Excellence in Business, 3e Lighting the Fire: Employee Motivation, Workforce Trends, and Labor Relations © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Motivating Employees Engagement Morale © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e What Is Motivation? Needs Actions Outcomes © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Workforce Motivation Monetary rewards Fair treatment Satisfying work Work-life balance © Prentice Hall, 2007 Excellence in Business, 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, 2007 Excellence in Business, 3e

Excellence in Business, 3e Frederick W. Taylor Scientific management Monetary rewards Personal productivity © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Maslow’s Hierarchy Self-actualization Self-esteem needs Social needs Safety needs Physiological needs © Prentice Hall, 2007 Excellence in Business, 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, 2007 Excellence in Business, 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, 2007 Excellence in Business, 3e

Excellence in Business, 3e Ouchi’s Theory Z Long-term employment Consensus-based decision making Individual responsibility Slow evaluation and promotion Informal control and formal measures Moderate career specialization Holistic concern for the individual © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Equity Theory Ratio comparison Expected inputs Expected outputs © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Expectancy Theory Employee performance Expectancy about performance Expectancy about rewards Attractiveness of rewards © Prentice Hall, 2007 Excellence in Business, 3e

Workplace Motivation Strategies Setting goals Reinforcing behavior © Prentice Hall, 2007 Excellence in Business, 3e

Management by Objectives Setting goals Planning action Implementing goals Reviewing performance © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Reinforcement Theory Positive reinforcement Obtain pleasant consequences Negative reinforcement Avoid unpleasant consequences © Prentice Hall, 2007 Excellence in Business, 3e

Keeping Pace with Today’s Workforce Staffing challenges Demographic challenges Alternative work arrangements © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Staffing Challenges Workforce alignment Employee loyalty Employee workloads Work-life balance © Prentice Hall, 2007 Excellence in Business, 3e

Aligning the Workforce and the Organization External Forces Internal Forces Employees Changing Markets Competition Advances in Technology Government Regulations Strategy Shifts Information Systems Production Systems Product Sales Personal Goals Better Jobs Temporary Retirement Permanent Retirement © Prentice Hall, 2007 Excellence in Business, 3e

Fostering Employee Loyalty Manage effectively and ethically Give employees a stake Take care of employees Work with employees © Prentice Hall, 2007 Excellence in Business, 3e

Monitoring Employee Workloads Employee burn-out Long work hours “Ghost work” Communication technology © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Work-Life Balance Job enrichment Job redesign © Prentice Hall, 2007 Excellence in Business, 3e

Demographic Challenges Workforce diversity Understanding Embracing Maximizing © Prentice Hall, 2007 Excellence in Business, 3e

Workforce Diversity Issues Immigration Globalization Age Gender Race Religion Diversity is simply a fact of life for all companies. Some of the most important diversity issues today include the immigration and globalization of the workforce, the aging of the U.S. workforce, gender and race issues, and religion in the workplace. For many companies, both large and small, managing the workforce is now an international challenge. This international, intercultural nature of the workforce yields a number of important benefits, including cost advantages, specialized talents, and local market knowledge, but it often gives managers a more complex employee base to supervise and motivate. Reversing a long-term trend toward earlier and earlier retirement, employment rates among older workers have recently increased. Many employers are happy to hire older workers, too, citing their greater flexibility in work hours and pay, lower rates of absenteeism, lower turnover rate, and ability to train younger workers. Economists cite a number of reasons: rising health-care costs (complicated by the number of employers who’ve canceled insurance coverage for their retired employees), reductions in company pension plans, individual retirement savings that took a beating during the post-dot-com stock market decline, and the desire to stay active longer. The statistical picture of men and women in the workforce is complex. However, three general themes are clear. First, both year to year and over the course of their careers, women earn less on average than men. Second, even in occupations that have traditionally been served primarily by women, such as teaching and nursing, women still earn less than men on average. Third, the higher up you go in most corporations, the fewer women you’ll find in positions of authority. In many respects, the element of race in the diversity picture presents the same concerns as gender: equal pay for equal work, access to promotional opportunities, and ways to break through the glass ceiling. However, while the ratio of men and women in the workforce remains fairly stable year to year, the ethnic composition of the United States has been on a long-term trend of greater and greater diversity. Unfortunately, as with average wages between women and men, disparity still exists between minority households and white households. The effort to accommodate employees’ life interests on a broader scale has led a number of companies to address the issue of religion in the workplace. On the one hand, some employees feel they should be able to express their beliefs in the workplace and not be forced to “check their faith at the door” when they come to work. On the other hand, companies want to avoid situations in which openly expressed religious differences might cause friction between employees or distract employees from their responsibilities. © Prentice Hall, 2007 Excellence in Business, 3e

Diversity Initiatives Policies Procedures Training © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Quality of Work Life Job enrichment Reduces specialization Expands responsibilities Job redesign Restructures work Coordinates skills and jobs © Prentice Hall, 2007 Excellence in Business, 3e

Demographic Challenges Workforce diversity Alternative work programs © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Diversity Issues Globalization Aging workforce Gender equality Sexual harassment © Prentice Hall, 2007 Excellence in Business, 3e

Workplace Diversity Initiatives Policies Procedures Training © Prentice Hall, 2007 Excellence in Business, 3e

Alternative Work Arrangements Flextime Telecommuting Job sharing Flexible career paths © Prentice Hall, 2007 Excellence in Business, 3e

Working With Labor Unions Wages and benefits Working conditions Job security © Prentice Hall, 2007 Excellence in Business, 3e

Collective Bargaining Process Preparing to meet Meeting Reaching an agreement Voting and ratification Signing the agreement © Prentice Hall, 2007 Excellence in Business, 3e

Excellence in Business, 3e Resolving an Impasse Mediation Arbitration © Prentice Hall, 2007 Excellence in Business, 3e

When Negotiations Break Down Labor Strike Boycott Publicity Management Strikebreakers Lockouts Injunctions © Prentice Hall, 2007 Excellence in Business, 3e

Union Membership Today Unions included 35% of the workforce in the 1950s Unions include 13.5% of today’s workforce © Prentice Hall, 2007 Excellence in Business, 3e

The Labor Movement Today Health-care costs International competition © Prentice Hall, 2007 Excellence in Business, 3e