2. Motivating and Managing People and Groups in Business Organizations © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Introduction to Business Chapter Seven

3. 7 - 3 Chapter 7 Motivating and Managing People and Groups in Business Organizations 1.Understand the nature and sources of work motivation and appreciate motivation is under the voluntary control of an employee. 2.Describe five different theories of work motivation and identify how they work together to determine work motivation. 3.Identify the characteristics of groups and teams and distinguish between important types of groups and teams. 4.Explain the factors that create high-performance groups and teams. 5.Identify the sources of organizational conflict and understand how bargaining and negotiation is used to resolve conflicts between people and groups.

4. 7 - 4 Chapter 7 Motivating and Managing People and Groups in Business Organizations Every company strives to produce and market the kind of goods customers want so it can generate high revenues and profits to benefit all its stockholders A critical determinant of a company’s ability to motivate is its human resources

5. 7 - 5 Chapter 7 Motivating and Managing People and Groups in Business Organizations Managing People Leaders try to influence and persuade employees to develop work behaviors and attitudes that lead to increased efficiency and effectiveness

6. 7 - 6 Chapter 7 Motivating and Managing People and Groups in Business Organizations Managing People The principal determinant of employees’ desire and willingness to work hard and perform at a high level is their work motivation

7. 7 - 7 Chapter 7 Motivating and Managing People and Groups in Business Organizations Motivating Employee performance may be minimal, proactive performing effectively and efficiently, or below minimum level

8. 7 - 8 Chapter 7 Motivating and Managing People and Groups in Business Organizations Motivating Employees know if they do not perform at the minimum level they risk being punished or sanctioned and this may motivate them to put in enough effort to perform at the minimum level

9. 7 - 9 Chapter 7 Motivating and Managing People and Groups in Business Organizations Motivating Leaders need to know or understand what motivates employees to perform at a high level and then create a workplace that contains these motivators

10. 7 - 10 Chapter 7 Motivating and Managing People and Groups in Business Organizations Motivating Maslow’s hierarchy of needs state unsatisfied needs motivate people to satisfy their needs

11. 7 - 11 Chapter 7 Motivating and Managing People and Groups in Business Organizations Motivating Maslow’s hierarchy of needs Physiological Security Belongingness Esteem Self-actualization

12. 7 - 12 Chapter 7 Motivating and Managing People and Groups in Business Organizations Expectancy theory Argues that work motivation is equal to the effort to performance linkage and performance to valued outcome linkage from the employee’s

13. 7 - 13 Chapter 7 Motivating and Managing People and Groups in Business Organizations Expectancy theory The implication for managers is they need to identify the factors in the work situation that weaken the effort to performance linkage and reduce motivation

14. 7 - 14 Chapter 7 Motivating and Managing People and Groups in Business Organizations Expectancy theory Managers also need to center on the need to prove to employees there is a strong job performance to outcome linkage An incentive system is a good example of strengthening this linkage

15. 7 - 15 Chapter 7 Motivating and Managing People and Groups in Business Organizations Additional motivation theories include goal-setting suggests the goals used to assess job performance need five properties to be successful These properties are specific, challenging, and measurable, results oriented, and specify a time frame for completion

16. 7 - 16 Chapter 7 Motivating and Managing People and Groups in Business Organizations Motivating Goal setting properties Specific Challenging Measurable Results oriented Specify a time frame for completion

17. 7 - 17 Chapter 7 Motivating and Managing People and Groups in Business Organizations Management by Objectives Managers can use goal-setting theory to increase employee motivation by developing a management by objectives (MBO) work performance review system

18. 7 - 18 Chapter 7 Motivating and Managing People and Groups in Business Organizations Equity Theory Focuses on employee’s perception of fairness of manager’s evaluation and reward of their job performance

19. 7 - 19 Chapter 7 Motivating and Managing People and Groups in Business Organizations Equity Theory These perceptions of fairness determine how motivated employees will be to perform at the same or a high level in the future and an employee’s desire to be absent from work or to search for a new job

20. 7 - 20 Chapter 7 Motivating and Managing People and Groups in Business Organizations Equity Theory Argues that employees perceptions that managers are accurately measuring their job performance and distributing rewards in a fair way is a crucial factor in determining work motivation

21. 7 - 21 Chapter 7 Motivating and Managing People and Groups in Business Organizations Equity Theory Reveals that employees’ perceptions about the value of the rewards they receive are affected by their perceptions about the value of the rewards other is receiving as well

22. 7 - 22 Chapter 7 Motivating and Managing People and Groups in Business Organizations Job Enrichment To encourage employees to perform at a higher level and be more satisfied with their work, researchers suggest manager should design jobs so that they offer employees greater rewards or desired outcomes

23. 7 - 23 Chapter 7 Motivating and Managing People and Groups in Business Organizations Groups Teams are collective and groups are linear while employee’s interaction is minimal if any

24. 7 - 24 Chapter 7 Motivating and Managing People and Groups in Business Organizations Groups There are advantages in using groups and teams only when managers design and manage groups correctly

25. 7 - 25 Chapter 7 Motivating and Managing People and Groups in Business Organizations Groups When groups or teams become too large problems arise that detract from the groups performance

26. 7 - 26 Chapter 7 Motivating and Managing People and Groups in Business Organizations Groups The lack of conflict in an organization suggests a lack of creativity with too much emphasis on conformity and the stifling of innovation and new ideas

27. 7 - 27 Chapter 7 Motivating and Managing People and Groups in Business Organizations Groups Conflict occurs inter-group and intra-group while competing for resources and incompatible rewards and goals and complex task interdependencies

28. 7 - 28 Chapter 7 Motivating and Managing People and Groups in Business Organizations Groups Negotiation and bargaining tactics make compromise more like likely Emphasize common goals Focus on the problem, not the people Create opportunities for joint gain Focus on what is fair