Foundations of Business 3e Pride, Hughes, & Kapoor

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 2 Motivating and Satisfying Employees and Teams Chapter10

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 3 1.Explain what motivation is. 2.Understand some major historical perspectives on motivation. 3.Describe three contemporary views of motivation: equity theory, expectancy theory, and goal-setting theory. 4.Explain several techniques for increasing employee motivation. 5.Understand the types, development, and uses of teams. Learning Objectives

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 4  The individual internal process that energizes, directs, and sustains behavior; the personal “force” that causes us to behave in a particular way  In a business setting we call it Morale. It includes: Morale is an employee’s feelings about his or her job, superiors, and the firm itself High morale results from the satisfaction of needs or as a result of the job and leads to dedication, loyalty, and the desire to do the job well Low morale leads to shoddy work, absenteeism, and high turnover rates What Is Motivation?

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 5 Fortune’s 10 Best Employee Morale Companies SASBoston Consulting GroupWegmans Food MarketsGoogleNet AppZappos.comCamden Property TrustNugget MarketRecreational Equipment (REI)DreamWorks Animation SKG

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 6  Scientific Management (1910) Scientific Management was the application of scientific principles to management of work and workers Frederick W. Taylor – Observed workers who “soldiered,” or worked slowly, because they feared losing their jobs if there were no more work – Jobs should be broken into separate tasks – Management determines the best way and the expected output levels – set goals – Management chooses and trains the best-suited person – Management cooperates with workers (Bethlehem Steel) – Piece-rate system (pay tied to unit of output) is based on the belief that people will work hard only for money – Let’s look at: Historical Perspectives on Motivation

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 7 Taylor’s Piece-Rate System

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 8  The Hawthorne Studies (19320 Objective: to determine the effects of the work environment on employee productivity 1st experiment: productivity increased for both the experimental and control groups after lighting was varied in the workplace (both groups increased) 2nd experiment: workers under a piece-rate system produced at constant rates (people not motivated by money) Conclusion: human factors were responsible – Workers had a sense of involvement by participating in the experiment. – Groups influenced output through workers’ desire for acceptance. Human relations movement – Employees who are happy, involved and satisfied are motivated to perform better. – So, what satisfies a worker??? Historical Perspectives on Motivation (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 9 Abraham Maslow’s Hierarchy of Needs (1960)  “Need –a personal requirement” A sequence of human needs in the order of their importance – Physiological needs—survival needs (food, water, shelter) – Safety needs—physical and emotional stability needs – Social needs—love and affection and a sense of belonging – Esteem needs—respect, recognition, and a sense of our own accomplishment and worth – Self-actualization needs—to grow and develop and become all that we are capable of being Historical Perspectives on Motivation (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 10 Maslow’s Hierarchy of Needs

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 11

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 12

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 13

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 14

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 15

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 16 Herzberg’s Motivation-Hygiene Theory (1950) “Satisfaction and dissatisfaction are separate and distinct dimensions.” Motivation factors – Job factors that increase motivation but do not result in dissatisfaction if not present (Recognition, Achievement) Hygiene factors – Job factors that lead to dissatisfaction when not present to an acceptable degree, but that do not necessarily result in higher levels of motivation if present (pay, working conditions) Historical Perspectives on Motivation (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 17 Herzberg’s Motivation-Hygiene Theory

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 18 Douglas McGregor (1967) Developed 2 famous opposing sets of assumptions about managerial attitudes and beliefs regarding worker behavior  Theory X Generally consistent with Taylor’s scientific management Employees dislike work and try to avoid it. They need tight supervision and will function only in a controlled work environment  Theory Y Generally consistent with the human relations movement Employees accept responsibility and work toward organizational goals if they will also achieve personal rewards. Workers like to work! Historical Perspectives on Motivation (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 19 Theory X and Theory Y Contrasted

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 20 Theory Z – William Ouchi (1970’s) Some middle ground between Ouchi’s Type A (American) and Type J (Japanese) practices is best for American business Emphasis is on participative decision making with a view of the organization as a family Clip from Gung Ho Historical Perspectives on Motivation (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 21 The Features of Theory Z

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 22  Reinforcement Theory (1960’s) Behavior that is rewarded is likely to be repeated, whereas behavior that is punished is less likely to recur. – Reinforcement: an action that follows directly from a particular behavior – Types of reinforcement – Positive reinforcement: strengthens desired behavior by providing a reward – Negative reinforcement: strengthens desired behavior by eliminating an undesirable task or situation – Punishment: an undesired consequence of undesirable behavior – Extinction: no response to undesirable behavior in order to discourage its occurrence Historical Perspectives on Motivation (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 23  Equity Theory People are motivated to obtain and preserve equitable treatment for themselves Equity: the distribution of rewards in direct proportion to the contribution of each employee to the organization Workers compare their own input-to-outcome (reward) ratios to their perception of others’ Workers who perceive an inequity may: – Decrease their inputs – Try to increase outcome (ask for a raise) – Try to get the “comparison other” to increase inputs or receive decreased outcomes – Leave the work situation (quit) – Switch to a different comparison other Contemporary Views on Motivation

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 24  Expectancy Theory (Victor Vroom) Motivation depends on how much we want something and on how likely we think we are to get it. Implies that managers must recognize that: – Employees work for a variety of reasons – The reasons, or expected outcomes, may change over time – It is necessary to show employees how they can attain the outcomes they desire Contemporary Views on Motivation (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 25 Expectancy Theory

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 26  Goal-Setting Theory Employees are motivated to achieve goals they and their managers establish together. Goals should be very specific, moderately difficult, and ones that the employee will be committed to achieve. Rewards should be tied directly to goals achievement. Contemporary Views on Motivation (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 27  It takes more than a generous salary to motivate employees. Companies are trying to motivate employees by satisfying less tangible needs. Simple, low, or no cost approaches such as: – Celebrate birthdays and other important events – Nominations for a formal award program – Support flexible work schedules – Publicly post thank you letters from customers Key Motivation Techniques Sources: Texas A&M University Human Resources Department, HRWorld, Michigan Office of Great Workplace Development,

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 28 Key Motivation Techniques (cont.) Advantages Motivates employees by actively involving them Improves communication Makes employees feel like an important part of the organization Periodic review enhances control Disadvantages Doesn’t work if the process doesn’t begin at the top of the organization Can result in excessive paperwork Some managers assign goals instead of collaborating on creating them Management by Objectives —managers and employees collaborate in setting goals, clarify employee roles

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 29  Job enrichment Provides employees with more variety and responsibility in their jobs  Job enlargement The expansion of a worker’s assignments to include additional but similar tasks  Job redesign A type of job enrichment in which work is restructured to cultivate the worker-job match Key Motivation Techniques (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 30  Behavior modification A systematic program of reinforcement to encourage desirable behavior  Steps in behavior modification Identify the target behavior to be changed Measure existing levels of the behavior Reward employees who exhibit the desired behavior Measure the target behavior to check for desired change – If no change, consider changing reward system – If change has occurred, maintain reinforcement Key Motivation Techniques (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 31  Flextime A system in which employees set their own work hours within employer-determined limits Typically, there are two bands of time – Core time, when all employees are expected to be at work – Flexible time, when employees may choose whether to be at work Benefits – Employees’ sense of independence and autonomy is motivating – Employees with enough time to deal with nonwork issues are more productive and satisfied Drawbacks – Supervisors’ jobs are complicated by having employees who come and go at different times – Employees without flextime may resent coworkers who have it Key Motivation Techniques (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 32  Part-time work Permanent employment in which individuals work less than a standard work week Disadvantage: often does not provide the benefits that come with a full-time position  Job sharing An arrangement whereby two people share one full- time position Companies can save on expenses by reducing benefits and avoiding employee turnover Employees gain flexibility but may lose benefits Sharing can be difficult if work is not easily divisible or if two people cannot work well together Key Motivation Techniques (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 33  Telecommuting Working at home all the time or for a portion of the work week Advantages – Increased employee productivity – Lower real estate and travel costs – Reduced absenteeism and turnover – Increased work/life balance and improved morale – Access to additional labor pools Disadvantages – Feelings of isolation – Putting in longer hours – Distractions at home – Difficulty monitoring productivity Key Motivation Techniques (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 34  Employee empowerment Making employees more involved in their jobs by increasing their participation in decision making Management must be involved to set expectations, communicate standards, institute periodic evaluations, guarantee follow-up Benefits – Increased job satisfaction – Improved job performance – Higher self-esteem – Increased organizational commitment Obstacles – Management resistance – Workers’ distrust of management – Insufficient training – Poor communication between management and employees Key Motivation Techniques (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 35  Employee ownership Employees own the company they work for by virtue of being stockholders Directly reward employees for success Benefits – Considerable employee incentive – Increased employee involvement and commitment Obstacles – Problems between management and employees can still occur Key Motivation Techniques (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 36  Teams Two or more workers operating as a coordinated unit to accomplish a specific task or goal Types of teams – Problem-Solving – Virtuoso – Self-Managed – Cross-Functional – Virtual Stages of team development – Forming – Storming – Norming – Performing – Adjourning Teams and Teamwork

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 37 Advantages and Disadvantages of Self-Managed Teams

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 38  Roles within a team Task-specialist role Socio-emotional role Dual role Nonparticipant role  Team cohesiveness For a team to be successful, members must learn how to resolve and manage conflict Teams and Teamwork (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 39  Team conflict and how to resolve it Middle ground resolution satisfies each party to some extent  Benefits and limitations of teams Reduces turnover and costs, increases production, quality, customer service, job satisfaction Reorganizing into teams can be stressful and time consuming with no guarantee it will develop effectively Teams and Teamwork (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 10 | Slide 40 Stages of Team Development