Study Guide to Go
Chapter 11: Motivating Employees
Chapter Outlines
Basic Motivation Theories
Maslow’s Needs Hierarchy Theory
Herzberg’s Two-Factor Theory
Advanced Theories of Work Motivation
Job Enrichment Theory
Expectancy Theory
Goal-Setting Theory
Motivation Through Rewards
Extrinsic Versus Intrinsic Rewards
Employee Compensation
Improving Performance with Extrinsic Rewards
Motivation Through Employee Participation
Open-Book Management
Self-Managed Teams
Keys to Successful Employee Participation Programs
Motivation Through Quality-of-Worklife Programs
Flexible Work Schedules
Family Support Services
Wellness Programs
Sabbaticals
Glossary
motivation the psychological process that gives behavior purpose and direction.
job enrichment redesigning jobs to increase their motivational potential.
expectancy theory model that assumes motivational strength is determined by
perceived probabilities of success.
expectancy ones belief or expectation that one thing will lead to another.
goal setting process of improving performance with objectives, deadlines, or
quality standards.
rewards material and psychological payoffs for working.
extrinsic rewards payoffs, such as money, that are granted by others.
intrinsic rewards self-granted and internally experienced payoffs, such as a
feeling of accomplishment.
cafeteria compensation plan that allows employees to select their own mix of
benefits.
participative management empowering employees to assume greater control of
the workplace.
open-book management sharing key financial data and profits with employees
who are trained and empowered.
self-managed teams high-performance teams that assume traditional
managerial duties such as staffing and planning.
flextime allows employees to choose their own arrival and departure times within
specified limits.
Learning Objective Summary
Learning Objective 1: Explain the motivational lessons taught by
Maslow and Herzberg.
• Maslow’s five-level needs hierarchy, although empirically criticized, makes it
clear to managers that people are motivated by emerging rather than fulfilled
needs.
- Physiological Needs
- Safety Needs
- Love Needs
- Esteem Needs
- Self-Actualization Needs
• Herzberg’s two-factor theory explains that employee motivation is based on
satisfaction according to the following classes:
- Dissatisfiers (Complaints about the job context or factors in the immediate work
environment.)
- Satisfiers (Factors responsible for self-motivation or situations in which
employees felt exceptionally good about their jobs.)
• According to Herzberg, the key to true satisfaction, and hence motivation, is an
enriched job that provides an opportunity for achievement, responsibility, and
personal growth.
Learning Objective 2: Explain how job enrichment can enhance the
motivating potential of jobs, and describe the motivational processes
in expectancy and goal-setting theory.
• Job enrichment vertically loads jobs to meet individual needs for:
- Meaningfulness (skill variety, task identity, and task significance)
- Responsibility (autonomy)
- Knowledge of results (job feedback)
• Personal desire for growth and a supportive climate must exist for job
enrichment to be successful.
• Expectancy theory is based on the idea that the strength of one’s motivation to
work is the product of perceived probabilities of acquiring personally valued
rewards. Both effort-performance and performance-reward probabilities are
important to expectancy theory.
• Goals motivate performance by:
- Directing attention
- Encouraging effort and persistence
- Prompting goal-attainment strategies and action plans
Learning Objective 3: Distinguish extrinsic rewards from intrinsic
rewards, and list four rules for administering extrinsic rewards
effectively.
• Both extrinsic (externally granted) and intrinsic (self-granted) rewards, when
properly administered, can have a positive impact on performance and
satisfaction.
• There is no single best employee compensation plan.
• A flexible and varied approach to compensation will be necessary in the coming
years because of workforce diversity.
• The following rules can help managers maximize the motivational impact of
extrinsic rewards:
- Rewards must satisfy individual needs.
- One must believe that effort will lead to reward.
- Rewards must be equitable.
- Rewards must be linked to performance.
• Gain-sharing plans have great motivational potential because they emphasize
participation and link pay to actual productivity.
Learning Objective 4: Explain how open-book management and selfmanaged teams promote employee participation.
• Participative management programs foster direct employee involvement in one
or more of the following areas:
- Goal setting
- Decision making
- Problem solving
- Change implementation
• The S.T.E.P. model of open-book management encourages employee
participation when managers:
- Share key financial data with all employees
- Teach employees how to interpret financial statements and control costs
- Empower employees to make improvements and decisions
- Pay a fair share of profits to employees
• Employees assigned to self-managed teams participate by taking on tasks
traditionally performed by management.
• Profit sharing or gain sharing, job security, cohesiveness, and protection of
employee rights are keys to building crucial employee support for participation
programs.
Learning Objective 5: Discuss how companies are striving to motivate
employees with quality-of-worklife programs.
• A diverse workforce requires imaginative quality-of-worklife programs.
• Flextime, a flexible work-scheduling scheme that allows employees to choose
their own arrival and departure times, has been effective in improving employeesupervisor relations while reducing absenteeism.
• Employers are increasingly providing family support services such as child care,
elder care, parental leaves, and adoption benefits.
• Employee wellness programs and sabbaticals (extended paid time off) are
offered by some companies.
Test Preppers
Test Prepper 11.1
True or False?
_____ 1. From bottom to top, Maslow’s needs hierarchy includes physiological, safety,
love, esteem, and self-actualization needs.
_____ 2. According to Maslow, becoming everything one is capable of becoming refers
to esteem.
_____ 3. Maslow’s theory suggests that a fulfilled need always motivates an individual.
_____ 4. Satisfiers involve job content in Herzberg’s two-factor theory.
_____ 5. According to Herzberg’s two-factor theory of motivation, an employee can
reach a point of being neither dissatisfied nor satisfied.
Multiple Choice
_____ 6. In the general motivation model, _____ affects the relationship between
motivational factors (such as needs and expectations) and job performance.
a. educational level
b. formal authority
c. ability
d. value system
e. work attitude
_____ 7. Which of these best sums up Maslow’s ideas about human needs?
a. They form a three-level hierarchy.
b. They are consciously selected.
c. They emerge according to a predictable hierarchy.
d. They have no predictable form.
e. They come in two types.
_____ 8. People in war-torn areas of the world, such as Afghanistan, who struggle for
basic survival every day, exist on the _____ level(s) in Maslow’s needs hierarchy.
a. love and esteem
b. esteem
c. self-actualization
d. physiological and safety
e. love
_____ 9. Why are the self-actualization needs on Maslow’s hierarchy “open-ended”?
a. People deny they have these needs.
b. People can never be fully satisfied.
c. People don’t know they exist.
d. They recycle people to the bottom of the needs hierarchy.
e. They cannot be even partially satisfied.
_____ 10. Frederick Herzberg equated _____ with employee motivation in his two-factor
theory of motivation.
a. satisfaction
b. challenging goals
c. self-actualization
d. leadership
e. self-control
_____ 11. _____ is a satisfier, according to Herzberg’s two-factor theory.
a. Responsibility
b. Work conditions
c. Personal life
d. Company policy and administration
e. Status
_____ 12. _____ is a dissatisfier, according to Herzberg’s two-factor theory.
a. Growth
b. Salary
c. Recognition
d. Work itself
e. Responsibility
Test Prepper 11.2
True of False?
_____ 1. For motivation purposes, job enlargement and job enrichment involve the
same process.
_____ 2. One of the five core job characteristics in job enrichment is skill-based pay.
_____ 3. Task significance is the degree to which the job has a substantial impact on
the lives of other people.
_____ 4. In Vroom’s expectancy theory of employee motivation, perception plays a
central role.
_____ 5. Rewards have equal value to people in the expectancy theory of motivation.
_____ 6. Managers have little or no influence over employee expectations, according to
expectancy motivation theory.
_____ 7. Goals tend to be more effective if they are stated in general terms and are
relatively easy to understand.
_____ 8. According to goal-setting theory, employee participation is important.
Multiple Choice
_____ 9. What advice would you give a Disneyland manager if she wants to enrich the
jobs of her foodservice employees?
a. Move your people from job to job.
b. Give everyone clearer and more detailed instructions.
c. Give each employee more tasks at the same level.
d. Vertically load the jobs with more decision-making responsibility.
e. Let your people go home when they choose.
_____ 10. Doing a “whole” piece of work from beginning to end refers to which of the
following?
a. Job feedback
b. Task identity
c. Autonomy
d. Skill variety
e. Task significance
_____ 11. Which of these best describes the word expectancy?
a. Subjective probability
b. Self-doubt
c. Social needs
d. Personal values
e. Achievement needs
_____ 12. In the expectancy model, how do rewards influence motivational strength?
a. Intrinsic versus extrinsic
b. Immediate versus delayed
c. Negative impact only
d. No impact
e. Perceived value
_____ 13. Based on what you have learned about goal-setting theory, what type of
goals should you recommend to a friend who has taken a supervisory job?
a. Specific and difficult
b. General
c. Ones determined by management
d. Easy
e. Impossible
_____ 14. _____ is the key to creating a sense of personal ownership of goals.
a. Feedback
b. Time-based pay
c. Clear policies and procedures
d. Employee participation
e. Incentive compensation
Test Prepper 11.3
True or False?
_____ 1. Examples of extrinsic rewards include praise from a parent and a pat on the
back from a coach.
_____ 2. Intrinsic rewards are those granted by the organization, such as a cash bonus.
_____ 3. An example of incentive compensation is an annual salary.
_____ 4. Employees receive free meals and treats in cafeteria compensation plans.
_____ 5. Perceived inequity can be experienced by employees who are either underpaid
or overpaid.
Multiple Choice
_____ 6. _____ is an extrinsic reward.
a. A feeling of accomplishment
b. Self-actualization
c. Praise from an executive
d. Self-esteem
e. A feeling of doubt
_____ 7. According to the experts at the U.S. Bureau of Labor Statistics, the term(s)
_____ will apply to future compensation plans.
a. time-based
b. uniform and standardized
c. flexible and varied
d. lean and uniform
e. skill-based
_____ 8. At E-Designs Inc., salary and wages are tied to degrees earned and skills
mastered. This is an example of
a. gain sharing.
b. pay-for-knowledge.
c. piece rate.
d. cafeteria compensation.
e. profit sharing.
_____ 9. All of these are ways to increase the motivational impact of extrinsic rewards
except
a. reward effort, not results.
b. make employees believe effort will lead to reward.
c. link rewards to performance.
d. make rewards equitable.
e. satisfy individual needs.
_____ 10. Which ratio relates to the perception of reward equity?
a. Effort-reward
b. Task-results
c. Effort-results
d. Pay-performance
e. Task difficulty-results
Test Prepper 11.4
True or False?
_____ 1. In open-book management, the S.T.E.P. acronym stands for share, teach,
empower, and perform.
_____ 2. The final step of the S.T.E.P. approach to open-book management involves
paying employees a fair share of profits through bonuses, incentives, and stock
ownership.
_____ 3. Self-managed teams are a form of job enrichment.
_____ 4. According to researchers, profit sharing can help an employee participation
program succeed.
Multiple Choice
_____ 5. _____ is a key word in the definition of participative management.
a. Empowerment
b. Independence
c. Equality
d. Authority
e. Goals
_____ 6. The S in the S.T.E.P. approach to OBM stands for
a. Success.
b. Separate.
c. Sales.
d. Strength.
e. Share.
_____ 7. The main barrier to self-managed teams is
a. self-confidence.
b. blue-collar personnel.
c. organized labor.
d. managerial resistance.
e. use of part-time employees.
_____ 8. Which of these was not found by researchers to be a success factor for
employee participation programs?
a. Job security
b. Protection of employee rights
c. Flexible work schedules
d. Profit-sharing or gain-sharing plan
e. An effort to build group cohesiveness
Test Prepper 11.5
True or False?
_____ 1. In a flextime program, hourly employees can arrive at work whenever they
choose.
_____ 2. Two part-timers share the same job when the job-sharing concept is in effect.
_____ 3. Every employer in the United States must comply with the Family and Medical
Leave Act.
_____ 4. The ultimate objective of wellness programs is to reduce turnover.
Multiple Choice
_____ 5. Flextime can be most accurately described by which of these?
a. Arrive at a fixed time, but depart when the job is done
b. Arrive and depart within specified limits
c. Arrive on time, but depart as desired
d. Arrive and depart when you choose
e. Arrive when you like, but depart at a fixed time
_____ 6. Shawn works ten-hour shifts four days every week so that he can pursue a
college degree. What flexible work schedule is he using?
a. Rolling time
b. Compressed workweek
c. Job sharing
d. Permanent part-time
e. Flextime
_____ 7. How does the text characterize the United States Family and Medical Leave Act
that took effect in 1993?
a. Long overdue universal coverage
b. More generous than state laws
c. The first law to require paid leave for everyone
d. Probably unconstitutional
e. Has significant holes and limitations
_____ 8. When companies such as Wells Fargo and McDonald’s grant employees paid
time off after a specified number of years of service, this refers to
a. job rotation.
b. cafeteria compensation.
c. flextime.
d. a sabbatical.
e. mental health time.
Test Prepper Answer Key
11.1
1. T
2. F
3. F
4. T
11.2
1. F
2. F
3. T
4. T
13. a 14. d
11.3
1. T
2. F
3. F
4. F
11.4
1. F
2. T
3. T
4. T
11.5
1. F
2. T
3. F
4. F
5. T
6. c
7. c
8. d
9. b
10. a
11. a
12. b
5. F
6. F
7. F
8. T
9. d
10. b
11. a
12. e
5. T
6. c
7.c
8. b
9. a
10. a
5. a
6. e
7. d
8. c
5. b
6. b
7. e
8. d