CHAPTER 10: MOTIVATING EMPLOYESS

& TEAM BUILDING

INTRO:Hot Topic!

Overview

• The importance of satisfaction among employees:• Happy workers => happy customers

=> successful businesses (profit)• People are motivated by a variety of

things• Intrinsic reward [personal

satisfaction]• Extrinsic reward [given to you by

someone]

Traditional Theories of Motivation

• Frederick Taylor• American “efficiency engineer”

• The Principles of Scientific Management, 1911

• Goal: to increase worker productivity (to benefit firm/worker)

• There is 1 best way to perform each task – observe/study performance to find that best way.

• Time-motion studies (shovel studies)

• Focus on EFFICIENCY

• “Father of Scientific Management”

Followers of Taylor

• Gantt• Developed charts to plot every detail

of work in advance

• Frank & Lillian Gilbreth• Used Taylor’s ideas to study

bricklaying• Principle of Motion Economy• => every job broken down into

specific motions (therblig)• Analyze each motion to improve

efficiency

Summary, Scientific Management

• People are like machines• People motivated by money• No thoughts about

psychological/human aspects of work• UPS

Elton Mayo

• Hawthorne Studies, 1927-1933• Test amount of lighting needed for

optimum productivity at electric plant• Why did results confuse researchers?• Profound change in management

thinking:• Hawthorne effect = people behave

differently when they know they’re being studied.

• Shift: away from Taylor toward human-based management

• Pay was found to be ineffective motivator

Maslow

• People are motivated to satisfy unmet NEEDS

• Needs have a hierarchy of importance• Satisfied needs no longer motivate

Herzberg

• What can managers do (with the job itself) to motivate employees?

• A “modern-day” look at Taylor’s theory• Study (1960s) asked workers to rank job-

related motivating factors (list, pg. 265)• Job content = most motivating

• Sense of achievement, responsibility, etc.

• Job environment factors = less motivating • Good pay, job security, friendly

managers Absence = demotivating• Presence = not motivating

Conclusions of Herzberg

• Two types of factors (pg. 266):• MOTIVATORS

Lead to productive, satisfied employees

• HYGIENE (MAINTENANCE) FACTORS• Cause dissatisfaction if missing; but

do not motivate if increased• “The number one motivator is not

money, but a sense of achievement and recognition for a job well-done.”

• Compare to Maslow’s Theory (pg. 267)

Job Enrichment

• Extension of Maslow & Herzberg Theories• MOTIVATIONAL STRATEGY emphasizes

motivating workers through the job itself.Completion of task from start to end

(job enlargement)Opportunities for personal

achievement, challenge, recognition, variety (job rotation)

• How is this related to Maslow’s theory?• 5 characteristics of work are important

(pg. 268)• Opposite of job simplification

McGregor’s Theory X and Theory Y

• How do managers feel about their workers?

• This will determine how they motivate them.

• Theory X managers believe:

Employees do not like to work

They do not like responsibility

They must be forced, controlled, threatened with punishment to perform

They are motivated by fear and money

Theory Y

• Theory Y managers believe:

Employees like to work

They seek and like to be given responsibilities

They are creative, committed to goals

They are motivated by a variety of rewards

Emphasis on relaxed managerial atmosphere

Empowerment is key

Trend in U.S. is toward Theory Y

• Studied success of Japanese companies

• Japanese management approach = Type J

Lifetime employment, collective decision-making and responsibility, concern for workers

Focus on trust, groups, family

American management approach = Type A

Short-term employment, individual decision-making and responsibility

Focus on individual rights, achievements

William Ouchi

• Not practical for American managers to adopt strategies based on another country’s culture

• Theory Z = a Hybrid (Blends J & A) pg. 272

• Since economic decline, Japan rethinking managerial approaches

• Ex: Hitachi

• Has conformity hurt Japanese businesses?

• Will they move to Hybrid Theory Z in future?

Ouchi’s Theory Z

• Goal-setting Theory: setting ambitious but attainable goals will motivate workers

• Everyone should be involved in goal-setting and implementation

• Peter Drucker developed: MBO, a system to help employees motivate themselves. (pg. 273)

• Helping vs. Coaching

• Central idea of MBO?

MBO (Management by Objectives)

• Employee expectations can affect motivation

• Three questions that are asked (pg. 274)

Vroom’s Expectancy Theory

Reinforcement Theory• Motivation is a result of carrot-and-stick approach

(reward/punishment)

• We act to receive rewards and avoid punishment

Equity Theory• Motivation affected by fairness we perceive

1, 2, 3 Southwest Airlines4, 5, 6 Apple7, 8, 9 Google10, 11 Wegman’s12, 13 Enterprise Rent-A-Car14, 15, 16 Starbucks17, 18, 19 Zappos20, 21, 22 UPS or Disney