Motivating the Workforce Chapter 9 PDF

Because learning changes everything. ® Chapter 9 Motivating the Workforce © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives 9-1 Explain why the study of human relations is important....

Because learning changes everything. ® Chapter 9 Motivating the Workforce © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives 9-1 Explain why the study of human relations is important. 9-2 Summarize early studies that laid the groundwork for understanding employee motivation. 9-3 Compare and contrast the human relations theories of Abraham Maslow and Frederick Herzberg. 9-4 Investigate various theories of motivation, including Theories X, Y, and Z; equity theory; expectancy theory; and goal-setting theory. 9-5 Describe some of the strategies that managers use to motivate employees. 9-6 Critique a business’s program for motivating its salesforce. © McGraw Hill, LLC 3  Nature of Human Relations 1 Human relations—The study of the behavior of individuals and groups in organizational settings. Involves motivating employees to achieve organizational objectives efficiently and effectively. Motivation—Inner drive that directs a person’s behavior toward a goal. A goal is the satisfaction of some need. A need is the difference between an actual state and a desired state. © McGraw Hill, LLC 4  Motivation Motivation is important both in business and outside of it. For instance, coaches motivate athletes before major games to increase their chances they will play their best. © McGraw Hill, LLC Chris Brown/CSM/Shutterstock 5  Figure 9.1 The Motivation Process © McGraw Hill, LLC 6  POLLING QUESTION 1 One objective of _____ involves motivating employees to achieve organizational goals efficiently and effectively. A. Need satisfaction. B. Human relations. C. Employee morale. D. Motivational theory. © McGraw Hill, LLC 7  Nature of Human Relations 2 Morale—An employee’s attitude toward their job, employer, and colleagues. High morale leads to: High levels of productivity. High returns to stakeholders. Employee loyalty. Low morale leads to: High rates of absenteeism. High rates of employee turnover. © McGraw Hill, LLC 8  Nature of Human Relations 3 Both intrinsic and extrinsic rewards contribute to motivation. Intrinsic rewards. Personal satisfaction and enjoyment you feel from attaining a goal. Extrinsic rewards. Benefits and/or recognition you receive from someone else. © McGraw Hill, LLC 9  Table 9.1 How to Retain Good Employees 1. Offer ongoing training opportunities. 2. Create a positive organizational culture. 3. Support free-flowing communication. 4. Blend compensation, benefits, and recognition. 5. Encourage referrals and don’t overlook internal recruiting. 6. Coach employees, provide feedback, and offer mentoring programs. 7. Provide growth opportunities. 8. Support work/life balance and minimize stress. 9. Foster trust, respect, and confidence in high-level management. © McGraw Hill, LLC 10  POLLING QUESTION 2 You have been asked to help increase employee retention at Smiles Dentistry. Where do you think you should focus all your efforts? A. Training and mentorship. B. Compensation, benefits, and recognition. C. Work/life balance. D. Interactions with senior leadership. © McGraw Hill, LLC 11  Historical Perspectives on Employee Motivation 1 Classical Theory of Motivation. Theory suggesting that money is the sole motivator for workers. Time and motion studies. Frederick W. Taylor, Frank and Lillian Gilbreth. Analyzed how workers performed tasks to improve productivity. Led to the application of scientific principles to management. Taylor’s ideas still in practice today. Financial incentives for productivity. © McGraw Hill, LLC 12  Historical Perspectives on Employee Motivation 2 The Hawthorne Studies. Early 20th century at the Hawthorne Works Plant. Elton Mayo. Postulated that physical conditions in the workplace stimulate productivity. Productivity increased regardless of physical conditions (the Hawthorne effect). Findings showed that social and psychological factors could affect productivity and morale. Marked the beginning of concern for human relations in the workplace. © McGraw Hill, LLC 13  Theories of Employee Motivation 1 Maslow’s hierarchy. Psychologist Abraham Maslow. A theory that arranges the five basic needs of people— physiological, security, social, esteem, and self- actualization—into the order in which people strive to satisfy them. Source: Adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review 50 (1943), pp. 370–396. American Psychology Association. © McGraw Hill, LLC 14  Theories of Employee Motivation 2 Herzberg’s Two-Factor Theory. Hygiene factors. Relate to the work setting and not to the content of the work. Do not necessarily motivate people to excel, but their absence may dissatisfy workers. Motivational factors. Relate to the content of the work itself. Absence may not result in dissatisfaction, but presence is likely to motivate. © McGraw Hill, LLC 15  Table 9.2 Herzberg’s Hygiene and Motivational Factors Hygiene Factors Motivational Factors Company policies Achievement Supervision Recognition Working conditions Work itself Relationships with peers, supervisors, Responsibility and subordinates Salary Advancement Security Personal growth © McGraw Hill, LLC 16  Motivation Factors at Google Google’s employee-friendly offices feature elements like basketball courts, pinball machines, and photo booths to foster creativity and make work more enjoyable. © McGraw Hill, LLC ©Daniel Brenner/Bloomberg/Getty Images 17  Theories of Employee Motivation 3 McGregor’s Theory X and Y. Theory X is a traditional view of management. 1. The average person naturally dislikes work and will avoid it when possible. 2. Most workers must be coerced, controlled, directed, or threatened with punishment to get them to work toward achieving organizational objectives. 3. The average worker prefers to be directed, avoids responsibility, has little ambition, and wants security. © McGraw Hill, LLC 18  Theories of Employee Motivation 4 McGregor’s Theory X and Y. Theory Y. 1. The expenditure of physical and mental effort in work is as natural as play or rest. 2. People will exercise self-direction and self-control to achieve objectives to which they are committed. 3. People will commit to objectives when they realize that the achievement of those goals will bring them personal reward. 4. The average person will accept and seek responsibility. 5. Imagination, ingenuity, and creativity can help solve organizational problems, but most organizations do not make adequate use of these characteristics in their employees. 6. Organizations today do not make full use of workers’ intellectual potential. © McGraw Hill, LLC 19  Theories of Employee Motivation 5 Theory Z. Management philosophy that stresses employee participation in all aspects of company decision making. First described by William Ouchi. Incorporates elements of the Japanese approach to management; trust and intimacy. Managers and workers share responsibilities. Participative management style. Long-term, often lifelong employment. © McGraw Hill, LLC 20  Table 9.3 Comparisons of Theories X, Y, and Z Factor Theory X Theory Y Theory Z Countries that China United States Japan use this style Philosophy Tight control Assume workers will seek Employee over workers out responsibility and participation in all satisfy social needs aspects of company decision making Job Considerable Less control and Trust and intimacy description specialization supervision; address with workers sharing higher levels of Maslow’s responsibilities hierarchy Control Tight control Commitment to objectives Relaxed but required with self-direction expectations Worker Limited Democratic Commitment to welfare concern worker’s total lives Responsibility Managerial Collaborative Participative © McGraw Hill, LLC 21  Theories of Employee Motivation 6 Equity Theory. How much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange. Equity is a subjective notion. May explain why many consumers are upset about CEO compensation. Feelings of inequity may lead to unethical behaviour. © McGraw Hill, LLC 22  Theories of Employee Motivation 7 Expectancy Theory. Motivation depends not only on how much a person wants something, but also on the person’s perception of how likely they are to get it. Goal-Setting Theory. Refers to the impact that setting goals has on performance. Management by objectives (M BO). © McGraw Hill, LLC 23  POLLING QUESTION 3 Meta offers employees work areas where they can gather, share ideas, relax, play games, and unwind. According to McGregor, this style of management is most likely following the _____ theory of motivation. A. W. B. X. C. Y. D. Z. © McGraw Hill, LLC 24  Strategies for Motivating Employees 1 Behavior Modification. Involves changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself. Reinforcement theory. Behavior that is rewarded will tend to be repeated. Behavior that is punished will tend to be eliminated. Two strategies may not be equally effective. Generally, rewarding appropriate behavior is more effective. © McGraw Hill, LLC 25  Strategies for Motivating Employees 2 Job Design. Managers can use job design strategies to improve employee motivation. Job rotation. Job enlargement. Job enrichment. © McGraw Hill, LLC 26  Table 9.4 Benefits of Job Rotation 1. Being exposed to different business areas. 2. Nurturing employees. 3. Supporting ongoing learning and improvement. 4. Preparing for more senior roles. 5. Accelerating professional development. 6. Building new hard and soft skills. 7. Boosting overall productivity. 8. Enhancing recruiting and retention efforts. © McGraw Hill, LLC 27  Strategies for Motivating Employees 3 Job Design. Flexible scheduling strategies. Flextime. Compressed workweek. Job sharing. Allowing full-time workers to work part-time for a certain time period. Allowing workers to work at home either full- or part-time. © McGraw Hill, LLC 28  Figure 9.3 Flextime, Showing Core and Flexible Hours Access the text alternative for these images. © McGraw Hill, LLC 29  Working Remotely Working remotely is becoming increasingly common. Telecommuting, job sharing, and flextime can be beneficial for employees who cannot work normal work hours. © McGraw Hill, LLC ©nd3000/Shutterstock 30  POLLING QUESTION 4 Isa, a recent college graduate, is hired by Lean Street Consulting and given several options for a work schedule. Each one requires her to work a minimum of 40 hours per week. In your opinion, which should she choose? A. Flexible hours. B. Work remotely. C. Compressed workweek. D. Traditional 9:00 to 5:00. © McGraw Hill, LLC 31  Strategies for Motivating Employees 4 Importance of Motivational Strategies. Fosters employee loyalty. Boosts productivity. Influences pay, promotion, job design, training opportunities, and reporting relationships. Employees are motivated by the nature of: The relationship they have with supervisors. Their jobs. The characteristics of the organization. © McGraw Hill, LLC 32  Motivational Strategies Businesses have come up with different ways to motivate employees, including rewards such as trophies and plaques to show the company’s appreciation. © McGraw Hill, LLC ©Caiaimage/Paul Bradbury/OJO+/Getty Images 33  Table 9.5 Companies with Excellent Motivational Strategies 1 Company Motivational Strategies 3M Gives employees 15 percent of their time to pursue own projects Google Perks include a massage every other week, free gourmet lunches, tuition reimbursement, a volleyball court, and time to work on own projects Whole Foods Employees receive 20–30 percent discounts on company products, the opportunity to gain stock options, and the ability to make major decisions in small teams Patagonia Provides areas for yoga and aerobics, in-house child care services, organic food in its café, and opportunities to go surfing during the day The Container Store Provides more than 260 hours of employee training and hosts “We Love Our Employees” Day © McGraw Hill, LLC 34  Table 9.5 Companies with Excellent Motivational Strategies 2 Company Motivational Strategies Southwest Gives employees permission to interact with passengers as Airlines they see fit, provides free or discounted flights, and hosts the “Adopt-a-Pilot” program to connect pilots with students across the nation Nike Offers tuition assistance, product discounts, onsite fitness centers, and the ability for employees to give insights on how to improve the firm Apple Creates a fast-paced, innovative work environment where employees are encouraged to debate ideas Hilton Offers friends and family travel discounts, promotes lifelong Hotels & learning with its leadership development framework, and Resorts celebrates achievements through an employee recognition program Zappos Creates a fun, zany work environment for employees and empowers them to take as much time as needed to answer customer concerns © McGraw Hill, LLC 35  Solve the Dilemma Motivating to Win 1 Eagle Pharmaceutical has long been recognized for its innovative techniques for motivating its salesforce. Features the salesperson who has been most successful during the previous quarter in the company newsletter “Touchdown.” Receive football jersey. Plaque. $1,000 worth of Eagle’s stock. “Superbowl Club” for employees who reach or exceed their sales goals. “Heisman Award” trip to Caribbean for top 20 salespeople. © McGraw Hill, LLC 36  Solve the Dilemma Motivating to Win 2 Videoconference hookup. Between honored salesperson and four regional sales managers to share some tactics and strategies winning salesperson uses to succeed. Managers summarize these ideas and pass them along to their salespeople. Sales managers feel strongly that by sharing strategies and tactics, they can be successful. © McGraw Hill, LLC 37  Solve the Dilemma Motivating to Win 3 Critical Thinking Questions. 1. Which motivational theories are in use at Eagle? 2. What is the value of getting employees to compete against a goal instead of against one another? 3. Put yourself in the shoes of one of the four regional sales managers and argue against potential cutbacks to the motivational program. © McGraw Hill, LLC 38  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.