: Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Learning Objectives 1. 2. 3. 4. 5. 6. 7. Compare Maslow’s hierarchy of needs and Herzberg’s two-factor theory, then explain their application to employee motivation Explain why expectancy theory is considered by some to be the best description of employee behavior Discuss four staffing challenges employers are facing in today’s workplace Explain the challenges and advantages of a diverse workforce Discuss four alternative work arrangements that companies can use to address workplace challenges Cite three options unions can exercise when negotiations with management break down Cite three options management can exercise when negotiations with a union break down Summary of Learning Objectives 1. Compare Maslow’s hierarchy of needs and Herzberg’s two-factor theory, then explain their application to employee motivation. Maslow’s hierarchy organizes individual needs into five categories and proposes that the individual must satisfy the most basic needs before being able to address higher-level needs. Based on the assumption that employees want to “climb to the top” of Maslow’s pyramid, managers should provide opportunities to satisfy those higher-level needs. Herzberg’s two-factor theory covers the same general set of employee needs but divides them into two distinct groups. His theory suggests that hygiene factors – such as working conditions, company policies, and job security – can influence employee dissatisfaction, but an improvement in these factors will not motivate employees. Only motivational factors, such as recognition and responsibility, can improve employee performance. 2. Explain why expectancy theory is considered by some to be the best description of employee behavior. Expectancy Theory, which suggests that the effort employees put into their work, depends on expectations about their own ability to perform, expectations about the rewards that the organization will give in response to that performance, and the attractiveness of those rewards relative to their individual goals, is considered a good model because it considers the linkages between effort and outcome. For instance, if employees think a linkage is “broken,” such as having doubts that their efforts will yield acceptable performance or worries that they will perform well but no one will notice, they are likely to put less effort into their work. 249 Part 4: Managing Employees 3. Discuss four staffing challenges employers are facing in today’s workplace. The four challenges identified in the chapter are: 1. aligning the workforce with the organization’s needs 2. fostering employee loyalty in a time when most companies can no longer guarantee lifetime employment 3. monitoring employee workloads and making sure employees are not in danger of burnout 4. helping employees find a balance, at least temporarily, between the demands of their personal and professional lives 4. Explain the challenges and advantages of a diverse workforce. Smart business leaders recognize diverse workforces bring a broader range of viewpoints and ideas, they help companies understand and identify with diverse markets, and they enable companies to tap into the broadest possible pool of talent. Supervisors face the challenge of communicating with these diverse employees, motivating them, and fostering cooperation and harmony among them. Team face the challenge of working together closely, and companies are challenged to coexist peacefully with business partners and with the community as a whole. 5. Discuss four alternative work arrangements companies are offering their employees. To meet today’s staffing and demographic challenges, companies are offering their employees: 1. flextime – the ability to vary their work hours and days 2. telecommuting – the ability to work from home or another location 3. job sharing – the ability to share a single full-time job with a co-worker 4. flexible career paths – the opportunity to leave the workforce for an extended period then return 6. Explain the two steps unions take to become the bargaining agent for a group of employees. First, unions distribute authorization cards to employees, which designate the union as the bargaining agent, and if at least 30 percent (but usually a majority) of the target group signs the cards, the union asks management to recognize it. Second, if management is unwilling to do so, the union asks the National Labor Relations Board to sponsor a certification election. If a majority of the employees vote in favor of being represented by the union, the union becomes the official bargaining agent for the employees. 7. Cite three options unions can exercise when negotiations with management break down. Unions can conduct strikes, organize boycotts, and use publicity to pressure management into complying with union proposals. A strike is a temporary work stoppage, which the union hopes will cost management enough in lost earnings so that management will be forced to accept union demands. A boycott is a union tactic designed to pressure management into making concessions by convincing sympathizers to refuse to buy or handle the product of the target company. A negative publicity 250 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations campaign against the target company is a pressure tactic designed to smear the reputation of the company in hopes of gaining management’s attention. 8. Cite three options management can exercise when negotiations with a union break down. To pressure a union into accepting its proposals, management may continue running the business with strikebreakers (nonunion workers hired to do the jobs of striking workers), institute a lockout of union members by preventing union employees from entering the workplace, or seek an injunction against a strike or other union activity. 251 Part 4: Managing Employees Brief Chapter Outline I. Motivating Employees A. What Is Motivation? B. Theories of Motivation 1. Maslow's Hierarchy of Needs 2. Herzberg’s Two-Factor Theory 3. McGregor’s Theory X and Theory Y 4. Ouchi’s Theory Z 5. Equity Theory 6. Expectancy Theory C. Motivational Strategies 1. Setting Goals 2. Reinforcing Behavior II. Keeping Pace with Today’s Workforce A. Staffing Challenges 1. Aligning the Workforce with Organizational Needs 2. Fostering Employee Loyalty 3. Monitoring Workloads and Employee Burnout 4. Managing Work-Life Balance B. Demographic Challenges 1. Workforce Diversity Issues a. Immigration and Globalization b. Age c. Gender d. Race e. Religion 2. Diversity Initiatives C. Alternative Work Arrangements 1. Flextime 2. Telecommuting 3. Job Sharing 4. Flexible Career paths III. Working with Labor Unions A. How Unions Are Structured B. How Unions Are Organized C. The Collective Bargaining Process 1. Meeting and Reaching an Agreement 2. Exercising Options When Negotiations Break Down a. Labor's Options b. Management's Options The Labor Movement Today E. 252 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Detailed Chapter Outline: Lecture Notes & Teaching Suggestions I. Motivating Employees A. What is motivation? 1. Motivation is the combination of forces that moves individuals to take certain actions and to avoid others in pursuit of individual objectives 2. Motivational strategies have little value if they do not translate into action that helps the business 3. Every motivational theory or approach must consider three basic steps: a. Need b. Action c. Outcome – the employee observes the outcome of the action and determines whether or not the effort was worthwhile 4. Money as a motivator a. plays a critical role, but is not the ultimate motivator b. employees also expect to be treated fairly and want the opportunity to pursue satisfying, meaningful work B. Theories of Motivation 1. Scientific Management a. Frederick W. Taylor is credited with development b. an approach that sought to improve employee efficiency through the scientific study of work c. analyzed work and business processes to develop better methods d. had a direct influence on the US rising as a global industrial power in the first half of 1990s 2. Maslow’s Hierarchy of Needs a. proposed the theory that behavior is determined by a variety of needs b. organized these needs into five categories • Physiological needs – the basic survival needs of food, clothing and shelter • Safety needs • Social needs – the need to give and receive love and to feel a sense of belonging • Esteem needs – the need for a sense of self-worth and integrity • Self-actualization – the need to become everything one can become c. employees who reach self-actualization work because they feel their work is worthwhile and satisfying in itself d. during difficult times, employees may temporarily downplay higher-level needs and focus on meeting basic or safety needs e. a convenient way to classify human needs, but should not be viewed as a rigid sequence • A person need not completely satisfy each level of need before being motivated by a higher need 253 Part 4: Managing Employees • At any one time, most people are motivated by a combination of needs Teaching Suggestion – Classroom Discussion: Ask students to discuss which of Maslow’s hierarchy of needs affects them most right now. Do they believe that those same sets of needs will hold true ten years from now? Why or why not? Are certain businesses well suited to fulfilling certain needs? Is there a way to change jobs to allow them to fill several types of needs at once? 3. 4. 5. 6. Herzberg’s Two-Factor Theory a. Hygiene factors • Associated with dissatisfying experiences • Management can lessen worker dissatisfaction by improving hygiene factors • But such improvements seldom influence satisfaction b. Motivators • Examples include achievement, recognition, responsibility and other personally rewarding factors • Managers can help employees feel more motivated by increasing these areas c. Herzberg’s theory is related to Maslow’s hierarchy • The hygiene factors resemble the lower-level needs • The motivators closely resemble higher-level needs Douglas McGregor’s Theory X and Theory Y a. Theory X • Believe that employees dislike work and can be motivated only by the fear of losing their jobs or other extrinsic rewards, such as money, promotion and tenure • Emphasizes physiological and safety needs and tends to ignore Maslow’s higher-level needs • Emphasizes authority b. Theory Y • Believes that employees like work and can be motivated by working for goals that promote creativity or for causes they believe in • These managers seek to motivate through intrinsic rewards • Emphasizes growth and self-direction Ouchi’s Theory Z a. Assumes that employees are more motivated is they are involved in all aspects of decision-making and they are treated like family b. Managers who utilize this theory believe employees with a sense of identity and belonging are more likely to perform their jobs well c. Is embraced in one form or another by most Fortune 500 firms Equity Theory a. employee satisfaction depends on the perceived ratio of inputs to outputs 254 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations b. 7. is a state of inequity if perceived, employees probably won’t be happy and will attempt to make adjustments to realign the inequity Expectancy Theory a. considered by my experts to offer the best explanation of employee motivation b. links employees’ efforts to the outcomes they expect from that effort c. focuses less on the specific forces that motivate and more on the process employees follow to seek job satisfaction d. the effort the employees will put forth depends on: • Their expectations about their own ability to perform • Their expectation about the rewards the organization will give in response to that performance • The attractiveness of those rewards relative to their individual goals Teaching Suggestion – Small Group Work Have students form small groups of three to four students. If your students are involved in teambased project in class, have them sit with the students in their small team. Ask them to consider how they would utilize the various theories of motivation to influence and inspire their peers in a situation where they have no hierarchical authority, but where their rewards are based upon the outcomes managed by all of the team members. If there are working in teams in class, ask them to consider the various motivation theories and determine how to utilize the theories to motivate their class team members. This exercise will encourage students to move beyond just considering the typical motivators of money. C. Motivational Strategies 1. range of motivational decisions managers face is almost endless 2. every motivational strategy needs to consider two critical aspects: a. Setting Goals • Suggest the idea that goals can motivate employees • Management by objectives (MBO) − A company-wide process that empowers employees and involves them in goal setting and decision making − Consists of four steps: o Setting goals o Planning actions o Implementing plans o Reviewing performance − Key element is collaborative goal setting b. Reinforcing Behavior • Positive reinforcement – offers pleasant consequences for completing or repeating a desired action • Negative reinforcement – allows people to avoid unpleasant consequences by behaving in the desired way 255 Part 4: Managing Employees II. Keeping Pace with Today’s Workforce A. Staffing Challenges 1. Aligning the Workforce with Organizational Needs a. External challenges that can affect the ideal size and composition of the workforce • Changing market needs • The emergence and exit of various competitors • Advances in technology • New government regulation b. Internal challenges that can affect the ideal size and composition of the workforce • Shifts in strategy • Changes to information and production systems • Growing or declining product sales c. employees also pursue their own personal and professional goals d. the brain drain – losing valuable skills and knowledge of experienced employees e. Rightsizing – periodic realignments in the workforce to match the business’ needs more precisely • Downsizing – reducing the workforce • Sometimes companies add workers 2. Fostering Employee Loyalty a. the notion of lifetime employment with one company is gone; so how is loyalty fostered? b. also, some employees no longer want to stay with one company for their lifetime c. managers can respond to this challenge in several ways, including: • Manage their companies effectively and ethically • Give employees a stake in the success of the firm • Take better care of their employees • Work with employees to align their career goals with the company’s goals 3. Monitoring Workloads and Avoiding Employee Burnout a. eighty-hours weeks are the exceptions, but many employees are still feeling the strain of extra work b. very common problem after downsizing c. the inability to ever really get away due to technology (cell phones, PDAs) d. employee burnout – a state of physical and emotional exhaustion that can result from constant exposure to stress over a long period of time e. widespread burnout rates raise two questions: • How bad is the problem? − Many people now work more hours per week than in the recent past − However, stress has actually declined 256 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Does all the extra time really help companies in the long run? − The quality of work is often much more important than the quantity − “Seat time” is often easier to measure than work quality, so numbers of hours often become the measurement Managing Work-Life Balance a. the idea that employees, managers, entrepreneurs need to balance the competing demands of their professional and personal lives b. one realistic approach may be that things will be out of balance from time to time and thus, careers should be designed around that fact c. many companies are trying to assist employees with this challenge by: • providing on-site daycare facilities • flexible work schedules • other options designed to improve quality of work life (QWL) • job enrichment – reduces specialization and makes work more meaningful by expanding each job’s responsibilities • job redesign – restructures work to provide a better fit between employees’ skills and their jobs Demographic challenges 1. Workforce Diversity Issues • 4. B. Teaching Suggestion – Reflection and Group Discussion: Ask students to spend about 10 to 15 minutes exploring the issues of diversity in their college or university. In what ways does their school do a good job of enhancing diversity on campus? In what ways could more be done? This topic may be sensitive for some students in your class. Other students may have the experience of, “What’s the big deal?” Your handling of the topic will set the tone for the discussion. a. b. smart business leaders recognize the competitive advantage of having a diverse workforce • diverse employees bring a broader range of viewpoints and ideas • help the company understand and identify with diverse markets • enable companies to tap into the broadest possible pool of talent challenges • supervisors face challenges with a more diverse workforce − communicating − motivating 257 Part 4: Managing Employees c. d. e. − fostering harmony and cooperation • Teams face the challenge of working together closely • Companies are challenged to coexist peacefully with business partners and the community as a whole Immigration and Globalization • An international workforce now exists because of: − Offshoring − Hiring employees to establish operations in other countries − Hiring immigrants • There are a number of benefits, including: − Cost advantages − Access to specialized talents − Local market knowledge Age • The baby boom generation − currently dominates the middle and uppertiers of the workforce − is nearing retirement age and triggering many age-related issues − determining the age at which baby boomers will retire remains a difficult question; many are remaining in the workforce longer/retiring later because: o rising health-care costs o reductions in company pension plans o individual savings that shrunk during the dot.com market decline o desire to stay active longer − there are benefits to older workers staying in the workplace longer, including: o greater flexibility in work hours and pay o lower absenteeism o lower turnover rate o ability to train younger workers • some older workers have not always found the workplace to be so inclusive and welcoming; age discrimination still occurs far too often • additionally, some younger workers feel discriminated again because other employees believe they have not “paid their dues” Gender • Women today earn about 80% of men’s median pay, even though women hold 46% of executive, administrative and managerial positions, only 10% are senior executives 258 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Partly responsible is the glass ceiling – an invisible barrier that keeps women and minorities from reaching highest-level positions − One theory suggests that top management has long been dominated by white males who tend to hire and promote employees most like themselves − Stereotyping leads decision makers to believe that family life will interfere with a woman’s work − Women are often relegated to less visible assignments, so their work goes unnoticed • In recent years women have made significant strides to overcome sexism – job discrimination on the basis of gender due to a number of societal and organizational changes, including: − Company’s long-term commitments to hire more women − Company-sponsored networking − Career planning for women − Diversity training − Mentoring programs • Sexual harassment takes two forms, including: − The obvious request for sexual favors with an implicit reward or punishment related to work − More subtle creation of a sexist and uncomfortable work environment − Both men and women can be sexually harassed, but the majority of incidents continues to be against women − Many companies are now enforcing strict anti-harassment policies f. Religion • Employees believe they should be able to express their beliefs in the workplace • Companies want to avoid situation in which openly expressed religious differences might cause friction among workers or distract employees from their responsibilities • Some companies are allowing employees to form faith-based support groups Diversity Initiatives a. many companies are finding that embracing diversity in the richest sense is simply good business b. are taking steps, including: • Contracting with more suppliers owned by women and people of color • 2. 259 Part 4: Managing Employees Adding more women and minorities to boards of directors • Targeting a more diverse customer base • Offering diversity training to promote understanding c. some companies see their diversity efforts as a way to produce the best products in a competitive marketplace d. opinions differ as to whether support groups for specific groups of employees help or hurt efforts to embrace diversity Alternative Work Arrangements • C. Teaching Suggestion – Small Group Discussion: Have students get in small groups of four to five students. Ask them to imagine they’re the executives at a local business with which they are all familiar. What would they do to enhance the quality of work life for their employees? How flexible would they be, as managers, in taking steps to ensure that their employees had adequate work-life balance? 1. 2. Flextime a. A scheduling system that allows employees to choose their own hours within certain limits b. Can be adjustments in starting and ending times, or the length and number of work days c. Can be very motivational for some employees and produce important benefits, including: • Reduction in turnover • Greater adaptation to business cycles • The ability to operate around the clock • Maintenance of morale and performance, especially after reengineering d. There are drawbacks, including: • Supervisors who feel uncomfortable and less in control • Co-workers who resent flextimers • The assumptions that those who work flexhours don’t take their jobs as seriously Telecommuting a. Working from home or another location using computers and telecommunications equipment b. 20% of adult workers utilized this approach in 2001 c. Telework – an umbrella term for all kinds of remote work from home, satellite offices and the road – far exceeding forecaster’s predictions d. Organizations are investing in more technology making telework even more possible e. However, some work simply cannot be completed away from the office 260 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations f. g. The advantages to telecommuting include: • Saving the company money by eliminating unnecessary offices • Consolidation of offices • Reduction of related overhead costs • Allows the hiring of talented people in distant areas without required relocation • Allows employees to set own hours, save on jobrelated expenses, and spend more time with families There are limitations, however, including: • Midlevel managers relinquish direct, visual employee supervision • Concern that people working at home will work less • New management approaches are necessary Teaching Suggestion – Classroom Discussion: Telecommuting is a hot issue these days as we enter an era of Internet communications. More and more workers are choosing to telecommute rather than putting in time at the office daily. But with this innovation comes problems. Telecommuters sometimes feel excluded from events or “out of the loop;” whereas, non-telecommuters feel overburdened sometimes by the work that get passed their way because telecommuters are inaccessible. Are there ways to alleviate the stress for both types of employees? What do students think? 3. 4. Job sharing a. Two employees share a single full-time job and split the salary and benefits b. Has been slow to gain acceptance c. Arrangements usually given to people who already work for the company d. Many variations used from splitting each day, splitting the week, or alternating weeks Flexible Career Paths a. an alternative work arrangement in which employees want to leave the workforce for an extended period of time b. there are drawbacks, including: • Skills can become outdated quickly • Network of industry contacts can grow stale • There is a stigma of being less committed c. pressure to accommodate workers from multiple angles: • Companies realize that their investment in development employees is lost if workers do not return • Many women want to be able to balance career advancement and having children • Fathers want to spend more time with their children 261 Part 4: Managing Employees III. Working with Labor Unions A. Conflicts can arise between employees who want job security, sufficient pay and meaningful work, and business owners pressed to increase productivity and profits B. Labor unions – organizations that seek to protect employee interests by negotiating with employers – strive to manage these conflicts 1. Historically, labor unions played an important role in employeemanagement relations and are responsible for the creation of a number of employee-centered laws 2. Employees often turn to unions if they: a. Are dissatisfied with their current job conditions b. Believe that unionization can improve those conditions c. Are willing to overlook negative stereotypes associated with unions in recent years Teaching Suggestion – Classroom Brainstorming: Ask students to identify the negative stereotypes they have heard regarding unions and union members. After identifying a stereotype, ask that student to provide the evidence of that stereotype – did they witness this stereotype in a film, family discussions, or music? Now ask students to list the reasons that a person may decide to belong to a union. There may be members of your class who are union members themselves or have family members in union. What are the positive benefits they have witnessed? 3. 4. C. Unions can give employees stronger bargaining power However, not all employees support unions because may believe: a. Unions stifle individual initiative b. Unions are not necessary to ensure fair treatment c. That companies that have successfully resisted unionization have been more likely to adapt participative management styles 5. However, even the best working conditions is not guarantee that employees won’t unionize How Unions are Structured 1. Locals a. Represent employees in a specific geographic area or facility b. Each local is a hierarchy with a board base of rank-and-file members c. These members pay an initiation fee, regular dues and vote to elect officials d. A shop steward works in the facility as a regular employee and serves as a liaison with supervisors when problems arise e. An elected full-time business agent may: • Also be utilized to serve large locals or locals representing employees in several locations • Visit the various work sites to negotiate with management and enforce the union’s agreements 262 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations 2. D. National Union a. A nationwide organization composed of many local unions that represent employees in specific locations b. International unions have members in more than one country c. National unions are responsible for such activities as: • Organizing new areas or industries • Negotiating industry wide contracts • Assisting locals with negotiations • Administering benefits • Lobbying congress • Lending assistance in the event of a strike 3. AFL-CIO a. A labor federation b. Consists of a variety of nation unions and locals not associated with any other national union c. Primary roles include: • To promote the political objectives of the labor movement • To provide assistance to member unions in their collectivebargaining efforts • More recently has been involved with recruiting new members, organizing new locals and publicizing unions in general How Unions Organize 1. Generally start by visiting with employees, although may be approached by dissatisfied employees 2. Employees who express interest are sent information about the union 3. Authorization cards are distributed which employees use to designate the union as their bargaining agent 4. If more than 30% of employees sign, the union may ask management to recognize it; however, recognition typically not sought unless a majority sign 5. Often a company’s management is unwilling to recognize the union at this stage 6. Then union can then ask the National Labor Relations Board (NLRB) to supervise a certification election – the process by which a union becomes the official bargaining agent for a company’s employees 7. If the majority of the affected employees support unionization, the union becomes certified 8. When management becomes aware that unionization is being organized, they may mount an active campaign to highlight the disadvantages 9. Even when certification is won, there is not guarantee that it will represent a particular group forever a. Sometimes employees become dissatisfied b. A decertification vote can remove the union’s right to represent those employees 263 Part 4: Managing Employees E. The Collective Bargaining Process – union and management negotiators work together to forge the human relations policies that will apply to the unionized employees for a certain period of time; most labor contracts are a compromise between what employees and management desire 1. Meeting and reaching an agreement a. Union representatives and management sit down together and state their opening positions b. Each demand is discussed point by point with both sides seeking a compromise they can accept c. After many stages of bargaining each party presents its package of terms and any gaps are then dealt with d. Resolving an impasse • Mediation – bringing in an impartial third party to study the situation and make recommendations or resolutions of differences • Arbitration – a process in which an impartial referee listens to both sides and then makes a judgment by accepting one side’s view Compulsory arbitration –parties are required by a government agency to submit to arbitration Voluntary arbitration – the parties agree on their own to arbitrate 2. Exercising options when negotiations break down Teaching Suggestion – Small Group Discussion: Have students form small groups and discuss the various options used by union members and management to resolved contact differences. Which approaches do they believe are most useful? Which tactics do they believe should be avoided and why? After small groups have discussed these questions, ask students to share their summaries with the entire class. a. b. Labor’s options • Strike – a temporary work stoppage aimed at forcing management to accept union demands • Picketing – union members march with signs and leaflets, trying to persuade others to join them • Boycott – union members and sympathizers refuse to buy or handle the product of a target company • Publicity or corporate campaigns – might include sending investors alerts that question the firm’s solvency, staging rallies, letter writing campaigns, stimulating negative stories in the press Management’s options • Strikebreakers – legally replacing striking union workers with nonunion employees • Lockouts – management present union employees from entering the workplace in order to pressure the union to accept a contract proposal 264 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Injunctions – a court order prohibiting union workers from taking certain actions The Labor Movement Today 1. Unions remain a significant force, but membership continues to decline 2. Key reasons for this decline include: a. The shift from a manufacturing-based economy to a service economy b. The changing nature of the workforce c. Inertia on the part of labor leaders 3. Interest again seems to be increasing in the face or corporate scandals and increasing economic uncertainty • F. Teaching Suggestion – Reflection and Class Discussion: Have students list the various reasons they would join a union. Under what conditions would becoming a union member make sense? Even if there were benefits to be gained, what are the barriers they would encounter – both psychologically and from an employment perspective? 265 Part 4: Managing Employees Potential Difficulties and Suggestions Solutions 1. Students (especially those who have no previous work experience) may not completely understand that money is not the only thing that motivates people. As our society becomes more educated, the focus (while people will always be motivated by money) changes to such things as quality of work life and continuing education. To emphasize this, you may want to ask the students to do the following: • Ask students to interview three to five individuals who are employed. Using the theories described in the chapter, each group should prepare a list of questions to try to uncover what motivates each of the people interviewed. • The students should conclude that, indeed, individuals are not all motivated in the same manner. There are many differences and it is management’s job to identify what motivates each individual and utilize that information to maximize the performance of that employee. Answers to End-of-Chapter Questions Test Your Knowledge Questions for Review 1. What is motivation? Motivation is the combination of forces that moves individuals to take certain actions and to avoid others in pursuit of individual objectives. 2. In what ways are Maslow’s hierarchy and Herzberg’s two-factor theory similar? Maslow’s hierarchy organizes individual needs into five categories and proposes that the individual must satisfy the most basic needs before being able to address higher-level needs. Based on the assumption that employees want to “climb to the top” of Maslow’s pyramid, managers should provide opportunities to satisfy those higher-level needs. Herzberg’s two-factor theory covers the same general set of employee needs but divides them into two distinct groups. His theory suggests that hygiene factors – such as working conditions, company policies, and job security – can influence employee dissatisfaction, but an improvement in these factors will not motivate employees. Only motivational factors such as recognition and responsibility, can improve employee performance. 3. What is expectancy theory? Expectancy Theory, which suggests that the effort employees put into their work, depends on expectations about their own ability to perform, expectations about the rewards that the organization will give in response to that performance, and the attractiveness of those rewards relative to their individual goals, is considered a good model because it considers the linkages between effort and outcome. For instance, if 266 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations employees think a linkage is “broken,” such as having doubts that their efforts will yield acceptable performance or worries that they will perform well but no one will notice, they are likely to put less effort into their work. 4. What is the glass ceiling? The glass ceiling is an invisible barrier that keeps women and minorities from reaching the highest-level positions. One theory about the glass ceiling suggests that top management has long been dominated by white males who tend to hire and promote employees who look, act, and think as they do. Another theory states that stereotyping by male middle managers leads them to believe that family life will interfere with a woman’s work. As a result, women are relegated to less-visible assignments in the company, so their work goes unnoticed by top executives and their careers stagnate. 5. What is quality or work life, and how does it influence employee motivation? Quality of work life is the environment created by work and job conditions. When quality of work life is high, individual workers gain the chance to use their special abilities, improve their skills, and balance their lives, which motivates them to work harder. Questions for Analysis 6. Why do managers often find it difficult to motivate employees who remain after downsizing? The prevalence of downsizing that occurred in the 1990s has made it seem as though no job is secure. Even when an employee survives a downsizing, she may still fear being laid-off in the future. What’s more, employees can come to feel that the quality of their work does not help their chances for long-term job security. As a result, workers can become jaded and may even be openly hostile toward management. 7. How can diversity initiatives benefit a company? Diversity initiatives can benefit a company in several ways. First, companies can increase sensitivity in conflict resolution and in all company interactions by instigating diversity initiative programs. Perhaps more importantly, a company can benefit from diverse perspectives. A company can rethink primary tasks, and redefine markets, products, strategies, missions, and business practices by exploring a diversity initiative. Also, a company can benefit from the varying perspectives of a diverse workforce. 8. What are some of the advantages and disadvantages of alternative work arrangements? Not only do today’s employees want alternative work arrangements, but also they want safe and comfortable working conditions and pay that rewards their contributions to the organization. At the same time, however, business owners must focus on using company resources to increase productivity and profits. In the best of times and in the most enlightened companies, these two sets of needs can often be met simultaneously. However, when the economy slows down and competition speeds up, balancing the needs of employees with those of management can be a challenge. 267 Part 4: Managing Employees 9. 10. Why do employees choose to join labor unions? Why do they not join labor unions? Employees form and join labor unions to protect their interests when those interests conflict with employers’ policies and practices. Employees are particularly likely to join unions if they’re dissatisfied with job and employment conditions, if they believe the union can improve job conditions, and if they can overlook the negative stereotypes of unions. Employees don’t join unions when they believe that doing so will stifle individual initiative and won’t help to ensure fair treatment by employers. Ethical Considerations: You’ve got a golf game scheduled for Sunday afternoon, and you’ve worked all weekend to write a proposal to be presented Monday morning. The proposal is more or less finished, but a few more hours of work would make it polished and persuasive. Do you cancel the game? This question speaks to the need of employees trying to balance their work lives and home lives. The answer to this question depends on the needs of the individual employee. If the employee feels the need to balance work and free time, he or she might want to take the time to play golf. However, if the employee feels the need to “get ahead” at work, he or she might decide to stay home and polish the proposal. Questions for Application 11. Some of your talented and hardworking employees come to you one day and say they do not feel challenged. They expected to be able to diversify their skills more and take on greater responsibility than they now have. How do you respond? This can be a difficult situation if the employee works in a narrowly defined job function. However, because she is a dedicated worker who shows promise, it is in the long-term best interest of the company for you to help her grow and remain happy. Sit down with her and discuss what skills she feels she can be using more to contribute to the organization’s goals. Find out what skills she would like to develop more and try to come up with ways for her to sharpen those skills. The company may have a training program, or another employee might be able to use her help on a project. Have her develop some personal goals that mesh with the organization’s goals. If the goals are appropriate, help her efforts to achieve them. 12. Assume you are the plant manager for a company that manufactures tires for cars and light trucks. To compete more economically in the global market, the company is seriously considering closing the plant within the next year and moving manufacturing operations to Southeast Asia. Upon hearing about the possible plant closing, the union votes to launch a strike in one week if its demands for job security aren’t met. Because of a recent surge in orders, the company is not in a position to close the plant yet. What are your options as you continue to negotiate with union representatives? Which option would you choose and why? Options include bringing in strikebreakers, using management and other employees to take over the jobs of striking workers, locking the employees out of the plant, or giving in to employee demands. Seeking an injunction would not be an option in this case. 268 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Likewise, it is probably too late for an industry pact to have much effect. A good first step is to try to work with union negotiators to identify ways that both the company’s and the employees’ interests can be met. One example is to offer job training and placement services in the event the plant does end up closing. However, if the union refuses to budge, strikebreakers, and perhaps even permanent replacement workers, may be necessary. 13. Integrated: How do economic concepts such as profit motive and competitive advantage (see Chapter 1) affect today’s workforce? Profit motive and competitive advantage (seeking an advantage over other companies in terms of price, service, quality or innovation) seek to keep companies competitive in an increasingly broad market. To do this, companies have downsized, hired temporary workers, and lay off unskilled employees. Firms have also increased the number of technically skilled employees as we become a more technical world. While these actions improve the overall quality of employees, they have created some anxiety in today’s workforce. 14. Integrated: Why is it difficult for small businesses to allow employees to telecommute, share jobs, and work flexible hours? Answers may vary according to the students’ knowledge of small business operations and staffing. Small businesses do not have extra employees and usually have employees doing many different jobs, thereby making it necessary for employees to be physically at work for the work hours of the small business. Practice Your Knowledge Handling Difficult Situations on the Job: Removing the Obstacles from the On Ramp Responses to “Your Task” This is a managerial dilemma if there ever was one. On the one hand, you need to attract as many of these people back as you can, precisely because you need their high level of skill and experience. On the other hand, if your reward them for that skill and experience, some of your other employees may accuse you of giving returnees special treatment. How should you handle this thorny situation? What points would you make to the workforce in order to educate them on the company’s need for these talented people and to assure them everyone will be treated fairly? How can you resolve this issue without making either group feel that they have been treated unfairly? While students’ answers will vary, most will include the following points: • Employees should be encouraged to return if there are going to be no hard feelings on either parties’ part • Students should suggest various approaches that management could use to ensure that all employees believe they are being treated fairly. • Students should discuss the various motivational tools that could be offered to encourage and reward both sets of employees. 269 Part 4: Managing Employees Building Your Team Skills Debate the pros and cons of telecommuting for an accounting, computer programming, or graphics design firm. Break into groups of four students with two students taking the employees’ pro side, and the other two taking management’s con side. As you prepare for this debate, consider the following factors: employee motivation, staffing challenges, quality of work life, costs, control, and feasibility. During your team’s debate, let one side present its arguments while the other side takes notes on the major points. After both sides have completed their presentations, discuss all the supporting points and try to reach a consensus as to whether or not your firm will support telecommuting. Draft a one-page statement outlining your team’s conclusion and reasoning, and then share it during a class discussion. Compare your team’s conclusion and reasoning with those of other teams. Do most teams believe telecommuting is a good or bad idea? What issues do most teams agree on? What issues do they disagree on? Student answers will vary. Expand Your Knowledge Exploring Career Opportunities Is an alternative work arrangement such as flextime, job sharing, or telecommuting in your career future? This exercise will help you think about whether these work arrangements fit into your career plans. 1. Look at the list of possible business careers in Prologue. Of the careers that interest you, which seem best suited to flextime? To job sharing? To telecommuting? When making these decisions, students should consider the duties of the job and whether or not it could be completed with little or no interaction with colleagues. Jobs that require a lot of time with other colleagues, in meetings, or dealing with production would not be well suited to telecommuting. Jobs that require a lot of interaction with customers or clients are not well suited to flextime. 2. Select one of the careers that seems suited to telecommuting. What job functions do you think could be performed at home or from another remote location? Answers will vary depending on students’ responses. 3. Thinking about the same career, do you think it would be possible to split the job’s responsibilities with a co-worker under a job-sharing arrangement? What issues, if any, might you need to resolve first? Answers will vary depending on students’ responses. Be sure to support students in considering the ways in which a team approach could help them to view the duties of their jobs in a new way. 270 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Developing Your Research Skills Select one or two articles from recent issues business journals or newspapers (print or online editions) that relate to employee motivation or morale. 1. What is the problem or trend discussed in the article(s) and how is it influencing employee attitudes or motivation? Answers will vary, as they will depend upon the articles selected by the students. 2. Is this problem unique to this company, or does it have broader implications? Who is affected by it now, and whom do you think might be affected by it in the future? Answers will vary, as they will depend upon the articles selected by the students. 3. What challenges and opportunities does this situation present to the company or industry? The employees? Management? Answers will vary, as they will depend upon the articles selected by the students. Exploring the Best of the Web URLs for all Internet exercises are provided at the website for this book, www.prenhall.com/bovee. When you log on to the text website, select Chapter 10, then select “Student Resources,” click on the name of the featured website, and follow the detailed navigational directions to complete these exercises. Explore these chapter-related websites, review their content, and answer the following questions for each website you visit: 1. What is the purpose of this website? 2. What kinds of information does this website contain? Please be specific. 3. How is the information provided at this website useful for businesspeople? Consumers? 4. How did you expand your knowledge of motivation and employeemanagement relations by reviewing the material at this website? What new things did you learn about these topics? Working Hard on the Web Frustrated workers and managers now have a place to go to voice their opinions, commiserate with other, and get advice on how to motivate employees. This place is Hard@Work, a website created “to reduce the oversupply of fear and alienation in the workplace by meeting the pentup demand for constructive communication about what is happening on the job.” Visitors can hand around the “Water Cooler” to chat with others about work issues and careers; play “Stump the Mentor,” which offers suggestions for handling sticky work situations; or dig into the “Rock Pile,” which features realistic case studies. Hard@Work offers something for workers and job seekers alike. 271 Part 4: Managing Employees www.hardatwork.com 1. What is the purpose of this website? The purpose of this website is to provide easily understandable information to employees and managers about topics/concerns that are found in the workplace. This information comes in the form of short articles and the ability to discuss concerns with other visitors. 2. What kinds of information does this website contain? Please be specific. This information comes in the form of short articles and the ability to discuss concerns with other visitors. There is “The Water Cooler” that allows discussions among visitors; “Stump the Mentor,” which is a question/answer section; “The Company Store,” which provides for online purchasing of books, etc. about the workplace and “The Rock Pile,” which contains articles on the following topics: • Challenge to Authority – The Big Huff • Employee Participation – The Day the Music Stopped • Leave Policy – Pregnant Pauses • Office Politics – The Tricky Backhand • On-the-Job Romance – Assuming the Position • Salary – The Lion's Share • Threatening Behavior – The Exploding Mechanic • Work Life/Home Life – The Disappearing Act 3. How is the information provided at this website useful for businesspeople? Consumers? The information provided is aimed specifically at businesspeople. While not particularly cutting edge in terms of scholarly material, this website is useful to those who want to be introduced to issues they will encounter in the workplace. 4. How did you expand your knowledge of motivation and employeemanagement relations by reviewing the material at this website? What new things did you learn about these topics? Students’ answers will vary depending upon where they spent time at this website. However, they should be able to provide some insights they gained about organizational life and the issues that workers and managers encounter. Learn the Language of Equal Opportunity The Equal Employment Opportunity Commission (EEOC) offers an extensive array of information online for both employees and employers. Explore the categories of employment discrimination and learn how the government defines each type. Learn more about the employment laws that employers are expected to follow, or see the steps employees can take when they believe they have been discriminated against. www.eeoc.gov 1. What is the purpose of this website? This extensive website is invaluable for finding information about equity in the workplace. 272 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations 2. What kinds of information does this website contain? Please be specific. The following list of links can be found at the homepage of this website. About Equal Employment Opportunity (EEO) Federal EEO Laws Discriminatory Practices Employers And Other Entities Covered By EEO Laws Discrimination by Type: Facts and Guidance Age Disability Equal Pay National Origin Pregnancy Race Religion Retaliation Sex Sexual Harassment Filing a Charge of Discrimination How to File a Charge Contact Your Local Field Office EEOC's Charge Processing Procedures Mediation Employers & EEOC EEO-1 Survey Small Businesses EEOC Investigations Mediation Federal Agencies and Employees Federal EEO Coordination Information for Federal Employees and Applicants Management Directive 715 Information for Agencies Federal Sector Alternative Dispute Resolution Federal Sector Training Federal Sector Appellate Decisions (Including The Digest of EEO Law) Reference and Research Other EEOC Sites About the EEOC How to Contact Us 273 Part 4: Managing Employees The Commission Commission Meetings Initiatives: § Youth@Work § New Freedom § Freedom to Compete Annual Reports Strategic Planning Commission Task Force Reports Office of the Inspector General EEOC History FOIA/Privacy Act Jobs at EEOC / SOARS Doing Business with EEOC Laws, Regulations and Guidance Laws Enforced by EEOC EEOC Regulations Compliance Manual Enforcement Guidances and Related Documents Memoranda of Understanding Title VII 40th Anniversary Celebration Statistics Enforcement Statistics Employment Statistics Special Reports Census 2000 Special EEO File Equal Employment Opportunity Data Posted Pursuant to the No Fear Act Litigation Statistics Litigation Settlement Monthly Reports Regional Attorneys' Manual Office of General Counsel Annual Report: FY 2004 A Study of the Litigation Program: 1997 - 2001 Commission Appellate and Amicus Briefs Training and Outreach No-Cost Outreach and Education Training Institute Federal Sector Training New Freedom Initiative Seminars 274 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Information in Print EEOC Publications EEOC Poster 3. How is the information provided at this website useful for businesspeople? Consumers? This information is particularly helpful to employers in learning about their responsibilities in ensuring workplaces that are free from discrimination. This website is also useful for employees who want to learn more about how they are protected in the workplace. 4. How did you expand your knowledge of motivation and employeemanagement relations by reviewing the material at this website? What new things did you learn about these topics? Students’ responses will vary widely depending upon what they investigated at this website. They should be able to provide information about the kinds of protection given to workers against discrimination. They can be asked to consider whether that sort of protection is motivating to employees, or de-motivating to employers. Spreading the Union Message Of all the websites devoted to union causes, the AFL-CIO’s site offers perhaps the most extensive collection of statistics, information, and commentaries on union issues and programs. The site is designed to educate members and prospective members about union activities and campaigns. Topics include union membership campaigns, safety and family issues, and much more. The AFL-CIO also maintains online directories with the e-mail addresses of members of Congress plus sample letters to encourage communication with legislators. Browse this site to get the latest on union initiatives as well as information about trends in the labor movement today. What worker issues and advantages of union membership are being highlighted? www.aflcio.org/home.htm 1. What is the purpose of this website? While student responses may vary, the following will address some possible answers. The site is designed to educate members and prospective members about union activities and campaigns. 2. What kinds of information does this website contain? Please be specific. While student responses may vary, the following will address some possible answers. This website provides the following: extensive collection of statistics, information, and commentaries on union issues and programs; union membership campaigns, safety and family issues; latest on union initiatives; information about trends in the labor movement today; worker’s rights; working families agenda; how and why people join unions. 3. How is the information provided at this website useful for businesspeople? Consumers? While student responses may vary, the following will address some possible answers. 275 Part 4: Managing Employees This website is useful for both businesspeople and consumers because it provides information such as what is listed above (#2). This information can help both businesspeople and consumers alike to understand the importance of employee participation and involvement on the job. Businesspeople can learn to encourage employee involvement and include employees in the decision-making processed. Consumers and businesspeople can also view the online directories with the e-mail addresses of members of Congress plus sample letters to encourage communication with legislators. 4. How did you expand your knowledge of motivation and employeemanagement relations by reviewing the material at this website? What new things did you learn about these topics? Students’ responses will depend, in large part, on the material currently posted on the website. Answers to Boxed Features Box 1: Safety and Security in a Complex World: Which Theory Will Solve the Problem of Employee Theft? Questions for Critical Thinking 1. How should managers explain to their workforces the necessity to implement security controls? Manages may find that explaining to employees the exact costs incurred due to theft may be helpful. These costs are transferred to lower expenditures on employees, such as decreases in benefits, salaries and training, etc. As well as increased costs for consumers, which all employees are. Managers could also use the framework of Maslow, Herzberg or Equity Theory to assist employees in understanding when security controls are being implemented. Employees could also be included in determining what security controls should be implemented. 2. Could Herzberg’s hygiene factors help explain employee theft and embezzlement? Why or why not? Herzberg’s theory suggests that hygiene factors – such as working conditions, company policies, and job security – can influence employee dissatisfaction, but an improvement in these factors will not motivate employees. Thus, his notion about hygiene factors may explain why employees steal – they are feeling dissatisfied because of the working conditions or lack of job security. However, an employer should not assume that simply by improving those conditions that all theft will stop. Box 2: Minding Your Own Business: Are We Having Fun Yet? Questions for Critical Thinking 1. Under which level of Maslow’s hierarchy of needs would you place having fun at work? 276 : Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations Having fun at work would most readily be included as part of Maslow’s Hierarchy in terms of meeting social needs and perhaps esteem needs. 2. Does fun have any role in serious workplaces, such as hospitals or power plants? Explain your answer. Experts in this area have found that having fun at work is critical to employees feeling good about the organization in which they work. The article “Fun and the Bottom Line: Using Humor to Retain Employees” by David Granirer talks about this very notion. This article can be found at: http://humanresources.about.com/od/employeeretention/l/aahumor_retain.htm. More about David Granirer can be found at: http://humanresources.about.com/gi/dynamic/offsite.htm?site=http://www.granirer.com A Case for Critical Thinking Brewing Up People Policies at Starbucks Critical Thinking Questions 1. Why do Starbucks’ human resources managers need to be kept informed about any changes in the number and timing of new store openings planned for the coming year? When there is a shortage of labor and few people want to work behind a retail counter, Starbucks’ aggressive global expansion plans requiring 700 new employees every month to be recruited, trained, and retained creates quite a challenge for the human resources managers. If the store opening schedule changes (i.e., picks up the pace or slows down), the HR managers will have to increase or decrease the candidates in their recruitment process accordingly. 2. How does Starbucks benefit from using a part-time labor force? Using the part-time labor force provides flexibility to both the company and the employees. Starbucks’ motivation for the use of part-timers is not driven by saving money in benefits because the company offers benefits to all employees (partners) who are working at least 20 hours. The company can benefit from the use of part-time labor force given that the labor shortage is creating a tough situation for any firms to obtain qualified employees, especially in a retail environment. These employees can later be converted into full-time employees if the company has the need and the employees are willing. 3. How does Starbucks’ liberal employee-benefits program help its employees balance their work and family obligations? It offers employees programs such as flextime, access to employee assistance specialists, and referral for child-care and elder-care support. It allows the employees to balance work and family obligations and in turn reduce the stress that may negatively affect the workplace. 277 Part 4: Managing Employees 4. Go to Chapter 10 of this text’s website at www.prenhall.com/mescon and click on the hotlink to get to the Starbucks website. Follow the online instructions to see how Starbucks presents its HR policies to potential employees. Browse the pages that discuss working at Starbucks, reading about company culture, diversity, benefits, and learning and career development, to answer the following questions: Why would Starbucks post information about company culture in this section of the website? Why would job candidates be interested in learning about the culture as well as the employee benefits and training at Starbucks? Starbucks posts information about company culture in this section to inform potential employees what the values of the company are and to allow individuals to determine whether they believe that there is a match between them and the company. Knowing up front the value, benefits, and training information is a strong recruiting tool for Starbucks. It may attract individuals who may not have considered the company, but may become interested, given these benefits. 278