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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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    2008 Prentice Hall, Inc. All rights reserved. 103

    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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    2008 Prentice Hall, Inc. All rights reserved. 104

    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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    2008 Prentice Hall, Inc. All rights reserved. 108

    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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    2008 Prentice Hall, Inc. All rights reserved. 1010

    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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    2008 Prentice Hall, Inc. All rights reserved. 1019

    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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    2008 Prentice Hall, Inc. All rights reserved. 1022

    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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    2008 Prentice Hall, Inc. All rights reserved. 1024

    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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    2008 Prentice Hall, Inc. All rights reserved. 1025

    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.


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