Chapter 10 – Motivating Employees and Creating Self-Managed Teams

Chapter 10 Learning Goals What are the basic principles of Frederick Taylor’s concept of scientific management? What are the basic principles of Frederick Taylor’s concept of scientific management? What did Elton Mayo’s Hawthorne studies reveal about worker motivation? What did Elton Mayo’s Hawthorne studies reveal about worker motivation? What is Maslow’s hierarchy of needs, and how do these needs relate to motivation? What is Maslow’s hierarchy of needs, and how do these needs relate to motivation? How are McGregor’s Theories X and Y used to explain worker motivation? How are McGregor’s Theories X and Y used to explain worker motivation? What are the basic components of Herzberg’s motivator-hygiene theory? What are the basic components of Herzberg’s motivator-hygiene theory?

Chapter 10 Learning Goals (cont’d.) What three contemporary theories on employee motivation offer insights into improving employee performance? What three contemporary theories on employee motivation offer insights into improving employee performance? How can managers redesign existing jobs to increase employee motivation and performance? How can managers redesign existing jobs to increase employee motivation and performance? What different types of teams are being used in organizations today? What different types of teams are being used in organizations today? What initiatives are organizations using today to motivate and retain employees? What initiatives are organizations using today to motivate and retain employees?

Motivating Employees Employees are a firms most important resource but also most difficult to manage Employees are a firms most important resource but also most difficult to manage So, how can managers create a workplace that motivates employees and allows them to perform at their best? So, how can managers create a workplace that motivates employees and allows them to perform at their best?

Evolution of Motivation Theory 1. Scientific Management 2. Hawthorne Studies 3. Hierarchy of Needs 4. Theories X and Y 5. Motivator-Hygiene Theory

Scientific Management Designed by Fredrick Taylor Designed by Fredrick Taylor Assumes all people are motivated by economic means Assumes all people are motivated by economic means Based on 4 principles Based on 4 principles Develop a scientific approach to each job elementDevelop a scientific approach to each job element Scientifically select, train, teach, & develop employeesScientifically select, train, teach, & develop employees Encourage cooperation between workers & managersEncourage cooperation between workers & managers Divide work among workers & managers based on who is best suited for itDivide work among workers & managers based on who is best suited for it

The Hawthorne Studies Experimented with job design, length of work day and week, break times, and incentives Experimented with job design, length of work day and week, break times, and incentives Hawthorne Effect Hawthorne Effect Social needs also play an important role in employee motivation Social needs also play an important role in employee motivation

Maslow’s Hierarchy of Needs Based on universal human needs Based on universal human needs Individuals act to meet their unmet needs Individuals act to meet their unmet needs Managers try to create workplace that will increase the likelihood that employees will meet all of their needs Managers try to create workplace that will increase the likelihood that employees will meet all of their needs If appealing to an already met need, it’s hard to motivate an employee If appealing to an already met need, it’s hard to motivate an employee

Maslow’s Hierarchy of Needs Physiological needs Safety needs Social needs Esteem needs Self- actualization needs

McGregor’s Theories X and Y 2 contrasting sets of assumptions about human nature 2 contrasting sets of assumptions about human nature Theory X – pessimisticTheory X – pessimistic Theory Y – optimisticTheory Y – optimistic A manager’s view of human nature affects the way they motivate and manage employees A manager’s view of human nature affects the way they motivate and manage employees McGregor believed Theory Y explained most employees McGregor believed Theory Y explained most employees

Herzberg’s Motivator-Hygiene Theory “What do people really want from their work experience?” “What do people really want from their work experience?” Motivating factors create job satisfactionMotivating factors create job satisfaction Hygiene factors create job dissatisfactionHygiene factors create job dissatisfaction Proper management of hygiene factors can prevent dissatisfaction but cannot provide motivation Proper management of hygiene factors can prevent dissatisfaction but cannot provide motivation Management needs to focus on job satisfiers Management needs to focus on job satisfiers

Contemporary Views of Motivation 1.Expectancy Theory 2.Equity Theory 3.Goal Setting Theory

Expectancy Theory How motivated an employee is depends on How motivated an employee is depends on The link between effort & performanceThe link between effort & performance The link between performance & outcomeThe link between performance & outcome The link between outcomes & individual needsThe link between outcomes & individual needs

Equity Theory Based on employees’ perception of how fairly they are being treated and the rewards they are receiving Based on employees’ perception of how fairly they are being treated and the rewards they are receiving Outcomes-to-inputs ratio is compared to Outcomes-to-inputs ratio is compared to Past experience within the companyPast experience within the company Past experience outside the companyPast experience outside the company Others experience within the companyOthers experience within the company Others experience outside the companyOthers experience outside the company

Equity Theory, cont. Upward social comparison: comparing oneself to another who is better off on a particular attribute  frequently results in decreased satisfaction Downward social comparison: comparing oneself to another who is worse off on a particular attribute  frequently results in increased satisfaction

Equity Theory, cont. If employees perceive an inequity they will take action If employees perceive an inequity they will take action Managers need to understand employees’ perceptions and reduce concerns of inequity Managers need to understand employees’ perceptions and reduce concerns of inequity

Goal Setting Theory Working toward a goal is primary source of motivation Working toward a goal is primary source of motivation 3 components 3 components Specific goalsSpecific goals Difficult goalsDifficult goals FeedbackFeedback Allow employees to participate in goal setting process Allow employees to participate in goal setting process

Applying Motivational Theory Job Design Job Design Job enlargementJob enlargement Job enrichmentJob enrichment Job rotation or cross trainingJob rotation or cross training Work Schedule Work Schedule Compressed work weekCompressed work week FlextimeFlextime Job sharingJob sharing TelecommutingTelecommuting

Applying Motivational Theory, cont. Recognition, Empowerment, & Economic Incentives Recognition, Empowerment, & Economic Incentives Formal recognitionFormal recognition Employee empowermentEmployee empowerment Monetary incentivesMonetary incentives Variable pay Variable pay

Using Teams Group Behavior Group Behavior SocializationSocialization Group cohesivenessGroup cohesiveness Interpersonal cohesiveness: Interpersonal cohesiveness: strong bonds & liking between people Task cohesiveness: Task cohesiveness: strong commitment to the group task among members Cohesiveness can increase team performance, but interpersonally cohesive teams may lack task focus Source: Kenrick et al., Social Psychology, p. 441.

Pros and Cons of Teams Cons: take longer to reach solution take longer to reach solution members may suppress disagreement members may suppress disagreement group may be dominated by a few individuals group may be dominated by a few individuals lack of accountability lack of accountabilityPros:  more information & knowledge  can generate more alternatives  often higher-quality decisions  group participation increases acceptance of solutions

Using Teams, cont. Work Groups –vs- Work Teams Work Groups –vs- Work Teams Work teams create synergyWork teams create synergy Types of teams Types of teams Problem solvingProblem solving Self managedSelf managed Cross functionalCross functional VirtualVirtual

Building Blocks of High Performance Teams 1. Skills of team members 2. Accountability 3. Commitment Problem solving Problem solving Technical/functional Technical/functional Interpersonal Interpersonal Small number of members Small number of members Mutual accountability Mutual accountability Individual accountability Individual accountability Specific goals Specific goals Common approach Common approach Meaningful purpose Meaningful purpose

Trends in Motivation Education & Training Opportunities Education & Training Opportunities Gives employees feelings of competence and self-worthGives employees feelings of competence and self-worth Employee Ownership Employee Ownership Gives employees feelings of responsibility for performanceGives employees feelings of responsibility for performance Work-Life Benefits Work-Life Benefits Employees have less stress & are more focused and productiveEmployees have less stress & are more focused and productive

Review Review Motivation TheoriesMotivation Theories Applying Motivational TheoriesApplying Motivational Theories Job Design Job Design Work Schedule Options Work Schedule Options Recognition, empowerment, economic incentives Recognition, empowerment, economic incentives TeamsTeams Groups vs Teams Groups vs Teams Types of Teams Types of Teams High performance teams High performance teams TrendsTrends Looking Ahead: Exam 4 Looking Ahead: Exam 4