Ch 11-Slides

Chapter 11
Motivating
Employees
Microsoft clip art photos reprinted with permission from Microsoft Corporation.

Copyright © Houghton Mifflin Company. All rights reserved. 11 | 2
Chapter Objectives
1. Explain the motivational lessons taught by
Maslow and Herzberg.
2. Explain how job enrichment can be used to
enhance the motivating potential of jobs, and
describe the motivational processes in
expectancy and goal-setting theory.
3. Distinguish extrinsic reward from intrinsic
rewards and list four rules for administering
extrinsic rewards effectively.

Chapter Objectives (cont’d)
4. Explain how open-book management and
self-managed teams promote employee
participation.
5. Discuss how companies are striving to
motivate employees with quality-of-work life
programs.

Motivation Theories
• Motivation
– The psychological process that
gives behavior purpose and
direction.
• Theories of Motivation
– There are dozens of different
theories of motivation.
– Two of the most influential are:
• Maslow’s needs hierarchy theory
• Herzberg’s two-factor theory

Figure 11.1 Individual Motivation
and Job Performance

Motivation Theories (cont’d)
• Maslow’s Needs Hierarchy Theory
– People have needs, and when one need is relatively
fulfilled, other emerge in predictable sequence to take
its place.
• Maslow’s hierarchy of needs:
– Physiological needs: food, water, sleep, and sex.
– Safety needs: safety from the elements and enemies.
– Love needs: desire for love, affection, and belonging.
– Esteem needs: self-perception as a worthwhile
person.
– Self-actualization: becoming all that one can become.

Source: Data for diagram drawn from A. H. Maslow, “A Theory of Human Motivation,” Psychological Review, 50 (July 1943): 370-396.
Figure 11.2 Maslow’s Hierarchy
of Needs Theory

The Self-Actualizing Manager
– Has warmth, closeness, and sympathy.
– Recognizes and shares negative
information and feelings.
– Exhibits trust, openness, and candor.
– Does not achieve goals by power,
deception, or manipulation.
– Does not project own feelings,
motivations, or blame onto others.
– Does not limit horizons; uses and
develops body, mind, and
senses.
– Is not rationalistic; can think in
unconventional ways.
– Is not conforming; regulates behavior
from within.

• Relevance of Maslow’s Theory for Managers
– Beyond physical and safety needs, which higher
order need will emerge cannot be predicted.
– A fulfilled need does not motivate an individual.
– Effective managers can anticipate emerging needs
based on individual need profiles and provide
opportunities for fulfillment.
– The esteem level of needs satisfied by jobs and
recognition provides managers with the greatest
opportunity to motivate better performance.

• Herzberg’s Two-Factor Theory
– A theory of motivation based on job satisfaction.
• A satisfied employee is motivated from within to work
harder.
• A dissatisfied worker is not self-motivated to work.
• Conclusion: Enriched jobs are the key to self-motivation.
– Dissatisfiers: factors associated with the job
context or work environment.
– Satisfiers: factors associated with the nature of the
task itself (job content).

• Implications of Herzberg’s Theory
– Satisfaction is not the opposite of dissatisfaction.
– There is a need to think carefully about what
motivates employees.
• Meaningful, interesting, and challenging (enriched) work is
needed to satisfy and motivate employees.
– Problems with Herzberg’s theory
• Assumption of job performance improving with satisfaction
is weakly, at best, supported.
• One person’s dissatisfier is another person’s satisfier.

• Job Enrichment Theory
– Redesigning jobs should increase
their motivational potential
• A better fit between persons and
their jobs should foster both high
work productivity and a high-quality
experience for the people who do
the work.
• Vertical loading (introducing planning
and decision-making responsibility)
increases the challenge of work
(complexity and job depth) and
reverses the effects of
overspecialization.
• Job enrichment works best for
individuals who have a desire for
personal growth.

Motivation Through Job Design (cont’d)
• Five Core Dimensions of Work
– Skill variety: the variety of activities required in
carrying out the work.
– Task identity: the completion of a “whole” and
identifiable piece of work.
– Task significance: how substantial an impact the job
has on the lives of other people.
– Autonomy: the freedom, independence, and
discretion that one has to do the job.
– Job feedback: how much performance feedback the
job provides to the worker.

Source: J. Richard Hackman and Greg R. Oldham, Work Redesign, (figure 4.6). © 1980.
Reprinted by permission of Pearson Education, Inc., Upper Saddle River, New Jersey.
Figure 11.3 How Job
Enrichment Works

Motivation Through Design (cont’d)
• Factors that Impede Job Enrichment
– Fear of failure
– Lack of confidence
– Lack of trust
• Factors that Support Job Enrichment
– Carefully thought out implementation of enrichment
– Management’s commitment to the long-term success
of enrichment
– Employees who desire additional challenge

• Expectancy Theory (Vroom)
– A model that assumes motivational strength is
determined by perceived probabilities of success.
• Expectancy: one’s subjective belief or expectation that
one thing will lead to another.
• A Basic Expectancy Model
– One’s motivational strength increases as one’s
perceived effort-performance and performance-
reward probabilities increase the likelihood of
obtaining a valued reward.

Figure 11.4
A Basic Expectancy Model

• Relevance of Expectancy Theory for Managers
– Employee expectations can be influenced by
managerial actions and organizational experience.
– Training increases employee confidence in their
efforts to perform.
– Listening provides managers with insights into
employees’ perceived performance-reward
probabilities.

• Goal-Setting Theory
– Goal setting: the process of
improving performance with
objectives, deadlines, or quality
standards.
• A General Goal-Setting Model
– Properly conceived goals trigger a
motivational process that
improves performance.

Figure 11.5 A Model of
How Goals Can Improve Performance

• Personal Ownership of Challenging Goals
– Characteristics of effective goals:
• Specificity makes goals measurable.
• Difficulty makes goals challenging.
• Participation gives personal ownership of the goal.
• How Do Goals Actually Motivate?
– Goals are exercises in selective perception.
– Goals encourage effort to achieve something
specific.
– Goals encourage persistent effort.
– Goals foster creation of strategies and action plans.

• Practical Implications of Goal-Setting Theory
– The developed ability to effectively set goals can be
transferred readily to any performance environments.

Motivation Through Rewards
• Extrinsic Rewards
– Payoffs (external) granted to the individual by others
• Money, employee benefits, promotions, recognition, status
symbols, and praise.
• Intrinsic Rewards
– Self-granted and internally experienced payoffs
• Sense of accomplishment, self-esteem, and self-
actualization.

Motivation Through Rewards (cont’d)
• Improving Performance with
Extrinsic Rewards
– Rewards must satisfy individual
needs.
• Cafeteria compensation: a plan
that allows employees to select
their own mix of benefits.
– Employees must believe that effort
will lead to an attainable reward.
– Rewards must be personally and
socially equitable.
– Rewards must be linked to
performance (results) such that
desired behaviors are encouraged.

Figure 11.6
Personal and Social Equity

Figure 11.6
Personal and Social Equity (cont’d)

Motivation Through
Employee Participation
• Participative Management
– The process of empowering employees to assume
greater control of the workplace.
• Setting goals
• Making decisions
• Solving problems
• Designing and implementing organizational changes
– Two approaches to participation
• Open-book management
• Self-managed teams

Motivation Through
Employee Participation (cont’d)
• Open-Book Management (OBM)
– Sharing a company’s key financial data
and statements with all employees and
providing the education that will enable
them to understand how the company
makes money and how their actions
affect its success and bottom line.
– Benefits of OBM:
• Displays a high degree of trust in
employees.
• Creates strong commitment to
employee training.
• Teaches patience when waiting for
results.

Source: Based on Raj Aggarwal and Betty J. Simkins, “Open Book Management– Optimizing Human Capital,”
Business Horizons, 44 (September-October 2001): 5-13.
Figure 11.7 The Four S.T.E.P.
Approach to Open-Book Management

Motivation through
• The STEP approach to Open-Book Management
(OBM)
– Step 1: Exposure to financial data.
– Step 2: Training employees in the business model.
– Step 3: Empowering employees to make decisions.
– Step 4: Sharing in profits, bonuses, and incentive
compensation.

Motivation through
• Self-Managed Teams
– Teams of 5 to 30 employees (with assigned
membership) that assume traditional managerial
duties such as staffing and planning as part of their
normal work routine.
• Also known as autonomous work groups and high
performance teams.
• Operating with minimal supervision, the team’s self-
management and cross-training fosters creativity,
motivation, and productivity.

Motivation Through
• Vertically Loaded Jobs
– Team members’ jobs become vertically loaded
when nonmanagerial team members assume
duties traditionally performed by managers.
– The concept is new to the workplace and is not
widespread.
• Managerial Resistance
– Traditional authoritarian supervisors view
autonomous teams as a threat to their authority
and job security.

Keys to Successful
Employee Participation Programs
• Building Employee Support for Participation
– A profit-sharing or gain-sharing plan.
– A long-term employment relationship with good
job security.
– A concerted effort to build and maintain group
cohesiveness.
– Protection of individual employee’s rights.
• Participation Effects
– Participation affects both satisfaction and
productivity; its effect is stronger on satisfaction.

Motivation Through
Quality-of-Worklife Programs
• Flexible Work Schedules
– Flextime: a work schedule that allow employees to
choose their own arrival and departure times within
specified limits (core time).
– Benefits
• Better employee-supervisor relations.
• Reduced absenteeism.
• Selective positive impact on job performance (improves
productivity for some jobs, but not for others).

Figure 11.8
Flextime in Action

Motivation Through
Quality-of-Worklife Programs (cont’d)
• Alternative Work Schedules
– Compressed workweeks: 40 or more hours in less
than five days.
– Permanent part-time: work weeks with fewer than
40 hours.
– Job sharing: complementary scheduling that allows
two or more part-timers to share a single full-time job.

Motivation Through
• Family Support Services
– Family Medical Leave Act (FMLA)
• Requires employers to provide up to 12 weeks of unpaid
leave per year for family events.
• Covers only employers with 50 or more employees.
• Employees can be required to exhaust sick and vacation
leave first.
– Other services
• On-site child and elder care facilities
• Emergency child care

Motivation Through
• Wellness Programs
– Employer-provided programs to help employees
cope with stress and burnout.
• Stress reduction, healthy eating and living clinics, quit-
smoking and weight-loss programs, exercise facilities,
massage breaks, behavioral health counseling , and
health screenings.
• Sabbaticals
– Giving long-term employees extended periods of
paid time off to refresh themselves and bolster their
motivation and loyalty.

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