Management A Practical Introduction Third Edition

Name: Management A Practical Introduction Third Edition
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Description: Management A Practical Introduction Third Edition

Management A Practical Introduction Third Edition
Angelo Kinicki & Brian K. Williams

Chapter 12: Motivating Employees
Achieving Superior Performance in the Workplace Motivating for Performance What Motivates Employees? Do Rewards Work? How Should Jobs Be Designed? What Incentives Should Be Used Does Compensation Motivate? The Manager’s Toolbox: Managing for Motivation: The Flexible Workplace Flexible workplaces can attract, retain, and motivate employees. There are several types of alternative work schedules including: part-time work flextime compressed workweeks job-sharing telecommunicating & other work at home schedules For Discussion: How can flexible workplaces help companies? What are the challenged involved in implementing a flexible workplace? Would you prefer a flexible workplace? Why?

12.1 Motivating For Performance
Motivation: may be defined as the psychological processes that arouse and direct goal-directed behavior. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

WHAT IS MOTIVATION? The psychological processes that arouse and direct goal-directed behavior is motivation In a simple model of motivation, people have needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original needs Rewards can be extrinsic (the payoff a person receives from others for performing a particular task), or intrinsic (the satisfaction a person receives from performing the particular task itself)

Intrinsic vs. Extrinsic Rewards
Extrinsic = Outside Intrinsic = Inside Praise Recognition Feeling of Job Well Done Pride Promotions Salary Increase TA 10-1 Intrinsic Vs. Extrinsic Rewards 1. This acetate illustrates visually to students that intrinsic rewards come from within an individual, whereas extrinsic rewards come from outside a person. Ask students which type of reward is most valuable to them and why? 2. Students might like to discuss situations in which they were intrinsically motivated. You can also question what types of extrinsic rewards they find most powerful? Also, see if students can explain why this information is so important to managers. 3. Discussion of intrinsic and extrinsic rewards is an excellent segue into the key material that’s covered throughout the chapter. Students need to know that motivating workers is perhaps the most difficult job the manager faces. Sense of Achievement Status Gifts

Figure 12.1: A Simple Model Of Motivation

WHY IS MOTIVATION IMPORTANT? It is important to motivate people to -join your organization -stay with your organization -show up for work at your organization -perform better for your organization -do extra for your organization

12.2 Content Perspectives On Employee Motivation
WHAT KINDS OF NEEDS MOTIVATE EMPLOYEES? Theories that emphasize the needs that motivate people are content perspectives or need-based perspectives -where needs are defined as physiological or psychological deficiencies that arouse behavior Three content perspectives are Maslow’s hierarchy of needs, McClelland’s acquired needs theory, and Herzberg’s two-factor theory

1. Abraham Maslow put forth the hierarchy of needs theory which proposes that people are motivated by five levels of needs: At the most basic level, people try to fulfill physiological needs (basic human needs like food, clothing, and shelter) Next, are safety needs (physical safety, emotional security, avoidance of violence) Then, belongingness needs (love, friendship, affection) Next, esteem needs (self-respect, status, reputation, recognition, and self-confidence) Finally, self-actualization needs (self-fulfillment increasing competence, using abilities to the fullest)

Figure 12.2: Maslow’s Hierarchy of Needs

5. Self- actualization needs
Maslow’s Hierarchy of Needs: What the Organization Can Do 5. Self- actualization needs 1. Physiological Needs 2. Safety Needs 3. Belongingness Needs 4. Esteem Needs 5. Self- actualization needs Offer adequate ventilation, heat, water, base pay McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Maslow’s Hierarchy of Needs: What the Organization Can Do (Cont.) 1. Physiological Needs 2. Safety Needs 3. Belongingness Needs 4. Esteem Needs 5. Self- actualization needs Offer safe working conditions, job security, health and retirement benefits McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Maslow’s Hierarchy of Needs: What the Organization Can Do (Cont.) Offer interaction with others, participation in workgroup, good relations with supervisors 5. Self- actualization needs 1. Physiological Needs 2. Safety Needs 3. Belongingness Needs 4. Esteem Needs 5. Self- actualization needs McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Maslow’s Hierarchy of Needs: What the Organization Can Do (Cont.) Offer recognition, status, challenges, merit pay, employee participation in making decisions 1. Physiological Needs 2. Safety Needs 3. Belongingness Needs 4. Esteem Needs 5. Self- actualization needs McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Offer training, creativity, promotions, employee control over jobs
Maslow’s Hierarchy of Needs: What the Organization Can Do (Cont.) Offer training, creativity, promotions, employee control over jobs 5. Self- actualization needs 1. Physiological Needs 2. Safety Needs 3. Belongingness Needs 4. Esteem Needs 5. Self- actualization needs McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Rules of Maslow’s Hierarchy of Needs
Unsatisfied Self- Actualization Esteem Needs Social Needs (Belongingness) Satisfied Safety Needs Physiological Needs

CLASSROOM PERFORMANCE SYSTEM Which of the following is not one of Maslow’s needs? A) psychological needs B) esteem needs C) self-actualization needs D) safety needs The answer is A.

CLASSROOM PERFORMANCE SYSTEM Love, friendship, and affect needs are part of which of Maslow’s five needs? A) belongingness needs B) esteem needs C) self-actualization needs D) safety needs The answer is A.

2. David McClelland proposed the acquired needs theory which argues that three needs (achievement, power, and affiliation) are major motivators in the workplace The three needs are associated with different sets of work preferences People with a high need for achievement excel in technical fields that require creativity and individual skills People who have a high need for power will do well in jobs where they can control others and be publicly applauded for their accomplishments People with a high need for affiliation prefer work where personal relationships and social approval are important

Needs Theories: McClelland
Acquired Needs Theory: states that three needs are major motives determining people’s behavior in the workplace: Need for achievement – desire to excel Need for affiliation – desire for friendly relations with other people Need for power – desire to be responsible for other people, to influence their behavior, or to control them Negative power – personal power Positive power – institutional power McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

McClelland’s Three Needs
Power Achievement Affiliation A “well-balanced individual” 5. Self- actualization needs Power A “control freak” Achievement Affiliation McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

3. Frederick Hertzberg proposed that work satisfaction and dissatisfaction arise from two different factors: Lower level needs are usually handled through hygiene factors (factors associated with job dissatisfaction like salary and working conditions) Higher level needs are associated with motivating factors (factors associated with job satisfaction) So, managers should eliminate dissatisfaction, then focus on encouraging motivation

Herzberg’s Two-Factor Concept
Job-Related (Motivators) Achievement Recognition Work Itself Growth/Advancement Responsibility Peer Relationships Job Environment (Hygiene Factors) Working Conditions Salary Policy & Administration Supervision

Figure 12.4: Hertzberg’s Two-Factor Theory: Satisfaction Versus Dissatisfaction

A Comparison of Needs Theories: Maslow, Herzberg, and McClelland Maslow Herzberg McClelland 5. Self- actualization needs Self-actualization Esteem Belongingness Safety Physiological Motivating factors Hygiene factors Achievement Power Affiliation Higher level needs Lower level needs McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

CLASSROOM PERFORMANCE SYSTEM Which of the following is not a hygiene factor? A) working conditions B) company policy C) responsibility D) supervisors The answer is C.

12.3 Process Perspectives On Employee Motivation
IS A REWARD ENOUGH? Process perspectives are concerned with the thought processes by which people decide to act Three process perspectives on motivation are equity theory, expectancy theory, and goal-setting theory

1. Equity theory focuses on employee perceptions as to how fairly they think they are being treated relative to others The central issues of equity theory are inputs (what you think you put into the job), outputs (the rewards you could receive), and comparisons (how your inputs and outputs compare to those of others) Employees that believe they are being treated fairly are more likely to support their organizations than those who perceive inequities Managers need to understand employee perceptions, allow employees to participate in important decisions, and have an appeal process in place

Figure 12.6: Equity Theory

2. Victor Vroom’s expectancy theory argues that people are motivated by how much they want something, and how likely they think they are to get it According to expectancy theory, people will do what they can, when they want to Expectancy is the belief that a particular level of effort will lead to a particular level of performance If people believe their efforts matter, they will work harder Instrumentality is the expectation that successful performance of the task will lead to the desired outcome Managers want to know what they will get for successful performance

Employee Questions About Expectancy Theory
What is the probability that I can perform at the required level if I try? What is the likelihood my performance will lead to the desired outcomes? What value do I place on the outcome? TA 10-8 Employee Questions About Expectancy Theory 1. The information in this acetate is outlined in the text discussion but probably bears some attention here as well. Again, expectancy theory can be somewhat confusing to students. 2. These are the three key questions workers evaluate in a company’s attempt to use expectancy theory. Probability of success is very important to workers. Think of the following scenario for a moment; if the following grade scale is set for a course, what would be expected student attitudes? A 96-98 B 95-92 C 91-89 D BELOW 89 F Students may feel it’s virtually impossible to get a good grade. Likelihood of performance leading to the reward. If I announced to my classes that no one has ever attained a grade of A in my introduction to business class for the past 20 years, what would students feel about their chances? How much value is placed on the outcome? Think of the football tickets mentioned earlier or consider a student that feels grades mean nothing to future success. Do you think this person would strive to attain an “A” for the course? Businesses of course are faced with the same challenges and questions as described above. Ask students how managers can solve some of these problems and still be able to motivate workers.

Valence is the value or importance a worker assigns to the possible outcome or reward For motivation to be high, employees need to score high on all three elements Managers should ask the following questions when they are trying to motivate employees -what are the job objectives and the performance level desired? -are rewards linked to performance? -do employees believe you will deliver the right rewards for the right performance?

3. Goal setting theory suggests that employees can be motivated by goals that are specific and challenging, but achievable Managers can motivate by setting the right goals in the right ways Goals should be SMART - Specific, Measurable, Attainable, Results-oriented, and have Target dates

12.4 Job Design Perspectives On Motivation

SHOULD FIRMS FIT PEOPLE TO JOBS, OR JOBS TO PEOPLE? Job design is the division of an organization’s work among its employees and the application of motivational theories to jobs to increase satisfaction and performance Traditionally, people were fitted to jobs, today, many companies fit jobs to people

SHOULD FIRMS FIT PEOPLE TO JOBS, OR JOBS TO PEOPLE? In companies that fit people to jobs, the challenge then, is to make the worker compatible with the work To do this, firms may use job simplification where the number of tasks a worker performs is reduced to improve productivity

In companies where jobs are fitted to people, the challenge is to make the work compatible to workers so that performance and job satisfaction rise Two techniques for doing this are job enlargement and job enrichment Job enlargement consists of increasing the number of tasks in a job to increase variety and motivation Job enrichment consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement

CLASSROOM PERFORMANCE SYSTEM Increasing the number of tasks in a job to increase variety and motivation is A) job design B) job simplification C) job enlargement D) job enrichment The answer is C.

The Job Characteristics Model

The job characteristics model consists of five core job characteristics that affect three critical psychological states of an employee that in turn affect work outcomes - the employee’s motivation, performance, and satisfaction The five core characteristics are: -skill variety - the extent to which a job requires a person to use a wide range of different skills and abilities -task identity - the extent to which a job requires a worker to perform all the tasks needed to complete the job from beginning to end

-task significance - the extent to which a job affects the lives of other people, whether inside or outside the organization -autonomy - the extent to which a job allows an employee to make choices about scheduling different tasks and deciding how to perform them -feedback - the extent to which workers receive clear, direct information about how well they are performing the job

Figure 12.8: The Job Characteristics Model

HOW DOES THE MODEL WORK? High motivation, high performance, high satisfaction, and low absenteeism and turnover are associated with how much workers feel they are doing meaningful work, whether they feel they are responsible for the outcomes of the work, and whether they have knowledge of the results of the work When using the model, managers need to: -diagnose the work environment to see whether a problem exists -determine whether job redesign is appropriate -consider how to redesign the job

12.5 Reinforcement Perspectives On Motivation
WHAT INCENTIVES INFLUENCE BEHAVIOR? Reinforcement theory attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated When reinforcement theory is used to change human behavior, it is called behavior modification

Reinforcement is anything that causes a given behavior to be repeated or inhibited There are four types of reinforcement: 1. The use of positive consequences to encourage desirable behavior is called positive reinforcement 2. The removal of unpleasant consequences following a desired behavior is called negative reinforcement 3. The withholding or withdrawal of positive rewards for desirable behavior, so that the behavior is less likely to occur in the future is called extinction 4. The application of negative consequences to stop or change undesirable behavior is called punishment

Figure: 12.9: Four Types of Reinforcement

When using positive reinforcement or punishment, managers should: Reward only desirable behavior Give rewards as soon as possible Be clear about what behavior is desired Have different rewards and recognize individual differences Punish only undesirable behavior Give reprimands or disciplinary actions as soon as possible Be clear about what behavior is undesirable Administer punishment in private Combine punishment and positive reinforcement

12.6 Using Compensation & Other Rewards To Motivate
HOW CAN FIRMS USE COMPENSATION AND OTHER REWARDS TO MOTIVATE? Wages or salaries are usually not enough to motivate people to work hard, so many companies offer incentives as well Good incentive plans: -link measurable rewards to performance -use rewards that satisfy individual needs -offer rewards that have been agreed on by managers and employees -have believable and achievable rewards

Some popular incentive plans are: -pay for performance - pay is based on results using piece rates -sales commissions - pay is based on a percentage of the earnings made by sales -bonuses - cash awards given to employees who achieve specific performance objectives -profit sharing - the distribution to employees of a percentage of the company’s profits -gainsharing - the distribution of savings or gains to groups of employees who reduced costs and increased measurable productivity -stock options - certain employees are given the right to buy stock at a future date for a discounted price -pay for knowledge - employee pay is tied to the number of job relevant skills or academic degrees they earn

CLASSROOM PERFORMANCE SYSTEM An incentive plan in which cash awards are given to employees who achieve specific performance objectives is called A) pay for performance B) profit sharing C) bonuses D) gainsharing The answer is C.

HOW CAN FIRMS USE NONMONETARY REWARDS TO MOTIVATE EMPLOYEES? Organizations need to be sure that: -employees have a balance between work and life -employees can expand their skill set -employees feel valuable

The most common non-monetary incentive is the flexible workplace Companies need to offer employees a means of balancing their work and their personal lives Companies need to create a work environment that is conducive to productivity Companies can help employees build their skills by developing “shadowing” programs and offering tuition reimbursement Offering sabbaticals to long-term employees gives people a change to recharge themselves

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