Motivating Employees Chapter 11 PDF

CHAPTER 11 Motivating Employees Prepared by Dr. C. McLarney, Dalhousie University © 2022 McGraw Hill Limited  Learning Objectives 1. Explain Taylor’s theory of scientific management, and describe the Hawthorne studies and their significance to man...

CHAPTER 11 Motivating Employees Prepared by Dr. C. McLarney, Dalhousie University © 2022 McGraw Hill Limited  Learning Objectives 1. Explain Taylor’s theory of scientific management, and describe the Hawthorne studies and their significance to management. 2. Identify the levels of Maslow’s hierarchy of needs and apply them to employee motivation. Contrast this with the motivators and hygiene factors identified by Herzberg. 3. Differentiate between McGregor’s Theory X and Theory Y. © 2022 McGraw Hill Limited 2  Learning Objectives, Pt. 2 4. Explain the key principles of goal setting, expectancy, reinforcement, and equity theories. 5. Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition. 6. Show how managers personalize motivation strategies to appeal to employees around the globe and across generations. © 2022 McGraw Hill Limited 3  The Value of Motivation Motivation refers to the overall desire to excel. The key to leadership success is: MOTIVATING OTHERS TO DO THEIR BEST. Losing an employee is costly. Hiring and retaining good employees is a major function of management. Happy workers lead to happy customers, and happy customers lead to successful businesses. © 2022 McGraw Hill Limited 4  Intrinsic vs. Extrinsic Rewards An Intrinsic Reward is the good feeling you have when you have done a good job. An Extrinsic Reward is something given to you by someone else as recognition for good work and includes pay increases, praise, and promotions. © 2022 McGraw Hill Limited 5  Evolution of Human Relations Management Concepts Scientific Behavioural Taylor Mayo Gantt Maslow Gilbreths Herzberg McGregor Ouchi Vroom © 2022 McGraw Hill Limited 6  Frederick Taylor Increase productivity by studying the most efficient ways of doing things and then teaching workers these methods; i.e., scientific management. Three elements of his approach were: time, methods, and rules of work. Time and motion studies break down the tasks needed to do a job and measure the time needed to do each task. © 2022 McGraw Hill Limited 7  Scientific Management SCIENTIFIC MANAGEMENT viewed people as MACHINES that needed to be properly programmed. There was little concern for the psychological or human aspects of work. Much emphasis in some companies is still placed on conformity to work rules rather than on creativity, flexibility, and responsiveness. © 2022 McGraw Hill Limited 8  Scientific Management: Taylor Some of Taylor’s ideas are still being implemented. Some companies still place more emphasis on conformity to work rules than on creativity, flexibility, and responsiveness. For example, UPS tells drivers how fast to walk (three feet per second), how many packages to deliver per day (average of 150-175), and how to hold their keys (teeth up, 9 third finger). © 2022 McGraw Hill Limited  The Hawthorne Effect Elton Mayo and his colleagues from Harvard University came to the Hawthorne plant to test the degree of lighting associated with optimum productivity. Mayo hypothesized that human or psychological factors caused increases in worker performance. © 2022 McGraw Hill Limited 10  Mayo: The Hawthorne Effect Hawthorne was a plant in Illinois The Hawthorne studies' results encouraged researchers to study human motivation and the managerial styles that lead to more productivity. The Hawthorne Effect refers to the tendency for people to behave differently when they know they're being studied. © 2022 McGraw Hill Limited 11  Maslow: Hierarchy of Needs Motivation arises from need. One is motivated to satisfy unmet needs. When one need is satisfied, another higher-level need emerges to be satisfied. A satisfied need is no longer a motivator. Lower-level needs can pop up at any time and take attention away from higher-level needs. © 2022 McGraw Hill Limited 12 Maslow’s Hierarchy of Needs, Pt. 2 © 2022 McGraw Hill Limited 13 Maslow’s Hierarchy of Needs, Pt. 3 Physiological: Basic survival needs including the need to drink, eat, and be sheltered from heat and cold. Safety: The need to feel secure at work and at home. Social: The need to feel loved, accepted, and part of the group. Esteem: The need for recognition and acknowledgment from others, as well as self- respect and a sense of status. Self-Actualization: The need to develop to your fullest potential. © 2022 McGraw Hill Limited 14  Herzberg’s Motivating Factors Psychologist Frederick Herzberg asked workers to rank various job-related factors in order of importance relative to motivation. The question was: What creates enthusiasm for workers and makes them work to full potential? © 2022 McGraw Hill Limited 15  Herzberg’s Motivating Factors, Pt. 2 The most important motivating factors were the following: 1. Work itself 2. Sense of achievement 3. Earned recognition 4. Responsibility 5. Growth and advancement © 2022 McGraw Hill Limited 16  Herzberg’s Motivating Factors, Pt. 3 Herzberg noted that the factors receiving the most votes were clustered around job content. Workers like to feel that they contribute to the company (sense of achievement was number one). They want to earn recognition (number two) and feel that their jobs are important (number six). They want responsibility (which is why learning is so important) and want recognition for that responsibility © 2022 McGraw Hill Limited 17 Comparison of Maslow’s Hierarchy of Needs and Herzberg’s Motivating Factors © 2022 McGraw Hill Limited 18 McGregor’s Theories X and Y The way in which managers go about motivating people at work depends greatly on their attitudes toward workers. Management theorist Douglas McGregor observed that managers’ attitudes generally fell into one of two entirely different sets of managerial assumptions, which he called Theory X and Theory Y © 2022 McGraw Hill Limited 19 McGregor’s Theories X and Y, Pt. 2 Theory X Dislike Work Avoid Responsibility Little Ambition Forced/ Controlled/ Directed/ Threatened Motivated by Fear and Money © 2022 McGraw Hill Limited 20 McGregor’s Theories X and Y, Pt. 3 Theory Y Like Work, Naturally work toward goals Seek responsibility Imaginative, Creative, Clever Motivated by Empowerment © 2022 McGraw Hill Limited 21  McGregor’s Theories X and Theory X Y, Pt. 4 Theory Y 1. Employees dislike work 1. Employees view work as a and will try to avoid it. natural part of life. 2. Employees prefer to be 2. Employees prefer limited controlled and directed. control and direction. 3. Employees seek security, 3. Employees will seek not responsibility. responsibility under proper 4. Employees must be work conditions. intimidated by managers 4. Employees perform better to perform. in work environments that 5. Employees are motivated are non-intimidating. by financial rewards. 5. Employees are motivated by many different needs. © 2022 McGraw Hill Limited 22 Goal-Setting Theory (MBO) MBO – Management by Objectives Goal-setting theory is based on the idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions. © 2022 McGraw Hill Limited 23 Goal-Setting Theory (MBO), Pt. 2 Management by Objectives (1960s) is a system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top- and middle-level managers, supervisors, and employees. © 2022 McGraw Hill Limited 24  Management By Objectives MBO is most effective in relatively stable situations in which long-range plans can be made and implemented with little need for major changes. It is also important to MBO that managers understand the difference between helping and coaching subordinates. © 2022 McGraw Hill Limited 25  Victor Vroom: Expectancy Theory The amount of effort employees exert on a specific task depends on their expectations of the outcome. Expectation varies from individual to individual. © 2022 McGraw Hill Limited 26 Expectancy Theory: Employee Questions © 2022 McGraw Hill Limited 27  How to Use Expectancy Theory 1. Determine what rewards employees value. 2. Determine each employee’s desired performance standard. 3. Ensure that performance standards are attainable. 4. Guarantee rewards tied to performance. 5. Be certain that employees consider the rewards adequate. © 2022 McGraw Hill Limited 28  Reinforcing Employee Performance: Reinforcement Theory According to reinforcement theory, positive reinforcers, negative reinforcers, and punishers motivate a person to behave in certain ways. In other words, motivation is the result of the carrot-and-stick approach whereby individuals act to receive rewards © 2022 McGraw Hill Limited 29 Treating Employees Fairly: Equity Theory Equity theory looks at how employees’ perceptions of fairness affect their willingness to perform. It assumes employees ask, “If I do a good job, will it be worth it?” and “What is fair?” Employees try to maintain equity between what they put into the job and what they get out of it. © 2022 McGraw Hill Limited 30  Putting Theory into Action Now that we have covered several theories, you may have realized that they try to explain all behaviour, by all people, all of the time. But this is impossible given the complexity of human behaviour. The value of being briefly introduced to different theories is that each theory offers some piece of the puzzle. No theory is complete, as people are very complex. © 2022 McGraw Hill Limited 31  Motivating Through Job Enrichment Managers have extended both Maslow’s and Herzberg’s theories through job enrichment, a strategy that motivates workers through the job itself. Work is assigned so that individuals can complete an identifiable task from beginning to end and are held responsible for successful achievement. © 2022 McGraw Hill Limited 32  Motivating Through Job Enrichment, Pt. 2 Skill Variety. The extent to which a job demands different skills. Task Identity. The degree to which the job requires doing a task with a visible outcome from beginning to end. Task Significance. The degree to which the job has a substantial impact on the lives or work of others in the company. Autonomy. The degree of freedom, independence, and discretion in scheduling work and determining procedures. Feedback. The amount of direct and clear information that is received about job performance. © 2022 McGraw Hill Limited 33  Motivating Through Open Communication Communication and information must flow freely throughout the organization when employees are empowered to make decisions—-they can’t make these decisions in a vacuum. © 2022 McGraw Hill Limited 34  Building Teamwork Open communication helps both top managers and team members understand the objectives and work together to achieve them. © 2022 McGraw Hill Limited 35  Building Teamwork, Pt. 2 Having teams creates an environment in which learning can happen, because most learning happens at the peer level. Teamwork does not happen by itself. The entire organization must be structured to make it easy for managers and employees to talk to one another. © 2022 McGraw Hill Limited 36  Job Recognition: Recognizing a Job Well Done A recent survey indicated that more than half of employees who voluntarily left their jobs did so because of lack of appreciation. Letting people know you appreciate their work is usually more powerful than giving a raise or bonus alone. © 2022 McGraw Hill Limited 37  Personalizing Motivation Managers cannot use one motivational formula for all employees. They have to get to know each worker personally and tailor the motivational effort to the individual. © 2022 McGraw Hill Limited 38  Motivating Employees Around the Globe Different cultures experience motivational approaches differently; therefore, managers study and understand these cultural factors in designing a reward system. © 2022 McGraw Hill Limited 39  Motivating Employees Across Generations Year Born (Environics Year Born (Footwork Term Research Consulting Inc.) Group) 1946 to 1964 Baby Boomers Baby Boomers 1947 to 1966 1965 to 1976 Generation X Generation X (subset of Baby 1961 to 1966 Boomers) Baby Bust 1967 to 1979 1977 to 1994 Generation Y / Millennials / Echo Boomers The Baby-Boom Echo 1980 to 1995 1995 to Present Generation Z The Millennium Busters 1996 to 2010 Sources: Based on “Generations Variables - 2013,” Environics Analytics, 2012, http://www.environicsanalytics.ca/docs/default-source/2014-variables/generations-variables--- 2013.pdf; and Colonel James C. Taylor, “Whither march the cohorts: The validity of generation theory as a determinant of the sociocultural values of Canadian Forces personnel,” Canadian Forces College, June 2008, http://www.cfc.forces.gc.ca/259/281/280/taylor.pdf, 6. © 2022 McGraw Hill Limited 40  Motivating Employees Across Generations, Pt. 2 Age is among the most frequently used demographic characteristic to determine the size and lifestyles of a group of individuals. The terms “cohort” and “generation” are often used interchangeably to refer to such groups. Determining the size of these groups is challenging as the year spans are widely debated. © 2022 McGraw Hill Limited 41  Chapter Summary 1. Explain Taylor’s theory of scientific management and describe the Hawthorne studies and their significance to management. 2. Identify the levels of Maslow’s hierarchy of needs and apply them to employee motivation. Contrast this with the motivators and hygiene factors identified by Herzberg. 3. Differentiate between McGregor’s Theory X and Theory Y. © 2022 McGraw Hill Limited 42  Chapter Summary, Pt. 2 4. Explain the key principles of goal setting, expectancy, reinforcement, and equity theories. 5. Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition. 6. Show how managers personalize motivation strategies to appeal to employees around the globe and across generations. © 2022 McGraw Hill Limited 43