Motivating Employees and
Creating Self-Managed Teams
Chapter 10
Chapter 10 Learning Goals
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What are the basic principles of Frederick
Taylor’s concept of scientific management?
What did Elton Mayo’s Hawthorne studies reveal
about worker motivation?
What is Maslow’s hierarchy of needs, and how
do these needs relate to motivation?
How are McGregor’s Theories X and Y used to
explain worker motivation?
What are the basic components of Herzberg’s
motivator-hygiene theory?
Chapter 10 Learning Goals (cont’d.)
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What three contemporary theories on employee
motivation offer insights into improving
employee performance?
How can managers redesign existing jobs to
increase employee motivation and performance?
What different types of teams are being used in
organizations today?
What initiatives are organizations using today to
motivate and retain employees?
Learning Goal 1
• What are the basic principles of Frederick Taylor’s
concept of scientific management?
– Develop a scientific approach for each element of a
person’s job
– Scientifically select, train, teach, and develop workers
– Encourage cooperation between workers and managers so
that each job can be accomplished in a standard,
scientifically determined way
– Divide work and responsibility between management and
workers according to who is better suited to each task
Evolution of Motivation Theory
1. Scientific Management
2. Hawthorne Studies
3. Hierarchy of Needs
4. Theories X and Y
5. Motivator-Hygiene Theory
Principles of Scientific Management
1. Develop a science of every job
element
2. Scientifically select, train, & instruct
workers
3. Cooperation between workers &
managers
4. Match individuals to well-suited tasks
and responsibilities
Learning Goal 2
• What did Elton Mayo’s Hawthorne studies
reveal about worker motivation?
– Increases in performance are tied to a complex set
of employee attitudes
• Employees singled out for special attention develop
pride that motivates workers to increase productivity
• Employees will perform better if they feel that
management is concerned about their welfare
Hawthorne Studies
Hawthorne Effect:
The phenomenon that employees
perform better when they feel singled
out for attention or feel that
management is concerned about their
welfare
Learning Goal 3
• What is Maslow’s hierarchy of needs, and how do
these needs relate to motivation?
– Maslow’s hierarchy of needs consisted of
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Physiological needs
Safety needs
Social needs
Esteem needs
Self-actualization needs
– Managers can increase employee motivation by modifying
organizational and managerial practices to help employees
meet all levels of needs
Maslow’s Hierarchy of Needs
Selfactualization
needs
Esteem
needs
Social needs
Safety needs
Physiological needs
Learning Goal 4
• How are McGregor’s Theories X and Y used to explain
worker motivation?
– Theory X states
• People don’t like to work and will avoid it if they can
• People must be controlled, directed or threatened to get them to make an effort
• Workers want to avoid responsibility but want job security
– Theory Y states
• Work is as natural as play or rest
• People want to be self-directed and will try to accomplish goals in which they
believe
• Positive incentives will motivate workers
• People seek responsibility and are willing to help solve problems
– McGregor believed Theory Y assumptions describe most employees
McGregor’s Theories
of Human Motivation
Theory X
Theory Y
people dislike work
work is as natural as play
people need to be
controlled, &
threatened
people avoid
responsibility &
value security
people respond to
positive incentives
people enjoy
responsibility & like to
solve problems
Learning Goal 5
• What are the basic components of Herzberg’s motivatorhygiene theory?
– Certain job factors are consistently related to employee job
satisfaction (satisfiers)
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Achievement and recognition
The nature of work itself
Responsibility and advancement
Growth
– Certain job factors can create job dissatisfaction (dissatisfiers) if not
well-managed
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Company policy
Relationships with supervisors, peers, and subordinates
Working conditions, salary, and benefits
Job security
Herzberg’s Motivator-Hygiene Theory
Motivating factors:
intrinsic job elements that lead to worker
satisfaction
Hygiene factors:
extrinsic elements of the work environment
that, if not managed well, lead to worker
dissatisfaction
Learning Goal 6
• What three contemporary theories on employee
motivation offer insights into improving employee
performance?
– Expectancy theory - motivation depends on link between:
• Effort and performance
• Performance and outcome
• Outcomes and personal needs
– Equity theory - based on individuals’ perceptions about how
fairly they are treated compared with coworkers
– Goal-setting theory - employees are highly motivated to perform
when specific goals are established and feedback on progress is
offered
Contemporary Motivation
Theory
1. Expectancy Theory
2. Equity Theory
3. Goal-Setting Theory
Expectancy theory:
The probability of a behavior depends
on:
(1) strength of individual’s belief that the
behavior will have a particular outcome,
and
(2) whether the individual values the
outcome
Equity theory:
Worker satisfaction is influenced by
employees’ perceptions about how
fairly they are treated compared with
their coworkers
Equity Theory
Upward social comparison: comparing oneself to
another who is better off on a particular attribute
 frequently results in decreased satisfaction
Downward social comparison: comparing oneself
to another who is worse off on a particular
attribute
 frequently results in increased satisfaction
Learning Goal 7
• How can managers redesign existing jobs to increase
employee motivation and performance?
– Job enlargement – horizontal expansion of a job by increasing
number and variety of tasks performed
– Job enrichment – vertical expansion of a job to provide more
autonomy, responsibility, and decision-making authority for
employee
– Job rotation – shifting of workers from one job to another to
broaden an employee’s skill base
– Popular motivational tools – Work-scheduling options,
employee recognition programs, empowerment, variable-pay
programs
Applying Motivation Theory
1. Motivational job design
– job enlargement
– job enrichment
– job rotation
2. Work scheduling options
– job sharing
3. Recognition, empowerment, &
economic incentives
– variable pay
Job Characteristics Model
1. Skill variety
2. Task identity
– task has visible results
3. Task significance
4. Autonomy
– employee freedom and independence
5. Task feedback
– working on task provides performance
feedback
Source: Hackman & Oldham, 1976, Organizational
Behavior and Human Performance, v. 16, pp. 250-279.
Learning Goal 8
• What different types of teams are being used in
organizations today?
– Problem-solving teams
• Employees from same department, area of expertise, and
level of
hierarchy
• Meet to share information and discuss ways to improve processes and
procedures in specific functional areas
– Self-managed work teams
• Highly autonomous groups that manage themselves
• Set goals, plan and schedule work activities, select team members,
evaluate team performance
Learning Goal 8 (cont’d.)
• What different types of teams are being used in
organizations today?
– Cross-functional teams
• Employees of same hierarchical level but different functional areas of
the organization
• Allows people with various areas of expertise to pool resources,
develop new ideas, solve problems, coordinate complex projects
– Virtual team
• Employees from different geographic or organizational locations that
use a combination of telecommunications and information technologies
to come together
• Work together to accomplish a common goal but rarely meet face-toface
Group cohesiveness:
the degree to which group members
want to stay in the group and tend to
resist outside influences
2 Types of Cohesiveness
1. Interpersonal cohesiveness: strong
bonds & liking between people
2. Task cohesiveness: strong
commitment to the group task among
members
Cohesiveness can increase team
performance, but interpersonally
cohesive teams may lack task focus
Source: Kenrick et al., Social Psychology, p. 441.
Pros and Cons of Teams
Pros:
Cons:
• more information &
knowledge
• can generate more
alternatives
• often higher-quality
decisions
• group participation
increases acceptance
of solutions
• take longer to reach
solution
• members may suppress
disagreement
• group may be dominated
by a few individuals
• lack of accountability
Types of Teams
1. Problem-solving
within one area
within one management level
2. Cross-functional
within one management level
across different areas
3. Self-managed
autonomous
Building Blocks of High
Performance Teams
1. Skills
2. Accountability
3. Commitment
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Problem solving
Technical/functional
Interpersonal
Small number of members
Mutual accountability
Individual accountability
• Specific goals
• Common approach
• Meaningful purpose
Learning Goal 9
• What initiatives are organizations using today to
motivate and retain employees?
– Investing more in employee education and training
• Makes workers more productive
• Less resistant to job change
– Managers are offering employees a chance for ownership in
the company
– Employers are providing work-life benefits to help employees
achieve a better balance between work and personal
responsibilities
• Telecommuting and job sharing
• Subsidized child care
• On-site fitness centers
Trends in Motivation
 Improved Education & Training
 Increased Employee Ownership
 More Work-Life Benefits
Deloitte & Touche consulting firm offers Work/life
Balance options:
reduced hours, reduced workload, continuing parttime, flextime, telecommuting, assistance programs
(Source: Deloitte & Touche, www.dttus.com)