1. Motivation Class 19 Thursday 11/1/11

2. The Nature of Human Relations What motivates employees to perform on the job is the focus of human relations –The study of the behavior of individuals and groups in organizational settings Motivation –The inner drive that directs a person ’ s behavior toward goals Morale –An employee ’ s attitude toward his or her job, employer, and colleagues

3. Companies Giving Employees Incentives to Improve Productivity

4. Employee Attitudes Toward Incentives

5. Historical Perspectives on Employee Motivation Classical Theory of Motivation –Money is the sole motivator for workers The Hawthorne Studies –Productivity increased regardless of the physical conditions in the workplace—such as light and noise levels

6. Maslow’s Hierarchy of Needs Source: adapted from Abraham H. Maslow, “ A Theory of Human Motivation, ” Psychology Review 50 (1943): 370-396. Self- Actualization Needs Esteem Needs Social Needs Security Needs Physiological Needs

7. Content Motivation Theory: Aldefer’s ERG Theory Groups Maslow ’ s into three categories: E xistence R elatedness G rowth Self- Actualization Needs Esteem Needs Social Needs Security Needs Physiological Needs Existence Relatedness Growth

8. Aldefer’s ERG Theory An employee’s behavior is motivated simultaneously by more than one need level. Therefore, you may satisfy a Growth need, while your Relatedness needs aren’t completely satisfied. ERG includes a frustration-regression process that accounts one’s inability to satisfy a higher need becomes frustrated and regresses to the next lower level

9. Content Motivation Theory: McClelland’s Manifest Needs Achievement – people with high need for achievement –Personal responsibility, goal-oriented, challenge, work hard –Motivated by non-routine, variety, clear goals –Avoid both low-risk and high-risk situations Power – people who need personal & institutional power –Control situations and others, competition and winning, authority and status –Motivated by control, whole task, not team Affiliation – people need harmonious relationships –Relationships, want to be liked, to belong –Motivated by teams, teaching, praise

10. Herzberg’s Two-Factor Theory Hygiene Factors –Company policies –Supervision –Working conditions –Salary –Security Motivational Factors –Achievement –Recognition –The work itself –Responsibility –Advancement

11. Herzberg’s Two-Factor Theory A two step approach toward understanding employee motivation and satisfaction

12. McGregor’s Theory X and Theory Y Theory X –Management view that assumes workers generally dislike work and must be forced to do their jobs Theory Y –Management view that assumes workers like to work and under proper conditions, employees will seek responsibility to satisfy social, esteem, and self- actualization needs

13. Deming’s Theories  We are all born with intrinsic motivation, self- esteem, dignity, an eagerness to learn. Our present system of management crushes that all out.  Instead of working for the company, people compete with each other.  The Japanese are more successful than the U.S. because they live by cooperation, not competition.  American firms will have to learn to support each other, rather than continue with the everybody for himself approach. That ’ s how business should be.

14. Theory Z A management philosophy that stresses employee participation in all aspects of company decision making A Japanese consensus management style based on assumptions that: –Employees want cooperative relationships with employers –To be successful, require high degree of support (job security, job training ad rotation) –Value family life, culture, traditions –Have well developed sense of dedication, self-discipline, moral obligations –Make collective decisions through conensus

15. Comparison of American, Japanese, and Theory Z Management Styles

16. Variations on Theory Z Quality circles Participative management Employee involvement Self-directed work teams Did You Know? Theory Z lets employees feel organizational ownership, which may produce positive attitudinal and behavioral effects for employees.

17. Process Motivation Theory: Victor Vroom’s Expectancy Theory Motivation = Expectancy x Valence Expectancy: Perception of the likelihood of completing the task Valence : Value of the possible outcome or consequence of completing the task (reward vs. detriment) The ultimate goal doesn’t matter – the important factor is the impact that achieving the goal will have on the individual

18. Process Motivation Theory: Adam’s Equity Theory Perceived fairness of inputs/outputs – Inputs Effort, experience, seniority, intelligence – Outputs Praise, promotions, recognition Explains why pay and work conditions alone don’t determine motivation

19. Reinforcement Theory Skinner : Stimulus, Response, Consequences Focus on results over time Reinforcement –Positive (best motivator) –Avoidance/Negative (rules) –Extinction (withholding positive) –Punishment

20. Schedule of Reinforcement Continuous (every time) Intermittent –Interval (passage of time) Fixed (paycheck) Variable (bonus) –Ratio (output) Fixed Variable Variable Ratio best for sustaining behavior

21. Job Design Strategies Job Rotation –Exposes employees to a variety of tasks as they move from one job to another Job Enlargement –Teaches employees new tasks in their present job Job Enrichment –Gives employees more control and authority in their present job, along with additional tasks Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

22. Job Enrichment Theory Redesigning a job to increase its motivational potential –Enriched job = vertically loaded –Enlarged job = horizontally loaded

23. Flexible Scheduling Strategies Flextime Compressed work week Job sharing Telecommuting Source: Jim Owen, “ In Pursuit of Job Sharing, ” from http://usatoday.com/careers/features/feat009.htm (accessed June 8, 2001).http://usatoday.com/careers/features/feat009.htm Did You Know? 59% of companies with more than 5000 workers allow job-sharing.

24. The Importance of Motivational Strategies Fosters employee loyalty Boosts productivity Affects all relationships within the organization Influences promotion, pay, job design, training, and reporting relationships

25. Employee’s Definitions of Success Being trusted to get a job done Having power to make decisions Getting raises Getting promotions Gaining seniority Having the power to make decisions that affect the company 91% 81% 74% 66% 58% Source: Survey of 2,000 adults by Randstad North America, Atlanta as reported ;in Kemba J. Dunham, “ The Jungle/Focus on Recruitment, Pay and Getting Ahead, ” Wall Street Journal, May 23, 2001, p. B12.