Part 4

Creating the
Human Resource
Advantage

Chapter 9

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 Part 4
CHAPTER 9
Motivating the Workforce
CHAPTER 10
Managing Human Resources

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 Learning Objectives

LO 9-1 Define human relations, and determine why its study

is important.
LO 9-3 Compare and contrast the human-relations theories
of Abraham Maslow and Frederick Herzberg.
LO 9-4 Investigate various theories of motivation, including
Theories X;Y; equity theory; and expectancy theory.

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 Nature of Human Relations
Human Relations: is the study of the
behavior of individuals and groups in
organizational settings.
• It involves motivating employees to
achieve organizational objectives
efficiently and effectively
• Becomes increasingly important over the
years (as businesses strive to understand
how to boost workplace morale, maximize
employees’ productivity and creativity)
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 Nature of Human Relations
o Motivation: is an inner drive that directs a
person’s behavior toward goals
• A goal: is the satisfaction of some need,
• A need: is the difference between a desired
state and an actual state
• Both needs and goals can be motivating.
o Motivation explains why people behave as
they do,
o A lack of motivation explains, why people
avoid doing what they should do.
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 The Motivation Process
A person who recognizes or feels a need
is motivated to take action to satisfy the
need and achieve a goal
For Example: Consider a person who
takes a job as a salesperson.
• If his/her performance is below other
salespeople’s, he/she will recognize a
need to increase sales.
• To satisfy that need and achieve success,
the person may try to acquire new
insights from successful salespeople or
obtain additional training to improve sales
skills.
• A sales manager might try different means
to motivate the salesperson to work
harder and to improve his/her skills. 6

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 Rewards
Employees are motivated by 2 types of rewards:
1) Intrinsic Rewards (inner)
• They are the personal satisfaction and enjoyment you feel
after attaining a goal
• Example: In this class, you may feel personal enjoyment in
learning how business works and aspire to have a career in
business or to operate your own business
2) Extrinsic Rewards (External)
• They are Benefits and/or recognition from someone else
• Example: In this class, your grade is extrinsic recognition of
your efforts and success in the class
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 8

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 Theories of Employee Motivation

1. Maslow’s Hierarchy of Needs

2. Herzberg’s Two-Factor Theory
3. McGregor’s Theory X and Theory Y
4. Equity Theory
5. Expectancy Theory

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 1. Maslow’s Hierarchy of Needs

Social:

Security:

A theory that arranges the five basic needs of people —

physiological, security, social, esteem, and self-actualization
— into the order in which people strive to satisfy them 10

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 1. Maslow’s Hierarchy of Needs
1. Physiological Needs:
The most basic human needs to be satisfied—water, food,
shelter, and clothing
2. Security Needs:
The need to protect oneself from physical & economic harm
3. Social Needs:
The need for love, companionship, and friendship — the
desire for acceptance by others
4. Esteem Needs:
The need for respect — both self-respect and respect from
others
5. Self-Actualization Needs:
The need to be the best one can be; at the top of Maslow’s
hierarchy 11

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 1. Maslow’s Hierarchy of Needs

https://www.youtube.com/watch?v=O-
4ithG_07Q&list=PL9fB7ud0oeM5y-
QiSLH5ykaCjAFheTpDU&index=2

12

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 2. Herzberg’s Two-Factor Theory
It is a theory of motivation that focuses on the job
and on the environment where work is done.
a. Hygiene Factors
• Aspects that focus on the work setting and not
the content of the work; these aspects include
adequate wages, comfortable and safe working
conditions, fair company policies, and job
security
b. Motivational Factors
• Aspects that focus on the content of the work
itself; these aspects include achievement,
recognition, involvement, responsibility, and
advancement 13

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 Herzberg’s Hygiene and
Motivational Factors
Hygiene Factors Motivational Factors
(Work Settings) (Content of the Work)
• Company policies • Achievement
• Supervision • Recognition
• Working conditions • Work itself
• Relationships with
peers, supervisors, & • Responsibility
subordinates
• Salary • Advancement
• Security • Personal Growth 14

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 2. Herzberg’s Two-Factor Theory

https://www.youtube.com/watch?
v=_6rieObMYOs

https://www.youtube.com/watch?
v=CIhJ0Ggf8_w
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 3. McGregor’s Theory X
McGregor’s traditional view of management whereby it is
assumed that workers generally dislike work and must be
forced to do their jobs
oMcGregor’s Theory X Assumptions:
1. Average person naturally dislikes work and will avoid it
when possible
2. Most workers must be coerced/forced, controlled, directed,
or threatened with punishment to get them to work toward
the achievement of organizational objectives
3. Average worker prefers to be directed, to avoid
responsibility, has relatively little ambition, wants security
 Theory X style of management focuses on physiological and
security needs and virtually ignores the higher needs
discussed by Maslow. (Used in china)
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 3. McGregor’s Theory Y
McGregor’s humanistic view of management
whereby it is assumed that workers like to work
and that under proper conditions employees will
seek out responsibility in an attempt to satisfy
their social, esteem, and self-actualization needs
 Traits of Theory Y Manager:
• Maintain less control and supervision
• Do not use fear as the primary motivator
• Are more democratic in decision making
 Used in the US.
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 McGregor’s Theory Y Assumptions
1. The expenditure of physical and mental effort in work is as
natural as play or rest
2. People will exercise self-direction and self-control to
achieve objectives to which they are committed
3. People will commit to objectives when they realize that the
achievements of those goals will bring them personal
reward
4. The average person will accept and seek responsibility
5. Imagination, ingenuity, and creativity can help solve
organizational problems, but most organizations do not
make adequate use of these characteristics in their
employees
6. Organizations today don’t fully use workers’ intellectual
potential 18

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 3. McGregor’s Theory X & Theory Y

https://www.youtube.com/wa
tch?v=NK8-LhqF4N0

19

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 Comparison of Theories X and Y
Theory X Theory Y
Countries which
China United States
use this style

Tight control over Assume workers will seek

Philosophy
workers responsibility, satisfy social needs

Less control and supervision;

Considerable
Job description address higher levels of Maslow’s
specialization
hierarchy

Control Tight control Commitment to self-direction

Worker welfare Limited concern Democratic

Responsibility Managerial Collaborative
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 4. Equity Theory
An assumption that how much people are willing
to contribute to an organization depends on their
assessment of the fairness, or equity, of the
rewards they will receive in exchange
 Equity is subjective notion
 Might explain why many consumers are upset
about CEO compensation (overpaid!)
• Corporations have now begun to tie CEO
compensation with company performance
 Feelings of inequity may underlie some unethical
or illegal behavior in business
21

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 Personal Input-Output Ratio
Each worker develops a personal input-output ratio by:
1. Taking stock of his/her contribution (inputs) to the
organization:
• Time, effort, skills, and experience
2. Assessing rewards (outputs) offered by organization:
• Pay, perks/benefits, recognition, and promotions
3. Compares ratio to input-output ratio of other person
• A “comparison other” may be a co-worker, friend
in another organization, or “average” of several
people
• If ratios are close, individual feels treated equitably
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 4. Equity Theory

https://www.youtube.com/watch?v=Qf
ovAw6Ix2s

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 5. Expectancy Theory
The assumption that motivation depends not only on
how much a person wants something but also on the
person’s perception of how likely he/she is to get it
• A person who wants something and has
reason to be optimistic will be strongly
motivated.
• If you do not believe you are likely to get
what you want, you may not be motivated to
try to get it, even though you really want it.
• Managers should be transparent with
employees about opportunities for
advancement.
• According to expectancy theory, your
motivation depends not only on how much
you want something, but also on how likely
you are to get it. 24

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 5. Expectancy Theory

https://www.youtube.com/wat
ch?v=pCFq2ibunvY

25

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