Ch 08 busi20 Fall 07

Chapter 8

Employee Behavior and Motivation running a business would be a whole lot simpler.

9 –1

MPC’s Deeper Offerings

• Busi 22 Human Behavior/Leadership

 Psychological techniques in job performance and satisfaction

 Leadership skills, human motivation, time management, values, decision making, career management

 Instructor: Leandro Castillo aka MPC’s running back coach!

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 9 –2

Key Topics

• Psychological contracts in the workplace

• Job satisfaction and employee morale

• Theories of employee motivation

• Managerial motivation techniques

• Running theme: Putting these concepts into action.


Psychological Contract: A Set of

Employment Expectations

• Contributions:

 What does each employee expect to contribute to the organization?

 Performance behaviors & citizenship

 Counterproductive behaviors

• Inducements:

 What will the organization provide to each employee in return?

Pay, benefits, security, opportunity, and more


Table 9 –1

Satisfied Employees Are More

Committed and Productive

• Job Satisfaction:

 Degree of enjoyment employees derive from their jobs

• High Morale:

 An overall positive employee attitude toward the workplace

• Low Turnover:

 A low percentage of employees leave each year

• Productivity

 Maximizing output from inputs

 Marginal cost = marginal benefit


Effective Motivation leads to desired behavior, satisfaction, and performance

• Motivation:

 The set of forces that cause people to behave in certain ways

• So how do we do it already?

• Job Satisfaction

• High Morale

• Low Turnover

Copyright © 2005 Prentice Hall, Inc. All rights reserved.

• Productivity

9 –7

The Effective Motivation Disconnect

Manager – Employee Motivation Index


Key Topics

• Psychological contracts in the workplace

• Job satisfaction and employee morale

• Theories of employee motivation

• Managerial motivation techniques

• Running theme: Putting these concepts into action.


The evolution of motivational theory

• Classical Theory

 Fredrick Taylor’s Scientific Management

• Behavior

 The Hawthorne Effect

• Contemporary motivational theories

 More detailed psychological approaches

 Recognizing people as individuals


Scientific Management

• Fredrick Taylor, the father of

Scientific Management

 Gantt charts!

 Time & motion studies

 Standardization, methods, layout, task-training

 Improve efficiency so you can afford to pay higher wages (motivation)

 Scientific Management

C&C with TQM & Lean?


The Hawthorn Studies: 1925ish-1933

• A Harvard group led by Elton Mayo invaded the Hawthorn

Western Electric plant in Cicero Illinois

• Experimented with the effects of lighting levels on productivity

• Any change increased productivity, even very dim lighting.

• The productivity increases were maintained even when lighting was returned to previous levels…….

• They thought their experiments were a total failure


The Hawthorn Effect was born:

• The workers thought of themselves as a team, or group with something in common.

• The workers helped plan the experiments. Their ideas were appreciated and implemented.

• The workers got special attention. Their increased productivity was compensated.

• Learned: People perform better when they matter.

• This unleashed the storm of modern motivational theories that we will now explore.


Douglas McGregor’s Model of

Management’s Views:

• Theory X

 People are lazy.

 People lack ambition and dislike responsibility.

 People are self-centered.

• Theory Y

 People are energetic.

 People are ambitious and seek responsibility.

 People can be selfless.

 People resist change.

 People are gullible and not very bright.

 People want to contribute to business growth and change.

 People are intelligent.

• • Which traits are strongest in you?

didn’t follow up with employees enough?


Table 9 –1

9 –15

Abraham Maslow’s Hierarchy of Needs


Figure 9 –1

9 –16

What level motivates me if I am:

• Starving

• Homeless, but fed

• Isolated

• Needing to prove something to myself

• Trying to make a difference in the world

• A typical American worker


Two-Factor

Theory of

Motivation

(Herzberg)


Figure 9 –2

9 –19

Which is it?

Motivation Factors

• achievement

• recognition

• the work itself

• responsibility

• advancement and growth

• • You earn a to the executive washroom.

Hygiene Factors

• supervisors

• working conditions

• interpersonal relations

• pay & security

• company policies and administration


Figure 9 –2

9 –20

Expectancy Theory

We work toward rewards that are worth the effort, we have a reasonable chance of getting, and we want.

Is the reward big enough?

Will my performance get me the reward?

Do I want the reward?

Where did the manager fail in goal setting?


Figure 9 –3

Equity Theory

• Employees evaluate their treatment relative to the treatment of others

 Inputs: Employee contributions to their jobs

 Outputs: What employees receive in return

• The perceived ratio of contribution to return determines perceived equity.

• Workers will attempt to adjust their inputs and/or outputs until they feel their perceived equity is….. equitable.


Equity Theory: Situation Outcomes

• • That test was hard, an “A”. That studying paid off!

• I will do my best work possible next time

• I will work less next time

• I will steal from the company

• I will sabotage the quality of the product

Figure 9 –4

9 –23 Copyright © 2005 Prentice Hall, Inc. All rights reserved.

Individual differences in employees

Different people are at different points in all of these scales.

Personality typing is one technique to gauge how to manage or lead individuals.

• Personality type lessons we’ll learn:

 Your strengths

 Your weaknesses

 How you need to be treated

 How others need you to treat them


Situational Approach to Leadership

The Four Square model

High Skill Low

High

Basically leave them alone.

Provide strong coaching light motivation

Motivation

Low

Provide light coaching and strong motivation

Provide strong coaching and strong motivation


Decoding Personality

Popular

+ Enthusiastic, spontaneous, creative

- Loud, too-happy, forgetful, not believable

Peaceful

+ Calm, steady, listens, compassionate

- Worrier, slow starter, seems indifferent


Powerful

+ Lead, meets goals, strong-willed, ME

- Bossy, know it all, deny failure

Perfect

+ Analytical, serious, finish everything

- Overly critical, over-plan, unforgiving

9 –27

Follow up questions:

• What strengths does your personality type give you? How do these strengths show up in your behaviors?

•

What weaknesses does your personality type give you? How do these weaknesses show up in your behaviors?

• What other personality type do you find most irritating?

 Which of their behaviors are the most troublesome to you?

 Which of your behaviors most upset them?

• Create two scripts to role play. Try to get them to take charge of organizing a customer appreciation party for you.





Script 1: What you want to naturally say.

–

What happens when you actually use this approach?

Script 2: The approach your target would find most effective – long term.


Strategies for Enhancing Job

Satisfaction and Morale

• Reinforcement/behavior modification

• Management by objectives

• Participative management and empowerment

• Job enrichment and job redesign

• Modified work schedules

Then we will see if we can connect strategy theory to apply some serious motivation!


Reinforcement/Behavior Modification

Punishment

When negative consequences are attached directly to undesirable behavior.

Positive Reinforcement

When rewards are tied directly to performance.

No one is apathetic except in the pursuit of someone else’s goals. Anonymous


Strategy & Theory Relationships

• Psychological Contract

 Stop bad behavior, encourage good

 Job Satisfaction, Turnover, morale

•


 Efficiency allows money incentives

• The Hawthorne Effect

 Watch, display, improve

• McGregor’s X & Y Theories

 X (lazy), Y (dedicated)

• Maslow’s Hierarchy of Needs

 Reaching next level motivates

• Herzberg’s 2 factors

 Hygiene vs. motivating

• Expectancy Theory

 Size, Expectations, Valued

• Equity theory

 Getting even


• Personality

Relate the theories to the strategy

Punishment

Positive

Reinforcement

9 –33

Management by Objectives (MBO):

Collaborative Goal-setting

Provide Reward

Collaborative

Goal Setting and Planning

Communicating

Organizational

Goals and Plans

Meeting

Setting

Verifiable Goals and Clear Plans

Counseling

Identifying

Resources


Periodic

Review

Evaluation

Figure 9 –5

9 –34





•
















• Personality


Management by

Objectives (MBO):

Collaborative

Goal-setting

9 –35

Participative Management,

Empowerment & Teams

• Increasing job satisfaction by encouraging participation

• Team management represents a growing trend.

“There is no “

I

” in team, but there is an “M” and an

“E”.”

- Jon Mikkelsen

9 –36 Copyright © 2005 Prentice Hall, Inc. All rights reserved.





•
















• Personality


Empowerment &

Teams

9 –37

Job Enrichment and Job Redesign

• Job Enrichment:

 Adding one or more motivating factors to job activities

• Job Redesign:

 Designing a better fit between workers and their jobs

 Combining tasks

 Forming natural work groups

 Establishing client relationships


Modified Work Schedules

• Work share programs

• Flextime programs and alternative workplace strategies

• Telecommuting and virtual offices


Sample Flextime Scheduling


Figure 9 –6

9 –40

Evaluating Modified Schedules and

Alternative Workplaces

• Advantages

 More satisfied, committed employees

 Less congestion

• Disadvantages

 Challenging to coordinate and manage

 Poor fit for some workers






•
















• Personality


Job Enrichment

& Job Redesign

9 –42

Leadership


The process of motivating others to work to meet specific objectives

9 –43

Managerial Leadership Styles

Autocratic Style

Democratic Style

Free-rein Style

Contingency Approach

The appropriate style in any situation is contingent on the unique elements of that situation





 Job satisfaction, turnover, morale

•




 Watch, teamwork, improve












• Personality

Managerial

Leadership

Style:

Autocratic

Democratic

Free-reign

9 –45

Motivation and Leadership in the 21st

Century

• Motivation

 Security and pay are no longer enough

• Leadership

 “Coach” mentality

 Supporting role

 Diversity

 Flexibility

• Leading down, sideways, & up


Chapter Review

• Describe psychological contracts

• Discuss the importance of job satisfaction and employee morale

• Summarize the most important theories of employee motivation

• Describe strategies to improve job satisfaction and employee motivation

• Discuss different managerial styles


Ch 08 busi20 Fall 07

The Effective Motivation Disconnect

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The Effective Motivation Disconnect

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