Chapter 10
Motivating Employees
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Learning Objectives
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity theories.
LO 10-7 Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees across the globe and across generations.
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The Value of Motivation 1 of 5
Intrinsic rewards — The personal satisfaction you feel when you perform well and complete goals.
Examples of intrinsic rewards:
Pride in your performance
Sense of achievement
Extrinsic rewards — Something given to you by someone else as recognition of good work.
Kinds of extrinsic rewards:
Pay raises
Praise
Promotions
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The Value of Motivation 2 of 5
LO 10-1
Frederick Taylor: The “Father” of Scientific Management
Scientific management
Studying workers to find the most efficient ways of doing things and then teaching people those techniques.
Three key elements to increase productivity
Time
Methods of work
Rules of work
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The Value of Motivation 3 of 5
LO 10-1
Frederick Taylor: The Father of Scientific Management continued
Time-motion studies — Studies of which tasks must be performed to complete a job and the time needed to do each task.
Led to the development of the Principle of Motion Economy — Theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions.
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The Value of Motivation 4 of 5
LO 10-1
Frederick Taylor: The Father of Scientific Management continued
Taylor and UPS
UPS drivers work under strict rules and work requirements.
How to get out of their trucks:
Right foot first
How fast to walk:
3 ft per second
How many packages to deliver a day
125 to 175 in off-peak seasons
How to hold their keys:
Teeth up, third finger
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The Value of Motivation 5 of 5
LO 10-2
Elton Mayo and the Hawthorne Studies
Researchers studied worker efficiency under different levels of light.
Productivity increased regardless of light condition.
Researchers decided it was a human or psychological factor at play.
Hawthorne Effect — The tendency for people to act differently when they know they are being studied.
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Motivation and Maslow’s Hierarchy of Needs
LO 10-3
Maslow’s Hierarchy of Needs — Theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self-actualization needs.
Needs that have already been met do not motivate.
If a need is filled, another higher-level need emerges.
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Figure 10.1 Maslow’s Hierarchy of Needs
LO 10-3
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Herzberg’s Motivating Factors 1 of 2
LO 10-4
Herzberg’s research centered on the question:
What creates enthusiasm for workers and makes them work to full potential?
Herzberg found job content factors were most important to workers. Workers like to feel they contribute to the company.
Motivators
Job factors that cause employees to be productive and that give them satisfaction.
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Herzberg’s Motivating Factors 2 of 2
LO 10-4
Job environment factors maintained satisfaction, but did not motivate employees.
Hygiene factors — Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased.
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Figure 10.2 Herzberg’s Motivators and Hygiene Factors
LO 10-4
Motivators
(These factors can be used to motivate workers.)
Work itself
Achievement
Recognition
Responsibility
Growth and advancement
Hygiene (Maintenance) Factors
(These factors can cause dissatisfaction, but changing them will have little motivational effect.)
Company policy and administration
Supervision
Working conditions
Interpersonal relations (co-workers)
Salary, status, and job security
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Figure 10.3 Comparison of Maslow’s Hierarchy of Needs and Herzberg’s Theory of Factors
LO 10-4
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McGregor’s Theory X and Theory Y 1 of 3
LO 10-5
Douglas McGregor proposed managers had two different sets of assumptions concerning workers.
Their attitudes about motivating workers were tied to these assumptions.
McGregor called them Theory X and Theory Y.
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McGregor’s Theory X and Theory Y 2 of 3
LO 10-5
Theory X
Assumptions of Theory X management:
Workers dislike work and seek to avoid it.
Workers must be forced, controlled, directed, or threatened with punishment to get them to perform.
Workers prefer to be directed and avoid responsibility.
Primary motivators are fear and punishment.
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McGregor’s Theory X and Theory Y 3 of 3
LO 10-5
Theory Y
Assumptions of Theory Y management:
People like work; it’s a part of life.
Workers seek goals to which they are committed.
Commitment to goals depends on perceived rewards.
Most people will seek responsibility.
People can use creativity to solve problems.
Intellectual capacity is only partially realized.
People are motivated by a variety of rewards.
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Ouchi’s Theory Z
LO 10-5
William Ouchi researched cultural differences between the U.S. (Type A) and Japan (Type J).
Type J are committed to the organization and group.
Type A are focused on the individual.
Theory Z is the hybrid approach of Types A and J.
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Figure 10.4 Theory Z: A Blend of American and Japanese Management Approaches
LO 10-5
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Figure 10.5 A Comparison of Theories X, Y, and Z 1 of 2
LO 10-5
Theory X | Theory Y | Theory Z |
1. Employees dislike work and will try to avoid it. | 1. Employees view work as a natural part of life. | 1. Employee involvement is the key to increased productivity. |
2. Employees prefer to be controlled and directed. | 2. Employees prefer limited control and direction. | 2. Employee control is implied and informal. |
3. Employees seek security, not responsibility. | 3. Employees will seek responsibility under proper work conditions. | 3. Employees prefer to share responsibility and decision making. |
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Figure 10.5 A Comparison of Theories X, Y, and Z 2 of 2
LO 10-5
Theory X | Theory Y | Theory Z |
4. Employees must be intimidated by managers to perform. | 4. Employees perform better in work environments that are nonintimidating. | 4. Employees perform better in environments that foster trust and cooperation. |
5. Employees are motivated by financial rewards. | 5. Employees are motivated by many different needs. | 5. Employees need guaranteed employment and will accept slow evaluations and promotions. |
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Goal-Setting Theory and Management by Objectives 1 of 2
LO 10-6
Goal-setting theory — The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.
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Goal-Setting Theory and Management by Objectives 2 of 2
LO 10-6
Applying Goal-Setting Theory
Management by objectives (MBO) — Involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.
Managers formulate goals in cooperation with everyone in the organization.
Need to monitor results and reward achievement.
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Meeting Employee Expectations: Expectancy Theory 1 of 2
LO 10-6
Expectancy Theory — The amount of effort employees exert on a specific task depends on their expectations of the outcome.
Employees ask:
Can I accomplish the task?
What’s my reward?
Is the reward worth the effort?
Expectations can vary from person to person.
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Figure 10.6 Expectancy Theory
LO 10-6
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Meeting Employee Expectations: Expectancy Theory 2 of 2
LO 10-6
Researchers Nadler and Lawler modified expectancy theory and suggested five steps for managers:
Determine what rewards employees value.
Determine each employee’s performance standard.
Ensure that performance standards are attainable.
Tie rewards to performance.
Be sure employees feel rewards are adequate.
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Treating Employees Fairly: Equity Theory
LO 10-6
Equity Theory — The idea that employees try to maintain equity between inputs and outputs compared to others in similar positions.
Workers often base perception of their outcomes on a specific person or group.
Perceived inequities can lead to lower productivity, reduced quality, increased absenteeism, and even resignation.
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Putting Theory into Action 1 of 4
LO 10-7
Motivation through Job Enrichment
Job enrichment — A motivational strategy that emphasizes motivating the worker through the job itself.
It is based on Herzberg’s motivators, such as responsibility, achievement, and recognition.
Key characteristics of work
Skill variety
Task identity
Task significance
Autonomy
Feedback
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Putting Theory into Action 2 of 4
LO 10-7
Motivation through Job Enrichment continued
Types of job enrichment
Job enlargement — A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment.
Job rotation — A job enrichment strategy that involves moving employees from one job to another.
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Putting Theory into Action 3 of 4
LO 10-7
Motivating through Open Communication
Create a culture that rewards listening.
Train managers to listen.
Use effective questioning techniques.
Remove barriers to open communication.
Avoid vague and ambiguous communication.
Make it easy to communicate.
Ask employees what is important to them.
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Putting Theory into Action 4 of 4
LO 10-7
Recognizing a Job Well Done
Raises are not the only ways to recognize an employee’s performance. Recognition can also include:
Advancement opportunities
Challenging work
Noticing positive actions out loud
Paid time off
Prime parking spots
More vacation days
Flexible schedules
Small equity stake or stock options
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Personalizing Motivation 1 of 7
LO 10-8
Motivating Employees across the Globe
Cultural differences make worker motivation a challenging task for global managers.
High-context cultures require relationships and group trust before performance.
Low-context cultures believe relationship building distracts from tasks.
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Personalizing Motivation 2 of 7
LO 10-8
Motivating Employees across Generations
Baby Boomers (1946–1964)
Experienced great economic prosperity, job security, and optimism about their future
Generation X (1965–1980)
Raised in dual-career families, attended day care, and have a feeling of insecurity about jobs
Generation Y or Millennials (1980–1995)
Raised by indulgent parents and don’t remember a time without the Internet and mobile cell phones; main constant in life is inconsistency
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Personalizing Motivation 3 of 7
LO 10-8
Motivating Employees across Generations continued
Generation Z (1995–2009)
Grew up post 9/11, in the wake of the Great Recession and amid many reports of school violence; main constant in life is inconsistency
Generation Alpha (born after 2010)
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Personalizing Motivation 4 of 7
LO 10-8
Motivating Employees across Generations continued
Generation X in the workplace
Desire economic security but focus more on career security than job security
Good motivators as managers due to emphasis on results rather than work hours
Tend to be flexible and good at collaboration and consensus building
Very effective at giving employee feedback and praise
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Personalizing Motivation 5 of 7
LO 10-8
Motivating Employees across Generations continued
Millennials in the workplace
Tend to be impatient, skeptical, blunt, and expressive
Are tech-savvy and able to grasp new concepts
Able to multi-task and are efficient
Are tolerant
Place a high value on work-life balance
Fun and stimulation are key job requirements
Tend to job surf due to the state of the economy
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Personalizing Motivation 6 of 7
LO 10-8
Motivating Employees across Generations continued
Generation Z in the workplace
Tend to be cautious and security-minded
Inspired to improve the world
Are resilient and pragmatic
Are tech-savvy
Want to be a part of a community within the workplace
Place emphasis on practical benefits, such as health care
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Personalizing Motivation 7 of 7
LO 10-8
Motivating Employees across Generations continued
Communication across the generations
Baby Boomers prefer meetings and conference calls.
Gen Xers prefer e-mail and will choose meetings only if there are no other options.
Millennials prefer to use technology to communicate, particularly through social media.
Gen Zers prefer face-to-face meetings and shy away from phone calls.
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Appendix of Long Image Descriptions
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Appendix 1 Figure 10.1 Maslow’s Hierarchy of Needs
From the bottom of the pyramid to the top, the needs are: physiological needs, safety needs, social needs, esteem needs, and self-actualization.
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Appendix 2 Figure 10.3 Comparison of Maslow’s Hierarchy of Needs and Herzberg’s Theory of Factors
Two charts divided into sections are shown side by side.
The first row of the charts are Maslow’s self-actualization and Herzberg’s motivational factors of the work itself, achievement, and possibility of growth.
The second row of the charts are Maslow’s esteem needs and Herzberg’s motivational factors of advancement, recognition, and status.
The third row of the charts are Maslow’s social needs and Herzberg’s hygiene factors of interpersonal relations with superiors, subordinates, and peers, and supervision.
The fourth row of the charts are Maslow’s safety needs and Herzberg’s hygiene factors of company policy and administration, job security, and working conditions.
The last row of the charts are Maslow’s physiological needs and Herzberg’s hygiene factors of salary and personal life.
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Appendix 3 Figure 10.4 Theory Z: A Blend of American and Japanese Management Approaches
Type A (American)
Short-term employment
Individual decision making
Individual responsibility
Rapid evaluation and promotion
Explicit, formalized control
Specialized career paths
Segmented concern for employees
Type J (Japanese)
Lifetime employment
Consensual decision making
Collective responsibility
Slow evaluation and promotion
Implicit, informal control
Nonspecialized career paths
Holistic concern for employees
Type Z (Modified American)
Long-term employment
Collective decision making
Individual responsibility
Slow evaluation and promotion
Implicit, informal control with explicit, formalized control
Moderately specialized career paths
Holistic concern for employees (including family)
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Appendix 4 Figure 10.6 Expectancy Theory
The flow chart starts with a question related to a task: “Can I accomplish this task?” If the answer is no, the person is not motivated. If the answer is yes, a question related to outcome is asked: “Is the reward worth it?” If the answer is no, the person is not motivated. If the answer is yes, the person is motivated.
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