Copyright © 2007 South-Western. All rights reserved. Chapter 10 Motivating Employees

Copyright © 2007 South-Western. All rights reserved. Learning Objectives Motivating Employees SatisfactionIncrease Value DisgruntledTheories

Motivating Employees Copyright © 2007 South-Western. All rights reserved. The Key Decisions in Running a Business

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Value of Motivation Increase Value Theories Disgruntled Satisfaction Why motivating employees can increase the value of a firm? Reduce cost Increase revenue Accomplish more task Retain employee

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Hawthorne Studies Increase Value Theories Disgruntled Satisfaction

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Hierarchy of Needs Increase Value Theories Disgruntled Satisfaction

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Herzberg’s Theory Increase Value Theories Disgruntled Satisfaction

Motivating Employees Copyright © 2007 South-Western. All rights reserved. What’s the relation of Herzberg’s finding and Malsow’s theory?

Motivating Employees Copyright © 2007 South-Western. All rights reserved. McGregor’s Theory Increase Value Theories Disgruntled Satisfaction

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Application Which theory do you agree with? X? Y? 上班不能坐， 请假要扣奖金 丢了东西要赔 不能聊天

Motivating Employees Copyright © 2007 South-Western. 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

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Expectancy Theory Reward must be desirable. Employees must believe they have a chance to earn the reward.

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Expectancy Theory Increase Value Theories Disgruntled Satisfaction Want an “A” Grade? Exams – free questions Grading Scale A = > 99.9% B = % C = % D = % F = < 99.6% No One Ever Passed

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Equity Theory Increase Value Theories Disgruntled Satisfaction Compensation should be equitable or in proportion to each employee’s contribution

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Reinforcement Theory Increase Value Theories Disgruntled Satisfaction

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Motivational Guidelines Equity Responsibility Expectancy Increase Value Theories Disgruntled Satisfaction

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Disgruntled Employees Increase Value Theories Disgruntled Satisfaction Motivation Discipline Termination

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Job Enrichment Programs Increase Value Theories Disgruntled Satisfaction

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Compensation Programs Increase Value Theories Disgruntled Satisfaction Merit system Across-the-board Incentive plans

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Compensation Plan Increase Value Theories Disgruntled Satisfaction Employee Goals Achievable Employee Input Business Goals

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Security & Schedules Increase Value Theories Disgruntled Satisfaction Job Security Flextime Compressed Workweek Job Sharing

Motivating Employees Copyright © 2007 South-Western. All rights reserved. Employee Involvement Increase Value Theories Disgruntled Satisfaction Job Rotation Teamwork Job Enlargement Empowerment Open-Book Participative management

Motivating Employees Copyright © 2007 South-Western. All rights reserved. How does the open-book management work?