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Chapter 10 Motivating and Satisfying Employees and Teams

LEARNING OBJECTIVES

10-1 Explain what motivation is.

10-2 Understand some major historical perspectives on motivation.

10-3 Describe three contemporary views of motivation: equity theory, expectancy theory, and goal-setting theory.

10-4 Explain several techniques for increasing employee motivation.

10-5 Understand the types, development, and uses of teams.

What Is Motivation?

Motive – something that causes a person to act

Motivation – the individual internal process that energizes, directs, and sustains behavior; the personal “force” that causes you or me to behave in a particular way

Morale – an employee’s feelings about the job, about superiors, and about the firm itself

High morale results mainly from the satisfaction of needs on the job or as a result of doing the job.

Scientific Management

Scientific management – the application of scientific principles to management of work and workers

Frederick W. Taylor

Was interested in improving the efficiency of individual workers

This interest led to the development of scientific management.

Observed that workers “soldiered,” or worked slowly, because they feared that they would run out of work and lose their jobs

Developed the piece-rate system – a compensation system under which employees are paid a certain amount for each unit of output they produce

FIGURE 10-1 Taylor’s Piece-Rate System

The Hawthorne Studies

Conducted by Elton Mayo between 1927 and 1932 in order to determine the effects of the work environment on employee productivity

The first set of experiments tested the effect of lighting levels on productivity by subjecting one group of workers to varying lighting and the second group to none.

Productivity increased for both groups.

The second set of experiments focused on the effectiveness of the piece-rate system in increasing the output of groups of workers.

Output remained constant irrespective of the “standard” rates management set.

Researchers concluded that human factors were responsible for the results and, thus, they are at least as important to motivation as pay rates.

Maslow’s Hierarchy of Needs (slide 1 of 2)

Need – a personal requirement

Maslow’s hierarchy of needs – a sequence of human needs in the order of their importance

FIGURE 10-2 Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs (slide 2 of 2)

Physiological needs – the things we require for survival

Usually are satisfied through adequate wages

Safety needs – the things we require for physical and emotional security

May be satisfied through job stability, health insurance, pension plans, and safe working conditions

Social needs – the human requirements for love and affection and a sense of belonging

Are fulfilled through the work environment and the informal organization and outside of the workplace by family and friends

Esteem needs – our need for respect, recognition, and a sense of our own accomplishment and worth

May be satisfied through personal accomplishment and promotions

Self-actualization needs – the need to grow and develop and to become all that we are capable of being

Herzberg’s Motivation–Hygiene Theory

Motivation–hygiene theory – the idea that satisfaction and dissatisfaction are separate and distinct dimensions

Motivation factors – job factors that increase motivation, although their absence does not necessarily result in dissatisfaction

When motivation factors are present, they act as satisfiers.

Hygiene factors – job factors that reduce dissatisfaction when present to an acceptable degree but that do not necessarily result in high levels of motivation

When hygiene factors are present, they act as dissatisfiers.

FIGURE 10-3 Herzberg’s Motivation–Hygiene Factors

Theory X and Theory Y (slide 1 of 2)

Theory X – a concept of employee motivation generally consistent with Taylor’s scientific management; assumes that employees dislike work and will function only in a highly controlled work environment

Theory X is based on the following assumptions:

People dislike work and try to avoid it.

Because people dislike work, managers must coerce, control, and frequently threaten employees to achieve organizational goals.

People generally must be led because they have little ambition and will not seek responsibility; they are concerned mainly about security.

Theory X and Theory Y (slide 2 of 2)

Theory Y – a concept of employee motivation generally consistent with the ideas of the human relations movement; assumes responsibility and work toward organizational goals, and by doing personal rewards are also achieved

Theory Y is based on the following assumptions:

People do not naturally dislike work.

People will work toward goals to which they are committed.

People become committed to goals when it is clear that accomplishing the goals will bring personal rewards.

People often seek out and willingly accept responsibility.

Employees have the potential to help accomplish organizational goals.

Organizations generally do not make full use of their human resources.

TABLE 10-1 Theory X and Theory Y Contrasted

Area	Theory X	Theory Y
Attitude toward work	Dislike	Involvement
Control systems	External	Internal
Supervision	Direct	Indirect
Level of commitment	Low	High
Employee potential	Ignored	Identified
Use of human resources	Limited	Not limited

Theory Z

Theory Z – the belief that some middle ground between type A and type J practices is best for American business

Developed by William Ouchi

Emphasizes participative decision making

FIGURE 10-4 The Features of Theory Z

Reinforcement Theory (slide 1 of 2)

Reinforcement theory – a theory of motivation based on the premise that rewarded behavior is likely to be repeated, whereas punished behavior is less likely to recur

Reinforcement Theory (slide 2 of 2)

Reinforcement – an action that follows directly from a particular behavior

Example: a reprimand for coming late to work

Forms of reinforcement:

Positive reinforcement – one that strengthens desired behavior by providing a reward

Example: praise from supervisors for a job well done

Negative reinforcement – one that strengthens desired behavior by eliminating an undesirable task or situation

Punishment – a consequence of undesirable behavior

Examples: reduced pay and termination

Extinction – not responding to undesirable behavior with the hope that the behavior will eventually go “extinct”

Equity Theory (slide 1 of 2)

Equity theory – a theory of motivation based on the premise that people are motivated to obtain and preserve equitable treatment for themselves

Equity – the distribution of rewards in direct proportion to each employee’s contribution to the organization

Equity Theory (slide 2 of 2)

We conceive of equity in the following way:

We develop our own input-to-outcome ratio.

Inputs are the time, effort, skills, education, experience, and so on that we contribute to the organization.

Outcomes are the rewards we get from the organization, such as pay, benefits, recognition, and promotions.

We compare this ratio to what we perceive as the input-to-outcome ratio for some other person (or comparison other).

If the two ratios are roughly the same, we feel that the organization is treating us equitably.

If our ratio is the higher of the two, we feel under-rewarded and may decrease our own inputs by (1) not working as hard, (2) trying to increase our outcome by asking for a raise, (3) trying to get the comparison other to increase some inputs, (4) leaving the work situation, or (5) conducting a new comparison with a different person.

Expectancy Theory

Expectancy theory – a model of motivation based on the assumption that motivation depends on how much we want something and on how likely we think we are to get it

Developed by Victor Vroom

Expectancy theory is complex because each action we take is likely to lead to several outcomes, some of which we want and others we do not.

FIGURE 10-5 Expectancy Theory

Goal-Setting Theory

Goal-setting theory – a theory of motivation suggesting that employees are motivated to achieve goals that they and their managers establish together

The goal should be:

Very specific

Moderately challenging

One that the employee will be committed to achieve

Rewards should be tied directly to goal achievement.

Management by Objectives (slide 1 of 2)

Management by objectives (MBO) – a motivation technique in which managers and employees collaborate in setting goals

The primary purpose of MBO is to clarify the roles employees are expected to play in reaching the organization’s goals.

MBO increases employee motivation by empowering them with an active role in goal-setting and performance evaluation.

Most MBO programs consist of a series of five steps.

The acceptance of top management must be secured.

Top management and other parties must establish preliminary goals that reflect a firm’s mission and strategy.

Management by Objectives (slide 2 of 2)

Most MBO programs consist of a series of five steps. (continued)

The third step consists of the following three smaller steps:

The manager explains to each employee that he or she has accepted certain organizational goals and asks the individual to think about how he or she can help to achieve these goals.

The manager later meets with each employee individually and, together, they establish individual goals for the employee.

The manager and the employee decides what resources the employee will need to accomplish his or her goals.

The manager and employees meet periodically to review each employee’s progress.

At the end of the designated time period, the manager and each employee meet again to determine which of the individual’s goals were met and which were not, and why.

Job Enrichment

Job enrichment – a motivation technique that provides employees with more variety and responsibility in their jobs

Job enlargement – expanding 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

Behavior Modification (slide 1 of 2)

Behavior modification – a systematic program of reinforcement to encourage desirable behavior

Behavior modification involves both rewards to encourage desirable actions and punishments to discourage undesirable actions.

Behavior Modification (slide 2 of 2)

Steps:

A target behavior—the behavior that is to be changed—is identified and measured.

Managers provide positive reinforcement in the form of a reward when employees exhibit the desired behavior.

Example: Apple offers Corporate Gifts and Rewards Programs to give companies the ability to reward their staff or very loyal customers with iPods, iPhones, iPads, Mac computers, or iTunes gift cards.

The levels of the target behavior are measured again to determine whether the desired changes have been achieved.

If the target behavior has not changed significantly in the desired direction, the reward system must be changed to one that is likely to be more effective.

Flexible Scheduling Options

Flextime – a system in which employees set their own work hours within employer-determined limits

Compressed workweek – allows employees to work a 40-hour week in four days instead of five

Part-Time Work and Job Sharing

Part-time work – permanent employment in which individuals work less than a standard work week

Job sharing – an arrangement whereby two people share one full-time position

Advantages:

May contribute to greater job satisfaction and ease in creating work–life balance

Can lead people to be more productive

Combines the security of a full-time position with the flexibility of a part-time one

Disadvantages:

May mean loss of benefits for employees

Is difficult if tasks are not easily divisible or if two people do not work or communicate well with one another

Telecommuting

Telecommuting – working at home all the time or for a portion of the work week

Advantages:

For employees:

Increased productivity

Higher levels of happiness and personal satisfaction

For companies:

Lower real estate and travel expenses

Improved morale

Flexibility to access larger labor pools

Disadvantages:

For employees:

Feelings of isolation

Putting in longer hours

Distractions at home

For companies:

Difficulty monitoring productivity

Employee Empowerment

Empowerment – making employees more involved in their jobs by increasing their participation in decision making

For empowerment to work effectively, managers should set expectations, communicate standards, institute periodic evaluations, and guarantee follow-up.

Benefits:

Increased job satisfaction

Improved job performance

Higher self-esteem

Increased organizational commitment

Obstacles:

Resistance on the part of management

Distrust of management on the part of workers

Inadequate training of employees

Poor communication between levels of the organization

Employee Ownership

Employee ownership – a situation in which employees own the company they work for by virtue of being stockholders

Examples: Employee-owned companies include Publix Super Markets, Harpoon Brewing, and Davey Tree.

As a means to motivate executives and managers to feel invested in the company, some firms provide stock options as part of the employee compensation package.

An option is simply the right to buy shares of the firm within a prescribed time at a set price.

If the firm does well and its stock price rises past the set price, the employee can exercise the option and sell the stock to cash in on the company’s success.

What Is a Team?

Team – two or more workers operating as a coordinated unit to accomplish a specific task or goal

Types of Teams

Problem-solving team – a team of knowledgeable employees brought together to tackle a specific problem

Self-managed teams – groups of employees with the authority and skills to manage themselves

Cross-functional team – a team of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task

Virtual team – a team consisting of members who are geographically dispersed but communicate electronically

FIGURE 10-6 Advantages and Disadvantages of Self-Managed Teams

FIGURE 10-7 Stages of Team Development

Roles Within a Team

Task-specialist role

Played by the group member who pushes the team toward achieving goals and objectives by concentrating fully on the assigned task

Socioemotional role

Played by the individual who supports and encourages the emotional needs of the other members, placing the team members’ personal needs above the task at hand

Dual role

A combination of the socioemotional and task-specialist roles

Nonparticipant role

Played by a person who does not contribute to accomplishing the task and does not provide favorable input with respect to team members’ socioemotional needs

Team Cohesiveness

To ensure cohesiveness, the ideal team size is generally 5 to 12.

Anything larger and relationship development becomes too complicated.

Anything smaller and the group may be excessively burdened and tasks may not get completed.

One of the most reliable ways to build cohesiveness within a team is through competition with other teams.

When two teams are competing for a single prize or recognition, they are forced to become more goal-oriented and to put aside conflict.

A favorable appraisal from an outsider may strengthen team cohesiveness.

Teams are also more successful when goals have been agreed upon beforehand.

Frequent interaction also builds team cohesiveness through increasing familiarity.

Benefits and Limitations of Teams

Benefits:

Reduces turnover and costs

Increases productivity, customer service, and product quality

Leads to higher levels of job satisfaction among employees

Leads to a harmonious work environment

Limitations:

Stressful and time-consuming organization process

No guarantee that the team will develop effectively

May experience lower productivity if there is a lack of cohesiveness or too much conflict