Fundamentals of Management: 10-1Gao Junshan, UST Beijing Motivating and Rewarding Employees

Fundamentals of Management: 10-2Gao Junshan, UST Beijing Where We Are Part 1 Introduction Part 2 Planning Part 3 Organizing Part 4 Leading Part 5 Controlling Part 4 Leading Chapter 8 Foundations of Individual and Group Behavior Chapter 11 Leadership and Trust Chapter 12 Communication and Interpersonal Skills Chapter 9 Understanding Team work Chapter 10 Motivating and rewarding Employees Chapter 8 Foundations of Individual and Group Behavior Chapter 9 Understanding Team work Chapter 10 Motivating and rewarding Employees

Fundamentals of Management: 10-3Gao Junshan, UST Beijing Chapter Guide Motivation overview Theories of motivation –Early theories : Maslow’s; McGregor’s; Hertzberg’s –Contemporary theories: McClelland’s; Adam’s; Job Characteristics Model; Vroom’s Attitude and work performance Further Discussion Issues Diverse workforce; Pay for performance or pay for time; Minimum-wage workers; Professional employees; Technical workers; Flexible work options

Fundamentals of Management: 10-4Gao Junshan, UST Beijing Motivation is the willingness to exert a persistent and high level of effort toward organizational goals. Need is some internal state that makes certain outcomes appear attractive. Motivation and Need Overview

Fundamentals of Management: 10-5Gao Junshan, UST Beijing The Motivation Process Drives Search Behavior Search Behavior Tension Reduction of Tension Reduction of Tension Satisfied Need Satisfied Need Unsatisfied Need Unsatisfied Need Overview Unsatisfied Need Unsatisfied Need

Fundamentals of Management: 10-6Gao Junshan, UST Beijing Maslow’sHierarchy of Needs SelfEsteemSocialSafetyPhysiological Motivation theory: Abraham Maslow

Fundamentals of Management: 10-7Gao Junshan, UST Beijing Theory X Workers Dislike Work Avoid Responsibility Little Ambition Theory Y Workers Enjoy Work Accept Responsibility Self-Directed Motivation theory: Douglas McGregor

Fundamentals of Management: 10-8Gao Junshan, UST Beijing Herzberg’s Two-Factor Theory Hygiene Factors Motivators High Job Dissatisfaction Job Satisfaction 0 Quality of supervision Salary and benefits Company policies Working conditions Relations with others Security and status Quality of supervision Salary and benefits Company policies Working conditions Relations with others Security and status Career advancement Recognition Work itself Responsibility Advancement Growth Career advancement Recognition Work itself Responsibility Advancement Growth Motivation theory: Frederick Herzberg

Fundamentals of Management: 10-9Gao Junshan, UST Beijing Contrasting Views of Satisfaction-Dissatisfaction Traditional View SatisfactionDissatisfaction Motivators Herzberg‘s View SatisfactionNo Satisfaction Hygiene Factors No DissatisfactionDissatisfaction Motivation theory: Frederick Herzberg

Fundamentals of Management: 10-10Gao Junshan, UST Beijing The Theory of Needs DavidMcClelland The Theory of Needs DavidMcClelland Need for Achievement(nAch) Achievement(nAch) Power(nPow) Power(nPow) Affiliation(nAff) Affiliation(nAff) Motivation theory: David McClelland

Fundamentals of Management: 10-11Gao Junshan, UST Beijing Equity Theory Ratio Comparison * Employee’s Perception Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A Outcomes B Inputs B Outcomes B Inputs B Outcomes B Inputs B < = > Inequity (Under-Rewarded) Equity Inequity (Over-Rewarded) * Where A is the employee, and B is a relevant other or referent. Motivation theory: J Stacey Adams

Fundamentals of Management: 10-12Gao Junshan, UST Beijing Equity Theory Propositions Given payment by time, over-rewarded employees will produce more than equitably paid employees. Given payment by quantity of production, over-rewarded employees will produce fewer but higher-quality units than equitably paid employees. Given payment by time, under-rewarded employees will produce less or poorer-quality output. Given payment by quantity of production, under-rewarded employees will produce a large number of low-quality units in comparison with equitably paid employees. Motivation theory: J Stacey Adams

Fundamentals of Management: 10-13Gao Junshan, UST Beijing The Job CharacteristicsModel Skill Variety Task Identity Task Significance Autonomy Feedback Skill Variety Task Identity Task Significance Autonomy Feedback Motivation theory: J Richard Hackman

Fundamentals of Management: 10-14Gao Junshan, UST Beijing CharacteristicsExamples Skill Variety High varietyThe owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and interacts with customers Low varietyA bodyshop worker who sprays paint eight hours a day Task Identity High identityA cabinetmaker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection Low identityA worker in a furniture factory who operates a lathe to make table legs Task Significance High significanceNursing the sick in a hospital intensive-care unit Low significanceSweeping hospital floors Autonomy High autonomyA telephone installer who schedules his or her own work for the day, and decides on the best techniques for a particular installation Low autonomyA telephone operator who must handle calls as they come according to a routine, highly specified procedure Feedback High feedbackAn electronics factory worker who assembles a radio and then tests it to determine if it operates properly Low feedbackAn electronics factory worker who assembles a radio and then routes it to a quality control inspector who tests and adjusts it Examples of High and Low Job Characteristics Motivation theory: Job Characteristic Model

Fundamentals of Management: 10-15Gao Junshan, UST Beijing The Job Characteristics Model Employee Growth Need Strength Personal and Work Outcomes Core Job Dimensions Critical Psychological States Skill variety Task identify Task significance Experienced meaningfulness of the work Experienced responsibility for outcomes of the work Knowledge of the actual results of the work activities Autonomy Feedback High internal work motivation High-quality work performance High satisfaction with the work Low absenteeism and turnover Motivation theory: Job Characteristic Model

Fundamentals of Management: 10-16Gao Junshan, UST Beijing The Motivating Potential Score Motivating Potential Score (MPS) Autonomy Feedback = Skill Variety Task Identity Task Significance ++ 3 X X High MPS Increases Motivation Performance Satisfaction and Decreases Absence Turnover Motivation theory: Job Characteristic Model

Fundamentals of Management: 10-17Gao Junshan, UST Beijing Expectancy Theory 3. Rewards-personal goals relationship 1. Effort-performance relationship 2. Performance-rewards relationship IndividualEffortIndividualPerformance IndividualGoals OrganizationalRewards Motivation theory: Victor Vroom

Fundamentals of Management: 10-18Gao Junshan, UST Beijing An Integrative Model of Motivation Personal Goals Personal Goals Ability Opportunity Performance Appraisal Criteria Performance Appraisal Criteria High nAch High nAch Individual Performance Individual Performance Appraisal System Performance Appraisal System Reinforcement Individual Effort Individual Effort Dominant Needs Dominant Needs Equity Comparison O I A I B Equity Comparison O I A I B Organization Rewards Organization Rewards Goals Direct Behavior Goals Direct Behavior Motivation theory: An integration

Fundamentals of Management: 10-19Gao Junshan, UST Beijing Three Components of an Attitude AffectiveCognitiveBehavioral Other issues: Attitude and work (see Chap 8 p257)

Fundamentals of Management: 10-20Gao Junshan, UST Beijing Job-RelatedAttitudesJob-RelatedAttitudes JobInvolvementJobInvolvement JobSatisfactionJobSatisfaction OrganizationalCommitmentOrganizationalCommitment Other issues: Attitude and work (see Chap 8 p258)

Fundamentals of Management: 10-21Gao Junshan, UST Beijing Cognitive Dissonance Theory DissonanceElementsDissonanceElements Degree of Influence Influence RewardsInvolvedRewardsInvolved Other issues: Attitude and work (see Chap 8 p259)

Fundamentals of Management: 10-22Gao Junshan, UST Beijing Managing Attitudes on the Job More Satisfied Less Satisfied Employees Low High Low ProductivityDissonance Other issues: Attitude and work (see Chap 8 p261)

Fundamentals of Management: 10-23Gao Junshan, UST Beijing Contemporary Motivation Issues How to motivate a diverse workforce How to Pay -- for performance or time How to motivate minimum-wage workers How to motivate professional employees How to motivate technical workers How to use flexible work options Other issues

Fundamentals of Management: 10-24Gao Junshan, UST Beijing MotivateDiverseWorkforce MotivateDiverseWorkforce Be aware of cultural differences Recognize people have different needs Other issues: Diversity of workforce

Fundamentals of Management: 10-25Gao Junshan, UST Beijing Use Pay to Motivate Pay for Performance Competency Time Other issues: payment

Fundamentals of Management: 10-26Gao Junshan, UST Beijing Motivate Minimum-wage Workers Money is important, but not the only reward that people seek Other rewards can help motivating –Recognition program –Praise –Empowering Other issues: Minimum wage workers

Fundamentals of Management: 10-27Gao Junshan, UST Beijing Tend to like Challenges from jobs Tend to like Challenges from jobs May not be interested in becoming managers May not be interested in becoming managers Professional and Technical Employees Professional and Technical Employees Loyal to their profession rather than their employers Loyal to their profession rather than their employers Strong and long-term commitment to their field Strong and long-term commitment to their field Other issues: Professional and technical

Fundamentals of Management: 10-28Gao Junshan, UST Beijing Flexible Work Options CompressedWorkweek Flextime JobSharing Telecommuting Other issues: Flexibility

Fundamentals of Management: 10-29Gao Junshan, UST Beijing Maximizing Employee Effort Recognize individual differences Match people to jobs Use goals Ensure that goals are perceived as attainable Individualize rewards Link rewards to performance Check the system for equity Don‘t ignore money Management skills: Maximizing employee effort

Fundamentals of Management: 10-30Gao Junshan, UST Beijing Chapter Summary Motivation process Meaning of needs Hierarchy of needs theory Theory X vs. Theory Y Motivation-hygiene theory

Fundamentals of Management: 10-31Gao Junshan, UST Beijing Chapter Summary Equity theory Expectancy theory Jobs designs to maximize performance Workforce diversity and motivation