Matakuliah Tahun : J0712 - Pengantar Bisnis : 2009 Motivating and Leading Employees Pertemuan 08 Motivating and Leading Employees •Outline: Psychological Contracts In Organizations Importance of Satisfaction & Morale Motivation In The Workplace Strategies For Enhancing Job Satisfaction & Motivation Managerial Styles & Leadership Bina Nusantara University 3 Psychological Contract • Employee’s Contributions • Organization’s Inducements • Human Relations- Interaction Of Employees With Company And Each Other – Job Satisfaction/Morale/Turnover – Organizational Success Bina Nusantara University 4 The Importance of Satisfaction and Morale • Job satisfaction is the degree of enjoyment that people derive from performing their jobs • Morale is the overall attitude that employees have toward their workplace • Turnover is the annual percentage of an organization’s workforce that leaves and must be replaced Bina Nusantara University Trends in Satisfaction and Morale: •Massive Layoffs/Cutbacks •Improving Economy Could Mean Reduced Morale •Reinstate Benefits 5 High Priorities For Today’s Workforce Family Orientation Sense Of Community Quality Of Life Issues Volunteerism Autonomy Flexibility & Nonconformity Bina Nusantara University 6 Compensation & Benefits Importance 80% Pay 70% 60% Retirement 50% Life Ins. 40% Health 30% Long Term Care 20% 10% Paid Time Off 0% 1 Bina Nusantara University 2 3 4 5 6 7 Workplace Motivation • What is motivation? Forces that affecting people’s behavior. • Motivational theories are: – Classical Theory/Scientific Management – Behavior Theory – Contemporary Motivational Theories Bina Nusantara University 8 Classical Theory • Frederick Taylor (1911) • More Money = Greater Motivation • Efficient Company = Higher Profits & Pay • Time-And-Motion Study • Scientific Management Bina Nusantara University 9 Behavior Theory • Hawthorne Studies (1925) tendency for productivity to increase when workers believe they are receiving special attention from management. • Physical environment changes, affect worker output. • Increased pay = greater motivation • Hawthorne Effect Bina Nusantara University 10 Mc Gregor Theories X & Y (1960) Bina Nusantara University 11 Maslow’s Hierarchy of Needs (1954) Bina Nusantara University 12 Two-Factor Theory (1959) of Motivation Job Satisfaction Depends On Two Factors Bina Nusantara University 13 Expectancy Theory • Victor Vroom (1964) • People Work Towards Rewards Bina Nusantara University 14 Equity Theory • • J. Stacey Adams (1963) People Evaluate Their Treatment By Organization Bina Nusantara University 15 Reinforcement/Behavior Modification Theory • B.F. Skinner (1957) • Reinforcement is a theory that behavior can be encouraged or discouraged by means of rewards or punishments. – Reinforcement are rewards that refer to all the positive things that people get for working. – Punishment (negative reinforcement) is designed to change behavior by presenting people with unpleasant consequences if they fail to change in desirable ways. Bina Nusantara University 16 Management By Objectives • Peter Drucker (1954) • Collaborative Goal Setting Bina Nusantara University 17 Recent Management Styles • Participative management or employee empowerment. – Employees receive greater responsibility. – Employees feel more committed to organization. • Team management- employees given decision-making responsibility. • Some employees frustrated by increased responsibility. Bina Nusantara University 18 Job Enrichment/ Job Enlargement & Job Redesign • Job enrichment is a method of increasing job satisfaction by adding one or more motivating factors to job activities. Bina Nusantara University Job redesign is a method of increasing job satisfaction by designing a more satisfactory fit between workers and their jobs. One of three ways: •Combining Tasks •Forming Natural Work Groups •Establishing Client Relationships 19 Modified Work Schedules • • • • Work-Share Flextime Telecommuting/Virtual Office Advantages – Employee Freedom/Control Of Life – Improves Individual Productivity • Disadvantages – Complex Coordination – Difficult To Keep Accurate Records Bina Nusantara University 20 Managerial Styles & Leadership • Managerial Styles-patterns of management behavior in dealing with employees • Leadership- motivating others to work Bina Nusantara University 21 Managerial Styles • Autocratic Style – Issue orders – Expect them to be followed – Rapid decision-making Bina Nusantara University • Democratic Style •Ask for input from subordinates •Retains final authority 22 Managerial Styles • Free-Rein Style • Contingency Style – Manager is advisor to subordinates – No specific style used all the time – Subordinates make decisions – Situation dictates manager’s leadership style – Fosters creativity – Different cultures have varying expectations of leaders Bina Nusantara University 23 21st Century Leadership/Management • Motivation – Money no longer prime – Different desires at work – Varying lifestyles reflect varying goals of employee • Leadership – Flatter organizations = less autocratic – Diversity of workplace = diversity of leaders – Network mentality Bina Nusantara University 24 What Workers Want Most From Work Pet At Work Espresso Mach. Daycare Massages Nap Time Telecommute Unl. Internet Casual Dress Flex. Hrs. 0% Bina Nusantara University 10% 20% 30% 40% 50% 60% 70% 25