McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved CHAPTER TEN Motivating Employees & Building Self- Managed Teams

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Why Good Workers Leave Source: Source: USA Today-Snapshot, 10/16/00

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Intrinsic vs. Extrinsic Rewards Intrinsic = Inside Feeling of Job Well Done Pride Sense of Achievement Extrinsic = Outside Praise Salary Increase Status Recognition Promotions Gifts

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Most Common U.S. Motivators Source: Source: Incentive Federation

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Personal Qualities Related to Job Motivation 1. Ability 2. Personal Needs 3. Frustration Tolerance 4. Self-Esteem 5. Outside Supports

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Evolution of Human Relations Concepts Scientific Management Frederick Taylor Frederick Taylor Gantt Charts Gantt Charts Gilbreths Gilbreths Behavioral Management Hawthorne (Mayo) Hawthorne (Mayo) Maslow Maslow McGregor McGregor Ouchi Ouchi Herzberg Herzberg

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Maslow’s Hierarchy of Needs Physiological Needs Safety Needs Social Needs Esteem Needs Self- Self-Actualization Unsatisfied Satisfied

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved McGregor’s Theories Theory X- Autocratic Dislike Work Dislike Work Avoid Responsibility Avoid Responsibility Little Ambition Little Ambition Forced/Controlled/ Directed/Threatened Forced/Controlled/ Directed/Threatened Motivated by Fear & Money Motivated 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

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Ouchi’s Theory Z  Long-Term Employment  Collective Decision-making  Individual Responsibility  Slow Evaluation/ Promotion  Specialized Career Path  Holistic Concern for Employees

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Herzberg’s Two-Factor Concept Job-Related Achievement Achievement Recognition Recognition Work Itself Work Itself Growth/Advancement Growth/Advancement Responsibility Responsibility Peer Relationships Peer Relationships Job Environment Working Conditions Working Conditions Salary Salary Policy/Admin. Policy/Admin. Supervision Supervision

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Figure 10.5 Comparison of Maslow and Herzberg Comparison of Maslow & Herzberg (Figure 10.5)

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Job-Oriented Motivational Techniques  Job Enrichment/Redesign Skill VarietySkill Variety Task Identity/SignificanceTask Identity/Significance AutonomyAutonomy FeedbackFeedback  Job Simplification  Job Enlargement  Job Rotation

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Goal-Setting Theory (MBO)  Goal-Setting Theory  Management By Objectives (1960s) Employees Motivate Themselves Employees Motivate Themselves Help Help Coach Coach

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Employee-Oriented Motivational Techniques Expectancy Theory Expectancy Theory Equity Theory Equity Theory

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved How to Use Expectancy Theory  Determine rewards valued by employees.  Evaluate performance level you seek.  Make performance level attainable.  Make reward valuable to employee.

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Employee Questions About Expectancy Theory  What is the probability that I can perform at the required level if I try?  What is the likelihood my performance will lead to the desired outcomes?  What value do I place on the outcome?

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Steps to Improve Performance 1)Determine Rewards Valued 2)Determine Standards 3)Ensure Standards Attainable 4)Tie Rewards To Performance 5)Are Rewards Considered Adequate?

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Teamwork & Open Communication  Self-Managed Teams = Open Communication  Identify Procedures  Apply Procedures  Change Not Easy  Employee Empowerment

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Keys to Building Employee Trust  Start from a position of trust  Be consistent  Listen with an open mind & respect others’ opinions  Admit your mistakes  Give credit where credit is due Source: Source: Communication Solutions

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Work Trends for the 21st Century  Tinkering With Time  Role Blur  Two Places at Once  A Super-Class  Involved Working Dads  Grieving at Work Source: Source: Wall Street Journal, 12/29/99

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Warning Signs of Employee Stress  Drops in productivity  Chronic lateness  Absenteeism  Careless with details  Unable to work with others  Negative attitudes about work  Withdrawal from co- workers  Easily upset/angered