Chapter 9 Engagement, Empowerment, and Motivation University of Bahrain College of Business Administration MGT 433 Total Quality Management Chapter 9 Engagement, Empowerment, and Motivation Dr. Mahnmood Asad MGT433

Outline Explain the scope of employee engagement Explain the importance of empowerment and principles of successful empowerment, Provide examples of firms practicing employee engagement Link engagement and empowerment to theories of motivation Dr. Mahnmood Asad MGT433

Employee Engagement Strong emotional bond to their organization Are actively involved in and committed to their work Feel that their jobs are important, know that their opinions and ideas have value Often go beyond their immediate job responsibilities for the good of the organization Dr. Mahnmood Asad MGT433

How Engagement Leads to Quality Dr. Mahnmood Asad MGT433

Advantages of Employee Engagement Replaces the adversarial mentality with trust and cooperation Develops the skills and leadership capability of individuals, creating a sense of mission and fostering trust Increases employee morale and commitment to the organization Fosters creativity and innovation, the source of competitive advantage Helps people understand quality principles and instills these principles into the corporate culture Allows employees to solve problems at the source immediately Improves quality and productivity Dr. Mahnmood Asad MGT433

Employee Involvement Any activity by which employees participate in work-related decisions and improvement activities, with the objectives of tapping the creative energies of all employees and improving their motivation. Dr. Mahnmood Asad MGT433

Empowerment Empowerment – giving people authority to do whatever is necessary to satisfy customers, and trusting employees to make the right choices without waiting for management approval. Dr. Mahnmood Asad MGT433

Examples of Empowerment Managing work as individuals or teams Making traditional “managerial” business decisions Going outside of job descriptions to help customers Taking risks for the good of the organization even at a short-term cost Dr. Mahnmood Asad MGT433

Management Action Needed for Empowerment Identify and change organizational conditions that make people powerless, and increase people’s confidence that their efforts to accomplish something important will be successful. Dr. Mahnmood Asad MGT433

Theoretical Basis for Empowerment Customer satisfaction is correlated to employee satisfaction Employee attitudes correlate strongly to higher profits Empowerment leads to improved motivation and morale, as well as better quality, productivity, and speed of decision making Dr. Mahnmood Asad MGT433

Principles of Empowerment Empower sincerely and completely Establish mutual trust Provide employees with business information Ensure that employees are capable Don’t ignore middle management Change the reward system Dr. Mahnmood Asad MGT433

Reasons for Failure of Empowerment Management support and commitment is nonexistent or not sustained. Empowerment is used as a manipulative tool to ensure employees complete tasks and assignments without giving them any real responsibility or authority. Managers use empowerment to abdicate responsibility or task accountability, accepting accolades for successes and assigning fault to others for failure. Empowerment is deployed selectively, segmenting the workforce into those who are empowered and those who are not. Empowerment is used as an excuse to not invest in training or employee development. Managers fail to provide feedback and do not recognize achievements. Dr. Mahnmood Asad MGT433

Successful Empowerment Provide education, resources, and encouragement Remove restrictive policies/procedures Foster an atmosphere of trust Share information freely Make work valuable Train managers in “hands-off” leadership Train employees in allowed latitude Dr. Mahnmood Asad MGT433

Motivation Motivation - an individual’s response to a felt need Views “What’s in it for me?” Views Extrinsic Intrinsic Dr. Mahnmood Asad MGT433

Compensation Effect on motivation Merit versus capability/performance based plans Gainsharing Dr. Mahnmood Asad MGT433

Recognition and Rewards Monetary or non-monetary Formal or informal Individual or group Dr. Mahnmood Asad MGT433

Effective Recognition and Reward Strategies Give both individual and team awards Involve everyone Tie rewards to quality Allow peers and customers to nominate and recognize superior performance Publicize extensively Make recognition fun Dr. Mahnmood Asad MGT433

Work Environment Quality of working life and employer-provided services personal and career counseling, career development and employability services, recreational or cultural activities, daycare, special leave for family responsibilities or for community services, flexible work hours, outplacement services, and extended health care for retirees Dr. Mahnmood Asad MGT433

Engagement and Theories of Motivation Job Characteristics Theory Acquired Needs Theory Goal-Setting Theory Dr. Mahnmood Asad MGT433

Hackman-Oldham Model Dr. Mahnmood Asad MGT433