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Chapter Ten Motivating and Satisfying Employees and Teams 10 | 1 Learning Objectives 1. Explain what motivation is. 2. Understand some major historical perspectives on motivation. 3. Describe three contemporary views of motivation: equity theory, expectancy theory, and goal-setting theory. 4. Explain several techniques for increasing employee motivation. 5. Understand the types, development, and uses of teams. 10 | 2 What Is Motivation? The individual internal process that energizes, directs, and sustains behavior; the personal “force” that causes us to behave in a particular way Morale – An employee’s feelings about his or her job and superiors and about the firm itself – High morale results from the satisfaction of needs or as a result of the job and leads to dedication and loyalty – Low morale leads to shoddy work, absenteeism, and high turnover rates 10 | 3 Historical Perspectives on Motivation Scientific Management – The application of scientific principles to the management of work and workers – Frederick W. Taylor • Observed “soldiering” by workers who feared losing their jobs if there were no work • Job should be broken into separate tasks • Management determines the best way and the expected output • Management chooses and trains the best-suited person • Management cooperates with workers • Piece-rate system (pay per unit of output) is based on the belief that people work only for money 10 | 4 Taylor’s Piece-Rate System Workers who exceeded their quota were rewarded by being paid at a higher rate per piece for all the pieces they produced 10 | 5 Debate Issue: Are Most Workers Motivated by Money? YES NO Money is an objective way of measuring an employee’s value to a firm. Some employees are motivated by money because they have a use or need for the money. Many research studies indicate that the use of the piece-rate system can improve an employee’s productivity while increasing takehome pay. In addition to money, there are other ways to reward employees. By the time they take out deductions, a pay raise is always less than the employee expected. Recent research indicates that the factors of the work to be performed, and recognition and achievement, are the real motivators for most workers. 10 | 6 Historical Perspectives on Motivation The Hawthorne Studies – Objective: to determine the effects of the work environment on employee productivity – 1st experiment: productivity increased for both the experimental and control groups after lighting was varied in the workplace – 2nd experiment: workers under a piece-rate system produced at constant rates – Conclusions: human factors were responsible • Workers had a sense of involvement by participating in the experiment • Groups influenced output through workers’ desire for acceptance – Human relations movement • Employees who are happy and satisfied are motivated to perform better 10 | 7 Historical Perspectives on Motivation Maslow’s Hierarchy of Needs – A sequence of human needs (personal requirements) in the order of their importance • Physiological needs—survival • Safety needs—physical and emotional safety • Social needs—love and affection and a sense of belonging • Esteem needs—respect, recognition, and a sense of our own accomplishment and worth • Self-actualization needs—to grow and develop and become all that we are capable of being 10 | 8 Maslow’s Hierarchy of Needs 10 | 9 Historical Perspectives on Motivation Herzberg’s Motivation-Hygiene Theory – Satisfaction and dissatisfaction are separate and distinct dimensions – Motivation factors • Job factors that increase motivation but whose absence does not necessarily result in dissatisfaction – Hygiene factors • Job factors that reduce dissatisfaction when present to an acceptable degree but that do not necessarily result in higher levels of motivation. 10 | 10 Herzberg’s Motivation-Hygiene Theory 10 | 11 Historical Perspectives on Motivation Douglas McGregor – Sets of assumptions about managerial attitudes and beliefs about worker behavior Theory X – Generally consistent with Taylor’s scientific management – Employees dislike work and will function only in a controlled work environment Theory Y – Generally consistent with the human relations movement – Employees accept responsibility and work toward organizational goals if they will also achieve personal rewards 10 | 12 Theory X and Theory Y 10 | 13 Historical Perspectives on Motivation Theory Z – Some middle ground between Ouchi’s Type A (American) and Type J (Japanese) practices is best for American business – Emphasis is on participative decision making with a view of the organization as a family 10 | 14 The Features of Theory Z 10 | 15 Historical Perspectives on Motivation Reinforcement Theory – Behavior that is rewarded is likely to be repeated, whereas behavior that is punished is less likely to recur • Reinforcement: an action that follows directly from a particular behavior • Types of reinforcement Positive reinforcement: strengthens desired behavior by providing a reward Negative reinforcement: strengthens desired behavior by eliminating an undesirable task or situation Punishment: an undesirable consequence of undesirable behavior Extinction: no response undesirable behavior in order to discourage its occurrence 10 | 16 Schedules of Reinforcement Source: Organizational Behavior, Ninth Edition by Ricky W. Griffin and Gregory Moorhead. Copyright © 2010 by South-Western / Cengage Learning. Used with permission. 10 | 17 Contemporary Views on Motivation Equity Theory – People are motivated to obtain and preserve equitable treatment for themselves – Equity: the distribution of rewards in direct proportion to the contribution of each employee to the organization – Workers compare their own input-to-outcome (reward) ratios to their perception of others’ – Workers who perceive an inequity may • Decrease their inputs • Try to increase outcome (ask for a raise) • Try to get the comparison other to increase inputs or receive decreased outcomes • Leave the work situation (quit) • Switch to a different comparison other 10 | 18 Equity Theory Outcomes (self) Inputs (self) compared with 10 | 19 Outcomes (other) Inputs (other) Responses to Perceptions of Equity and Inequity Source: Organizational Behavior, Ninth Edition by Ricky W. Griffin and Gregory Moorhead. Copyright © 2010 by South-Western / Cengage Learning. Used with permission. 10 | 20 Contemporary Views on Motivation Expectancy Theory (Victor Vroom) – Motivation depends on how much we want something and on how likely we think we are to get it – Implications are that managers must recognize that • Employees work for a variety of reasons • The reasons, or expected outcomes, may change over time • It is necessary to show employees how they can attain the outcomes they desire 10 | 21 Expectancy Theory 10 | 22 Contemporary Views on Motivation Goal-Setting Theory – Employees are motivated to achieve goals they and their managers establish together – Goals should be very specific, moderately difficult, and ones that the employee will be committed to achieve – Rewards should be tied directly to goal achievement 10 | 23 Management by Objectives Advantages Disadvantages – Motivates employees by involving them actively – Improves communication – Makes employees feel like an important part of the organization – Periodic review enhances control – Doesn’t work if the process doesn’t begin at the top of the organization – Can result in excessive paperwork – Some managers assign goals instead of collaborating on creating them – Goals should be quantifiable 10 | 24 Key Motivation Techniques Job enrichment – Provides employees with more variety and responsibility in their jobs Job enlargement – The expansion of a worker’s assignments to include additional but similar tasks Job redesign – A type of job enrichment in which work is restructured to cultivate the worker-job match 10 | 25 Key Motivation Techniques Behavior modification – A systematic program of reinforcement to encourage desirable behavior Steps in behavior modification – Identify the target behavior to be changed – Measure existing levels of the behavior – Reward employees who exhibit the desired behavior – Measure the target behavior to check for desired change • If no change, consider changing reward system | 26 • If change has occurred,10 maintain reinforcement Key Motivation Techniques Flextime – A system in which employees set their own work hours within employer-determined limits – Typically, there are two bands of time • Core time, when all employees are expected to be at work • Flexible time, when employees may choose whether to be at work – Benefits • Employees’ sense of independence and autonomy is motivating • Employees with enough time to deal with nonwork issues are more productive and satisfied – Drawbacks • Supervisors’ jobs are complicated by having employees who come and go at different times • Employees without flextime may resent coworkers who have it 10 | 27 Two Examples of Flexible and Core Time Sources: Management, Ninth Edition by Robert Kreitner. Copyright © by Houghton Mifflin Company and Organizational Behavior, by Ricky W. Griffin and Gregory Moorhead. Copyright © by Houghton Mifflin Company. Used with permission. 10 | 28 Key Motivation Techniques Part-time work – A permanent employment situation in which individuals work less than a standard workweek – Disadvantage: often does not provide the benefits that come with a full-time position Job sharing – An arrangement whereby two people share one full-time position – Companies can save on expenses by reducing benefits and avoiding employee turnover – Employees gain flexibility but may lose benefits – Sharing can be difficult if work is not easily divisible or if two people cannot work well together 10 | 29 Key Motivation Techniques Telecommuting – Working at home all the time or for a portion of the work week – Advantages • • • • • Increased employee productivity Lower real estate and travel costs Reduced absenteeism and turnover Increased work/life balance and improved morale Access to additional labor pools – Disadvantages • • • • Feelings of isolation Putting in longer hours Distractions at home Difficulty monitoring productivity 10 | 30 Key Motivation Techniques Employee empowerment – Making employees more involved in their jobs by increasing their participation in decision making – Management must be involved to set expectations, communicate standards, institute periodic evaluations, guarantee follow-up – Benefits • Increased job satisfaction • Improved job performance • Higher self-esteem • Increased organizational commitment – Obstacles • Management resistance • Workers’ distrust of management • Insufficient training • Poor communication between management and employees 10 | 31 Teams and Teamwork Teams – Groups of employees functioning together as a unit to complete a common goal or purpose – Types of teams • • • • Problem-Solving Self-Managed Cross-Functional Virtual – Stages of team development • • • • • Forming Storming Norming Performing Adjourning 10 | 32 Advantages and Disadvantages of Self-Managed Teams 10 | 33 Teams and Teamwork Roles within a team – – – – Task-specialist role Socioemotional role Dual role Nonparticipant role Team cohesiveness – For a team to be successful, members must learn how to resolve and manage conflict Team conflict and how to resolve it – Middle ground resolution satisfies each party to some extent Benefits and limitations of teams 10 | 34 Stages of Team Development 10 | 35 Factors That Enhance Team Cohesiveness Prestige and status Cooperative relationship High degree of interaction Relatively small size Similarity of members Superior public image of the group A common threat in the environment Source: Kreitner, Foundations of Management, Student Achievement Series, © 2008 by Houghton Mifflin Company. 10 | 36 Emotional Intelligence (EQ) and Employee Motivation Two Aspects Understand yourself, your goals, intentions, responses, behavior, and all Understand others and their feelings Source: “Emotional Intelligence (EQ),” http://www.businessballs.com/eq.htm 10 | 37 Emotional Intelligence (EQ): The Five Domains 1. 2. 3. 4. Knowing your emotions Managing your emotions Motivating yourself Recognizing and understanding other people’s emotions 5. Managing relationships; i.e., managing the emotions of others Source: “Emotional Intelligence (EQ),” http://www.businessballs.com/eq.htm 10 | 38 Chapter Quiz 1. The main idea conveyed in Frederick Taylor’s findings was that a) most people are motivated only by money. b) people are motivated for a variety of reasons other than pay. c) people do not expect to get paid much for their work. d) employees’ biggest fear is that of losing their jobs. e) people expect to get paid much more than they are currently getting. 2. Physiological needs concern an employee’s desire for a) security. b) survival. c) a sense of belonging. d) self-worth. e) self-direction. 10 | 39 Chapter Quiz 3. Goal-setting theory suggests that employees are more motivated a) to achieve goals that they and their manager have established together. b) to achieve goals that they establish on their own. c) when management empowers them to make their own decisions. d) when their expected outcomes or goals do not change over time. e) to achieve goals that management establishes and clearly communicates to employees. 4. Job redesign is a type of a) flextime. b) telecommuting. c) job enlargement. d) job enrichment. e) job enhancement. 10 | 40 Chapter Quiz 5. The stage of team development in which the team begins to stabilize is called a) forming. b) storming. c) performing. d) norming. e) adjourning. 10 | 41 Answers to Chapter Quiz 1. The main idea conveyed in Frederick Taylor’s findings was that a) most people are motivated only by money. (Correct) b) people are motivated for a variety of reasons other than pay. c) people do not expect to get paid much for their work. d) employees’ biggest fear is that of losing their jobs. e) people expect to get paid much more than they are currently getting. 2. Physiological needs concern an employee’s desire for a) security. b) survival. (Correct) c) a sense of belonging. d) self-worth. e) self-direction. 10 | 42 Answers to Chapter Quiz 3. Goal-setting theory suggests that employees are more motivated a) to achieve goals that they and their manager have established together. (Correct) b) to achieve goals that they establish on their own. c) when management empowers them to make their own decisions. d) when their expected outcomes or goals do not change over time. e) to achieve goals that management establishes and clearly communicates to employees. 4. Job redesign is a type of a) flextime. b) telecommuting. c) job enlargement. d) job enrichment. (Correct) e) job enhancement. 10 | 43 Answers to Chapter Quiz 5. The stage of team development in which the team begins to stabilize is called a) forming. b) storming. c) performing. d) norming. (Correct) e) adjourning. 10 | 44 Answers to Chapter Quiz 5. Title VII of the Civil Rights Act of 1964 applies directly to a) discrimination based on age. b) wages. c) equal pay for equal work. d) selection and promotion. (Correct) e) employee health and safety.