McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Ten Motivating the Workforce

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Human Relations The study of the behavior of individuals and groups in organizational settings.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. The Nature of HR Motivation –The inner drive that directs a person’s behavior toward goals. Morale –An employee’s attitude toward his or her job, employer, and colleagues.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. The Motivation Process More money for unexpected medical expenses Need Ask for a raise Work harder to gain a promotion Look for a higher-paying job Steal More money Goal-directed behavior Need Satisfaction

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Worker Satisfaction Nine out of 10 employees of all generations say that true success is about being trusted. Generation Xers see an employee review: –The employer is “The Terminator” –They see themselves as “Employees with a Future” –Their greatest psychological need is Security Source: Roper Starch Worldwide and Sally Ring Research from USA TODAY Snapshot, October 3, 2001.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Historical Perspectives on Employee Motivation Classical Theory of Motivation (Frederick W. Taylor) The Hawthorne Studies (Elton Mayo)

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Maslow’s Hierarchy of Needs Source: adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review 50 (1943): Self- Actualization Needs Esteem Needs Social Needs Security Needs Physiological Needs

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Herzberg’s Two-Factor Theory Hygiene Factors Company policies Supervision Working conditions Salary Security Motivational Factors Achievement Recognition The work itself Responsibility Advancement FAST FACT: Absenteeism costs a typical large company more than $3 million a year

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. McGregor’s Theory X and Theory Y Theory X Management view that assumes workers generally dislike work and must be forced to do their jobs. Theory Y Management view that assumes workers like to work and under proper conditions, employees will seek responsibility to satisfy social, esteem, and self-actualization needs.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Theory Z A management philosophy that stresses employee participation in all aspects of company decision making.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Comparison of American, Japanese, and Theory Z Management Styles Source: Adapted from William Ouchi, Theory Z How American Business Can Meet the Japanese Challenge, p. 58. © 1981 by Addison-Wesley Publishing Company, Inc. Reprinted by permission of Addison-Wesley Publishing Company, Inc.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Comparison of American, Japanese, and Theory Z Management Styles Source: Adapted from William Ouchi, Theory Z How American Business Can Meet the Japanese Challenge, p. 58. © 1981 by Addison-Wesley Publishing Company, Inc. Reprinted by permission of Addison-Wesley Publishing Company, Inc.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. How US Companies Use Theory Z Quality Circles Participative Management Employee Involvement Self-directed Work Teams FAST FACT: Theory Z lets employees feel organizational ownership, which may produce positive attitudinal and behavioral effects for employees.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Other Motivational Theories Can I get it? Do I want it? Equity Theory Expectancy Theory What I put in What I get back

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Strategies for Motivating Employees Behavior Modification Job Design

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Job Design Strategies Job RotationExposes employees to a variety of tasks as they move from one job to another. Job EnlargementTeaches employees new tasks in their present job. Job EnrichmentGives employees more control and authority in their present job, along with additional tasks.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Flexible Scheduling Strategies Flextime Compressed Work Week Job Sharing Telecommuting FAST FACT: 59% of companies with more than 5000 workers allow job-sharing. Source: Jim Owen, “In Pursuit of Job Sharing,” from (accessed June 8, 2001).

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Flextime, Showing Core and Flexible Hours Core Time End Time Start Time Core Time

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. The Importance of Motivational Strategies Fosters employee loyalty Boosts productivity Affects all relationships within the organization Influences promotion, pay, job design, training, and reporting relationships

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Employee’s Definitions of Success 91% 81% 74% 66% 58% Being trusted to get a job done Having power to make decisions Getting raises Getting promotions Gaining seniority Having the power to make decisions that affect the company Source: Survey of 2,000 adults by Randstad North America, Atlanta as reported ;in Kemba J. Dunham, “The Jungle/Focus on Recruitment, Pay and Getting Ahead,” Wall Street Journal, May 23, 2001, p. B12.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Solve the Dilemma 1.Which motivational theories are in use at Eagle? 2.What is the value of getting employees to compete against a goal instead of against one another? 3.Put yourself in the shoes of one of the four regional sales managers and argue against potential cutbacks to the motivational program.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Explore Your Career Options What are some of the considerations that you will evaluate in deciding where to take your first job? How would you go about assessing offers in Jackson, Mississippi versus Chicago, Illinois?

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Additional Discussion Questions and Exercises 1.What is meant by the equity theory? How can the equity theory guide managers in dealing with subordinates? 2.In what areas are the typical American management style and the typical Japanese style different? 3.What is the main purpose of offering flexible scheduling strategies for employees? 4.What was the importance of Frederick W. Taylor’s and Elton Mayo’s studies to human relations?

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 10 Quiz 1.Which of the following employee-motivation theories is most similar to Japanese management styles? a.Theory X b.Theory Y c.Theory Z d.Frederick Taylor’s theory 2.Which of the following is most likely to result in less than 40 hours of employment? a.compressed workweek b.telecommuting c.flextime d.job sharing

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 10 Quiz 3. Which of Maslow’s hierarchy of needs is first to be satisfied? a.physiological needs b.security needs c.esteem needs d.self-actualization needs 4.The inner drive that directs behavior toward goals is known as a.motivation. b.need. c.objective. d.morale.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Multiple Choice Questions about the Video 1.Empowering Southwest employees to respond to customers as they see fit relates to which type of factor in Herzberg’s Theory of Motivation? a.hygiene b.physiological c.security d.motivational 2.Southwest’s family attitude, spirit of cooperation, and sense of fun contributes to its a.low turnover rate. b.high turnover rate. c.average turnover rate. d.zero turnover rate.