1. BUSINESS Ferrell Hirt Ferrell A CHANGING WORLD FHF EIGHTH EDITION
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin

2. 4 Creating the Human Resource Advantage part
Chapter nine is devoted to the topic of motivating the workforce. This is an important topic for organizations to consider, because insufficient motivation will result in low productivity, high employee turnover, and an all-around less successful business. We will consider the early students that laid the groundwork for modern theories of motivation and describe strategies that managers use to motivate employees.
CHAPTER 9 Motivating the Workforce
CHAPTER 10 Managing Human Resources
FHF
9-2

3. Human Relations
The study of the behavior of individuals and groups in organizational settings
Motivation
An inner drive that directs a person’s behavior towards a goal or satisfaction of a need
Human relations involves motivating employees to achieve organizational goals efficiently and effectively. Managers must be careful not to motivate employees to do the wrong things or for the wrong reasons (e.g. taking excessive risks or cutting corners to achieve performance-based rewards).
HR has become an increasingly important field as businesses try to understand how to boost morale, maximize productivity and creativity and motivate diverse employees to be more effective.
FHF
9-3

4. Motivating the Workforce
What motivates employees to perform?
How can managers boost morale?
How do you maximize worker performance?
How can you encourage creativity and innovation?
Motivation can be complicated– sometimes motivational factors will encourage employees to take excessive risks or engage in ethical misconduct in order to be rewarded for performance. On the other end, not motivating employees enough, or motivating them in the wrong ways will lead to underperformance.
FHF
9-4

5. Morale is a prominent aspect of human relations[ ]
An employee’s attitude toward his or her job, employer and colleagues
Morale is a prominent aspect of human relations
FHF
9-5

6. …continued on next page
Morale
High Morale
Higher productivity, returns to shareholders, worker productivity and loyalty
Lower absenteeism and employee turnover
Low Morale
Contributes to absenteeism, high employee turnover and lack of commitment
A business always wants to seek out ways to improve employee morale.
…continued on next page
FHF
9-6

7. Morale Morale Boosters Respect Involvement Appreciation Compensation
Promotion
Pleasant work environment
Positive organizational culture
A business always wants to seek out ways to improve employee morale.
FHF
9-7

8. Rewards Intrinsic Rewards Extrinsic Rewards
The personal satisfaction and enjoyment you feel from attaining a goal
Feeling of accomplishment
Extrinsic Rewards
Benefits and/or recognition you receive from someone else
Awards, benefits, pay increases
Intrinsic and extrinsic rewards both are important in motivating employees to contribute to business goals
Employees are motivated by different kinds of rewards, both extrinsic and intrinsic.
FHF
9-8

9. Employee Motivation It can be difficult to motivate employees
Motivation is difficult to define and varies from person to person
FHF
9-9

10. Classic Theory of Motivation
Early 20th century
Frederick W. Taylor & Lillian Gilbreth
Scientific focus on work tasks & productivity
Money
Thought to be the sole motivator for workers
Satisfactory pay & job security motivate employees to work hard
Taylor and Gilbreth suggested making work highly specialized and linking pay to output so that employees would make more money as they worked faster. This idea is still applied today, but we understand that motivation is more complicated than Taylor and Gilbreth thought.
FHF
9-10

11. Hawthorne Studies 1924-1932 at the Hawthorne Works Plant Elton Mayo
Postulated that physical conditions in workplace stimulate productivity
Findings show social and psychological factors influence productivity/morale
Marks beginning of concern for human relations in the workplace
Mayo’s studies at the Hawthorne Works Plant revealed that human factors also influence productivity and employee behavior– marked the beginning of the field of human relations.
FHF
9-11

12. Theories of Employee Motivation
Maslow’s Hierarchy of Needs
Herzberg’s Two-Factor Theory
McGregor’s Theory X and Theory Y
Theory Z
Variations on Theory Z
Equity Theory
Expectancy Theory
Experiments on human motivation spawned many theories of employee motivation, which will be discussed in the following slides.
FHF
9-12

13. Maslow’s Hierarchy of Needs
Abraham Maslow postulated that humans have five basic needs (shown in the slide). This pyramid arranges needs in the order in which people seek to attain them, the most basic being on the bottom.
Source: Adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review 50 (1943), pp. 70–396. American Psychology Association.
…continued on next page
FHF
9-13

14. Maslow’s Hierarchy of Needs
Physiological Needs
Basic needs for food, water, shelter
Security Needs
Protection from physical and economic harm
Social Needs
Need for love, companionship
Esteem Needs
Self-respect and respect from others
Self-actualization
Maximizing one’s full potential
Maslow’s theory states that people progress through a series of needs. As they achieve one, they move on to others. People must achieve the lower-level needs before achieving higher-level ones. Many people never achieve the higher order of needs, and people may slip from one category to the other depending on circumstances and times in their lives.
FHF
9-14

15. Herzberg’s Two-Factor Theory
Hygiene Factors
Focus on the work setting, not the content of the work
Wages, working conditions, company policies, job security
Motivational Factors
Focus on content of the work itself
Achievement, recognition, involvement, responsibility, advancement
The Two-Factor Theory was developed in the 1950s by Frederick Herzberg. Herzberg’s Theory focuses on the job and the environment where work is done. Concluded that motivational factors can be divided into two groups. Maslow’s and Herzberg’s theories are very similar, even though they broke down motivational factors into different groups.
FHF
9-15

16. McGregor’s Theory X and Theory Y
Considered the traditional management view
Assumes that workers
Generally dislike work
Must be forced to do their jobs
Average worker avoids responsibility and prefers direction
Developed by Douglas McGregor. His theory contrasts two different views of management.
…continued on next page
FHF
9-16

17. McGregor’s Theory X and Theory Y
Considered the humanistic management view
Assumes
Expending physical effort is natural (people like to work)
People will assume responsibility and self-control to achieve objectives (workers want to satisfy social, esteem and self-actualization needs)
People will commit to objectives once they realize there will be a personal reward
Most organizations do not adequately utilize imagination, ingenuity, creativity and intelligence of workers
Managers subscribing to theory Y will be more democratic and will not use fear as a primary motivator.
FHF
9-17

18. Theory Z
A management philosophy that stresses employee participation in all aspects of company decision making
Incorporates many Japanese ideas about management (trust and intimacy) adapted for use in the U.S.
Theory Z was developed by William Ouichi. Managers subscribing to this theory will be participative, and employees will tend to feel like owners of the organization. However, economic downturns in the late 20th and early 21st centuries have led many to question Theory Z. Nevertheless, this theory spawned a number of other similar theories.
FHF
9-18

19. Variations on Theory Z Quality Circles (or Quality-Assurance Teams)
Participative Management
Employee Involvement
Self-Directed Work Teams (SDWT)
All strive to give employees more control over their jobs
Make them responsible for outcomes
FHF
9-19

20. Equity Theory
The assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness (equity) of the rewards they will receive in exchange
Equal pay for equal work
Employees who do not feel equitably treated may slack off on the job or steal to level the field
While equity theory makes sense, it is more complicated in practice because people are not good at taking impartial stock of themselves or their work. A worker may not be accurately assessing his/her contributions to the organization.
FHF
9-20

21. Expectancy Theory
Assumes that motivation depends not only on how much a person wants something but also on how likely he or she is to get it
Someone who wants something and has a reasonable expectation to achieve it will be highly motivated
FHF
9-21

22. Motivating Employees Behavior Modification
Changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself
Reward
Punishment
Developed by psychologist B.F. Skinner. The idea is that behavior that is rewarded will tend to be repeated– rewarding good behavior tends to be a more effective behavior modification strategy in the long term. Skinner believed that behavior that is punished will tend to be eliminated, although punishing employees is not as effective in the long-run as rewarding because it can lead to dissatisfaction.
FHF
9-22

23. Strategies for Motivating Employees
Job Rotation
Movement of employees from one job to another to relieve the boredom often associated with job specialization
The drawback is that it does not totally eliminate risk of boredom
There are a number of strategies that organizations employ to eliminate employee boredom and to increase motivation. Job rotation is one of them. The rest will be discussed on upcoming slides.
…continued on next page
FHF
9-23

24. Strategies for Motivating Employees
Job Enlargement
Addition of more tasks to a job instead of treating each task as separate
Seeks to counteract the boredom of division of labor
Many small firms use job enlargement
Requires training employees in new tasks
…continued on next page
FHF
9-24

25. Strategies for Motivating Employees
Job Enrichment
Incorporating motivational factors (achievement, recognition, responsibility) into the job
Idea developed by Herzberg in the 1950s
Gives employees feedback on their performance
Rewards for good performance
…continued on next page
FHF
9-25

26. Strategies for Motivating Employees
Flexible scheduling strategies
Flextime
Allows employees to choose their start and end times
Compressed Workweek
40 hours in a 4-day workweek
Job Sharing
Occurs when two people share the same job
Flexible scheduling can help improve employee’s work/life balance, encourage healthier behaviors and improve employee satisfaction. Allowing workers to work from home full or part-time is another strategy to improve motivation.
…continued on next page
FHF
9-26

27. Importance of Motivational Strategies
Fosters employee loyalty
Boosts productivity
Influences on pay, promotion, job design
Nature of relationships
Nature of the job itself
Characteristics of the organization
Motivating employees is an important function of managers because it can help an organization be more productive and produce higher-quality products. Organizations with low employee turnover also will have a more cohesive organizational culture and will save money on recruiting and training new employees. Managers can further nurture motivation by being honest, supportive, empathetic, accessible, fair and open.
FHF
9-27