Chapter 10 – Motivating Chapter 10 – Motivating Employees and Creating Employees and Creating

Self-Managed TeamsSelf-Managed Teams

Chapter 10 Learning GoalsChapter 10 Learning Goals

WhatWhat are the basic principles of Frederick are the basic principles of Frederick Taylor’s concept of scientific Taylor’s concept of scientific management?management?

What did Elton Mayo’s Hawthorne studies What did Elton Mayo’s Hawthorne studies reveal about worker motivation?reveal about worker motivation?

What is Maslow’s hierarchy of needs, and What is Maslow’s hierarchy of needs, and how do these needs relate to motivation?how do these needs relate to motivation?

How are McGregor’s Theories X and Y How are McGregor’s Theories X and Y used to explain worker motivation?used to explain worker motivation?

What are the basic components of What are the basic components of Herzberg’s motivator-hygiene theory?Herzberg’s motivator-hygiene theory?

Chapter 10 Learning Goals Chapter 10 Learning Goals (cont’d.)(cont’d.)

WhatWhat three contemporary theories on three contemporary theories on employee motivation offer insights into employee motivation offer insights into improving employee performance?improving employee performance?

How can managers redesign existing jobs How can managers redesign existing jobs to increase employee motivation and to increase employee motivation and performance?performance?

What different types of teams are being What different types of teams are being used in organizations today?used in organizations today?

What initiatives are organizations using What initiatives are organizations using today to motivate and retain employees?today to motivate and retain employees?

Motivating EmployeesMotivating Employees

Employees are a firms most Employees are a firms most important resource but also most important resource but also most difficult to managedifficult to manage

So, how can managers create a So, how can managers create a workplace that motivates employees workplace that motivates employees and allows them to perform at their and allows them to perform at their best?best?

Evolution of Motivation TheoryEvolution of Motivation Theory

1.1. Scientific Management Scientific Management

2. 2. Hawthorne StudiesHawthorne Studies

3. 3. Hierarchy of NeedsHierarchy of Needs

4. 4. Theories X and YTheories X and Y

5. 5. Motivator-Hygiene TheoryMotivator-Hygiene Theory

Scientific ManagementScientific Management Designed by Fredrick TaylorDesigned by Fredrick Taylor Assumes all people are motivated by Assumes all people are motivated by

economic meanseconomic means Based on 4 principlesBased on 4 principles

• Develop a scientific approach to each Develop a scientific approach to each job elementjob element

• Scientifically select, train, teach, & Scientifically select, train, teach, & develop employeesdevelop employees

• Encourage cooperation between workers Encourage cooperation between workers & managers& managers

• Divide work among workers & managers Divide work among workers & managers based on who is best suited for itbased on who is best suited for it

The Hawthorne StudiesThe Hawthorne Studies

Experimented with job design, length Experimented with job design, length of work day and week, break times, of work day and week, break times, and incentivesand incentives

Hawthorne EffectHawthorne Effect Social needs also play an important Social needs also play an important

role in employee motivationrole in employee motivation

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Based on universal human needsBased on universal human needs Individuals act to meet their unmet Individuals act to meet their unmet

needsneeds Managers try to create workplace Managers try to create workplace

that will increase the likelihood that that will increase the likelihood that employees will meet all of their employees will meet all of their needsneeds

If appealing to an already met need, If appealing to an already met need, it’s hard to motivate an employeeit’s hard to motivate an employee

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Physiological needs

Safety needs

Social needs

Esteemneeds

Self-actualization

needs

McGregor’s Theories X and YMcGregor’s Theories X and Y

2 contrasting sets of assumptions 2 contrasting sets of assumptions about human natureabout human nature• Theory X – pessimisticTheory X – pessimistic• Theory Y – optimisticTheory Y – optimistic

A manager’s view of human nature A manager’s view of human nature affects the way they motivate and affects the way they motivate and manage employeesmanage employees

McGregor believed Theory Y McGregor believed Theory Y explained most employeesexplained most employees

Herzberg’s Motivator-Hygiene Herzberg’s Motivator-Hygiene TheoryTheory

““What do people really want from their What do people really want from their work experience?”work experience?”• Motivating factors create job satisfactionMotivating factors create job satisfaction• Hygiene factors create job Hygiene factors create job

dissatisfactiondissatisfaction Proper management of hygiene factors Proper management of hygiene factors

can prevent dissatisfaction but cannot can prevent dissatisfaction but cannot provide motivationprovide motivation

Management needs to focus on job Management needs to focus on job satisfierssatisfiers

Contemporary Views of MotivationContemporary Views of Motivation

1.1. Expectancy TheoryExpectancy Theory

2.2. Equity TheoryEquity Theory

3.3. Goal Setting TheoryGoal Setting Theory

Expectancy TheoryExpectancy Theory

How motivated an employee is How motivated an employee is depends ondepends on• The link between effort & performanceThe link between effort & performance• The link between performance & The link between performance &

outcomeoutcome• The link between outcomes & individual The link between outcomes & individual

needsneeds

Equity TheoryEquity Theory Based on employees’ perception of Based on employees’ perception of

how fairly they are being treated and how fairly they are being treated and the rewards they are receivingthe rewards they are receiving

Outcomes-to-inputs ratio is Outcomes-to-inputs ratio is compared tocompared to• Past experience within the companyPast experience within the company• Past experience outside the companyPast experience outside the company• Others experience within the companyOthers experience within the company• Others experience outside the companyOthers experience outside the company

Equity Theory, cont.Equity Theory, cont.

Upward social comparison: Upward social comparison: comparing comparing oneself to another who is oneself to another who is better offbetter off on a on a particular attributeparticular attribute

frequently results in frequently results in decreaseddecreased satisfaction satisfaction

Downward social comparison: Downward social comparison: comparing comparing oneself to another who is oneself to another who is worse offworse off on a on a particular attributeparticular attribute

frequently results in frequently results in increasedincreased satisfaction satisfaction

Equity Theory, cont.Equity Theory, cont.

If employees perceive an inequity If employees perceive an inequity they will take actionthey will take action

Managers need to understand Managers need to understand employees’ perceptions and reduce employees’ perceptions and reduce concerns of inequityconcerns of inequity

Goal Setting TheoryGoal Setting Theory

Working toward a goal is primary Working toward a goal is primary source of motivationsource of motivation

3 components3 components• Specific goalsSpecific goals• Difficult goalsDifficult goals• FeedbackFeedback

Allow employees to participate in Allow employees to participate in goal setting processgoal setting process

Applying Motivational TheoryApplying Motivational Theory

Job DesignJob Design• Job enlargementJob enlargement• Job enrichmentJob enrichment• Job rotation or cross trainingJob rotation or cross training

Work ScheduleWork Schedule• Compressed work weekCompressed work week• FlextimeFlextime• Job sharingJob sharing• TelecommutingTelecommuting

Applying Motivational Theory, cont.Applying Motivational Theory, cont.

Recognition, Empowerment, & Recognition, Empowerment, & Economic IncentivesEconomic Incentives• Formal recognitionFormal recognition• Employee empowermentEmployee empowerment• Monetary incentivesMonetary incentives

Variable payVariable pay

Using TeamsUsing Teams Group BehaviorGroup Behavior

• SocializationSocialization• Group cohesivenessGroup cohesiveness

Interpersonal cohesiveness: Interpersonal cohesiveness: strong bonds & liking between people

Task cohesiveness:Task cohesiveness: strong commitment to the group task among members

Cohesiveness can increase team performance, but interpersonally cohesive teams may lack task focusSource: Kenrick et al., Social Psychology, p. 441.

Pros and Cons of TeamsPros and Cons of Teams

Cons:Cons: take longer to reach take longer to reach

solutionsolution members may members may

suppress suppress disagreementdisagreement

group may be group may be dominated by a few dominated by a few individualsindividuals

lack of accountability lack of accountability

Pros:Pros: more information &

knowledge can generate more

alternatives often higher-quality

decisions group participation

increases acceptance of solutions

Using Teams, cont.Using Teams, cont.

Work Groups –vs- Work TeamsWork Groups –vs- Work Teams• Work teams create synergyWork teams create synergy

Types of teamsTypes of teams• Problem solvingProblem solving• Self managedSelf managed• Cross functionalCross functional• VirtualVirtual

Building Blocks of High Building Blocks of High Performance TeamsPerformance Teams

1. Skills of team 1. Skills of team membersmembers

2. Accountability2. Accountability

3. Commitment3. Commitment

Problem solvingProblem solving Technical/functionalTechnical/functional InterpersonalInterpersonal Small number of membersSmall number of members Mutual accountabilityMutual accountability Individual accountabilityIndividual accountability Specific goalsSpecific goals Common approachCommon approach Meaningful purposeMeaningful purpose

Trends in MotivationTrends in Motivation Education & Training OpportunitiesEducation & Training Opportunities

• Gives employees feelings of Gives employees feelings of competence and self-worthcompetence and self-worth

Employee OwnershipEmployee Ownership• Gives employees feelings of Gives employees feelings of

responsibility for performanceresponsibility for performance Work-Life BenefitsWork-Life Benefits

• Employees have less stress & are more Employees have less stress & are more focused and productivefocused and productive

ReviewReview• Motivation TheoriesMotivation Theories• Applying Motivational TheoriesApplying Motivational Theories

Job DesignJob Design Work Schedule OptionsWork Schedule Options Recognition, empowerment, economic Recognition, empowerment, economic

incentivesincentives

• TeamsTeams Groups vs TeamsGroups vs Teams Types of TeamsTypes of Teams High performance teamsHigh performance teams

• TrendsTrends Looking Ahead: Exam 4Looking Ahead: Exam 4