Motivating

MotivatingEmployees
Employeesand
and
Creating
CreatingSelf-Managed
Self-ManagedTeams
Teams
Chapter
10

THE
THEFUTURE
FUTUREOF
OFBUSINESS
BUSINESS
Gitman
Gitman&&McDaniel
McDaniel
55ththEdition
Edition

Prepared
Preparedby
by
Chapter 10

Deborah Baker
Deborah Baker
Texas
Texas ChristianUniversity
Christian University
 Learning Goals

1 What are the basic principles of Frederick Taylors

concept of scientific management?
2 What did Elton Mayos Hawthorne studies reveal about
worker motivation?
3 What is Maslows hierarchy of needs, and how do these
needs relate to employee motivation?
4 How are McGregors Theories X and Y and Ouchis
Theory Z used to explain worker motivation?
5 What are the basic components of Herzbergs
motivator-hygiene theory?
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 Learning Goals

6 What three contemporary theories on employee

motivation offer insights into improving employee
performance?
7 How can managers redesign existing jobs to increase
employee motivation and performance?
8 What different types of teams are being used in
organizations today?
9 What initiatives are organizations using today to
motivate and retain employees?
Chapter 10

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 1 Learning Goal 1

What
What are
are the
the basic
basic principles
principles of
of
Frederick
Frederick Taylors
Taylors concept
concept ofof
scientific
scientific management?
management?
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 1
Frederick Taylors Scientific Management

Basic
Basic Principles
Principles

1.
1. Develop
Develop aa scientific
scientific approach
approach for
for
each
each elements
elements of of aa persons
persons job.
job.
2.
2. Scientifically
Scientifically select,
select, train,
train, teach,
teach,
and
and develop
develop workers.
workers.
3.
3. Encourage
Encourage cooperation
cooperation between
between
workers
workers and
and managers.
managers.
4.
4. Divide
Divide work
work and
and responsibility
responsibility according
according to
to
who
who is
is better
better suited
suited to
to each
each task.
task.
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 2 Learning Goal 2

What did Elton Mayos

Hawthorne studies reveal
about worker motivation?
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 2 The Hawthorne Studies

Hawthorn The
Thephenomenon
phenomenon thatthat
Hawthorn
Effect employees
employees perform
perform better
better
Effect when
when theytheyfeel
feelsingled
singled
out
out for
forattention
attention
or
or feel
feel that
thatmanagement
management
is
isconcerned
concernedabout
about
their
theirwelfare.
welfare.
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 3 Learning Goal 3

What is Maslows hierarchy of needs,

and how do these needs relate
to employee motivation?
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 3 Maslows Hierarchy of Needs

Self-
Actualization

Esteem

Social

Safety

Physiological
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 4 Learning Goal 4

How are McGregors

Theories X and Y and
Ouchis Theory Z used to
explain worker motivation?
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 4 McGregors Theories X and Y
Theory
Theory XX

The average person dislikes work and will

avoid it if possible

People must be controlled, directed, or

threatened with punishment

The average person prefers to be directed,

avoids responsibility, is unambitious, and
wants security
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 4 McGregors Theories X and Y
Theory
Theory YY

Work is as natural as play or rest

Workers can be motivated using positive

incentives

The average person seeks out responsibility

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 4 Ouchis Theory Z
Theory
Theory ZZ

Emphasizes:

Long-term employment
Slow career development
Moderate specialization
Group decision making
Individual responsibility
Informal control over the employee
Concern for workers
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 5 Learning Goal 5

What
What are
are the
the basic
basic
components
components of of Herzbergs
Herzbergs
motivator-hygiene
motivator-hygiene theory?
theory?
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 5 Herzbergs Motivator-Hygiene Theory

Motivating
Motivating Factors
Factors Intrinsic
Intrinsicjob
jobelements
elements
(Job
(Jobsatisfiers)
satisfiers) that
thatlead
leadto
tosatisfaction
satisfaction

Hygiene
HygieneFactors
Factors Extrinsic
Extrinsic elements
elementsof
of
(Job
(Jobdissatisfiers)
dissatisfiers) the
thework
workenvironment
environment
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 5 Motivating and Hygiene Factors
Motivating
Motivating Hygiene
Hygiene
Factors
Factors Factors
Factors
Achievement Company policy
Recognition Supervision
Work itself Working conditions
Responsibility Interpersonal
Advancement relationships at work
Growth Salary and benefits
Job security
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 6 Learning Goal 6

What
What three
three contemporary
contemporary theories
theories
on
on employee
employee motivation
motivation offer
offer
insights
insights into
into improving
improving
employee
employee performance?
performance?
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 6 Contemporary Views on Motivation

Expectancy
Expectancy Theory
Theory

Equity
Equity Theory
Theory

Goal-Setting
Goal-Setting Theory
Theory
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 6 Expectancy Theory

Individual
Individual
Effort
Effort Performance
Performance Outcome
Outcome Needs
Needs

Expectancy Expectancy Expectancy

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 6 Expectancy Theory
Motivating
Motivating
Employees
Employees
Determine the rewards valued by each
employee
Determine the desired performance level
Make the performance level attainable
Link rewards to performance
Determine what factors might counteract the
effectiveness of an award
Make sure the reward is adequate for the level
of performance
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 6 Equity Theory
Employees
Employees evaluate
evaluate their
their outcomes
outcomes
in
in relation
relation to
to their
their inputs
inputs and
and
compare
compare to to their
their past
past experience
experience in
in
A different position in the current organization
A different organization
or
Another employees experience inside the
organization
Another employees experience outside the
organization
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 6 Equity Theory
Change
Change work
work habits
habits

Change
Change job
job benefits
benefits and
and income
income

Employee
Employee Distort
Distort their
their perception
perception
Choices of
of themselves
themselves
Choices
ifif an
an Distort
Distort their
their perception
perception
Inequity
Inequity Exists
Exists of
of others
others

Look
Look atat situation
situation from
from
different
different perspective
perspective
Chapter 10

Leave
Leave the
the situation
situation

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 6 Goal-Setting Theory
An
Anindividuals
individualsintention
intention
to
towork
worktoward
toward aagoal
goal
Goal-Setting
Goal-SettingTheory
Theory is
isaaprimary
primarysource
sourceofof
motivation.
motivation.

Components
Components
Specific goals lead to a higher level
of performance
More difficult goals lead to better performance
Feed back on progress toward the goal
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enhances performance

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 6 Motivation is Culture Bound
1. English-speaking countries:
--higher on individual achievement
--lower on desire for security
2. French-speaking countries:
--higher on security
--lower on challenging work
3. Northern European countries:
--lower on getting ahead and work recognition
--higher on job accomplishment and concern for people
4. Latin American and Southern European countries:
--lower on individual achievement
--higher on job security (Southern Europe)
--higher on fringe benefits
5. Germany:
--higher on security, fringe benefits, and getting ahead
6. Japan
Chapter 10

--lower on advancement and autonomy

--higher on challenge and work environment
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 7 Learning Goal 7

How
How can
can managers
managers redesign
redesign
existing
existing jobs
jobs to
to increase
increase
employee
employee motivation
motivation
and
and performance?
performance?
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 7 Motivational Job Design

Job Enlargement

Options
Options
for
for Job
JobEnrichment
Enrichment
Increasing
Increasing
Motivation
Motivation
Job Rotation
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 7 Work-Scheduling Options

Compressed
Compressed Fitting
Fitting40
40hours
hoursinto
intoaa
Workweek shorter
shorterworkweek
workweek
Workweek
Employees
Employeesdecide
decidewhat
whattheir
their
Flextime
Flextime work
workhours
hourswill
willbe
be

Allows
Allowstwo
twoindividuals
individualsto
tosplit
splitthe
the
Job
Job Sharing
Sharing tasks
tasksand
andhours
hoursofofaaworkweek
workweek

Employees
Employeeswork
workfrom
fromhome
home
Telecommuting
Telecommuting via
viaaalinked
linkedcomputer
computer
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 7 Monetary Incentives

Piece-Rate
Piece-Rate Plans
Plans

Profit
Profit Sharing
Sharing

Gain
Gain Sharing
Sharing

Bonuses
Bonuses

Stock
Stock Options
Options
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 8 Learning Goal 8

What
What different
different types
types of
of teams
teams are
are
being
being used
used inin organizations
organizations today?
today?
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 8 Group Decision Making

Strengths
Strengths Weaknesses
Weaknesses

More information and Takes a longer time to reach a

knowledge to decisions
Diversity of perspectives,
more alternatives
Make results in a higher-
quality decision
Increases likelihood that
decisions will be accepted
Chapter 10
solution
May pressure others to
conform
May be dominated by one or
more participants
Lack accountability, because
it is difficult to assign
responsibilities for outcome
to any one individual

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 8 Types of Teams

Problem-Solving
Problem-Solving Generate
Generateideas
ideasand
andalternatives
alternativesand
and
Teams
Teams may
mayrecommend
recommendaacourse
courseofofaction
action

Manage
Managethemselves
themselveswithout
withoutformal
formal
Self-Managed
Self-Managed supervision,
Work supervision,take
takeresponsibility
responsibilityfor
for
Work Teams
Teams goal
goalsetting,
setting,planning
planningwork
workactivities
activities

Made
Madeupupof
ofemployees
employeesfrom
fromsame
same
Cross-Functional
Cross-Functional hierarchical
Teams hierarchicallevel,
level,but
butdifferent
different
Teams functional
functionalareas
areas
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 8 Building High-Performance Teams

1. Create and share teams

purpose
2. Create specific and
challenging goals
3. Create a collaborative
approach
4. Define clear roles
5. Define complementary
skills
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 9 Learning Goal 9

What
What initiatives
initiatives are
are organizations
organizations
using
using today
today to
to motivate
motivate
and
and retain
retain employees?
employees?
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 9 Trends in Employee Motivation

Nurturing Knowledge Workers

Work-Life
EconomicBenefits
Growth

Employee Ownership
Full Employment

Education and Training

Price Stability
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 9 Lowering Absenteeism

Allow make-up time

Establish a grace period for late arrivals
Eliminate advance-notice requirement for
tardies
Allow employees to occasionally refuse
mandatory overtime
Eliminate formal attendance policies
Provide on-site day care
Provide elder care assistance to
employees elderly relatives
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