Chapter Twelve

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Chapter TwelveMotivating and Satisfying

Employees and Teams

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PRIDE HUGHES KAPOOR

INTRODUCTION TOBUSINESS

ELEVENTH EDITION


Learning Objectives

1. Explain what motivation is.

2. Understand some major historical perspectives on motivation.

3. Describe three contemporary views of motivation: equity theory, expectancy theory, and goal-setting theory.

4. Explain several techniques for increasing employee motivation.

5. Understand the types, development, and uses of teams.

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What Is Motivation?

The individual internal process that energizes, directs, and sustains behavior; the personal “force” that causes us to behave in a particular way

Morale• An employee’s feelings about his or her job, superiors, and

about the firm itself• High morale results from the satisfaction of needs or as a

result of the job and leads to dedication, loyalty, and the desire to do the job well

• Low morale leads to shoddy work, absenteeism, and high turnover rates

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The Ten Best Companies to Work For

Source: “Top 100 Companies to Work For,” Fortune, February 8, 2010, pp. 75-77.

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Table 12.1


Historical Perspectives on Motivation

Scientific Management• The application of scientific principles to

management of work and workers• Frederick W. Taylor

- Observed workers who “soldiered” or worked slowly who feared losing their jobs if there were no work

- Job should be broken into separate tasks- Management determines the best way and the

expected output- Management chooses and trains the best-suited person- Management cooperates with workers- Piece-rate system (pay per unit of output) is based on the

belief that people work only for money

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Taylor’s Piece-Rate System

Workers who exceeded their quota were rewarded by being paid at a higher rate per piece for all the pieces they produced

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Figure 12.1


Historical Perspectives on Motivation (cont’d)

The Hawthorne Studies• Objective: to determine the effects of the work environment

on employee productivity• 1st experiment: productivity increased for both the

experimental and control groups after lighting was varied in the workplace

• 2nd experiment: workers under a piece-rate system produced at constant rates

• Conclusions: human factors were responsible- Workers had a sense of involvement by participating in

the experiment- Groups influenced output through workers’ desire for acceptance

• Human relations movement- Employees who are happy and satisfied are motivated to

perform better

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Maslow’s Hierarchy of Needs• A sequence of human needs in the order of

their importance- Physiological needs—survival- Safety needs—physical and emotional safety- Social needs—love and affection and a sense of belonging- Esteem needs—respect, recognition, and a sense of our own

accomplishment and worth- Self-actualization needs—to grow and develop and become

all that we are capable of being

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Maslow’s Hierarchy of Needs

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Figure 12.2



Herzberg’s Motivation-Hygiene Theory• Satisfaction and dissatisfaction are separate and

distinct dimensions• Motivation factors

- Job factors that increase motivation but whose absence does not necessarily result in dissatisfaction

• Hygiene factors- Job factors that reduce dissatisfaction when present to

an acceptable degree but that do not necessarily result in higher levels of motivation

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Herzberg’s Motivation-Hygiene Theory

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Figure 12.3



Douglas McGregor• Sets of assumptions about managerial attitudes and

beliefs regarding worker behavior Theory X

• Generally consistent with Taylor’s scientific management• Employees dislike work and will function only in a

controlled work environment Theory Y

• Generally consistent with the human relations movement• Employees accept responsibility and work toward

organizational goals if they will also achieve personal rewards

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Theory X and Theory Y

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Table 12.2



Theory Z• Some middle ground between Ouchi’s Type A

(American) and Type J (Japanese) practices is best for American business

• Emphasis is on participative decision making with a view of the organization as a family

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The Features of Theory Z

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Figure 12.4



Reinforcement Theory• Behavior that is rewarded is likely to be repeated, whereas

behavior that is punished is less likely to recur- Reinforcement: an action that follows directly from a

particular behavior- Types of reinforcement

- Positive reinforcement: strengthens desired behavior by providing a reward

- Negative reinforcement: strengthens desired behavior by eliminating an undesirable task or situation

- Punishment: an undesired consequence of undesirable behavior

- Extinction: no response to undesirable behavior in order to discourage its occurrence

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Contemporary Views on Motivation

Equity Theory• People are motivated to obtain and preserve equitable

treatment for themselves• Equity: the distribution of rewards in direct proportion to

the contribution of each employee to the organization• Workers compare their own input-to-outcome (reward)

ratios to their perception of others’• Workers who perceive an inequity may

- Decrease their inputs- Try to increase outcome (ask for a raise)- Try to get the comparison other to increase inputs or receive

decreased outcomes- Leave the work situation (quit)- Switch to a different comparison other

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Contemporary Views on Motivation (cont’d)

Expectancy Theory (Victor Vroom)• Motivation depends on how much we want

something and on how likely we think we are to get it

• Implies that managers must recognize that- Employees work for a variety of reasons- The reasons, or expected outcomes, may change

over time- It is necessary to show employees how they can

attain the outcomes they desire

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Expectancy Theory

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Figure 12.5


Contemporary Views on Motivation (cont’d)

Goal-Setting Theory• Employees are motivated to achieve goals they and

their managers establish together• Goals should be very specific, moderately difficult,

and ones that the employee will be committed to achieve

• Rewards should be tied directly to goals achievement

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How Does Your Employer Motivate Workers?

Source: Dice Salary survey of 16,908 technology workers, USA Today, February 22, 2010, p. 1B.

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Key Motivation Techniques

It takes more than a generous salary to motivate employees. Companies are trying to motivate employees by satisfying less tangible needs.• Simple, low or no cost approaches such as:

- Celebrate birthdays and other important events- Nominations for a formal award program- Support flexible work schedules- Publicly post thank you letters from customers

Sources: Texas A&M University Human Resources Department, http://wmployees.tamu.edu/docs/employment/classComp;/614recognitionIdeas.pdf; HRWorld, http://www.hrworld.com/features/25-employee-rewards/; Michigan Office of Great Workplace Development, http://www.michigan.gov/documents/firstgentlemen/50_242400_7.pdf.

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Key Motivation Techniques (cont’d)

Advantages• Motivates employees by

actively involving them• Improves communication• Makes employees feel like

an important part of the organization

• Periodic review enhances control

Disadvantages• Doesn’t work if the process

doesn’t begin at the top of the organization

• Can result in excessive paperwork

• Some managers assign goals instead of collaborating on creating them

• Goals should be quantifiable

Management by Objectives–managers and employees collaborate in setting goals, clarify employee roles

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Job enrichment• Provides employees with more variety and

responsibility in their jobs Job enlargement

• The expansion of a worker’s assignments to include additional but similar tasks

Job redesign• A type of job enrichment in which work is restructured

to cultivate the worker-job match

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Behavior modification• A systematic program of reinforcement to encourage

desirable behavior Steps in behavior modification

• Identify the target behavior to be changed• Measure existing levels of the behavior• Reward employees who exhibit the desired behavior• Measure the target behavior to check for

desired change- If no change, consider changing reward system- If change has occurred, maintain reinforcement

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Flextime• A system in which employees set their own work

hours within employer-determined limits• Typically, there are two bands of time

- Core time, when all employees are expected to be at work- Flexible time, when employees may choose whether to be

at work• Benefits

- Employees’ sense of independence and autonomy is motivating- Employees with enough time to deal with nonwork issues are

more productive and satisfied• Drawbacks

- Supervisors’ jobs are complicated by having employees who come and go at different times

- Employees without flextime may resent coworkers who have it

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Part-time work• Permanent employment in which individuals work less than

a standard work week• Disadvantage: often does not provide the benefits that

come with a full-time position Job sharing

• An arrangement whereby two people share one full-time position

• Companies can save on expenses by reducing benefits and avoiding employee turnover

• Employees gain flexibility but may lose benefits• Sharing can be difficult if work is not easily divisible or if

two people cannot work well together

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Telecommuting• Working at home all the time or for a portion

of the work week• Advantages

- Increased employee productivity- Lower real estate and travel costs- Reduced absenteeism and turnover- Increased work/life balance and improved morale- Access to additional labor pools

• Disadvantages- Feelings of isolation- Putting in longer hours- Distractions at home- Difficulty monitoring productivity

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Employee empowerment• Making employees more involved in their jobs by increasing

their participation in decision making• Management must be involved to set expectations,

communicate standards, institute periodic evaluations, guarantee follow-up

• Benefits- Increased job satisfaction- Improved job performance- Higher self-esteem- Increased organizational commitment

• Obstacles- Management resistance- Workers’ distrust of management- Insufficient training- Poor communication between management and employees

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Employee ownership• Employees own the company they work for by virtue

of being stockholders• Directly reward employees for success• Benefits

- Considerable employee incentive- Increased employee involvement and commitment

• Obstacles- Problems between management and employees can still

occur

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Teams and Teamwork

Teams• Two or more workers operating as a coordinated unit

to accomplish a specific task or goal• Types of teams

- Problem-Solving - Virtuoso - Self-Managed - Cross-Functional - Virtual

• Stages of team development - Forming- Storming- Norming- Performing- Adjourning

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Advantages and Disadvantages of Self-Managed Teams

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Figure 12.6


Teams and Teamwork (cont’d)

Roles within a team• Task-specialist role• Socio-emotional role• Dual role• Nonparticipant role

Team cohesiveness• For a team to be successful, members must

learn how to resolve and manage conflict

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Teams and Teamwork (cont’d)

Team conflict and how to resolve it• Middle ground resolution satisfies each party to

some extent

Benefits and limitations of teams• Reduces turnover and costs, increases production,

quality, customer service, job satisfaction• Reorganizing into teams can be stressful and time

consuming with no guarantee it will develop effectively

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Stages of Team Development

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Figure 12.7

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