Motivating Today’s Workforce and Handling Employee-Management Relations © Prentice Hall, 2005 Business In Action 3e

Understanding Human Relations Needs of management Needs of employees © Prentice Hall, 2005 Business In Action 3e

What Is Motivation? Needs Actions Outcomes © Prentice Hall, 2005 Business In Action 3e

Workforce Motivation Monetary rewards Fair treatment Satisfying work Work-life balance © Prentice Hall, 2005 Business In Action 3e

Theories of Motivation Frederick W. Taylor Maslow’s Hierarchy of Needs Herzberg’s Two-Factor Theory Theory X, Theory Y, and Theory Z Equity Theory Expectancy Theory © Prentice Hall, 2005 Business In Action 3e

Frederick W. Taylor Scientific management Monetary rewards Personal productivity © Prentice Hall, 2005 Business In Action 3e

Maslow’s Hierarchy Self-actualization Self-esteem needs Social needs Safety needs Physiological needs © Prentice Hall, 2005 Business In Action 3e

Herzberg’s Two-Factor Theory Hygiene Factors Motivational Factors Working conditions Pay and security Company policies Supervisors Interpersonal relations Achievement Recognition Responsibility Work itself Personal growth Frederick Herzberg asked workers to describe situations in which they felt either good or bad about their jobs. His findings are called motivation-hygiene theory. What Herzberg called hygiene factors are associated with dissatisfying experiences. The potential sources of dissatisfaction include working conditions, company policies, and job security. Management can lessen worker dissatisfaction by improving hygiene factors that concern employees, but such improvements seldom influence satisfaction. On the other hand, managers can help employees feel more motivated and, ultimately, more satisfied by paying attention to motivators such as achievement, recognition, responsibility, and other personally rewarding factors. Herzberg’s theory is related to Maslow’s hierarchy of needs: The motivators closely resemble the higher-level needs, and the hygiene factors resemble the lower-level needs. © Prentice Hall, 2005 Business In Action 3e

McGregor’s Assumptions Theory X Employees Theory Y Employees Irresponsible Lack ambition Dislike work Avoid responsibility Motivated by extrinsic rewards Goal seeking Creative Like work Accept responsibility Motivated by intrinsic rewards In the 1960s, psychologist Douglas McGregor identified two radically different sets of assumptions that underlie most management thinking. He classified these sets of assumptions as Theory X and Theory Y. According to McGregor, Theory X-oriented managers believe that employees dislike work and can be motivated only by the fear of losing their jobs or by extrinsic rewards such as money, promotions, and tenure. This management style emphasizes physiological and safety needs and tends to ignore the higher-level needs.In contrast, Theory Y-oriented managers believe that employees like work and can be motivated by working for goals that promote creativity or for causes they believe in. Thus, Theory Y-oriented managers seek to motivate employees through intrinsic rewards. The assumptions behind Theory X emphasize authority; the assumptions behind Theory Y emphasize growth and self-direction. © Prentice Hall, 2005 Business In Action 3e

Ouchi’s Theory Z Employee involvement Family environment © Prentice Hall, 2005 Business In Action 3e

Equity Theory Ratio comparison Expected inputs Expected outputs © Prentice Hall, 2005 Business In Action 3e

Expectancy Theory Employee performance Expectancy about performance Expectancy about rewards Attractiveness of rewards © Prentice Hall, 2005 Business In Action 3e

Workplace Motivation Strategies Setting goals Reinforcing behavior © Prentice Hall, 2005 Business In Action 3e

Management by Objectives Setting goals Planning action Implementing goals Reviewing performance © Prentice Hall, 2005 Business In Action 3e

Reinforcement Theory Positive reinforcement Obtain pleasant consequences Negative reinforcement Avoid unpleasant consequences © Prentice Hall, 2005 Business In Action 3e

Staffing Challenges Skilled-labor shortage Rightsizing the workforce Quality of work and life © Prentice Hall, 2005 Business In Action 3e

Skilled Labor Shortage Revised pay systems Career-development programs Educational programs © Prentice Hall, 2005 Business In Action 3e

Rightsizing the Workforce Employee loyalty Employee burnout Job insecurity Technological advancements Information overload More than 4.6 million job cuts were announced in the 1990s. Factors contributing to downsizing decisions included company reorganizations, business downturns, elimination of unprofitable product lines, outsourcing, mergers and acquisitions, and a general mismatch between employee job skills and job demands. Even though corporate downsizing continues today, what is puzzling is a concurrent trend toward “upsizing,” or massive hiring--and often within the same firm. This phenomenon can best be explained by the needs of companies to rightsize, or realign their workforces into business growth areas. As you can imagine, rightsizing is a contributing factor to declining employee loyalty. Rightsizing is also putting pressure on remaining employees to work longer hours. Such long hours can lead to employee burnout, which is characterized by emotional exhaustion, depersonalization, and lower levels of achievement. Other sources of employee burnout are job insecurity, technological advancements, and information overload. Job insecurity. Workers anxious about job security feel they have to give 150 percent (or more) or risk being seen as expendable. Technological advancements. New technology allows employees to work from home, but being wired to the office 24 hours a day can add extra pressure. Information overload. Managers claim they’re unable to handle the vast amounts of information they now receive. © Prentice Hall, 2005 Business In Action 3e

The Committed Employee: Then and Now Characteristic Seize the Day 110 Percent Buys In (usually) Personal Life & Career Not Looking (but will listen) Near-term Personal Motto Effort on the Job Devotion to Employer Goals Priorities on the Job Readiness to Change Jobs Attachment to Employer Always Faithful 100 Percent Follow Orders The Firm & Its Goals Not Interested Long-term Then Employee loyalty is not what it used to be. A recent survey confirms that even today’s most valuable, committed workers often put career development, life, and family issues before company goals. The table above illustrates this shift in workforce commitment. © Prentice Hall, 2005 Business In Action 3e

Quality of Work Life Job enrichment Reduces specialization Expands responsibilities Job redesign Restructures work Coordinates skills and jobs © Prentice Hall, 2005 Business In Action 3e

Demographic Challenges Workforce diversity Alternative work programs © Prentice Hall, 2005 Business In Action 3e

Diversity Issues Globalization Aging workforce Gender equality Sexual harassment © Prentice Hall, 2005 Business In Action 3e

Workplace Diversity Initiatives Policies Procedures Training © Prentice Hall, 2005 Business In Action 3e

Alternative Work Arrangements Flextime Telecommuting Job sharing © Prentice Hall, 2005 Business In Action 3e

Working With Labor Unions Wages and benefits Working conditions Job security © Prentice Hall, 2005 Business In Action 3e

Overview of Labor Unions Advantages Strength in numbers Bargaining power Disadvantages Restricts individuality Negative stereotypes © Prentice Hall, 2005 Business In Action 3e

Collective Bargaining Process Preparing to meet Meeting Reaching an agreement Voting and ratification Signing the agreement © Prentice Hall, 2005 Business In Action 3e

Resolving an Impasse Mediation Arbitration © Prentice Hall, 2005 Business In Action 3e

When Negotiations Break Down Labor Strike Boycott Publicity Management Strikebreakers Lockouts Injunctions © Prentice Hall, 2005 Business In Action 3e

Labor Movement Today Unions included 35% of the workforce in the 1950s Unions include 13.5% of today’s workforce © Prentice Hall, 2005 Business In Action 3e

Declining Union Membership Decline in manufacturing Rise in service industries Changes in the workforce Flat organization structures © Prentice Hall, 2005 Business In Action 3e

The Labor Movement Today Traditional causes Good wages Safe conditions Fringe benefits New causes Job security Healthcare costs International competition © Prentice Hall, 2005 Business In Action 3e