****** McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh ** Motivating Employees and Building Self-managed Teams 10 CHAPTER * **

****** 10-2 Intrinsic vs. Extrinsic Rewards Intrinsic = Inside Feeling of Job Well Done Pride Sense of Achievement Extrinsic = Outside Praise SalaryIncrease Status Recognition Promotions Gifts

****** 10-3 Most Commonly Used Extrinsic Rewards Source: Source: Incentive Federation

****** 10-4 Evolution of Human Relations Management Concepts Scientific TaylorTaylor GanttGantt GilbrethsGilbreths Behavioral MayoMayo MaslowMaslow HerzbergHerzberg McGregorMcGregor OuchiOuchi VroomVroom

****** 10-5 Hawthorne studies Conducted by Elton Mayo ( )Conducted by Elton Mayo ( ) First Experiment: Determine if lighting was a factor in productivity.First Experiment: Determine if lighting was a factor in productivity. Next Experiments: Determine if other factors affected productivity.Next Experiments: Determine if other factors affected productivity. These studies encouraged the study of human motivation.These studies encouraged the study of human motivation.

****** 10-6 Hierarchy of Needs Maslow’s Hierarchy of Needs Physiological Needs Safety Needs Social Needs Esteem Needs Self- Self-Actualization Unsatisfied Satisfied

****** 10-7 Figure 10.5 Comparison of Maslow and Herzberg Herzberg’s Theory

****** 10-8 How to Develop the Truly Loyal Employee 1.Care for workers 2.Fairness of pay and evaluations 3.Accomplishment feeling 4.Satisfaction with daily activities 5.Appreciation of ideas Source: Source: CIO, October 1, 2003

****** 10-9 Job-Oriented Motivational Techniques Job Enrichment/RedesignJob Enrichment/Redesign Skill VarietySkill Variety Task Identity/SignificanceTask Identity/Significance AutonomyAutonomy FeedbackFeedback Job SimplificationJob Simplification Job EnlargementJob Enlargement Job RotationJob Rotation

****** McGregor’s Theories Theory X- Autocratic Dislike WorkDislike Work Avoid ResponsibilityAvoid Responsibility Little AmbitionLittle Ambition Force/Control/ Direct/ThreatenForce/Control/ Direct/Threaten Motivated by Fear & MoneyMotivated by Fear & Money Theory Y- Democratic Like WorkLike Work Naturally Works Toward GoalsNaturally Works Toward Goals Seeks ResponsibilitySeeks Responsibility Imaginative, Creative, CleverImaginative, Creative, Clever Motivated by EmpowermentMotivated by Empowerment

****** Ouchi’s Theory Z 1.Long-Term Employment 2.Collective Decision-making 3.Individual Responsibility 4.Slow Evaluation/ Promotion 5.Implicit Informal Control with Explicit, Formalized Control 6.Specialized Career Path 7.Holistic Concern for Employees

****** Goal-Setting Theory (MBO) Goal-Setting TheoryGoal-Setting Theory Management By Objectives (1960s)Management By Objectives (1960s)

****** Impact of Mentors Source: Source: USA Today

****** Employee-Oriented Motivational Techniques Expectancy TheoryExpectancy Theory Reinforcement TheoryReinforcement Theory Equity TheoryEquity Theory

****** Expectancy Theory: Employee Questions Can I accomplish the task?Can I accomplish the task? If I do accomplish it, what is my reward?If I do accomplish it, what is my reward? Is the reward worth the effort?Is the reward worth the effort?

****** Steps to Improve Performance 1.Determine Rewards Valued 2.Determine Standards 3.Ensure Standards are Attainable 4.Tie Rewards to Performance 5.Are Rewards Considered Adequate?

****** Teamwork & Open Communication Create culture that rewards listeningCreate culture that rewards listening Train supervisors and managers to listenTrain supervisors and managers to listen Remove barriers to open communicationRemove barriers to open communication Actively undertake efforts to facilitate communicationActively undertake efforts to facilitate communication

****** Building Quality into Teams Getting StartedGetting Started Initial PhasesInitial Phases Team BuildingTeam Building Mutual CoachingMutual Coaching StatisticsStatistics ProjectsProjects Building QualityBuilding Quality Role ChangeRole Change Source: Source:

****** High Performance Teams 1.Participative Leadership 2.Responsive 3.Aligned on Purpose 4.Communicative 5.Task Focused 6.Problem Solving 7.Shared Responsibility 8.Innovative Source: Source: International Cyber Business Services, Inc.

****** Tips for Motivating Employees 1.Thank employees for good job 2.Listen to employees 3.Give feedback 4.Give rewards 5.Keep them informed 6.Allow for input 7.Training opportunities 8.Remember important dates 9.Have and abide by policies 10.Celebrate goal accomplishment Source: Source: Allfoodbusiness.com

****** Warning Signs of Employee Stress Drops in productivityDrops in productivity Chronic latenessChronic lateness AbsenteeismAbsenteeism Careless with detailsCareless with details Unable to work with othersUnable to work with others Negative attitudes about workNegative attitudes about work Withdrawal from co-workersWithdrawal from co-workers Easily upset/angeredEasily upset/angered Source: Source: uteaxas.edu

****** How Stressed Are You? Rate 1-5 1)Conditions at work are unpleasant or sometimes even unsafe. 2)I feel that my job is making me physically or emotionally sick. 3)I have too much work or too many unreasonable deadlines. 4)I can’t express my opinions or feelings about my job to my boss. 5)My work interferes with my family or personal life. 6)I have no control over my life at work. 7)My good performance goes unrecognized and unrewarded. 8)My talents are underutilized.

****** Putting it Together at Nucor Steel Pay for PerformancePay for Performance Listen to the FrontlineListen to the Frontline Push-Down AuthorityPush-Down Authority Protect Your CultureProtect Your Culture Try Unproven TechnologiesTry Unproven Technologies Source: Source: Business Week, May 1, 2006