Fundamentals of Management

Sixth Edition

Robbins and DeCenzo

with contributions from Henry Moon

CHAPTER

Part IV: Leading

10
2008 Prentice Hall, Inc. All rights reserved.

Motivating and Rewarding Employees

PowerPoint Presentation by Charlie Cook The University of West Alabama

LEARNING OUTCOMES After reading this chapter, you will be able to:
1. Describe the motivation process. 2. Define needs. 3. Explain the hierarchy of needs theory. 4. Differentiate Theory X from Theory Y. 5. Explain the motivational implications of the motivationhygiene theory. 6. Describe the motivational implications of equity theory. 7. Explain the key relationships in expectancy theory.

8. Describe how managers can design individual jobs to maximize employee performance.
2008 Prentice Hall, Inc. All rights reserved. 102

L E A R N I N G O U T C O M E S (contd) After reading this chapter, you will be able to:

9. Explain the effect of workforce diversity on motivational practices. 10. Describe how entrepreneurs motivate their employees.

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Motivation and Individual Needs

Motivation
The willingness to exert high levels of effort to reach

organizational goals, conditioned by the efforts ability to satisfy some individual need

Need
An internal state that makes certain outcomes

appear attractive

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Components of Motivation

Motivation
Effort

Organizational Goals
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Needs

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EXHIBIT 101

The Motivation Process

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Early Theories Of Motivation

Hierarchy of Needs Theory (Maslow)
There is a hierarchy of five human needs; as each

need becomes satisfied, the next need becomes dominant.

Physiological: food, drink, shelter, sex Safety: physical safety Social: affiliation with others, affection, friendship Esteem: Internal (self-respect, autonomy, and achievement); external (status, recognition, and attention) Self-actualization: personal growth and fulfillment

2008 Prentice Hall, Inc. All rights reserved.

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EXHIBIT 102

Maslows Hierarchy of Needs

Source: Motivation and Personality , 2nd ed., by A. H. Maslow, 1970. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey. 2008 Prentice Hall, Inc. All rights reserved. 108

Early Theories Of Motivation (contd)

Theory X (McGregor)
The assumption that employees dislike work, are

lazy, seek to avoid responsibility, and must be coerced to perform.

Theory Y
The assumption that employees are creative, seek

responsibility, and can exercise self-direction.

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EXHIBIT 103

Theory X and Theory Y Premises

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Early Theories Of Motivation (contd)

Motivation-Hygiene Theory (Herzberg)
Intrinsic factors are related to job satisfaction and

extrinsic factors are related to job dissatisfaction.

Hygiene factors

Factors, such as working conditions and salary, that, when adequate, may eliminate job dissatisfaction but do not necessarily increase job satisfaction.

Motivators

Factors, such as recognition and growth, that can increase job satisfaction.

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EXHIBIT 104

Herzbergs Motivation-Hygiene Theory

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EXHIBIT 105

Contrasting Views of Satisfaction-Dissatisfaction

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Contemporary Theories Of Motivation

Three-Needs Theory (McClelland)
The needs for achievement, power, and affiliation

are major motives in work.

1. Need for achievement (nAch) The drive to excel, to achieve in relation to a set of standards, to strive to succeed. 2. Need for power (nPow) The need to make others behave in a way that they would not have behaved otherwise. 3. Need for affiliation (nAff) The desire for friendly and close interpersonal relationships.

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Contemporary Theories
Equity Theory (Adams)
Employees perceive what they get from a job

situation (outcomes) in relation to what they put into it (inputs) and then compare their input-outcome ratio with the input-outcome ratios of relevant others.

Referent
Is, in equity theory, the other persons, the systems,

or the personal experiences against which individuals compare themselves to assess equity.

The choice of a particular set of referents is related to the information available about referents as well as to the perceived relevance.

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EXHIBIT 106

Equity Theory Relationships

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Equity Theory: Individual Judgments

When employees perceive an inequity they may:
Distort either their own or others inputs or outcomes.

Behave so as to induce others to change their inputs

or outcomes. Behave so as to change their own inputs or outcomes. Choose a different comparison referent. Quit their job.

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EXHIBIT 107

Equity Theory Propositions

1. If paid according to time, overrewarded employees will produce more than equitably paid employees. 2. If paid according to quantity of production, overrewarded employees will produce fewer but higher-quality units than equitably paid employees.

3. If paid according to time, underrewarded employees will produce less or poorer quality output.
4. If paid according to quantity of production, underrewarded employees will produce a large number of low-quality units in comparison with equitably paid employees.
2008 Prentice Hall, Inc. All rights reserved. 1018

Job Design And Motivation

Job Characteristics Model (JCM)
Hackman and Oldhams job description model:

The five core job dimensions are skill variety, task identity, task significance, autonomy, and feedback.

Internal rewards are obtained when:

An employee learns (knowledge of results) through (feedback) that he or she personally (experienced responsibility through autonomy of work) has performed well on a task that he or she cares about (experienced meaningfulness through skill variety, task identity, and/or task significance).

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JCM: Core Job Dimensions

Skill variety
The degree to which the job requires a variety of

activities so the worker can use a number of different skills and talents

Task identity
The degree to which the job requires completion of a

whole and identifiable piece of work

Task significance
The degree to which the job affects the lives or work

of other people

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JCM: Core Job Dimensions (contd)

Autonomy
The degree to which the job provides freedom,

independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out

Feedback
The degree to which carrying out the work activities

required by the job results in the individuals obtaining direct and clear information about the effectiveness of his or her performance

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EXHIBIT 108

The Job Characteristics Model

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EXHIBIT 109

Guidelines for Job Redesign

Source: J. R. Hackman and J. L. Suttle, eds., Improving Life at Work (Glenview. IL: Scott, Foresman, 1977). With permission of the authors. 2008 Prentice Hall, Inc. All rights reserved. 1023

Expectancy Theory (Vroom)

An individual tends to act in a certain way, in the expectation that the act will be followed by given outcome, and according to the attractiveness of that outcome to the individual.
The extent to which individuals are motivated to

perform to get a reward of value to them is based on their belief that their performance will result in the reward they want.

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Expectancy Theory (contd)

Emphasizes self interest in the alignment of rewards with employee wants. Addresses why employees view certain outcomes (rewards) as attractive or unattractive. Emphasizes the connections among expected behaviors, rewards, and organizational goals. Is concerned with individual perceptions and the provision of feedback.

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Expectancy Relationships (Linkages)

EffortPerformance
The perceived probability that exerting a given

amount of effort will lead to performance

PerformanceReward
The belief that performing at a particular level will

lead to the attainment of a desired outcome

Attractiveness
The importance placed on the potential outcome or

reward that can be achieved on the job.

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EXHIBIT 1010

Simplified Expectancy Theory

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EXHIBIT 1011

Integrating Theories of Motivation

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Steps in Motivating Employees

1. Recognize individual differences.
2. Match people to jobs. 3. Use goals.

4. Ensure that goals are perceived as attainable.

5. Individualize rewards. 6. Link rewards to performance.

7. Check the system for equity.

8. Dont ignore money.

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Contemporary Issues in Motivation

Flexibility: The Key To Motivating A Diverse Workforce
Recognizing the different personal needs and goals

of individuals.
Providing a diversity of rewards to match the varied

needs of employees.
Being flexible in accommodating the cultural

differences within a diverse workforce when attempting to motivate workers.

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Should Employees Be Paid for Performance or Time on the Job?

Pay-for-Performance Programs
Compensation plans that pay employees on the

basis of performance measures not directly related to time spent on the job.
Piece-rate plans Gainsharing Wage-incentive Profit sharing Lump-sum bonuses

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Compensation Alternatives

Pay-for-Performance Options

CompetencyBased Compensation

BroadBanding

Stock Options

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Motivating Other Employees

Minimum-Wage Employees
Use employee recognition

Professional and Technical Employees

Provide job challenge: new

programs Provide praise Empower employees Provide career development opportunities

assignments and projects Provide support and resources Increase autonomy Provide continuing education opportunities Provide recognition for accomplishments

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Work-Life Balance
Alternative Work Schedules

Flextime

Job Sharing

Telecommuting

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How Entrepreneurs Motivate Employees

Entrepreneurs Motivate Employees By:
Allowing them to complete the whole job. Having employees work together across

departments and functions in the organization.

Using participative decision making in which

employees provide input into decisions.

Delegating decisions and duties, turning over the

responsibility for carrying them out to employees.

Redesigning their jobs so they have discretion over

the way they do their work.

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