Employee Motivation 2

Chapter Objectives

1. Explain the motivational lessons taught by Maslow’s theory and Herzberg’s theory.

2. Explain how job enrichment can be used to enhance the motivating potential of jobs.

3. Describe the motivational processes in expectancy theory and goal-setting theory.

4. Distinguish extrinsic reward from intrinsic rewards and list four rules for administering extrinsic rewards effectively.

Chapter Objectives (cont’d)

5. Explain how open-book management and self-managed teams promote employee participation.

6. Discuss how companies are striving to motivate employees with quality-of-life programs.

Motivation Theories

• Motivation– The psychological process that gives behavior

purpose and direction.

• Theories of Motivation– Maslow’s needs hierarchy theory

– Herzberg’s two-factor theory

– Job enrichment theory

– Expectancy theory

– Goal-setting theory

Figure 11.1Individual Motivation and Job Performance

Motivation Theories (cont’d)

• Maslow’s Needs Hierarchy Theory– People have needs, and when one need is relatively

fulfilled, other emerge in predictable sequence to take its place.

• Maslow’s hierarchy of needs:– Physiological needs: food, water, sleep, and sex.

– Safety needs: safety from the elements and enemies.

– Love needs: desire for love, affection, and belonging.

– Esteem needs: self-perception as a worthwhile person.

– Self-actualization: becoming all that one can become.


• The Self-Actualizing Manager– Has warmth, closeness, and sympathy.

– Recognizes and shares negative information and feelings.

– Exhibits trust, openness, and candor.

– Does not achieve goals by power, deception, or manipulation.

– Does not project own feelings, motivations, or blame onto others.

– Does not limit horizons; uses and develops body, mind, and senses.

– Is not rationalistic; can think in unconventional ways.

– Is not conforming; regulates behavior from within.


• Relevance of Maslow’s Theory for Managers– Beyond physical and safety needs, which higher

order need will emerge cannot be predicted.

– A fulfilled need does not motivate an individual.

– Effective managers can anticipate emerging needs based on individual need profiles and provide opportunities for fulfillment.

– The esteem level of needs satisfied by jobs and recognition provides managers with the greatest opportunity to motivate better performance.


• Herzberg’s Two-Factor Theory– A theory of motivation based on job satisfaction.

– A satisfied employee is motivated from within to work harder.

– A dissatisfied worker is not self-motivated to work.

– Conclusion: Enriched jobs are the key to self-motivation.

– Dissatisfiers: factors associated with the job context or work environment.

– Satisfiers: factors associated with the nature of the task itself (job content).


• Implications of Herzberg’s Theory– Satisfaction is not the opposite of dissatisfaction.

– There is a need to think carefully about what motivates employees.

– Meaningful, interesting, and challenging (enriched) work is needed to satisfy and motivate employees.

– Problems with Herzberg’s theory

– Assumption of job performance improving with satisfaction is weakly, at best, supported.

– One person’s dissatisfier is another person’s satisfier.


• Job Enrichment Theory– Redesigning jobs should increase their motivational

potential

– A better fit between persons and their jobs should foster both high work productivity and a high-quality experience for the people who do the work.

– Vertical loading (introducing planning and decision-making responsibility) increases the challenge of work (complexity and job depth) and reverses the effects of overspecialization.

– Job enrichment works best for individuals who have a desire for personal growth.

Motivation Through Job Design (cont’d)

• Five Core Dimensions of Work– Skill variety: the variety of activities required in

carrying out the work.

– Task identity: the completion of a “whole” and identifiable piece of work.

– Task significance: how substantial an impact the job has on the lives of other people.

– Autonomy: the freedom, independence, and discretion that one has to do the job.

– Job feedback: how much performance feedback the job provides to the worker.


• Expectancy Theory (Vroom)– A model that assumes motivational strength is

determined by perceived probabilities of success.

– Expectancy: one’s subjective belief or expectation that one thing will lead to another.

• A Basic Expectancy Model– One’s motivational strength increases as one’s

perceived effort-performance and performance-reward probabilities increase the likelihood of obtaining a valued reward.


• Relevance of Expectancy Theory for Managers– Employee expectations can be influenced by

managerial actions and organizational experience.

– Training increases employee confidence in their efforts to perform.

– Listening provides managers with insights into employees’ perceived performance-reward probabilities.


• Goal-Setting Theory– Goal setting: the process of improving performance

with objectives, deadlines, or quality standards.

• A General Goal-Setting Model– Properly conceived goals trigger a motivational

process that improves performance.

Figure 11.5A Model of How Goals Can Improve Performance


• Personal Ownership of Challenging Goals– Characteristics of effective goals:

– Specificity makes goals measurable.

– Difficulty makes goals challenging.

– Participation gives personal ownership of the goal.

• How Do Goals Actually Motivate?– Goals are exercises in selective perception.

– Goals encourage effort to achieve something specific.

– Goals encourage persistent effort.

– Goals foster creation of strategies and action plans.


• Practical Implications of Goal-Setting Theory– The developed ability to effectively set goals can be

transferred readily to any performance environments.

Motivation Through Rewards

• Extrinsic Rewards– Payoffs (external) granted to the individual by others

– Money, employee benefits, promotions, recognition, status symbols, and praise.

• Intrinsic Rewards– Self-granted and internally experienced payoffs

– Sense of accomplishment, self-esteem, and self-actualization.

Motivation Through Rewards (cont’d)

• Improving Performance with Extrinsic Rewards– Rewards must satisfy individual needs.

– Cafeteria compensation: a plan that allows employees to select their own mix of benefits.

– Employees must believe that effort will lead to an attainable reward.

– Rewards must be personally and socially equitable.

– Rewards must be linked to performance (results) such that desired behaviors are encouraged.

Motivation through Employee Participation

• Participative Management– The process of empowering employees to assume

greater control of the workplace.

– Setting goals

– Making decisions

– Solving problems

– Designing and implementing organizational changes

– Two approaches to participation

– Open-book management

– Self-managed teams

Motivation through Employee Participation (cont’d)

• Open-Book Management (OBM)– Sharing a company’s key financial data and

statements with all employees and providing the education that will enable them to understand how the company makes money and how their actions affect its success and bottom line.

– Benefits of OBM:

– Displays a high degree of trust in employees.

– Creates strong commitment to employee training.

– Teaches patience when waiting for results.


• The STEP approach to Open-Book Management (OBM)– Step 1: Exposure to financial data.

– Step 2: Training employees in the business model.

– Step 3: Empowering employees to make decisions.

– Step 4: Sharing in profits, bonuses, and incentive compensation.


• Self-Managed Teams– Teams of 5 to 50 employees (with assigned

membership) that assume traditional managerial duties such as staffing and planning as part of their normal work routine.

– Also known as autonomous work groups and high performance teams.

– Operating with minimal supervision, the team’s self-management and cross-training fosters creativity, motivation, and productivity.


• Vertically Loaded Jobs– Team members’ jobs become vertically loaded when

nonmanagerial team members assume duties traditionally performed by managers.

– The concept is new to the workplace and is not widespread.

• Managerial Resistance– Traditional authoritarian supervisors view autonomous

teams as a threat to their authority and job security.

Keys to Successful Employee Participation Programs

• Building Employee Support for Participation– A profit-sharing or gain-sharing plan.

– A long-term employment relationship with good job security.

– A concerted effort to build and maintain group cohesiveness.

– Protection of individual employee’s rights.

• Participation Effects– Participation affects both satisfaction and productivity;

its effect is stronger on satisfaction.

Motivation Through Quality-of-Worklife Programs

• Flexible Work Schedules– Flextime: a work schedule that allow employees to

choose their own arrival and departure times within specified limits (core time).

– Benefits

– Better employee-supervisor relations.

– Reduced absenteeism.

– Selective positive impact on job performance (improves productivity for some jobs, but not for others).

Motivation Through Quality-of-Worklife Programs (cont’d)

• Alternative Work Schedules– Compressed workweeks: 40 or more hours in less

than five days.

– Permanent part-time: work weeks with fewer than 40 hours.

– Job sharing: complementary scheduling that allows two or more part-timers to share a single full-time job.


• Family Support Services– Family Medical Leave Act (FMLA)

– Requires employers to provide up to 12 weeks of unpaid leave per year for family events.

– Covers only employers with 50 or more employees.

– Employees must exhaust sick and vacation leave first.

– Other services

– On-site child and elder care facilities

– Emergency child care


• Wellness Programs– Employer-provided programs to help employees cope

with stress and burnout.

– Stress reduction, healthy eating and living clinics, diet and quit-smoking programs, exercise facilities

• Sabbaticals– Giving long-term employees extended periods of paid

time off to refresh themselves and bolster their motivation and loyalty.

Employee Motivation 2

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