Chapter 10
Motivating
Employees
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Ten
LEARNING GOALS
1. Explain Taylor’s theory of scientific management.
2. Describe the Hawthorne studies and their
significance to management.
3. Identify the levels of Maslow’s hierarchy of needs
and apply them to employee motivation.
4. Distinguish between the motivators and hygiene
factors identified by Herzberg.
5. Differentiate among Theory X, Theory Y, and
Theory Z.
10-2
Chapter Ten
LEARNING GOALS
6. Explain the key principles of goal-setting,
expectancy, reinforcement, and equity theories.
7. Show how managers put motivation theories into
action through such strategies as job enrichment,
open communication, and job recognition.
8. Show how managers personalize motivation
strategies to appeal to employees across the globe
and across generations.
10-3
Profile
ANDREW CHERNG
Panda Express
• Cherng considers the wellness of
his staff as an important key to
the company’s success.
• Managers are urged to eat a
healthy diet, exercise regularly,
and attend company motivational
seminars that often include hugs!
• He hopes to have 2,300
American stores in operation
by 2015.
10-4
Chapter Ten
NAME that COMPANY
The employees of this company are told exactly
how to do their jobs – and we do mean exactly.
For instance they are instructed to carry their
keys on their ring finger with the teeth up. If
they are considered too slow, a supervisor will
shadow them with a stopwatch and clipboard
and prod them along.
Name that company!
10-5
The Value of
Motivation
INTRINSIC REWARDS
• Intrinsic Rewards –
– Personal satisfaction you feel when you perform well and
complete goals:
- Pride in your performance
- Sense of achievement
– Something given as a recognition of good work.
- Pay Raises
- Promotions
- Awards
10-6
The Value of
Motivation
FRINGE BENEFITS
Best Perks Offered to Employees
Type of Benefit
Company
Pay Scale Ranked
Free food, a bowling alley, and bocce courts.
Google
2
12 paid holidays and a winter recess between Christmas and
New Year's Day.
Boeing
16
Johnson & Johnson
Co.
18
Cisco Systems
29
Campbell’s
52
General Mills
76
Hershey’s
89
J.J. Smucker Co.
103
Have access to concierge service, who does personal chores for
them.
Primary healthcare, physical therapy and acupuncture.
100% healthcare coverage, free flu shots, healthy cooking
lessons and subsidized costs on healthy meal options. Also, onsite kindergarten and after-school programs, and lactation room
for nursing mothers.
3 weeks paid vacation upon hire and increases yearly, and can
work from any location within the office, known as the FUSE
program.
Immediate eligibility for 401(k) contribution, and company will
match, and has own fitness centers for employees, spouses, and
dependents.
New hires receive gift basket sent to their homes, and they
holds bowling nights and softball games.
http://money.cnn.com/magazines/fortune/bestcompanies/best_benefits/unusual.html February 11, 2013
10-7
Frederick Taylor:
The Father of
Scientific
Management
LG1
TAYLOR’S SCIENTIFIC
MANAGEMENT
• Scientific Management -- Studying workers to find
the most efficient ways of doing things and then
teaching people those techniques.
• Three Key Elements to Increase Productivity
1. Time
2. Methods of Work
3. Rules of Work
10-8
Frederick Taylor:
The Father of
Scientific
Management
LG1
TAYLOR’S FOUR KEY
PRINCIPLES
1. Study how a job is performed.
• Gather time & motion information.
• Check different methods.
2. Codify the best method into rules.
3. Choose workers whose skill(s) match the rule.
4. Establish a fair level of performance and pay.
10-9
Frederick Taylor:
The Father of
Scientific
Management
TIME-MOTION STUDIES
LG1
• Time-Motion Studies -- Studies of which tasks
must be performed to complete a job and the time
needed to do each task.
• Led to the development of the Principle of
Motion Economy -- Every job can be broken down
into a series of elementary motions; developed by
Frank and Lillian Gilbreth.
• Led to the development of Lean Six Sigma – Toyota
-- Reduction of waste and defects of 3.4 per million.
10-10
Frederick Taylor:
The Father of
Scientific
Management
LG1
ARE YOU STRESSED?
Warnings of Employee Stress
• Negative attitudes about work
• Drops in productivity
• Chronic lateness
• Absenteeism
• Careless with details
• Unable to work with others
• Withdrawal from co-workers
• Easily upset or angered
10-11
Frederick Taylor:
The Father of
Scientific
Management
TAYLOR and UPS
LG1
• UPS drivers work under strict rules and work
requirements.
• How to get out of their
trucks:
- Right foot first
• How fast to walk:
- 3 ft per second
• How to hold their keys:
- Teeth up, third finger
10-12
Elton Mayo and
the Hawthorne
Studies
LG2
HAWTHORNE STUDIES:
PURPOSE AND RESULTS
• Researchers studied worker efficiency under
different levels of light.
• Productivity increased regardless of light
condition.
• Researchers decided it was
a human or psychological
factor at play.
• Hawthorne Effect -- People
act differently when they know
they are being studied.
10-13
Motivation and
Maslow’s
Hierarchy of
Needs
LG3
MASLOW’S
THEORY of MOTIVATION
• Hierarchy of Needs -- Theory of motivation
based on unmet human needs from basic
physiological needs to safety, social and
esteem needs to self-actualization needs.
• Needs that have already been met do not
motivate.
• If a need is filled, another higher-level need
emerges.
10-14
Motivation and
Maslow’s
Hierarchy of
Needs
LG3
MASLOW’S
HIERARCHY of NEEDS
10-15
Herzberg’s
Motivating
Factors
LG4
HERZBERG’S
MOTIVATING FACTORS
• Herzberg’s research centered on two questions:
- What factors controlled by managers are most
effective in increasing worker motivation?
- How do workers rank job-related factors in order
of importance related to motivation?
10-16
Herzberg’s
Motivating
Factors
JOB CONTENT
LG4
Herzberg found job content
factors were most important to
workers. Workers’ like to feel
they contribute to the company.
• Motivators -- Job factors that
cause employees to be
productive and that give them
satisfaction.
10-17
Herzberg’s
Motivating
Factors
JOB ENVIRONMENT
LG4
Job environment factors maintained satisfaction,
but did not motivate employees.
• Hygiene Factors -- Job
factors that can cause
dissatisfaction if missing but
do not necessarily motivate
employees if increased.
10-18
Herzberg’s
Motivating
Factors
LG4
HERZBERG’S MOTIVATORS
and HYGIENE FACTORS
Motivators
Work Itself
Hygiene Factors
Company Policy and
Administration
Achievement
Recognition
Supervision
Working Conditions
Responsibility
Growth and
Advancement
Interpersonal Relations
Salary, Status and Job
Security
10-19
Herzberg’s
Motivating
Factors
LG4
COMPARISON of the THEORIES
of MASLOW and HERZBERG
10-20
Herzberg’s
Motivating
Factors
LG4
REIGNITE EMPLOYEES’ DRIVE
Simple Ways to Reinvigorate Work Life
1. Don’t work alone all the
time; partners or teams
make work more efficient
and fun.
2. Redecorate your space to
get away from the sameold, same-old.
3. Don’t complain; think of
things to celebrate.
Photo Courtesy of: Nels Highberg
Source: Fast Company, March 2010.
10-21
Progress
Assessment
PROGRESS ASSESSMENT
• What are the similarities and differences between
Taylor’s time-motion studies and Mayo’s
Hawthorne studies?
• How did Mayo’s findings influence scientific
management?
• Draw a diagram of Maslow’s hierarchy of needs.
Label and describe the parts.
• Explain the distinction between what Herzberg
called motivators and hygiene factors.
10-22
McGregor’s
Theory X and
Theory Y
THEORY X and THEORY Y
LG5
• Douglas McGregor proposed managers had two
different sets of assumptions concerning workers.
• Their attitudes about motivating workers were
tied to these assumptions.
• McGregor called them Theory X and Theory Y.
10-23
McGregor’s
Theory X and
Theory Y
LG5
ASSUMPTIONS of
THEORY X MANAGERS
• Workers dislike work and seek to
avoid it.
• Workers must be forced or
threatened with punishment to get
them to perform.
• Workers prefer to be directed and
avoid responsibility.
• Primary motivators are fear and
money.
10-24
McGregor’s
Theory X and
Theory Y
LG5
ASSUMPTIONS of
THEORY Y MANAGERS
• People like work, it is a part of life.
• Workers seek goals to which they are committed.
• Commitment to goals depends on perceived
rewards.
• People can use creativity to solve problems.
• Intellectual capacity is only partially realized.
• People are motivated by a variety of rewards.
10-25
Ouchi’s
Theory Z
THEORY Z
LG5
• William Ouchi researched cultural differences
between the U.S. (Type A) and Japan (Type J).
• Type J committed to the organization and group.
• Type A focused on the
individual.
• Theory Z is the hybrid
approach of Types A
and J.
10-26
Ouchi’s
Theory Z
THEORY Z
LG5
10-27
Goal-Setting
Theory and
Management by
Objectives
GOAL-SETTING THEORY
LG6
Goal-Setting Theory –
• Setting ambitions that are
attainable goals can motivate
workers and improve
performance if the goals are
accepted, accompanied by
feedback, and facilitated by
organizational conditions.
10-28
Goal-Setting
Theory and
Management by
Objectives
LG6
APPLYING GOAL-SETTING
THEORY
• Management by Objectives (MBO) -- Involves a
cycle of discussion, review and evaluation of
objectives among top and middle-level managers,
supervisors and employees.
• Managers formulate goals in cooperation with
everyone in the organization.
• Need to monitor results and reward achievement.
10-29
Goal-Setting
Theory and
Management by
Objectives
ORGANIZATIONS USING MBO
LG6
• Toyota Motor Company
• Emerson Electric Company
• U.S. Department of Defense
10-30
Meeting Employee
Expectations:
Expectancy
Theory
LG6
EXPECTANCY THEORY in
MOTIVATION
Expectancy Theory -- Amount of effort employees
exert on a specific task depends on their expectations
of the outcome.
• Employees ask:
- Can I accomplish the task?
- What’s my reward?
- Is the reward worth the effort?
• Expectations can vary from person to person.
10-31
Meeting Employee
Expectations:
Expectancy
Theory
LG6
NADLER & LAWLER’S
MODIFICATION
• Researchers, Nadler and Lawler, modified the
Expectancy Theory and suggested five steps for
managers:
1. Determine what rewards employees value.
2. Determine workers’ performance standard.
3. Make sure performance standards are attainable.
4. Tie rewards to performance.
5. Be sure employees feel rewards are adequate.
10-32
Reinforcing
Employee
Performance:
Reinforcement
Theory
REINFORCEMENT THEORY
LG6
• Reinforcement Theory – Using positive and
negative reinforcers to motivate a person to behave
in certain ways.
– Positive reinforcement includes praise, pay increases
and recognition.
– Negative reinforcement includes reprimands, reduced
pay, and layoff or firing.
– Extinction is a way of trying to stop behavior by not
responding to it.
10-33
Treating
Employees
Fairly: Equity
Theory
EQUITY THEORY
LG6
Equity Theory -- Employees try to maintain equity
between inputs and outputs compared to others in
similar positions.
• Workers often base perception of their outcomes
on a specific person or group.
• Perceived inequities can lead to reduced quality
and productivity, absenteeism, even resignation.
10-34
Progress
Assessment
PROGRESS ASSESSMENT
• Briefly explain the managerial attitudes behind
Theories X, Y and Z.
• Explain goal-setting theory.
• Evaluate expectancy theory. When could
expectancy theory apply to your efforts or lack of
effort?
• Explain the principles of equity theory.
10-35
Motivation
Through Job
Enrichment
ENRICHING JOBS
LG7
Job Enrichment -- A motivational strategy that
emphasizes motivating the worker through the job itself.
• Based on Herzberg’s
motivators, this would
involve: responsibility,
achievement and
recognition.
10-36
Motivation
Through Job
Enrichment
LG7
MOTIVATION on a BUDGET
Tactics of Today’s HR Managers
Source: Wall Street Journal, March 1, 2010.
10-37
Motivation
Through Job
Enrichment
LG7
KEY CHARACTERISTICS
of WORK
1. Skill Variety
2. Task Identity
3. Task Significance
4. Autonomy
5. Feedback
10-38
Motivation
Through Job
Enrichment
TYPES of JOB ENRICHMENT
LG7
• Job Enlargement -- Combining a series of tasks
into one challenging and interesting assignment.
• Job Rotation -- Moving employees from one job
to another.
10-39
Motivation
Through Job
Enrichment
LG7
ENRICHMENT
by WAY of FLEXIBILITY
• 60% of employees think they can be productive and
efficient outside of the office.
• 66% of employees would take a lower-paying job if it
came with more flexibility.
• 59% of employees say their company doesn’t have a
formal out-of-office work policy.
Source: Entrepreneur, May 2011.
10-40
Motivating
Through Open
Communication
USING OPEN COMMUNICATION
LG7
• Create a culture that
rewards listening.
• Train managers to listen.
• Use effective questioning
techniques.
• Remove barriers to open
communication.
• Ask employees what’s
important to them.
10-41
KEEPING the LINES OPEN
(Social Media in Business)
• Businesses can no longer
limit themselves to traditional
intranets.
• They must communicate
with employees, not to them.
• Employees expect 24/7
access to what they need
with what they have
(smartphone, iPad,
notebook).
10-42
WHEN TOO MUCH is TOO MUCH
24/7 Access Isn’t Always a Good Thing
• Schedule correspondence:
-
Don’t check email whenever it arrives, schedule times to
check.
• Pick one task:
-
Having too much open at once takes attention away from
singular tasks.
• Don’t answer the phone:
-
Don’t be afraid of voicemail.
• Maintain human contact:
-
Don’t look at your computer or phone while someone is at
your desk. Keep attention (and respect!) on them.
Source: Entrepreneur, December 2010.
10-43
Recognizing a
Job Well Done
RECOGNIZING GOOD WORK
LG7
Raises are not the only ways to recognize an
employee’s performance. Recognition also
includes:
- Paid time off
- Flexible scheduling
- Work from home opportunities
- Paid child or elder care
- Stock options or profit sharing
- Company awards
- Company events or teams
10-44
Recognizing a
Job Well Done
WORK WELL with OTHERS
LG7
Keys for Productive Teamwork
• Have a common
understanding of your
task.
• Clarify roles and
responsibilities.
• Set rules.
• Get to know each other.
• Communicate openly
and often.
10-45
Recognizing a
Job Well Done
LG7
WHAT’S GOOD for YOU
Most Positive Remedies for Employee Moral
10-46
Recognizing a
Job Well Done
LG7
WHAT’S BAD for YOU
Most Negative Actions for Employee Morale
10-47
SMALL INCENTIVES CAN be
BIG MOTIVATORS
(Spotlight on Small Business)
• Things like weekly trips to the
movies and Rock Band in the break
room help keep employees
motivated.
• Communication, mentoring and
group bonding are key elements to
success.
• Open communication and
increased responsibility for
employees make them feel a real
part of the firm.
10-48
Motivating
Employees
Across the Globe
LG8
MOTIVATING EMPLOYEES
ACROSS the GLOBE
Cultural differences make worker motivation a
challenging task for global managers.
• High-Context cultures require relationships and
group trust before performance.
• Low-Context cultures
believe relationship
building distracts from
tasks.
10-49
IMPORTANCE of
CULTURAL COMPENTENCY
(Reaching Beyond Our Borders)
Diversity -- A better understanding of cultures
helps managers increase customer satisfaction and
loyalty.
• It’s not just knowing other
languages, it’s knowing
what’s proper.
• UPS operates in over 200
countries successfully by
emphasizing diversity.
10-50
Motivating
Employees
Across
Generations
LG8
MOTIVATING ACROSS the
GENERATIONS
• Baby Boomers (1946 – 1964)
- Experienced great economic prosperity, job security,
optimism about their future
• Generation X (1965 – 1980)
- Raised in dual-career families, attended day care, feeling of
insecurity about jobs
• Generation Y or Millennials (1980 – 2004)
- Raised by indulgent parents, used to many comforts like
computers and cell phones
• Generation Z or Digital Generation (2005 to present)
- Raised by parents very connected with networks and social
networks, computers and all kinds of smartphones, known
as digital natives
10-51
Motivating
Employees
Across
Generations
LG8
GENERATION X in the
WORKPLACE
• Desire economic security but focus more on
career security than job security.
• Good motivators as managers due to emphasis
on results rather than work hours.
• Tend to be flexible and good at collaboration and
consensus building.
• Very effective at giving employee feedback and
praise.
10-52
Motivating
Employees
Across
Generations
LG8
GENERATION Y - MILLENNIALS
and the WORKPLACE
• Tend to be impatient, skeptical, blunt and
expressive.
• Are tech-savvy and able to grasp new concepts.
• Able to multi-task and are efficient.
• Highlight a strong sense of commitment.
• Place a high value on work-life balance.
• Fun and stimulation are key job requirements.
10-53
Motivating
Employees
Across
Generations
LG8
MILLENNIALS and the
RECESSION
• The recession hurt younger
workers more deeply than
other workers.
• In July 2010, the
unemployment rate was at
a high of 15.3 percent for
those aged 20 to 24, while
the overall unemployment
rate was 9.5 percent.
10-54
Motivating
Employees
Across
Generations
LG8
GENERATION Z
and the Workplace
• They operate totally with the digital world
and social networking.
• Their interpretation skills are lacking and
may not have basic manners ingrained in
generations at younger ages.
• They have tremendous energy and
enthusiasm.
• There's a big gap in the old-fashioned basics
like personal responsibility and work habits.
• Managers will have to tap their intelligence
and provide the support to young workers.
10-55
Motivating
Employees
Across
Generations
LG8
COMMUNICATION
ACROSS the GENERATIONS
• Baby Boomers (1946 – 1964)
- Prefer meetings and conference calls.
• Generation X (1965 – 1980)
- Prefer email and will choose meetings only if there
are no other options.
• Generation Y or Millennials (1980 – 2004)
- Prefer to use technology to communicate,
particularly through social media.
• Generation Z or Digital (2005 – Present)
- Prefer to use digital technology and social
networking.
10-56
Motivating
Employees
Across
Generations
The BEST COMPANIES for
WORKERS
LG8
Company
Location
Bliss Score
2011
2012
Difference
Google
Search Engine/Info
Mountain View, CA
3.15
4.31
36.7% +
SuperMedia
Marketing - Dallas, TX
3.41
4.11
20.66%+
UNISYS
Intern’l Information Company
Blue Bell, PENN
3.30
3.97
20.0%+
GE Capital
Bank
Financial Services
Fairfield, CT
3.80
4.54
19.45%+
Rockwell
Collins
Aerospace and Defense
Cedar Rapids, ID
3.44
4.05
17.60%+
Ernst &
Young
Accounting/Financial
New York, NY
3.70
4.29
15.91%
Source: Forbes: July 2014
10-57
Progress
Assessment
PROGRESS ASSESSMENT
• What are several steps firms can take to increase
internal communications and thus motivation?
• What problems may emerge when firms try to
implement participative management?
• Why is it important to adjust motivational styles to
individual employees? Are there any general
principles of motivation that today’s managers
should follow?
10-58