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Business in a
Changing World
Chapter 10
Motivating the Work Force
2
McGraw-Hill/Irwin
Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
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Amadeus Consulting: Where
Employees are the Company
Lisa Calkins and John Basso have created a
company for which people are motivated to
work for the long term.
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Motivating the Workforce
Nature of Human Relations
What motivates employees to perform?
How can managers boost morale?
How do you maximize worker performance?
How can you encourage creativity and innovation?
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Motivating the Workforce
Nature of Human Relations
Determining what motivates employees to
perform on the job is the focus of human
relations.
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Motivating the Workforce
What is motivation?
•Motivation is an inner drive that directs a person’s behavior
toward goals.
•A goal is the satisfaction of a need
•A need is the difference between a desired state and the actual
state.
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Motivating the Workforce
The basic model of motivation shows
that when a need exists, an
individual engages in goal-directed
behavior designed to satisfy that
need.
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Motivating the Workforce
Human Relations
Morale – an employee’s attitude toward his or her job,
employer, and colleagues.
High Morale
•High levels of productivity
•High returns to stakeholders
•Employee loyalty
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Motivating the Workforce
High Morale
•High levels of productivity
•High returns to stakeholders
•Employee loyalty
Low Morale
•Absenteeism
•Lack of commitment
•High turnover
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Motivating the Workforce
Morale Boosters:
•Respect
•Involvement
•Appreciation
•Compensation
•Promotion
•Pleasant work environment
•Positive organizational culture
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Motivating the Workforce
Google’s focus on happy, committed employees -•Massage therapy
•Laundry service
•Gourmet meals & snacks
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Motivating the Workforce
Perceptions of Rewards
Intrinsic rewards – personal satisfaction derived
from goal attainment
Extrinsic rewards – benefits/recognition received
from someone else.
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Motivating the Workforce
Absenteeism costs a typical large
company more than $3 million a year!
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Classical Theory of Motivation
Money – sole motivator for workers.
Taylor & Gilbreth – scientific focus on work tasks &
productivity.
Satisfactory pay & job security – motivate
employees to work hard.
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Hawthorne Studies
Elton Mayo – postulated that physical conditions in
workplace stimulate productivity.
Productivity increased regardless of light levels
Hawthorne Effect – marks beginning of concern for
human relations in the workplace
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Motivating Employees by Being Green
Interface is a company that is a leader in sustainable
and environmentally sound practices. Mission Zero
involves all employees to reduce environmental
footprint to zero by 2020.
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Work-Life Balance
Primary reason for accepting position
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Theories of Employee Motivation
Colgate-Palmolive
provides new parents three
additional weeks of paid leave in
addition to the leave mandated by
the Family Leave Act.
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Maslow’s Hierarchy of
Needs
SelfActualization
Needs
Esteem Needs
Social Needs
Security Needs
Physiological Needs
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Maslow’s Hierarchy of Needs
Physiological needs – basic needs for food, water,
shelter
Security needs– protection from physical & economic
harm
Social needs – need for love, companionship
Esteem needs – self-respect and respect from others
Self-actualization – maximizing one’s potential
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Herzberg’s Two-Factor Theory
Hygiene factors – focus on the work setting not
the content of the work – wages, working
conditions, company policies, job security.
Motivational factors – focus on content of the work
itself – achievement, recognition, involvement,
responsibility, advancement
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Herzberg’s Two-Factor Theory
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McGregor’s Theory X and Theory Y
Theory X – Assumption that workers
generally dislike work and must be
forced to do their jobs.
Theory Y – Humanistic view of
management. Assumption workers like
to work and seek out responsibility to
satisfy social, esteem, and selfactualization needs.
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William Ouchi Theory Z
A management
philosophy that stresses
employee participation in
all aspects of company
decision making
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Comparison of American, Japanese &
Theory Z Management Styles
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Variations on Theory Z
Participative Management
Employee Involvement
Self-Directed Work Teams (SDWT)
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Equity Theory
Equity theory – the assumption that how much
people are willing to contribute to an
organization depends on their assessment of the
fairness (equity) of the rewards they will receive
in exchange.
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Expectancy Theory
Expectancy theory – assumption that motivation
depends not only on how much a person wants
something but also on how likely he or she is to
get it.
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Strategies for Motivating Employees
Behavior Modification – changing behavior and
encouraging appropriate actions by relating the
consequences of behavior to the behavior itself.
“Behavior is a function of its consequences.”
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Strategies for Motivating Employees
Job Design – strategies managers use to help
improve employee motivation:
•Job rotation
•Job enlargement
•Job enrichment
•Flexible scheduling
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Job Design Strategies
Job rotation – movement of employees
from one job to another to relieve the
boredom often associated with job
specialization.
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Job Design Strategies
Job enlargement – addition of more tasks
to a job instead of treating each task as
separate.
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Job Design Strategies
Job enrichment – incorporating
motivational factors (achievement,
recognition, responsibility) into the job.
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Job Design Strategies
Flexible scheduling strategies –
• Flextime
• Compressed workweek
• Job sharing
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Importance of Motivational Strategies
•Foster employee loyalty
•Boost productivity
•Influence on pay, promotion, job design
•Nature of relationships
•Nature of the job itself
•Characteristics of the organization
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