1. * * Chapter Ten Motivating Employees McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2. * * INTRINSIC REWARDS Intrinsic Rewards -- Personal satisfaction felt for a job well done. Kinds of Intrinsic Rewards: The Value of Motivation  Pride in your performance  Sense of achievement 10-2

3. * * EXTRINSIC REWARDS Extrinsic Rewards -- Something given as a recognition of good work. Kinds of Extrinsic Rewards:  Pay Raises  Promotions  Awards The Value of Motivation 10-3

4. * * TAYLOR’S SCIENTIFIC MANAGEMENT Scientific Management -- Studying workers to determine the most efficient ways of doing things and then teaching those techniques. Three Key Elements to Increase Productivity 1. Time 2. Methods of Work 3. Rules of Work LG1 Frederick Taylor: The Father of Scientific Management 10-4

5. * * TAYLOR’S FOUR KEY PRINCIPLES 1. Study how a job is performed. Gather time & motion information. Check different methods. 2. Codify the best method into rules. 3. Choose workers whose skill matches the rules. 4. Establish a fair level of performance and pay. LG1 Frederick Taylor: The Father of Scientific Management 10-5

6. * * TIME-MOTION STUDIES Time-Motion Studies -- Studies of which tasks must be performed to complete a job and the time needed to do each task. Led to the development of the Principle of Motion Economy -- Every job can be broken down into a series of elementary motions; developed by Frank and Lillian Gilbreth. LG1 Frederick Taylor: The Father of Scientific Management 10-6

7. * * UPSET at UPS (Legal Briefcase) UPS drivers work under strict rules and work requirements.UPS Performance pressure has taken a toll on drivers who report increased stress, anxiety and back pain. UPS is employing new technologies and planning to increase productivity without overtaxing drivers. 10-7

8. * * HAWTHORNE STUDIES: PURPOSE AND RESULTS Researchers studied worker efficiency under different levels of light. Productivity increased regardless of light condition. LG2 Elton Mayo and the Hawthorne Studies Researchers decided it was a human or psychological factor at play. Hawthorne Effect -- People act differently when they know they are being studied. 10-8

9. * * MASLOW’S THEORY of MOTIVATION Hierarchy of Needs -- Theory of motivation based on unmet human needs from basic physiological needs to safety, social and esteem needs to self-actualization needs. Needs that have already been met do not motivate. If a need is filled, another higher-level need emerges. LG3 Motivation and Maslow’s Hierarchy of Needs 10-9

10. * * MASLOW’S HIERARCHY of NEEDS LG3 Motivation and Maslow’s Hierarchy of Needs 10-10

11. * * HERZBERG’S MOTIVATING FACTORS Herzberg’s research centered on two questions: LG4 Herzberg’s Motivating Factors  What factors controlled by managers are most effective in increasing worker motivation?  How do workers rank job- related factors in order of importance related to motivation? 10-11

12. * * HERZBERG’S MOTIVATORS and HYGIENE FACTORS LG4 Herzberg’s Motivating Factors MotivatorsHygiene Factors Work itself Company policy and administration AchievementSupervision RecognitionWorking conditions ResponsibilityInterpersonal relations Growth and advancement Salary, status and job security 10-12

13. * * THEORY X and THEORY Y Douglas McGregor proposed managers had two different sets of assumptions concerning workers. Their attitudes about motivating workers was tied to these assumptions. McGregor called them Theory X and Theory Y. LG5 McGregor’s Theory X and Theory Y 10-13

14. * * ASSUMPTIONS of THEORY X MANAGERS Workers dislike work and seek to avoid it. Workers must be forced or threatened with punishment to get them to perform. Workers prefer to be directed and avoid responsibility Only effective motivators are fear and money. LG5 McGregor’s Theory X and Theory Y 10-14

15. * * ASSUMPTIONS of THEORY Y MANAGERS People like work, it’s a part of life. Workers seek goals they are committed toward. Commitment to goals depends on perceived rewards. People can use creativity to solve problems. Intellectual capacity is only partially realized. People are motivated by a variety of rewards. LG5 McGregor’s Theory X and Theory Y 10-15

16. * * APPLYING GOAL-SETTING THEORY Management by Objectives (MBO) -- Involves a cycle of discussion, review and evaluation of objectives among top and middle-level managers, supervisors and employees. Managers formulate goals in cooperation with everyone. Need to monitor results and reward achievement. LG6 Goal-Setting Theory and Management by Objectives 10-16

17. * * EXPECTANCY THEORY LG6 Meeting Employee Expectations: Expectancy Theory 10-17

18. * * USING REINFORCEMENT THEORY Reinforcement Theory -- Positive and negative reinforcers motivate a person to behave in certain ways. Positive reinforcement includes praise, pay increases and recognition. Negative reinforcement includes reprimands, reduced pay, and layoff or firing. Extinction is a way of trying to stop behavior by not responding to it. LG6 Reinforcing Employee Performance: Reinforcement Theory 10-18

19. * * EQUITY THEORY Equity Theory -- Employees try to maintain equity between inputs and outputs compared to others in similar positions. Workers often base perception of their outcomes to a specific person or group. Perceived inequities can lead to reduced quality and productivity, absenteeism even resignation. LG6 Treating Employees Fairly: Equity Theory 10-19

20. * * ENRICHING JOBS Job Enrichment -- A motivational strategy that emphasizes motivating the worker through the job itself. LG7 Motivation Through Job Enrichment Based on Herzberg’s motivators, such as responsibility, achievement and recognition. 10-20

21. * * KEY CHARACTERISTICS of WORK 1. Skill Variety 2. Task Identity 3. Task Significance 4. Autonomy 5. Feedback LG7 Motivation Through Job Enrichment 10-21

22. * * TYPES of JOB ENRICHMENT Job Enlargement -- A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment. Job Rotation -- A job enrichment strategy that involves moving employees from one job to another. LG7 Motivation Through Job Enrichment 10-22