Fundamentals of Management 9th Canadian Edition PDF

Fundamentals of Management Ninth Canadian Edition Chapter 9 Motivating and Rewarding Employees Slide in this Presentation Contain Hyperlinks. JAWS users should be able to ge...

Fundamentals of Management Ninth Canadian Edition Chapter 9 Motivating and Rewarding Employees Slide in this Presentation Contain Hyperlinks. JAWS users should be able to get a list of links by using INSERT+F7 Copyright © 2021 Pearson Canada, Inc. 9-1 Learning Objectives 9.1 Define and explain motivation. 9.2 Compare and contrast early theories of motivation. 9.3 Compare and contrast contemporary theories of motivation. 9.4 Discuss current issues in motivating employees. Copyright © 2021 Pearson Canada, Inc. 9-2 Motivation Motivation is the process by which a person’s efforts are energized, directed, and sustained toward attaining a goal. Motivation has three elements: – Energy: a measure of intensity or drive – Direction: where the effort is channeled – Persistence: sustained effort to achieve a goal and satisfy a need A need is an internal state that makes certain outcomes appear attractive. Copyright © 2021 Pearson Canada, Inc. 9-3  The Motivation Process Unsatisfied Need Tension Effort Satisfied Need Tension Reduction Intensity Direction Persistence Motivation is a set of forces that come from 2 directions 1) PULL FORCES- that are External Forces i.e. The demands of a supervisor 2) PUSH FORCES – that are Internal Forces i.e. The need you feel to achieve or to improve yourself or to change the work environment you are in NOTE: Each of the following ‘Motivational Theories’ we will discuss, highlights one or more of the ‘Pull / Push’ forces Copyright © 2021 Pearson Canada, Inc. 9-4 Early Theories of Motivation (1950s and 1960s) These early theories represent the foundation from which contemporary theories grew: – Maslow’s Hierarchy of Needs Theory – McGregor’s Theory X and Theory Y – Hertzberg’s Motivation-Hygiene Theory – McClelland’s Theory of Needs Copyright © 2021 Pearson Canada, Inc. 9-5 Maslow’s Hierarchy of Needs Theory Maslow proposed that within every person is a hierarchy of five needs. – Each level must be substantially satisfied before the next need becomes dominant. – Satisfied needs will no longer motivate. Hierarchy of levels: – Lower-order (external): physiological, safety – Higher-order (internal): social, esteem, self- actualization Copyright © 2021 Pearson Canada, Inc. 9-6 Exhibit 9.1 Maslow’s Hierarchy of Needs Exhibit 9.1 Maslow’s Hierarchy of Needs SOURCE: A. H. Maslow, R. D. Frager, and J. Fadiman, Motivation and Personality, 3rd ed., ©1987. Reprinted and Electronically reproduced by permission of Pearson Education, Inc., New York, NY. Copyright © 2021 Pearson Canada, Inc. 9-7 McGregor’s Theory X and Theory Y McGregor’s theory is based on two assumptions about human nature: Theory X – assumes that workers have little ambition, dislike work, want to avoid responsibility, and must be closely controlled to work effectively Theory Y – assumes that employees enjoy work, seek out and accept responsibility, and exercise self-direction Copyright © 2021 Pearson Canada, Inc. 9-8 Herzberg’s Two-Factor Theory (1 of 2) Intrinsic factors are related to job satisfaction. Extrinsic factors are associated with job dissatisfaction. Exhibit 9.2 Herzberg’s Two-Factor Theory Copyright © 2021 Pearson Canada, Inc. 9-9 Herzberg’s Two-Factor Theory (2 of 2) – When hygiene factors are adequate, people will not be dissatisfied, but they will not be motivated, either. – To motivate people, use the motivators. Exhibit 9.3 Contrasting Views of Satisfaction and Dissatisfaction SOURCE: S. P. Robbins and M. Coulter, Management, 13th ed., © 2016, p. 465. Reprinted and electronically reproduced by permission of Pearson Education, Inc., New York, N Y. Copyright © 2021 Pearson Canada, Inc. 9 - 10 McClelland’s Three-Needs Theory Three acquired (not innate) needs are the major motives in work: – Need for achievement (nAch) - the drive to succeed and excel in relation to a set of standards – Need for power (nPow) - the need to make others behave in a way they that they would not have behaved otherwise – Need for affiliation (nAff) - the desire for friendly and close interpersonal relationships Copyright © 2021 Pearson Canada, Inc. 9 - 11 Contemporary Theories of Motivation These theories represent contemporary explanations of employee motivation: – Goal Setting Theory – Job Design – Four-Drive Theory – Equity Theory – Expectancy Theory Copyright © 2021 Pearson Canada, Inc. 9 - 12 Goal-Setting Theory (1 of 2) Specific goals increase performance and difficult goals, when accepted, result in higher performance than do easy goals because: – a specific, challenging goal acts as an internal stimulus – feedback on progress can be a powerful motivator The goal-performance relationship is influenced by: – goal commitment – adequate self-efficacy – national culture Copyright © 2021 Pearson Canada, Inc. 9 - 13 Goal-Setting Theory (2 of 2) Exhibit 9.4 Goal-Setting Theory Copyright © 2021 Pearson Canada, Inc. 9 - 14 How Does Job Design Influence Motivation? (1 of 2) When jobs are well-designed, employees are motivated to work hard. Job design refers to the way tasks are combined to form complete jobs. The Job Characteristics Model (JC M) is a framework for analyzing and designing jobs to increase their motivating potential. Copyright © 2021 Pearson Canada, Inc. 9 - 15 How Does Job Design Influence Motivation? (2 of 2) Exhibit 9.5 Job Characteristics Model SOURCE: Reprinted by permission from Hackman, Judith D. (w/o) Hackman, J. Richard. Copyright © 2021 Pearson Canada, Inc. 9 - 16 Four-Drive Theory (1 of 2) Describes motivation in four categories that interact with each other in varying degrees: 1. Drive to acquire – the competitive drive for material goods, status, accomplishment and power 2. Drive to bond – the desire to bond with others and engage in mutually beneficial relationships 3. Drive to learn – the drive to satiate curiosity, understand ourselves and the world around us 4. Drive to defend – the reactive drive for self- protection, typically triggered by threats Copyright © 2021 Pearson Canada, Inc. 9 - 17 Four-Drive Theory (2 of 2) Exhibit 9.8 Organizational Implications of Four-Drive Theory Drive to acquire Are rewards tied to performance in your organization? Is your pay competitive internally and externally? Are performance expectations clearly defined? Do you know what constitutes high performance in your firm? Is recognition appropriately provided for your performance? Drive to bond Does your firm’s culture encourage sharing of best practices? Does your firm provide support networks and opportunities for networking? Do you feel strongly that you are a part of the team? How does management show that it cares about you on a personal level? Drive to learn Does your work interest you? Can you learn new things at work? Are your assignments varied and challenging? How does your firm support your personal growth and learning? Are you enhancing your knowledge, skills, and abilities as part of your work? Drive to defend Is your firm’s performance management system open, transparent, and fair? Is your workplace free of hostility and intimidation? Do your managers treat people with respect? Do you support your company’s vision and culture? Is your workplace communication open—are you able to speak up? Copyright © 2021 Pearson Canada, Inc. 9 - 18 Equity Theory (1 of 3) Employees perceive their job outcomes in relation to their job inputs, then compare their input–outcome ratio with the input–outcome ratio of relevant others. – If the ratio is perceived as equal, equity exists; the situation is perceived as being fair. – If the ratio is perceived as unequal, inequity exists, employees feel under- or over rewarded. Perception determines the equity of the situation. Copyright © 2021 Pearson Canada, Inc. 9 - 19 Equity Theory (2 of 3) The referent against which individuals compare themselves is an important variable. Three referent categories have been defined: – Other - employees compare their outcomes with other individuals with similar jobs in the same organization, and with friends, neighbours, or professional associates – System - includes pay policies and procedures, administration of the system, and precedents – Self - personal experiences and contacts; influenced by criteria such as previous jobs or family commitments Copyright © 2021 Pearson Canada, Inc. 9 - 20 Equity Theory (3 of 3) Typical employee responses to perceived inequity include: – distorting their own or others’ inputs or outcomes – inducing others to change their inputs or outcomes – changing their own inputs or outcomes – choosing a different comparison person – quitting their job Originally focused on distributive justice; recent research has focused on procedural justice Copyright © 2021 Pearson Canada, Inc. 9 - 21 Expectancy Theory (1 of 3) Individuals act based on the expectation that the action will result in a given outcome and on the attractiveness of that outcome to the individual. Expectancy theory includes three relationships: – Expectancy (effort–performance linkage) – Instrumentality (performance–reward linkage) – Valence (attractiveness of reward) Copyright © 2021 Pearson Canada, Inc. 9 - 22 Expectancy Theory (2 of 3) Exhibit 9.10 Simplified Expectancy Model Copyright © 2021 Pearson Canada, Inc. 9 - 23 Expectancy Theory (3 of 3) Exhibit 9.11 Steps to Increasing Motivation Using Expectancy Theory Copyright © 2021 Pearson Canada, Inc. 9 - 24 Current Issues in Motivation (1 of 2) Even current studies of employee motivation are influenced by several significant workplace issues: – motivating employees when the economy is struggling – motivating unique groups of workers – designing effective rewards programs – improving work-life balance Copyright © 2021 Pearson Canada, Inc. 9 - 25 Current Issues in Motivation (2 of 2) SOURCE: Copyright © 2013 Gallup, Inc. All rights reserved. The content is used with permission; however, Gallup retains all rights of republication. Retrieved from http://www.gallup.com/businessjournal/163130/employee-engagement-drives-growth.aspx Copyright © 2021 Pearson Canada, Inc. 9 - 26 Motivating Employees When the Economy is Not Healthy (has slowed down) Economic recessions are difficult for organizations and their employees: – layoffs and long hours for those still employed – budget cuts reduce or eliminate raises or bonuses – reduced employee optimism and engagement Ways to motivate in an uncertain economy: – hold meetings to get employee input – establish a common goal – create a community – provide learning opportunities Copyright © 2021 Pearson Canada, Inc. 9 - 27 Motivating Unique Groups of Workers To maximize motivation in today’s workforce, managers need to think in terms of flexibility. Unique groups of workers have different needs: – demographic differences – cross-cultural differences – professional and technical employees – contingent workers Copyright © 2021 Pearson Canada, Inc. 9 - 28 Designing Effective Rewards Programs That Motivate Employees Employee rewards programs play a powerful role in motivating for appropriate employee behaviour. – The Role of Money – Open-Book Management – Employee Recognition Programs – Pay-for-Performance Programs – Stock Option Programs Copyright © 2021 Pearson Canada, Inc. 9 - 29 Improving Work-Life Balance Organizations have started to implement programs to help employees manage their lives outside work and to respond to the varied needs of a diverse workforce. – Flexible Work Schedules – Job Sharing – “Telework” Copyright © 2021 Pearson Canada, Inc. 9 - 30 Suggestions for Motivating Employees Recognize individual differences Match people to jobs Individualize rewards Link rewards to performance Check the system for equity Use recognition Don’t ignore money Copyright © 2021 Pearson Canada, Inc. 9 - 31