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McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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CHAPTER 10 Managing Human Resources

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CHAPTER 9 Motivating the Workforce

Creating the HumanCreating the HumanResource AdvantageResource Advantage

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Human RelationsHuman Relations

The study of the behavior of individuals and groups in organizational settings

Motivation An inner drive that directs a person’s behavior

towards a goal or satisfaction of a need

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Motivating the WorkforceMotivating the Workforce

What motivates employees to perform? How can managers boost morale? How do you maximize worker performance? How can you encourage creativity and innovation?

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The Basic Model of MotivationThe Basic Model of Motivation

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When a need exists, an individual engages in goal-

directed behavior designed to satisfy that need

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MoraleMorale

An employee’s attitude toward his or her job, employer and colleagues

Morale is a prominent aspect of human relations

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MoraleMorale

High Morale Higher productivity, returns to shareholders, worker productivity and loyaltyLower absenteeism and employee turnover

Low MoraleContributes to absenteeism, high employee turnover and lack of commitment

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MoraleMorale

Morale BoostersRespectInvolvementAppreciationCompensation PromotionPleasant work environmentPositive organizational culture

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RewardsRewards

Intrinsic Rewards The personal satisfaction and enjoyment you feel from

attaining a goal Feeling of accomplishment

Extrinsic Rewards Benefits and/or recognition you receive from someone else Awards, benefits, pay increases

Intrinsic and extrinsic rewards both are important in motivating employees to contribute to business goals

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Employee MotivationEmployee Motivation

• It can be difficult to motivate employees• Motivation is difficult to define and varies from person

to person• Motivation conventions exist that are dedicated to

suggesting ways to motivate workers

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Work/Life BalanceWork/Life BalanceMost employees are motivated by more than pay...

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Source: “Work-life Balance Tops Pay,” USA Today Snapshots, March 13, 2008, p. B1.

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Classic Theory of MotivationClassic Theory of Motivation

Early 20th centuryFrederick W. Taylor & Lillian Gilbreth

Scientific focus on work tasks & productivityMoney

Thought to be the sole motivator for workers

Satisfactory pay & job security motivate employees to work hard

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Hawthorne StudiesHawthorne Studies

1924-1932 at the Hawthorne Works Plant Elton Mayo

• Postulated that physical conditions in workplace stimulate productivity

Findings show social and psychological factors influence productivity/morale

Marks beginning of concern for human relations in the workplace

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Theories of Employee Theories of Employee MotivationMotivation

Maslow’s Hierarchy of Needs Herzberg’s Two-Factor Theory McGregor’s Theory X and Theory Y Theory Z Variations on Theory Z Equity Theory Expectancy Theory

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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

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Source: Adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review 50 (1943), pp. 70–396. American Psychology Association.

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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs Physiological Needs

Basic needs for food, water, shelter Security Needs

Protection from physical and economic harm Social Needs

Need for love, companionship Esteem Needs

Self-respect and respect from others Self-actualization

Maximizing one’s full potential

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Herzberg’s Two-Factor TheoryHerzberg’s Two-Factor Theory

Hygiene Factors Focus on the work setting, not the content of the work

• Wages, working conditions, company policies, job securityMotivational Factors

Focus on content of the work itself• Achievement, recognition, involvement, responsibility,

advancement

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McGregor’s Theory X and McGregor’s Theory X and Theory YTheory Y

Theory X Considered the traditional management viewAssumes that workers

Generally dislike work Must be forced to do their jobs Average worker avoids responsibility and prefers direction

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McGregor’s Theory X and McGregor’s Theory X and Theory YTheory Y

Theory Y Considered the humanistic management view Assumes

Expending physical effort is natural (people like to work) People will assume responsibility and self-control to achieve

objectives (workers want to satisfy social, esteem and self-actualization needs)

People will commit to objectives once they realize there will be a personal reward

Most organizations do not adequately utilize imagination, ingenuity, creativity and intelligence of workers

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Theory ZTheory Z

A management philosophy that stresses employee participation in all aspects of company decision making

Incorporates many Japanese ideas about management (trust and intimacy) adapted for use in the U.S.

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Variations on Theory ZVariations on Theory Z

Quality Circles (or Quality-Assurance Teams) Participative Management Employee Involvement Self-Directed Work Teams (SDWT)

All strive to give employees more control over their jobs

Make them responsible for outcomes

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Equity TheoryEquity Theory

The assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness (equity) of the rewards they will receive in exchange Equal pay for equal work Employees who do not feel equitably treated may

slack off on the job or steal to level the field

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Expectancy TheoryExpectancy Theory

Assumes that motivation depends not only on how much a person wants something, but also on how likely he or she is to get it Someone who wants something and has a

reasonable expectation to achieve it will be highly motivated

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Motivating EmployeesMotivating Employees

Behavior ModificationChanging behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself

Reward Punishment

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Strategies for Motivating Strategies for Motivating EmployeesEmployees

Job RotationMovement of employees from one job to another to relieve the boredom often associated with job specialization

The drawback is that it does not totally eliminate risk of boredom

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Strategies for Motivating Strategies for Motivating EmployeesEmployees

Job Enlargement Addition of more tasks to a job instead of treating each task as separate

Seeks to counteract the boredom of division of labor Many small firms use job enlargement Requires training employees in new tasks

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Strategies for Motivating Strategies for Motivating EmployeesEmployees

Job EnrichmentIncorporating motivational factors (achievement, recognition, responsibility) into the job

Idea developed by Herzberg in the 1950s Gives employees feedback on their performance Rewards for good performance

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Values and MotivationValues and MotivationMany employees are motivated by working for a company that shares their valuesPatagonia

Loyal, dedicated employees Less than 4% employee turnover

Core values embrace reducing waste, recycling, environmentalism

Psychological success Good health Good work/life balance Enjoying your job tasks Money is not main motivator

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Strategies for Motivating Strategies for Motivating EmployeesEmployees

Flexible scheduling strategiesFlextime

• Allows employees to choose their start and end timesCompressed Workweek

• 40 hours in a 4-day workweekJob Sharing

• Occurs when two people share the same job

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Importance of Importance of Motivational StrategiesMotivational Strategies

Fosters employee loyalty Boosts productivity Influences on pay, promotion, job design Nature of relationships Nature of the job itself Characteristics of the organization

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