CHAPTER 10: MOTIVATING EMPLOYESS & TEAM BUILDING INTRO: Hot Topic! CHAPTER 10: MOTIVATING EMPLOYESS & TEAM BUILDING

Overview The importance of satisfaction among employees: Happy workers => happy customers => successful businesses (profit) People are motivated by a variety of things Intrinsic reward [personal satisfaction] Extrinsic reward [given to you by someone]

Traditional Theories of Motivation Frederick Taylor American “efficiency engineer” The Principles of Scientific Management, 1911 Goal: to increase worker productivity (to benefit firm/worker) There is 1 best way to perform each task – observe/study performance to find that best way. Time-motion studies (shovel studies) Focus on EFFICIENCY “Father of Scientific Management”

Followers of Taylor Gantt Frank & Lillian Gilbreth Developed charts to plot every detail of work in advance Frank & Lillian Gilbreth Used Taylor’s ideas to study bricklaying Principle of Motion Economy => every job broken down into specific motions (therblig) Analyze each motion to improve efficiency

Summary, Scientific Management People are like machines People motivated by money No thoughts about psychological/human aspects of work UPS

Elton Mayo Hawthorne Studies, 1927-1933 Test amount of lighting needed for optimum productivity at electric plant Why did results confuse researchers? Profound change in management thinking: Hawthorne effect = people behave differently when they know they’re being studied. Shift: away from Taylor toward human-based management Pay was found to be ineffective motivator

Maslow People are motivated to satisfy unmet NEEDS Needs have a hierarchy of importance Satisfied needs no longer motivate

Herzberg What can managers do (with the job itself) to motivate employees? A “modern-day” look at Taylor’s theory Study (1960s) asked workers to rank job-related motivating factors (list, pg. 265) Job content = most motivating Sense of achievement, responsibility, etc. Job environment factors = less motivating Good pay, job security, friendly managers Absence = demotivating Presence = not motivating

Conclusions of Herzberg Two types of factors (pg. 266): MOTIVATORS Lead to productive, satisfied employees HYGIENE (MAINTENANCE) FACTORS Cause dissatisfaction if missing; but do not motivate if increased “The number one motivator is not money, but a sense of achievement and recognition for a job well-done.” Compare to Maslow’s Theory (pg. 267)

Job Enrichment Extension of Maslow & Herzberg Theories MOTIVATIONAL STRATEGY emphasizes motivating workers through the job itself. Completion of task from start to end (job enlargement) Opportunities for personal achievement, challenge, recognition, variety (job rotation) How is this related to Maslow’s theory? 5 characteristics of work are important (pg. 268) Opposite of job simplification

McGregor’s Theory X and Theory Y How do managers feel about their workers? This will determine how they motivate them. Theory X managers believe: Employees do not like to work They do not like responsibility They must be forced, controlled, threatened with punishment to perform They are motivated by fear and money

Theory Y Theory Y managers believe: Employees like to work They seek and like to be given responsibilities They are creative, committed to goals They are motivated by a variety of rewards Emphasis on relaxed managerial atmosphere Empowerment is key Trend in U.S. is toward Theory Y

William Ouchi Studied success of Japanese companies Japanese management approach = Type J Lifetime employment, collective decision- making and responsibility, concern for workers Focus on trust, groups, family American management approach = Type A Short-term employment, individual decision- making and responsibility Focus on individual rights, achievements

Ouchi’s Theory Z Not practical for American managers to adopt strategies based on another country’s culture Theory Z = a Hybrid (Blends J & A) pg. 272 Since economic decline, Japan rethinking managerial approaches Ex: Hitachi Has conformity hurt Japanese businesses? Will they move to Hybrid Theory Z in future?

MBO (Management by Objectives) Goal-setting Theory: setting ambitious but attainable goals will motivate workers Everyone should be involved in goal-setting and implementation Peter Drucker developed: MBO, a system to help employees motivate themselves. (pg. 273) Helping vs. Coaching Central idea of MBO?

Vroom’s Expectancy Theory Employee expectations can affect motivation Three questions that are asked (pg. 274) Reinforcement Theory Motivation is a result of carrot-and-stick approach (reward/punishment) We act to receive rewards and avoid punishment Equity Theory Motivation affected by fairness we perceive

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