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

3. Learning Objectives
Understand the nature and sources of work motivation and appreciate that motivation is under the voluntary control of an employee.
Describe five different theories of work motivation and identify how they work together to determine work motivation.
Identify the characteristics of groups and teams and distinguish between important types of groups and teams.

4. Learning Objectives
Explain the factors that create high-performing groups and teams.
Identify the sources of organizational conflict and understand how bargaining and negotiation are used to resolve conflicts between people and groups.

5. Motivation in Business Organizations
Work motivation
the psychological force within people that arouses their interest, directs their attention, and causes them to persist to achieve their work goals

6. Voluntary Employee Behavior
Figure 7.1

7. Maslow’s Needs Hierarchy Theory
a theory that specifies why and how people try to satisfy their needs through their behavior at work

8. Maslow’s Hierarchy of Needs
Figure 7.2

9. Maslow’s Needs Hierarchy Theory
Self-actualization
the desire for personal self-fulfillment, that is, a person’s desire to become the best he or she is capable of becoming

10. Expectancy Theory Expectancy Theory
a theory that argues that the motivation of employees depends upon whether or not they believe that performing at a high level will lead to the rewards they desire

11. Factors Affecting the Effort-to-Performance Linkage
Employees’ past experiences provide them with information about how likely they are to succeed at a particular task
Employees need to believe that nothing in the work situation outside their control will prevent their hard work from successful performance

12. Factors Affecting the Effort-to-Performance Linkage
Self-efficacy
the belief a person holds about his ability to succeed at a certain task or in a particular situation

13. Linkages in Expectancy Theory
Figure 7.3

14. Question?
Which motivation theory argues that employees will be motivated to achieve a goal only if they believe they will be rewarded equitably relative to their co-workers?
Expectancy theory
Goal-setting theory
Equity theory
Job enrichment theory
The correct answer is “C” – equity theory. See slide 7-25.

15. Factors Affecting Performance-to-Outcome Linkage
Different employees value different outcomes differently
Employees must believe that nothing in the work setting outside their control will prevent them from obtaining the valued outcomes they seek

16. Factors Affecting Performance-to-Outcome Linkage
Even if employees have strong effort-to-performance and performance-to-outcome expectancies, this does not guarantee they will be motivated to behave the way the company desires

17. See an example of a company’s financial goals
Goal-Setting Theory
Goal-Setting Theory
a theory that suggests that if goals are to motivate employees, they should be specific, challenging, measurable, results oriented, and have a specified timeframe for completion
See an example of a company’s financial goals

18. Goal-Setting Theory Work goal
something specific an employee is trying to accomplish when doing a job

19. Five Characteristics of Motivating Goals
Figure 7.4

20. Why Goal Setting Increases Motivation
A goal directs and focuses an employee’s efforts toward achieving that goal
A goal motivates an employee to be persistent
Helps develop personal goal-attainment strategies that make employees more effective over time

21. A Hierarchy of Company Goals
Figure 7.5

22. Management by Objectives
a work-performance review system that involves setting specific and challenging goals and then reviewing employees’ progress towards achieving those goals

23. Motivation through Goal Setting and Management by Objectives
Figure 7.6

24. Stretch Goals and Job Learning
highly ambitious goals put in place to motivate employees to perform at higher levels

25. Equity Theory Equity Theory
a theory that argues that employees will be motivated to achieve a goal only if they believe they will be rewarded equitably relative to their co-workers

26. Equity Theory in Action
Figure 7.7

27. Job Enrichment Theory Job Enrichment Theory
a theory that employees will be more motivated if they have more control over the way they do their jobs

28. Question?
What is motivating employees by expanding the range of tasks they do?
Job rotation
Job enlargement
Empowerment
Job replacement
The correct answer is “B” – job enlargement. See next slide.

29. Job Enrichment Theory Job enlargement Empowerment
motivating employees by expanding the range of tasks they do
Empowerment
expanding employees’ tasks and responsibilities to allow them more freedom and autonomy over the way work is performed

30. Job Enrichment Theory Self-managed teams
groups of employees who are given the responsibility to supervise their own activities and to monitor the quality of the goods and services they provide

31. What is a Group or Team? Group
a collection of people who follow similar work rules and norms and work towards a common, specific, and measurable goal

32. What is a Group or Team? Team
a group of people who are jointly responsible for creating, managing, and changing work rules and norms to find better ways to achieve current and future goals

33. Patterns of Interaction between Employees, Groups, and Teams
Figure 7.8

34. Types of Groups and Teams
Functional team
people grouped together by virtue of their expertise, typically, by departments
Cross-functional team
a group of people from a company’s various functions who pool their talents to increase the organization’s efficiency and effectiveness

35. Types of Groups and Teams
Top management team
a group consisting of the top managers of a company’s major functions or business units
Virtual teams
teams whose members are connected by , the Internet, instant messaging, wireless laptops, and video conferencing

36. Why Do Employees Perform at a Higher Level When They Work in Groups?
When people work in teams, their shared identity and need for achievement can make them want to work harder
Groups and teams frequently monitor the performance of their members
Teams often facilitate the division of labor and specialization

37. Conflict, Bargaining, and Negotiation
Organizational conflict
the discord that ensues when stakeholders thwart each other’s attempts to achieve their goals and objectives

38. Types of Conflict Interpersonal Intragroup Intergroup
conflict between two or more people in a company
Intragroup
conflict that arises within a group, team, or department
Intergroup
occurs between groups, teams, or departments

39. Sources of Conflict Incompatible goals Complex task interdependencies
Incompatible reward systems
Scarce resources

40. Sources of Organizational Conflict
Figure 7.9

41. Resolving Conflict through Negotiation and Bargaining
a technique managers use to increase the chances that conflicting parties will reach a compromise

42. Resolving Conflict through Negotiation and Bargaining
Emphasize common goals
Focus on the problem, not the people
Create opportunities for joint gain
Focus on what is fair

43. Video: The Container Store
Garrett Boone, Co-Founder and CEO explains that the company’s operating philosophy of The Container Store can be captured in the following maxim: “1 great person = 3 good people.”
What examples from The Container Store support Maslow’s motivational need for self-actualization?
Discussion Questions:
What examples from the video on The Container Store support Maslow’s motivational need for self-actualization?
Answer: The Maslow hierarchy of needs begins with physiological and safety needs are move up to esteem and self-actualization. Employees at The Container Store are encouraged to cross-train among all roles, the conversion of part-time employees to full-time employees is the greatest in the industry; the turnover rates is 85% below the industry average. All of these factors suggest that individuals do find the ability to satisfy this higher order need through the employment practices and corporate culture of the company.
How is empowerment used in the video case?
Answer: All employees must be empowered to be effective at The Container Store. Garrett Boone is adamant about the fact that all employees have the authority and ability not only to satisfy customers, but to exceed their expectations. All employees are cross-trained and are encouraged to make decisions. Information including all financial information is shared with all members of the company even though it is a privately-held company.
3. How does Herzberg’s theory of motivators and hygiene factors relate to The Container Store?
Answer: The hygiene factors, according to Herzberg, can only lead to the elimination of dissatisfaction when tended to. However, they cannot lead to job satisfaction. The motivator factors such as relationships with supervisors, opportunities for growth and development, job enrichment, job enlargement, and other opportunities at The Container Store are clear examples supporting the motivator-hygiene theory of motivation.