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Chapter 11: Motivating Employees

• Motivation is the desire to excel, crucial for leadership success
• Keeping employees is essential for management, as losing them is costly
• Happy employees lead to happy customers, contributing to business success
• Intrinsic rewards are the positive feelings from a job well done
• Extrinsic rewards are external recognition for good work, like raises or promotions

Evolution of Human Relations Management Concepts

• Scientific Management: Viewed employees as machines needing programming, emphasizing efficiency through time, methods, and work rules;
• Frederick Taylor's contributions focused on increasing productivity through scientific methods;
• Taylor's approach did not account for the psychological or human aspects of work, unlike later theories
• Hawthorne Effect: Elton Mayo's studies demonstrated that social and psychological factors, such as workers knowing they were being observed, influenced worker performance;
• Hawthorne studies encouraged researchers to study human motivation, and effective management styles;

Maslow: Hierarchy of Needs

• Motivation arises from unmet needs;
• Once a need is fulfilled, a higher-level need emerges;
• Lower-level needs can resurface and disrupt motivation;
• Physiological needs are basic survival needs, like food and shelter;
• Safety needs involve security at work and home;
• Social needs focus on feeling loved, accepted, and part of a group;
• Esteem needs center on recognition, self-respect, and status;
• Self-actualization is the need to reach one's full potential

Herzberg's Motivating Factors

• Herzberg's research aimed to determine factors causing worker enthusiasm and full potential.
• Key motivators include:
  • Work itself
  • Achievement
  • Recognition
  • Responsibility
  • Growth/advancement
• Herzberg found that these factors centered around job content and worker contribution

McGregor's Theories X and Y

• Theory X: Managers assume employees dislike work, avoid responsibility, have little ambition, and require external motivation (e.g., fear or financial incentives)
• Theory Y: Managers assume employees view work naturally, seek responsibility, and are motivated internally by factors beyond monetary rewards.
• McGregor's observations suggest managerial attitudes influence employee motivation significantly

Goal-Setting Theory (MBO)

• MBO (Management by Objectives) is a goal-setting system that encourages discussions, reviews, and evaluation of objectives between top and middle-level managers, supervisors, and employees
• MBO functions best in stable situations for easier implementation with minimal changes
• Effective managers using goal-setting must know the difference between simply helping employees versus coaching them effectively

Victor Vroom: Expectancy Theory

• Employee effort depends on their expectations of outcomes;
• Employees need incentive to believe that actions have worth of reward

Reinforcement Theory

• Reinforcement theory suggests employees learn to act to receive rewards like positive and negative reinforcers, as well as punishment
• This is the carrot and stick approach where workers act for desired outcomes

Equity Theory

• Employees' perceptions of fairness affect their willingness to perform
• Employees evaluate how much input (effort) they provide versus output (reward) relative to others
• Effort versus reward evaluation is critical to maintaining equity.

Motivating Through Job Enrichment

• Job enrichment extends motivational theories;
• Jobs should be designed in a way that empowers employees and make them feel like they are part of a larger whole that drives achievement.
• Key job design characteristics include skill variety, task identity, task significance, autonomy, and feedback.

Motivating Across Cultures and Generations

• Different cultures have varying motivational approaches
• Understanding cultural differences is critical for employee motivation

Chapter Summary

• Summarizes the key principles for various motivational theories and applications to motivate workers.