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PowerPoint Presentation by Charlie CookThe University of West Alabama
Fundamentals of ManagementSixth Edition
Robbins and DeCenzowith contributions from Henry Moon
C H A P T E R
10Part IV: Leading
2008 Prentice Hall, Inc.All rights reserved.
Motivating and Rewarding
Employees
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L E A R N I N G O U T C O M E S
1. Describe the motivation process.
2. Define needs.
3. Explain the hierarchy of needs theory.
4. Differentiate Theory X from Theory Y.5. Explain the motivational implications of the motivation-
hygiene theory.
6. Describe the motivational implications of equity theory.
7. Explain the key relationships in expectancy theory.
8. Describe how managers can design individual jobs to
maximize employee performance.
After reading this chapter, you will be able to:
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L E A R N I N G O U T C O M E S (contd)
9. Explain the effect of workforce diversity on
motivational practices.
10. Describe how entrepreneurs motivate their
employees.
After reading this chapter, you will be able to:
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Motivation and Individual Needs
Motivation
The willingness to exert high levels of effort to reach
organizational goals, conditioned by the efforts
ability to satisfy some individual need
NeedAn internal state that makes certain outcomes
appear attractive
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Components of Motivation
Organizational
Goals
Needs
Motivation
Effort
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EXHIBIT 101 The Motivation Process
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Early Theories Of Motivation
Hierarchy of Needs Theory (Maslow)
There is a hierarchy of five human needs; as each
need becomes satisfied, the next need becomes
dominant.
Physiological: food, drink, shelter, sex Safety: physical safety
Social: affiliation with others, affection, friendship
Esteem: Internal (self-respect, autonomy, and achievement);
external (status, recognition, and attention)
Self-actualization: personal growth and fulfillment
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EXHIBIT 102 Maslows Hierarchy of Needs
Source: Motivation and Personality, 2nd ed., by A. H. Maslow, 1970.
Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey.
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Early Theories Of Motivation (contd)
Theory X (McGregor)
The assumption that employees dislike work, are
lazy, seek to avoid responsibility, and must be
coerced to perform.
Theory Y The assumption that employees are creative, seek
responsibility, and can exercise self-direction.
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EXHIBIT 103 Theory X and Theory Y Premises
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Early Theories Of Motivation (contd)
Motivation-Hygiene Theory (Herzberg)
Intrinsic factors are related to job satisfaction and
extrinsic factors are related to job dissatisfaction.
Hygiene factors
Factors, such as working conditions and salary, that, when
adequate, may eliminate job dissatisfaction but do not
necessarily increase job satisfaction.
Motivators
Factors, such as recognition and growth, that can increase
job satisfaction.
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EXHIBIT 104 Herzbergs Motivation-Hygiene Theory
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EXHIBIT 105 Contrasting Views of Satisfaction-Dissatisfaction
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Contemporary Theories Of Motivation
Three-Needs Theory (McClelland)
The needs for achievement, power, and affiliation
are major motives in work.
1. Need for achievement (nAch)
The drive to excel, to achieve in relation to a set of
standards, to strive to succeed.2. Need for power (nPow)
The need to make others behave in a way that they
would not have behaved otherwise.
3. Need for affiliation (nAff)
The desire for friendly and close interpersonal
relationships.
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Contemporary Theories
Equity Theory (Adams)
Employees perceive what they get from a job
situation (outcomes) in relation to what they put into
it (inputs) and then compare their input-outcome ratio
with the input-outcome ratios of relevant others.
Referent
Is, in equity theory, the other persons, the systems,
or the personal experiences against which
individuals compare themselves to assess equity.
The choice of a particular set of referents is related to the
information available about referents as well as to the
perceived relevance.
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EXHIBIT 106 Equity Theory Relationships
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Equity Theory: Individual Judgments
When employees perceive an inequity they
may:
Distort either their own or others inputs or outcomes.
Behave so as to induce others to change their inputs
or outcomes.
Behave so as to change their own inputs or
outcomes.
Choose a different comparison referent.
Quit their job.
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EXHIBIT 107 Equity Theory Propositions
1. If paid according to time, overrewarded employees willproduce more than equitably paid employees.
2. If paid according to quantity of production,
overrewarded employees will produce fewer but
higher-quality units than equitably paid employees.
3. If paid according to time, underrewarded employees
will produce less or poorer quality output.
4. If paid according to quantity of production,
underrewarded employees will produce a large
number of low-quality units in comparison with
equitably paid employees.
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Job Design And Motivation
Job Characteristics Model (JCM)
Hackman and Oldhams job description model:
The five core job dimensions are skill variety, task identity,
task significance, autonomy, and feedback.
Internal rewards are obtained when:An employee learns (knowledge of results) through
(feedback) that he or she personally (experienced
responsibility through autonomy of work) has performed well
on a task that he or she cares about (experienced
meaningfulness through skill variety, task identity, and/or
task significance).
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JCM: Core Job Dimensions
Skill variety
The degree to which the job requires a variety of
activities so the worker can use a number of different
skills and talents
Task identity
The degree to which the job requires completion of a
whole and identifiable piece of work
Task significance
The degree to which the job affects the lives or workof other people
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JCM: Core Job Dimensions (contd)
Autonomy
The degree to which the job provides freedom,
independence, and discretion to the individual in
scheduling the work and in determining the
procedures to be used in carrying it out
Feedback
The degree to which carrying out the work activities
required by the job results in the individuals
obtaining direct and clear information about the
effectiveness of his or her performance
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EXHIBIT 108 The Job Characteristics Model
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EXHIBIT 109 Guidelines for Job Redesign
Source: J. R. Hackman and J. L. Suttle, eds., Improving Life at Work
(Glenview. IL: Scott, Foresman, 1977). With permission of the authors.
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Expectancy Theory (Vroom)
An individual tends to act in a certain way, in
the expectation that the act will be followed by
given outcome, and according to the
attractiveness of that outcome to the individual.
The extent to which individuals are motivated toperform to get a reward of value to them is based on
their belief that their performance will result in the
reward they want.
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Expectancy Theory (contd)
Emphasizes self interest in the alignment of
rewards with employee wants.
Addresses why employees view certain
outcomes (rewards) as attractive or
unattractive.
Emphasizes the connections among expected
behaviors, rewards, and organizational goals.
Is concerned with individual perceptions andthe provision of feedback.
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Expectancy Relationships (Linkages)
EffortPerformance
The perceived probability that exerting a given
amount of effort will lead to performance
PerformanceReward
The belief that performing at a particular level willlead to the attainment of a desired outcome
Attractiveness
The importance placed on the potential outcome or
reward that can be achieved on the job.
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EXHIBIT 1010 Simplified Expectancy Theory
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EXHIBIT 1011 Integrating Theories of Motivation
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Steps in Motivating Employees
1. Recognize individual differences.
2. Match people to jobs.
3. Use goals.
4. Ensure that goals are perceived as attainable.5. Individualize rewards.
6. Link rewards to performance.
7. Check the system for equity.
8. Dont ignore money.
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Contemporary Issues in Motivation
Flexibility: The Key To Motivating A Diverse
Workforce
Recognizing the different personal needs and goals
of individuals.
Providing a diversity of rewards to match the variedneeds of employees.
Being flexible in accommodating the cultural
differences within a diverse workforce when
attempting to motivate workers.
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Should Employees Be Paid for Performance
or Time on the Job?
Pay-for-Performance Programs
Compensation plans that pay employees on the
basis of performance measures not directly related
to time spent on the job. Piece-rate plans
Gainsharing
Wage-incentive
Profit sharing
Lump-sum bonuses
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Compensation Alternatives
Competency-
BasedCompensation
Stock
Options
Pay-for-Performance
Options
Broad-
Banding
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Motivating Other Employees
Minimum-Wage
Employees Use employee recognition
programs
Provide praise
Empower employees
Provide career
development opportunities
Professional and
Technical Employees Provide job challenge: new
assignments and projects
Provide support and
resources
Increase autonomy
Provide continuing
education opportunities
Provide recognition for
accomplishments
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Work-Life Balance
Flextime Telecommuting
Alternative Work
Schedules
Job Sharing
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How Entrepreneurs Motivate Employees
Entrepreneurs Motivate Employees By:
Allowing them to complete the whole job.
Having employees work together across
departments and functions in the organization.
Using participative decision making in which
employees provide input into decisions.
Delegating decisions and duties, turning over the
responsibility for carrying them out to employees.
Redesigning their jobs so they have discretion over
the way they do their work.