significance to management • Identify the levels of Maslow’s hierarchy of needs, and relate their importance to employee motivation • Distinguish between the motivators and hygiene factors identified by Herzberg • Explain how job enrichment affects employee motivation and performance • Differentiate between Theory X, Theory Y and Theory Z • Explain goal-setting theory and how management by objectives (MBO) exemplifies the theory • Describe the key principals of expectancy, reinforcement, and equity theories • Explain how open communication builds teamwork, and describe how managers are likely to motivate teams in the future

3. CEO Of Hot Topic: Elizabeth “Betsy” Mclaughlin • Pay her employees to go to clubs and concerts so that they can write about the latest trends • No offices with doors • They look for people who have talent and passion for what they do, as opposed to experience

4. Motivation And Reward • Intrinsic reward (p 260 text) • The personal satisfaction you feel when you perform well and complete goals • Extrinsic reward (p 260 text) • Something given to you by someone else as recognition for good work; Examples: pay, praise, promotions

5. Intrinsic Vs. Extrinsic Rewards Extrinsic = Outside Recognition Praise Intrinsic = Inside Feeling of Job WellDone Promotions Salary Increase Pride Sense of Achievement Status Gifts

6. Early Management Theory • Scientific management (Taylor) (p 261 text) • Studying workers to find the most efficient ways of doing things and then teaching people those techniques • Time-motion studies (p 261 text) • Studies, begun by Frederick Taylor, of which tasks must be performed to complete a job and the time needed to do each task • Principal of motion economy (p 262 text) • Theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions • Hawthorne effect (p 263 text) • The tendency for people to behave differently when they know they are being studied

7. Hawthorne Studies • Conducted by Elton Mayo (1927-1933) • First Experiment: Determine if lighting was a factor in productivity. • Next Experiments: Determine if other factors affected productivity. • These studies encouraged the study of human motivation.

8. Maslow’s Hierarchy Of Needs (P 263 Text) • Theory of motivation based on unmet human needs: • Self-actualized needs: The need to develop to one’s fullest potential • Esteem needs: The need for recognition and acknowledgment from others, as well as self-respect and a sense of status or importance • Social needs: The need to be loved, accepted, part of a group • Safety needs: The need to feel secure at work and at home • Physiological needs: The need for food, water, shelter • If the need is met, it is no longer a motivator • Most worker’s in world: 4 & 5

9. Maslow’s Hierarchy Of Needs; Theory of motivation based on unmet human needs: Unsatisfied Self- Actualization Esteem Needs Social Needs Satisfied Safety Needs Physiological Needs

10. Herzberg’s theory allowed managers to see a hierarchy of what creates enthusiasm for workers: • Sense of Achievement • Earned recognition • Interest in the work itself • Growth • Advancement • Responsibility • Peer and group relationships • Pay • Supervisor’s fairness • Company policy and rules • Status • Job Security • Supervisor’s friendliness • Working conditions

11. Motivators (p 265 text) In Herzberg’s theory of motivating factors, job factors that cause employees to be productive and that give then satisfaction Hygiene factors (p 265 text) In Herzberg’s theory of motivating factors, job factors that cause dissatisfaction if missing but that do not necessarily motivate employees if increased Herzberg’s Theory

12. Herzberg’s Theory Figure 10.5 Comparison of Maslow and Herzberg

13. Herzberg’s Theory Summarized (P 266 Text) • The best way to motivate employees is to make their job interesting, help them to achieve their objectives, and recognize their achievement through advancement and added responsibility: • “Thanks, I really appreciate what you are doing”

15. Job Enrichment Job enrichment (p 267 text) A motivational strategy that emphasizes motivating the worker through the job itself Job enlargement (p 269 text) A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment Job rotation (p 269 text) A job enrichment strategy that involves moving employees from one job to another

16. Job Enrichment: Five Characteristics Of Work That Motivates: Skill variety: Job demands different skills Task identity: Job requires doing task with a visible outcome from beginning to end Task significance: Job has substantial impact of the lives or work of others in the company Autonomy: Independence to schedule work and determine procedures Feedback: Amount of direct and clear information about job performance

17. Theory X (P 273 Text) • Employees dislike work and try to avoid it • Employees prefer to be controlled and directed • Employees seek security, not responsibility • Employees must be intimidated by managers to perform • Employees are motivated by financial rewards

18. Theory Y (P 273 Text) • Employees like work and view work as a natural part of life • Employees prefer limited control and direction • Employees will seek responsibility under proper work conditions • Employees have the capacity to be creative and solve problems • Employees perform better in work environments that are nonintimidating • Employees are motivated by many different needs ($, time off, recognition, praise)

19. Theory Z (P 272 Text) • Long-term employment • Collective decision making • Individual responsibility • Slow evaluation and promotion • Implicit, informal control with explicit, formalized control • Moderately specialized career paths • Holistic concern for employees (including family)

20. Goal-setting Theory (P 273 Text) • The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions

21. Management By Objectives (MBO) (P 273 Text) • A system of goal setting and implementation, that involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees • Peter Drucker developed in 1960s: • “Managers cannot motivate people; they can only thwart people’s motivation because people motivate themselves.” • Employees must motivate themselves • Managers must understand the difference between: • Helping • Working with subordinate and doing part of work (if necessary) • Coaching • Teaching, guiding, but not helping

22. Other Theories • Expectancy theory (p 274 text) • Victor Vroom’s theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome • Reinforcement theory (p 274 text) • Theory that positive and negative reinforcers motivate a person to behave in certain ways • Equity theory (p 275 text) • The idea that employees try to maintain equity between inputs and outputs compared to others in similar positions

23. Task: Can I accomplish the task? Outcome: Is the reward worth it? Motivated Yes Yes No No Expectancy Theory Not motivated Not motivated

24. Reinforcement & Equity • Reinforcement theory (Carrot & Stick) • Positive reinforcers : Reward (strive to receive): • Praise, Recognition, Raises • Negative reinforcers: Punishment (try to avoid): • Reprimands, Firing, Pay Cuts • Equity theory • If people perceive their rewards are not equitable: • Lower productivity, reduced quality, absenteeism, resignation • Perceive underrewarded: 1) Reduce efforts or 2) “It’s not important” • Perceive overrewarded: 1) Increase efforts or 2) “I’m important”

25. Create culture that rewards listening Train supervisors and managers to listen Remove barriers to open communication Actively undertake efforts to facilitate communication Teamwork & Open Communication

26. Explain Taylor’s Scientific Management • Increase worker productivity and efficiency in order to benefit the firm and worker • Time and motion studies • Use scientific methods (collect data, organize data to recognize patterns and conclude) in the management field

27. Describe The Hawthorne Studies, And Relate Their Significance To Management • Elton Mayo studied how lighting affected workers, but instead accidentally discovered that human factors such as feelings of involvement and participation led to greater productivity increases than did physical changes in the workplace • The Hawthorne studies greatly impacted theories of how to motivate workers

28. Maslow And Herzberg

29. Maslow And Herzberg • Malow’s theory allowed managers to recognize what unmet needs a person has and then design work that satisfies those needs • Example: Andrew Grove’s (CEO Intel) friend achieved the vice presidents job (esteem level) then had a midlife crisis (trying to satisfy self-actualization level) • Herzberg’s theory allowed managers to see a hierarchy of what creates enthusiasm for workers: • Sense of Achievement • Earned recognition • Interest in the work itself • Growth • Advancement • Responsibility…

30. Explain How Job Enrichment Affects Employee Motivation And Performance • If the job itself is going to satisfy and motivate the employee more than pay, then managers need to know how to create jobs with the following five characteristics: • Skill variety • Task identity • Task significance • Autonomy • Feedback • Forms of job enrichment: • Job enlargement • Job rotation

31. Differentiate Between Theory X, Theory Y And Theory Z • X • People don’t like work • People must be forced, controlled and threatened to accomplish organizational goals • Y • People like work • Will accept responsibility for achieving goals if rewarded for doing so ($, praise, time off…) • People have the capacity to be creative • Z • Merger of Japanese and American culture and management theories • Long-term employment, collective decision making, individual responsibility, …

32. Explain Goal-setting Theory And How Management By Objectives (MBO) Exemplifies The Theory • MBO: A system of goal setting and implementation, that involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees • Peter Drucker : • “Managers cannot motivate people; they can only thwart people’s motivation because people motivate themselves.”

33. Describe The Key Principals Of Expectancy, Reinforcement, And Equity Theories • Expectancy theory • If I can accomplish the task and I like the reward I will get, I am motivated • Reinforcement theory • + reinforcers (strive to receive): • Praise, Recognition, Raises • - reinforcers (try to avoid): • Reprimands, Firing, Pay Cuts • Equity theory • If people perceive their rewards are not equitable: • Lower productivity, reduced quality, absenteeism, resignation • Perceive underrewarded: 1) Reduce efforts or 2) “It’s not important” • Perceive overrewarded: 1) Increase efforts or 2) “I’m important”

34. Explain How Open Communication Builds Teamwork, And Describe How Managers Are Likely To Motivate Teams In The Future • Why is communication so important in building effective self-managed teams? • Open communication helps both top managers and team members understand the objectives and work together to achieve them • Teams establish an environment in which learning can happen because most learning happens at the peer level

35. Explain How Open Communication Builds Teamwork, And Describe How Managers Are Likely To Motivate Teams In The Future • How are Gen X managers different from Baby Boomer managers • Baby Boomerangs: • Work long hours to build their careers and expect subordinates to do the same • Gen X • Strive for more balanced lifestyle • Focus on results rather than on how many hours a team works • Good at working on teams • Good at providing feedback • Like all generations: they are less bound by traditions and are willing to try new approaches to solve problems