NETA PowerPoint Presentations to accompany The Future of Business Fourth Edition Adapted by Norm Althouse, University of Calgary Copyright © 2014 by Nelson Education Ltd. Motivating Employees Chapter 11 Chapter 11 Copyright © 2014 by Nelson Education Ltd. Making the Connection Copyright © 2014 by Nelson Education Ltd. Learning Outcomes 1. 2. 3. 4. 5. 4 Explain the basic principles of Frederick Taylor’s concept of scientific management. Summarize what Elton Mayo’s Hawthorne studies revealed about worker motivation. Discuss Maslow’s hierarchy of needs and Clayton Alderfer’s ERG theory of motivation, and how these needs relate to employee motivation. Identify how McGregor’s Theories X and Y and Ouchi’s Theory Z are used to explain worker motivation. Explain the basic components of Herzberg’s motivatorhygiene theory. Copyright © 2014 by Nelson Education Ltd. Learning Outcomes (cont’d) 6. 7. 8. 5 Describe how three contemporary theories of employee motivation offer insights into improving employee performance. Discuss how managers can redesign existing jobs to increase employee motivation and performance. List some of the initiatives organizations are using today to motivate and retain employees. Copyright © 2014 by Nelson Education Ltd. Exhibit 11.1: Model of Motivation 6 Copyright © 2014 by Nelson Education Ltd. Explain the basic principles of Frederick Taylor’s concept of scientific management. 7 Copyright © 2014 by Nelson Education Ltd. Scientific Management Develop a scientific approach for each element of a person’s job. Scientifically select, train, and develop workers. Encourage cooperation between workers and managers. Divide work and responsibility according to who is better suited to each task. 8 Copyright © 2014 by Nelson Education Ltd. Summarize what Elton Mayo’s Hawthorne studies revealed about worker motivation. 9 Copyright © 2014 by Nelson Education Ltd. Hawthorne Studies Hawthorne Effect 10 The phenomenon that employees perform better when they feel singled out for attention or feel that management is concerned about their welfare. Copyright © 2014 by Nelson Education Ltd. Discuss Maslow’s hierarchy of needs and Alderfer’s ERG theory of motivation, and how these needs relate to employee motivation. 11 Copyright © 2014 by Nelson Education Ltd. Exhibit 11.2: Maslow’s Hierarchy of Needs 12 Copyright © 2014 by Nelson Education Ltd. Exhibit 11.3: Alderfer’s ERG Theory 13 Copyright © 2014 by Nelson Education Ltd. Identify how McGregor’s Theories X and Y and Ouchi’s Theory Z are used to explain worker motivation. 14 Copyright © 2014 by Nelson Education Ltd. McGregor’s Theories X and Y Theory X (pessimistic view) • The average person dislikes work and will avoid it if possible. • People must be controlled, directed, or threatened with punishment. • The average person prefers to be directed, avoids responsibility, is not ambitious, and wants security. Theory Y (optimistic view) • Work is as natural as play or rest. • Workers can be motivated by using positive incentives. • The average person seeks out responsibility. 15 Copyright © 2014 by Nelson Education Ltd. Ouchi’s Theory Z Emphasizes: • Long-tem employment • Slow career development • Moderate specialization • Group decision making • Individual responsibility • Informal control over the employee • Concern for workers 16 Copyright © 2014 by Nelson Education Ltd. Explain the basic components of Herzberg’s motivator-hygiene theory. 17 Copyright © 2014 by Nelson Education Ltd. Herzberg’s Motivator-Hygiene Theory Motivating Factors (job satisfiers) Hygiene Factors (job dissatisfiers) Intrinsic job elements lead to satisfaction. Extrinsic elements of the work environment. Exhibit 11.5: Herzberg’s Motivating and Hygiene Factors 18 Copyright © 2014 by Nelson Education Ltd. Describe how three contemporary theories of employee motivation offer insights into improving employee performance. 19 Copyright © 2014 by Nelson Education Ltd. Contemporary Views on Motivation Expectancy Theory Equity Theory © THE ORANGE COUNTY REGISTER/ZUMAPRESS.COM/GETSTOCK Goal-Setting Theory 20 Copyright © 2014 by Nelson Education Ltd. Exhibit 11.6: How Expectation Can Lead to Motivation 21 Copyright © 2014 by Nelson Education Ltd. 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. Make sure the reward is adequate for the level of performance. 22 Copyright © 2014 by Nelson Education Ltd. Equity Theory Employees evaluate their outcomes in relation to their inputs and compare to one of the following: Past experience in different position. Past experience in different organization. To another employee’s experiences. 23 Copyright © 2014 by Nelson Education Ltd. Equity Theory (What Are the Choices?) Change work habits. When There Is Inequity… Change job benefits and income. Distort their perceptions of self. Distort their perception of others. View situation from different perspective. Leave the situation. 24 Copyright © 2014 by Nelson Education Ltd. Goal-Setting Theory 25 Copyright © 2014 by Nelson Education Ltd. Discuss how managers can redesign existing jobs to increase employee motivation and performance. 26 Copyright © 2014 by Nelson Education Ltd. Exhibit 11.7: Reinforcing Behaviour By introducing or removing consequences, managers can encourage functional behaviours or discourage dysfunctional behaviours. 27 Copyright © 2014 by Nelson Education Ltd. Motivational Job Design Job Enlargement Options for Increasing Motivation Job Enrichment Job Rotation 28 Copyright © 2014 by Nelson Education Ltd. 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. 29 Copyright © 2014 by Nelson Education Ltd. Incentives Non-Monetary Incentives Recognition Empowerment Piece-Rate Plans Monetary Incentives Profit Sharing Gain Sharing Bonuses Stock Options 30 Copyright © 2014 by Nelson Education Ltd. List some of the initiatives organizations are using today to motivate and retain employees. 31 Copyright © 2014 by Nelson Education Ltd. The Future of Motivation Education and training. Employee ownership. Work-life benefits. Nurturing knowledge workers. 32 Copyright © 2014 by Nelson Education Ltd.