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    Fourth EditionFourth Edition

    Copyright 2003 Prentice Hall, Inc.Copyright 2003 Prentice Hall, Inc.

    PART 3 . . . . . . . . . . . . . . . . . . . . . . . .PART 3 . . . . . . . . . . . . . . . . . . . . . . . .

    Understanding People inUnderstanding People in

    OrganizationsOrganizations

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    Copyright 2003 Prentice Hall, Inc.Copyright 2003 Prentice Hall, Inc. 8 -8 - 22

    Chapter 8Chapter 8

    Motivating, Satisfying,

    and Leading Employees

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    Copyright 2003 Prentice Hall, Inc.Copyright 2003 Prentice Hall, Inc. 8 -8 - 33

    A leader is best when people barely know

    he exists, when his work is done they will

    say: We did it ourselves.

    ~ Lao-Tzu, c. 600 B.C.

    Leadership is the art of getting someone

    else to do something you want done

    because he wants to do it.

    ~ Dwight D. Eisenhower, 1890 - 1969

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    Copyright 2003 Prentice Hall, Inc.Copyright 2003 Prentice Hall, Inc. 8 -8 - 44

    Key Topics

    Psychological contracts in the workplace

    Job satisfaction and employee morale

    Theories of employee motivation

    Job satisfaction and employee motivation

    Managerial styles of leadership

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    Copyright 2003 Prentice Hall, Inc.Copyright 2003 Prentice Hall, Inc. 8 -8 - 55

    Psychological ContractA Set of Employment Expectations

    Contributions:Contributions:

    What does each employee expect toWhat does each employee expect to

    contribute to the organization?contribute to the organization?

    Inducements:Inducements:

    What will the organization provide to eachWhat will the organization provide to each

    employee in return?employee in return?

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    Raising Morale Is a High Priority When

    Unemployment Is Low

    0% 10% 20% 30% 40% 50% 60%

    Alternative Work Arrangements

    Long-term Care Insurance

    Group Financial Planning

    Group Auto Insurance

    Group Home Owners Insurance

    1994 1997 2000

    NANA

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    Fortune Magazines100 Best Companies to Work For

    Edward Jones #1Cisco Systems #15

    Microsoft #28

    Patagonia #41Starbucks #58

    Wal-Mart #94

    It's not easy being good these days

    at least if you're an employer.

    Source: Fortune Magazine, February 4Source: Fortune Magazine, February 4 thth , 2002, 2002

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    Highly Motivated Employees Are

    Critical to Business Success

    Classical

    Behavior: The Hawthorne Studies

    Contemporary

    Motivation:Motivation:

    The set of forces that cause people to behave inThe set of forces that cause people to behave in

    certain wayscertain ways

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    The Human Resources ModelTheory X and Theory Y

    Theory X

    People are lazy.

    People lack ambition and

    dislike responsibility.

    People are self-centered.

    People resist change.

    People are gullible and

    not very bright.

    Theory Y

    People are energetic.

    People are ambitious andseek responsibility.

    People can be selfless.

    People want to contributeto business growth andchange.

    People are intelligent.

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    Maslows Hierarchy of Needs

    Self-

    ActualizationNeeds

    Esteem Needs

    Social Needs

    Security Needs

    Physiological Needs

    General

    Examples

    Organizational

    Examples

    Self-Fulfillment Challenging Job

    Self-Self-

    ActualizationActualizationNeedsNeeds

    Status Job TitleEsteem NeedsEsteem Needs

    Friendship Friends at WorkSocial NeedsSocial Needs

    Stability Pension PlanSecurity NeedsSecurity Needs

    Shelter SalaryPhysiological NeedsPhysiological Needs

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    Hygiene Factors

    Supervisors

    Working Conditions

    Interpersonal Relations

    Pay & Security

    Company Policies &

    Administration

    Motivation Factors

    Achievement

    Recognition

    The Work Itself

    Responsibility

    Advancement & Growth

    Two Factor Theory

    Dissatisfaction Satisfaction

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    Expectancy Theory

    Effort-

    Performance Issue

    Performan

    ce-RewardIssue

    Rewards-

    PersonalGoalsIssue

    IndividuIndividual Effortal Effort

    IndividualIndividualPerformaPerforma

    ncence

    OrganizatiOrganizationalonal

    RewardsRewards

    PersonalPersonalGoalsGoals

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    Equity Theory

    Employees evaluate their treatment relative to the treatmentEmployees evaluate their treatment relative to the treatmentof othersof others

    Inputs:Inputs: Employee contributions to their jobsEmployee contributions to their jobs

    Outputs:Outputs:

    What employees receive in returnWhat employees receive in return

    TheTheperceived ratioperceived ratio of contribution to return determinesof contribution to return determinesperceived equityperceived equity

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    Strategies for Enhancing Job

    Satisfaction and Morale

    Reinforcement/behaviormodification

    Management by objectives

    Participative managementand empowerment

    Job enrichment and jobredesign

    Modified work schedules

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    Reinforcement /

    Behavior Modification Theory

    Positive ReinforcementPositive ReinforcementPositive ReinforcementPositive Reinforcement

    PunishmentPunishmentPunishmentPunishment

    When rewards are tied directly toWhen rewards are tied directly to

    performanceperformance

    When negative consequences are attachedWhen negative consequences are attacheddirectly to undesirable behaviordirectly to undesirable behavior

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    IdentifyingResources

    Counseling

    SettingVerifiable

    Goals& Clear Plans

    Meeting

    Management by ObjectivesCollaborative Goal-setting

    CollaboratiCollaborati

    ve Goalve Goal

    Setting &Setting &

    PlanningPlanning

    CommunicaCommunica

    tingting

    OrganizatioOrganizatio

    nal Goals &nal Goals &

    PlansPlans

    PeriodicPeriodic

    ReviewReviewEvaluatioEvaluatio

    nn

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    Participative Management

    and Empowerment

    Increasing job satisfaction by

    encouraging participation

    Team management representsa growing trend

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    Job Enrichment and Job Redesign

    Job Enrichment:Job Enrichment: Adding one or more motivatingAdding one or more motivating

    factors to job activitiesfactors to job activities

    Job Redesign:Job Redesign: Designing a better fit betweenDesigning a better fit between

    workers and their jobsworkers and their jobs

    Combining tasksCombining tasks

    Forming natural work groupsForming natural work groups

    Establishing client relationshipsEstablishing client relationships

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    Work share programs

    Flextime programs and

    alternative workplace

    strategies

    Telecommuting and

    virtual offices

    Modified Work Schedules

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    Sample Flextime Scheduling

    JoeJoe

    SueSue

    PatPat

    6:006:00A.M.A.M.

    7:007:00A.M.A.M.

    8:008:00A.M.A.M.

    9:009:00A.M.A.M.

    10:0010:00A.M.A.M.

    11:0011:00A.M.A.M.

    12:0012:00NOONNOON

    1:001:00P.M.P.M.

    2:002:00P.M.P.M.

    3:003:00P.M.P.M.

    4:004:00P.M.P.M.

    5:005:00P.M.P.M.

    6:006:00P.M.P.M.

    FlexibleFlexibleTimeTime

    CoreCoreTimeTime

    FlexibleFlexibleTimeTime

    CoreCoreTimeTime

    FlexibleFlexibleTimeTime

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    Evaluating Modified Schedules and

    Alternative Workplaces

    Advantages

    More satisfied,

    committedemployees

    Less congestion

    Disadvantages

    Challenging to

    coordinate andmanage

    Poor fit for some

    workers

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    The process ofThe process of

    motivating othersmotivating others

    to work to meetto work to meet

    specific objectivesspecific objectives

    Managerial Leadership

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    Challenge the process

    Inspire a shared vision

    Enable others to act

    Model the way

    Encourage the heart

    Five Fundamental LeadershipPractices

    Source: www.theleadershipchallenge.comSource: www.theleadershipchallenge.com

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    Leadership at General ElectricFour Es of GE Leadership

    A highA high energyenergy levellevel

    The ability toThe ability to energize othersenergize others around commonaround common

    goalsgoals

    TheThe edgeedge to make tough decisionsto make tough decisions

    The ability to consistentlyThe ability to consistently executeexecute and deliverand deliveron promiseson promises

    Source:Source:

    Jack Welch Tells It Straight from the GutJack Welch Tells It Straight from the Gut

    , Anderson Assets, Winter 2002, Anderson Assets, Winter 2002

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    Copyright 2003 Prentice Hall, Inc.Copyright 2003 Prentice Hall, Inc. 8 -8 - 2626

    Managerial Styles

    Contingency ApproachThe appropriate style in any situation is contingent

    on the unique elements of that situation

    Contingency ApproachThe appropriate style in any situation is contingent

    on the unique elements of that situation

    Autocratic StyleAutocratic Style

    Democratic StyleDemocratic Style

    Free-rein StyleFree-rein Style

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    Copyright 2003 Prentice Hall, Inc.Copyright 2003 Prentice Hall, Inc. 8 -8 - 2727

    Motivation and Leadership in the

    Twenty-first Century

    MotivationMotivation

    Security and pay are noSecurity and pay are no

    longer enoughlonger enough

    LeadershipLeadership

    Coach mentalityCoach mentality

    DiversityDiversity

    FlexibilityFlexibility

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    Chapter Review

    Describe psychological contracts

    Discuss the importance of job satisfaction

    and employee moraleSummarize the most important theories ofemployee motivation

    Describe strategies to improve jobsatisfaction and employee motivation

    Discuss different managerial styles