Motivating Employees and
Creating Self-Managed Teams
Chapter 10
I. Evolution of Motivation Theory
A. Scientific Management
1. Develop a scientific approach for each element of a job
2. Scientifically selecting and training workers
3. Match individuals to well-suited tasks and
responsibilities
B. Hawthorne Studies/Hawthorne effect
attention, caring, observation = productivity
C. Maslow’s Hierarchy of Needs
humans satisfy needs and
are motivated to fulfill
higher-level needs
Self-actualization
needs
Esteem
needs
Social needs
Safety needs
Physiological needs
D. Theories of Human Motivation
1. Theory X- people dislike work, people need to be
controlled & threatened, people avoid responsibility
2. Theory Y- work is as natural as play, people respond
to positive incentives, people enjoy responsibility &
like to solve problems
3. Theory Z - employees participate in goal setting,
problem solving, decision making, designing and
implementing changes. Motivation is increased because
workers feel appreciated.
E. Herzberg’s Motivator-Hygiene Theory
Motivating factors:
intrinsic job elements that lead to worker
satisfaction (e.g. achievement, recognition,
advancement, responsibility)
Hygiene factors:
extrinsic elements of the work environment
that, if not managed well, lead to worker
dissatisfaction (e.g. salary, job security,
working conditions, company policies)
II. Contemporary Motivation Theories
A. Expectancy Theory
1. Employees expect that the amount of effort
leads to a certain performance level.
2. Employees expect that their performance level
leads to certain outcomes
3. Employees expect the outcome will satisfy their
personal needs.
(employees expect something in return for
their efforts)
B. Equity Theory - Worker satisfaction is
influenced by employees’ perceptions about
how fairly they are treated compared with
their co-workers. Pay should be proportional
to the employee’s contribution to the firm.
1. Upward social comparison: comparing
oneself to another who is better off on a
particular attribute
 frequently results in decreased satisfaction
2. Downward social comparison: comparing
oneself to another who is worse off on a
particular attribute
 frequently results in increased satisfaction
C. Goal-Setting Theory - an individual’s intention
to work toward a goal is a primary source of
motivation.
Three integral components of goal-setting theory:
-goals must be specific
-goals must be challenging (not too easy/hard)
-must provide feedback on employee progress
toward goal
III. Applying Motivation Theory
A. Motivational job design
1. job enlargement ( no. & variety of tasks)
2. job enrichment (more autonomy, responsibility,
authority)
3. job rotation (shift from one job to another)
B. Work scheduling options
1. Compressed workweek (4/10)
2. Flextime (start/stop times vary)
3. Job sharing (a job shared by 2 workers)
4. Telecommuting
C. Economic incentives
-bonus, merit increases, addt’l vacation,
addt’l benefits, etc.
D. Non-economic incentives
1. Verbal praise
2. Recognition
3. Empowerment
4. Given new tasks
5. Asked to work on special projects
and/or assignments
IV. Using Teams
A. Understanding Group Behavior
1. Group cohesiveness - the degree to which
group members want to stay in the group
and tend to resist outside influences
a. Interpersonal cohesiveness: strong bonds &
liking between people
b. Task cohesiveness: strong commitment to the
group task among members
B. Types of Teams
1. Problem-solving
• 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
2. Cross-functional
• 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
3. 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-to-face
C. 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
• group may be dominated by
a few individuals
• lack of accountability
• inequitable participation
• a member taking credit for
someone else’s ideas
• personality conflicts may
hinder productivity