1. Motivating and Leading Employees
CHAPTER 10
Motivating and Leading
Employees

2. Learning Objectives
Describe the nature and importance of psychological contracts in the workplace
Discuss the importance of job satisfaction and employee morale and summarize their roles in human relations in the workplace
Identify and summarize the most important theories of employee motivation
Describe some of the strategies used by organizations to improve job satisfaction and employee motivation
Discuss different managerial styles of leadership and their impact on human relations in the workplace
These learning objectives are based upon those at the beginning of the chapter. For a review of learning objectives, see the summary at the end of the chapter, as well as the list of key terms.
Objectives: p. 261.
Summary: p. 283.
Key Terms: p. 285.
Study Questions and Exercises: p. 285.
Building Your Business Skills: p. 285.
Exploring the Net: p. 286.
Concluding Case 9-1: A New Era in Employee Perks, p. 287.
Concluding Case 9-2: Has Levi’s Lost its Touch?, p. 288. 2 2

3. Psychological Contract
The set of expectations held by an employee concerning what he or she will contribute to an organization and what the organization will provide the employee in return
If either party perceives an inequity in the contract, that party may seek a change
Employees may seek increased wages, or they may reduce their efforts
Employers may fire staff, offer more training, or transfer staff
Discussed on page 261.
Review Questions: #1.

4. Job Satisfaction and Morale
the sense of accomplishment employees feel from performing their jobs well
when job satisfaction is high, so is employee morale
Employee morale
the mental attitude that employees have towards their workplace
Discussed on page 262.
Activities:
Application Exercises: #10.
Exploring the Net. 3 3

5. Satisfaction Enhances Performance
Increased commitment to their work and the firm
Work harder to contribute to the organization
Have fewer grievances
Have lower absenteeism
Are less likely to leave the organization
Discussed on pages 262.
Notes: Poor job satisfaction reduces performance. Dissatisfied workers have higher rates of absenteeism, poor morale, more illness, more personal problems, lessened desire to go to work, higher turnover.
Activities:
Exploring the Net.
Analysis Questions: #5.
Application Exercises: #10. 4 4

6. Motivation in the Workplace
the set of forces that cause people to behave in certain ways
Motivational Theories
classical theory and scientific management
behaviour theory
contemporary theory
Discussed on pages Each of the concepts listed above is discussed on the following slides.
Activities:
Analysis Questions: #6.
Concluding Case #9-1: A New Era in Employee Perks. 8 8

7. Classical Theory & Scientific Management
Workers are motivated primarily by money
If money motivates, then paying employees more would result in higher levels of production
Scientific management
Analyzes jobs and finds more efficient ways to perform them
Time-and-motion studies
Discussed on pages 264.
Activities:
Analysis Questions: #6.
Concluding Case #9-1: A New Era in Employee Perks. 9 9

8. Hawthorne Studies
Researchers attempted to measure the impact of lighting on productivity
Productivity increased whether or not the lighting was high or low
Something, other than money and lighting, was impacting on performance
Key factor: Attention
Hawthorne Effect
The tendency of workers to increase productivity when they receive special attention from management
Discussed on pages 264.
Activities:
Analysis Questions: #6. 13 13

9. Contemporary Motivation Theories
Based on the importance of good human relations in motivating employees
human-resources model
hierarchy of needs model
two-factor theory
expectancy theory
equity theory
goal-setting theory
Discussed on pages Each of the concepts listed is discussed on the following slides.
Activities:
Analysis Questions: #6 14 14

10. The Human Resources Model: Theories X and Y
Two different management views of the firm’s human resources
Theory X
employees are basically lazy and irresponsible and must be forced to work productively
Theory Y
employees want to be productive
Discussed on pages
Activities:
Analysis Questions: #6 15 15

11. Theory X Employees Lazy Lack ambition Dislike responsibility
Self-centred
Resist change
Gullible and unintelligent
Must be punished or rewarded to stimulate motivation
Discussed on page This summarizes the first column of Table 9.1.
Activities:
Analysis Questions: #6. 16 16

12. Theory Y Employees Energetic Ambitious Responsible Selfless
Want to contribute to business success
Intelligent
Discussed on page This summarizes the first column of Table 9.2.
Activities:
Analysis Questions: #6. 17 17

13. Maslow’s Hierarchy of Needs
Needs are hierarchical
lower level needs must be met first
Only unsatisfied needs motivate workers
Needs levels
Self-actualization
Esteem
Social
Security
Physiological
Discussed on page Each of the steps in Maslow’s Hierarchy of Needs is discussed separately on the following slides.
Activities:
Review Questions: #3. 18 18

14. Physiological Needs Basic survival requirements food shelter water
sleep
Discussed on page 266.
Activities:
Review Questions: #3. 19 19

15. Need for stability and protection
Security Need
Need for stability and protection
pension plans
job security
personal safety
Discussed on page 266.
Activities:
Review Questions: #3. 20 20

16. Social Need Need for friendship and companionship
Need to belong to a group
Need to “fit in” and be accepted
Discussed on page 266.
Activities:
Review Questions: #3. 21 21

17. Esteem Need Need for recognition and status
Need to “stand out” from the group
Discussed on page 266.
Activities:
Review Questions: #3. 22 22

18. Self-Actualization Need
Need for self-fulfillment
Need for personal growth and development
Need to contribute to society and achieve meaningful goals
Need to be true to yourself and satisfy yourself
Discussed on page 266.
Activities:
Review Questions: #3. 23 23

19. Two-Factor Theory
Two different factors affect job satisfaction and dissatisfaction
Hygiene factors
cause job dissatisfaction if they are missing or inadequate
Motivation factors
cause job satisfaction if they are present and satisfactory
Discussed on page 267.
Notes: This theory seems to work better for professional employees (accountants, engineers, etc..).
Activities:
Poll students to determine which factors appeal to them. Debate where money should be: is a a motivating factor or a hygiene factor. If money is perceived as recognition it is a motivator. If it is just pay, it is a hygiene factor. It can be either depending on how it is perceived by the employee.
Review Questions: #2. 24 24

20. Motivation Factors if present, the employee is satisfied
if absent, the employee is not satisfied (but not dissatisfied either)
achievement
recognition
the work itself
responsibility
advancement and growth
Discussed on page 267. This slide contains the Motivation Factors listed in the top half of Figure 9.2 on page 268.
Activities:
Review Questions: #2. 26 26

21. Hygiene Factors if present, the employee is not dissatisfied
if absent or deficient, the employee is dissatisfied
working conditions
interpersonal relations
pay and security
company policies and administration
Discussed on page 267. This slide contains the Motivation Factors listed in the top half of Figure 9.2 on page 268.
Activities:
Review Questions: #2. 25 25

22. Expectancy Theory Motivation is based on the belief that
performance is linked to the reward
he/she can perform at a level to achieve the required results
the reward is valuable
Discussed on page 268.
Activities:
Relate the theory to exam study. Do they value getting a good grade in the course? If they do, do they think they are capable of it? If so, how likely are they to study for the final exam? (It stands to reason that they must feel that passing the final exam is important in order to pass the course!) 27 27

23. Expectancy Theory Model
Individual Effort
Individual Performance
Organizational Rewards
Personal Goals
Discussed don page This is a duplication of Figure 9.3 on page 269.
Activities:
Using a specific job example (e.g..: a nurse) work through the model by putting specific tasks through the chart. What would motivate nurses to take blood, etc.? Then, use the same approach which a job that the students have.
Effort-
Performance
issue
Performance-
Reward
issue
Rewards-
Personal Goals
issue 28 28

24. Equity Theory
Employees use social comparisons to evaluate their treatment by the organization
Individuals compare
what they contribute relative to what they get in return
their input/output ratio with what they feel others are getting
The result is a feelings of equity or inequity
the ratios must be fair, not the same, to have a sense of equity
Discussed on pages
Activities:
Application Exercises: #10. 29 29

25. Dealing with Inequity
Employees will attempt to restore equity in an inequitable situation
seeking raises
reducing work effort
reducing work week
complaining to their superiors
seeking different employees for comparison
quitting the job
Discussed on pages
Activities:
Application Exercises: #10. 30 30

26. Goal-Setting Theory
Employees perform better when they set specific, quantified, time-framed goals
Goals are challenging and specific
Energy and attention can be focused on the task to be accomplished
Employees participate in setting their own goals, which increases their commitment and motivation to achieve the goals
Discussed on pages 271.
Activities:
Would the students be more motivated to study if they had more control over the subjects they had to take, or the research papers they had to write? Seek examples. Would having a role in setting course goals motivate them to work harder? 31 31

27. Programs for Enhancing Job Satisfaction
Reinforcement & punishment
Management by objectives
Participative management
Quality circles
Job enrichment
Job redesign
Modified work schedules
Workshare programs
Discussed on pages
Activities:
Ask students to describe their most satisfying jobs, and their least satisfying jobs. Can they determine why one job was more meaningful to them than the other? Were any special programs used in the workplace? 38 38

28. Reinforcement Positive behaviour is reinforced through rewards
cash bonuses for performance
Negative behaviour is punished
less pay, fewer hours, suspension, dismissal
This management approach is most effective when employees are trying to master new skills or behaviours
Discussed on page 272.
Activities:
What forms of reinforcement are the students accustomed to in their jobs? What forms of punishment? Discuss their experiences. Which do they think is more effective? 39 39

29. Management by Objectives
Employees will be motivated to obtain goals that they help to set
improves relations between superior and subordinates by nature of the consultative process
assessment of performance in meeting goals provides immediate feedback on success and individual contributions, which can lead to feelings of equity in the firm
Discussed on page 274.
Activities:
Do students ever get to set their own goals in their jobs? What difference does this make? How do they think it can impact on job satisfaction. 41 41

30. Participative Management
Employees will be more satisfied on the job if they have a say in how they do their jobs and how the company is managed
can make employees more committed to the organization and achieving goals
popular in Japanese firms and gaining acceptance in Canada
Discussed on page
Activities:
Review Questions: #4. 42 42

31. Job Enrichment
Changing the nature of the job, the way various jobs work together, or through having employees rotate through jobs
Increases job satisfaction by changing the job
increased responsibility or growth
employees acquire new skills and feel valued
Discussed on page 276.
Activities:
If students could do something to enrich their jobs, what would it be? Would they: change the job itself, use a rotating job schedule, or some other method? Why would they not use certain approaches? 44 44

32. Job Redesign
Increases job satisfaction by improving the employee-job fit
combining tasks
creating natural work groups
establishing client relationships
Useful when individuals have a high personal need for growth or achievement
Discussed on page 276.
Activities:
If students could do something to redesign their jobs, what would it be? 45 45

33. Redesign Methods Combining tasks Natural work groups
enlarges the job thus increasing responsibility
work seems more meaningful
Natural work groups
creates teams among individuals who work on projects
enhances their understanding of the function of the organization, and the problem-solving abilities of the team
Establish client relationships
allows employees to interact with customers
more variety and more control over their jobs
Discussed on page 276.
Activities:
If they were the manager at their workplace which of the methods on the slide would they use to redesign the jobs for their staff? 46 46

34. Modified Work Schedules
Allows individuals to fulfill work commitments more effectively around personal or community obligations
Helps increase job satisfaction
Flextime
Compressed workweek
Telecommuting
Workshare programs
Discussed on pages
Activities:
Analysis Questions: #7. 47 47

35. Flextime
Adjusts the standard daily work schedule to fit employees’ needs
basic office hours (9:00 a.m. to 5:00 p.m.)
they must all be available from 10:00 a.m. to 3:00 p.m. (the core time)
therefore, they may come in from 7:00 a.m. to 3:00 p.m., or as late as 10:00 a.m. to 6:00 p.m.
some offices will also allow flexible hours between 11:00 a.m. and 1:00 p.m. for lunch
Discussed on page 277.
Activities:
Analysis Questions: #7. 48 48

36. The Compressed Workweek
Employees may work their required weekly hourly requirement over fewer than five working days
Employees work longer hours on the days they work
Potential scheduling options
40 hours = 5 days x 8 hours
40 hours = 4 days x 10 hours
40 hours = 3 days x hours (often worked into a 36-hour week at 12 hours/day)
Discussed on page 278.
Activities:
Analysis Questions: #7. 49 49

37. Telecommuting Barriers
Employees are permitted to work away from the office
Home-based office technology are employed
computers, voic , , fax modems, cell phones, overnight delivery services
Barriers
Fear of not being internally motivated & missing deadlines
Coordinating family and work responsibilities
Discussed on page 278.
Activities:
How would telecommuting work if students could use it as a way to attend classes. Many schools have distance education classes which you can take from home. Some are correspondence-based while others are video-based. How many students would choose to telecommute? Why or why not? 50 50

38. Worksharing Two people share a single, full-time position
also referred to as job sharing
Useful for those who wish to stay in the workforce part-time
parents of young children
individuals easing into retirement
8% of part-time Canadian workers are worksharing
Most workshare employees are university-educated women in professional occupations
Discussed on pages
Activities:
There is a clear demographic on the slide that shows who is using the job sharing program. Why do students believe that this demographic has emerged? Do they feel that job sharing has a role in the marketplace of the future? Why or why not? 51 51

39. Managerial Styles and Leadership
the process of motivating others to meet goals
Managerial style
patterns of behaviour that a manager
exhibits when dealing with subordinates
Autocratic style
Democratic style
Free-rein style
Discussed on pages Each of the concepts listed is discussed separately on the following slides.
Activities:
Analysis Questions: #8.
Application Exercises: #9 32 32

40. Autocratic Style
Managers issue orders and expect them to be obeyed without question or discussion
Decision making occurs rapidly due to lack of consultation
Useful for situations where quick decision making and conformity is required
military applications
This style suits employees who do not want to make decisions
Discussed on page Each of the concepts listed is discussed separately on the following slides.
Activities:
Analysis Questions: #8.
Application Exercises: #9 33 33

41. Democratic Style
Managers ask for input from subordinates but retain final decision-making power
Benefits those who wish to have input
Can lead to frustration if the manager’s decisions are not consistent with the input
Annoys those who do not wish to have input
Discussed on page Each of the concepts listed is discussed separately on the following slides.
Activities:
Analysis Questions: #8.
Application Exercises: #9 34 34

42. Free-Rein Style Managers simply advise subordinates
Employees have the authority to make the final decisions themselves
May be useful in circumstances where a loose structure exists
A volunteer organization
Discussed on page Each of the concepts listed is discussed separately on the following slides.
Activities:
Analysis Questions: #8.
Application Exercises: #9 35 35

43. Canadians Vs. Americans
Canadian managers tend to be
more quiet or subdued
more committed to their organizations
more independent thinkers
more culturally tolerant
Discussed on page 280.
Activities:
Discuss differences in Canadian and American culture, then lead into a discussion of differences in management style. Do students perceive the difference, or is it invisible? 36 36

44. Contingency Approach to Leadership
The most effective management style depends on the situation being managed
Observes cultural differences that affect the interpretation of situations and employee needs
Not all subordinates wish to have a role in decision making
Success is achieved by adjusting one’s management style to suit the situation involved
Discussed on page 281.
Activities:
Analysis Questions: #8. 37 37

45. Motivation & Leadership in the 21st Century
Changing patterns of motivation
Rewards desired by today’s employees are different from those of yesterday’s
Money may not be the prime motivator
Individual goals vary more than ever before
Changing patterns of leadership
Less of an emphasis on autocratic styles as employees become more empowered
Discussed on pages
Activities:
Application Exercises: #9.