Chapter 9
Motivating Employees
Prepared by
Norm Althouse
University of Calgary
Copyright © 2011 by Nelson Education Ltd.
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Learning Outcomes
1 Explain the basic principles of Frederick Taylor’s concept of scientific
management.
2 Summarize what Elton Mayo’s Hawthorne studies revealed about worker
motivation.
3 Discuss Maslow’s hierarchy of needs, and how these needs relate to
employee motivation.
4 Identify how McGregor’s Theories X and Y, and Ouchi’s Theory Z are used to
explain worker motivation.
5 Explain the basic components of Herzberg’s motivator-hygiene theory.
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6 Describe how three contemporary theories of employee motivation offer
insights into improving employee performance.
7 Discuss how managers can redesign existing jobs to increase employee
motivation and performance.
8 List some of the initiatives organizations are using today to motivate and
retain employees.
Copyright © 2011 by Nelson Education Ltd.
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Employee Motivation
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Employees who are motivated and work hard to achieve personal and
organizational goals can become a crucial competitive advantage for a firm.
Copyright © 2011 by Nelson Education Ltd.
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Frederick Taylor’s Scientific Management
Basic Principles
1. Develop a scientific approach for each element of a person’s job.
2. Scientifically select, train, teach, and develop workers.
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3. Encourage cooperation between workers and managers.
4. Divide work and responsibility according to who is better suited to
each task.
Copyright © 2011 by Nelson Education Ltd.
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The Hawthorne Studies
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Hawthorne Effect
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The phenomenon that employees perform
better when they feel singled out for attention
or feel that management is concerned about
their welfare.
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Maslow’s Hierarchy of Needs
Self-Actualization
Esteem
Social
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Safety
Physiological
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Maslow’s Hierarchy of Needs
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McGregor’s Theories X and Y
Theory X
 The average person dislikes work
Theory Y
 Work is as natural as play or rest
and will avoid it if possible
 Workers can be motivated using
 People must be controlled,
directed, or threatened with
punishment
positive incentives
 The average person seeks out
responsibility
 The average person prefers to be
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directed, avoids responsibility, is
unambitious, and wants security
Copyright © 2011 by Nelson Education Ltd.
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Ouchi’s Theory Z
Theory Z
Emphasizes:
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



Long-term employment
Slow career development
Moderate specialization
Group decision making
Individual responsibility
Informal control over the employee
Concern for workers
Copyright © 2011 by Nelson Education Ltd.
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Herzberg’s Motivator-Hygiene Theory
Motivating Factors
(Job satisfiers)
Intrinsic job elements
that lead to satisfaction
Hygiene Factors
(Job dissatisfiers)
Extrinsic elements of
the work environment
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Motivating and Hygiene Factors
Motivating
Factors
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Achievement
Recognition
Work itself
Responsibility
Advancement
Growth
Hygiene
Factors
Company policy
Supervision
Working conditions
Interpersonal relationships at
work
Salary and benefits
Job security
Copyright © 2008 by Nelson, a division of
Thomson Canada Limited
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Contemporary Views on Motivation
Expectancy Theory
Equity Theory
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Goal-Setting Theory
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Chapter 9
Expectancy Theory
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Expectancy Theory
Motivating
Employees
 Determine the rewards valued by each employee
 Determine the desired performance level
 Make the performance level attainable
 Link rewards to performance
 Determine what factors might counteract the
effectiveness of an award
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 Make sure the reward is adequate for the level of
performance
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Equity Theory
Employees evaluate their outcomes in relation to their
inputs and compare to their past experience in…
 a different position in the current organization
 a different organization
 or…
 to another employee’s experience inside the
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organization
 to another employee’s experience outside the
organization
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Equity Theory (what are the choices?)
Change work habits
Change job benefits and income
Employee
Choices if
an Inequity
Exists
Distort their perception of themselves
Distort their perception of others
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Look at situation from different perspective
Leave the situation
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Goal-Setting Theory
An individual’s intention to work
toward a goal is a primary
source of motivation.
Goal-Setting
Theory
Components
 Specific goals lead to a higher level of performance
 More difficult goals lead to better performance
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 Feedback on progress toward the goal enhances
performance
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Reinforcing Behaviour
Increase/maintain behaviour
Decrease/eliminate behaviour
Introduce Consequence
Remove Consequence
Positive Reinforcement
Negative Reinforcement
Punishment
Extinction
By introducing or removing consequences
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managers can encourage functional behaviours
or discourage dysfunctional behaviours
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Motivational Job Design
Job Enlargement
Options for
Increasing
Motivation
Job Enrichment
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Job Rotation
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Work-Scheduling Options
Compressed
Workweek
Fitting 40 hours into a shorter workweek
Flextime
Employees decide what their
work hours will be
Job Sharing
Allows two individuals to split the tasks
and hours of a workweek
Telecommuting
Employees work from home
via a linked computer
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Incentives
NonMonetary
Incentives
Recognition
Empowerment
Piece-Rate Plans
Profit Sharing
Monetary
Incentives
Gain Sharing
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Bonuses
Stock Options
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Trends in Employee Motivation
Education and Training
Work-Life Benefits
Employee Ownership
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Nurturing Knowledge Workers
Coping with the Rising Cost of Absenteeism
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