Chapter 10 Motivating Employees McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved Chapter Ten LEARNING GOALS Explain Taylor’s theory of scientific management Describe the Hawthorne studies and their significance to management Identify the levels of Maslow’s hierarchy of needs and apply them to employee motivation Distinguish between the motivators and hygiene factors identified by Herzberg Differentiate among Theory X, Theory Y, and Theory Z. 10-2 Chapter Ten LEARNING GOALS Explain the key principles of goalsetting, expectancy, reinforcement, and equity theories Show how managers put motivation theories into action through such strategies as job enrichment, open communication, and job recognition Show how managers personalize motivation strategies to appeal to employees across the globe and across generations 10-3 Profile ANDREW CHERNG Panda Express • Cherng considers the wellness of his staff as an important key to the company’s success • Managers are urged to eat a healthy diet, exercise regularly, and attend company motivational seminars that often include hugs! • He hopes to have 2,300 American stores in operation by 2015 10-4 Chapter Ten NAME that COMPANY The employees of this company are told exactly how to do their jobs – and we do mean exactly. For instance they are instructed to carry their keys on their ring finger with the teeth up. If they are considered too slow, a supervisor will shadow them with a stopwatch and clipboard and prod them along Name that company! 10-5 The Value of Motivation INTRINSIC REWARDS • Intrinsic Rewards – – Personal satisfaction you feel when you perform well and complete goals: - Pride in your performance - Sense of achievement – Something given as a recognition of good work - Pay Raises - Promotions - Awards 10-6 The Value of Motivation FRINGE BENEFITS Best Perks Offered to Employees Type of Benefit Company Pay Scale Ranked Free food, a bowling alley, and bocce courts Google 12 paid holidays and a winter recess between Christmas and New Year's Day Boeing 16 Johnson & Johnson Co 18 Cisco Systems 29 Campbell’s 52 General Mills 76 Immediate eligibility for 401(k) contribution, and company will match, and has own fitness centers for employees, spouses, and dependents Hershey’s 89 New hires receive gift basket sent to their homes, and they holds bowling nights and softball games J.J Smucker Co 103 Have access to concierge service, who does personal chores for them Primary healthcare, physical therapy and acupuncture 100% healthcare coverage, free flu shots, healthy cooking lessons and subsidized costs on healthy meal options Also, onsite kindergarten and after-school programs, and lactation room for nursing mothers weeks paid vacation upon hire and increases yearly, and can work from any location within the office, known as the FUSE program http://money.cnn.com/magazines/fortune/bestcompanies/best_benefits/unusual.html February 11, 2013 10-7 Frederick Taylor: The Father of Scientific Management LG1 TAYLOR’S SCIENTIFIC MANAGEMENT • Scientific Management Studying workers to find the most efficient ways of doing things and then teaching people those techniques. • Three Key Elements to Increase Productivity Time Methods of Work Rules of Work 10-8 Frederick Taylor: The Father of Scientific Management LG1 TAYLOR’S FOUR KEY PRINCIPLES Study how a job is performed • Gather time & motion information • Check different methods Codify the best method into rules Choose workers whose skill(s) match the rule Establish a fair level of performance and pay 10-9 Frederick Taylor: The Father of Scientific Management TIMEMOTION STUDIES LG1 • TimeMotion Studies Studies of which tasks must be performed to complete a job and the time needed to do each task • Led to the development of the Principle of Motion Economy Every job can be broken down into a series of elementary motions; developed by Frank and Lillian Gilbreth • Led to the development of Lean Six Sigma – Toyota Reduction of waste and defects of 3.4 per million 10-10 Recognizing a Job Well Done RECOGNIZING GOOD WORK LG7 Raises are not the only ways to recognize an employee’s performance. Recognition also includes: - Paid time off - Flexible scheduling - Work from home opportunities - Paid child or elder care - Stock options or profit sharing - Company awards - Company events or teams 10-44 Recognizing a Job Well Done WORK WELL with OTHERS LG7 Keys for Productive Teamwork • Have a common understanding of your task • Clarify roles and responsibilities • Set rules • Get to know each other • Communicate openly and often 10-45 Recognizing a Job Well Done LG7 WHAT’S GOOD for YOU Most Positive Remedies for Employee Moral 10-46 Recognizing a Job Well Done LG7 WHAT’S BAD for YOU Most Negative Actions for Employee Morale 10-47 SMALL INCENTIVES CAN be BIG MOTIVATORS (Spotlight on Small Business) • Things like weekly trips to the movies and Rock Band in the break room help keep employees motivated • Communication, mentoring and group bonding are key elements to success • Open communication and increased responsibility for employees make them feel a real part of the firm 10-48 Motivating Employees Across the Globe LG8 MOTIVATING EMPLOYEES ACROSS the GLOBE Cultural differences make worker motivation a challenging task for global managers •HighContext cultures require relationships and group trust before performance • LowContext cultures believe relationship building distracts from tasks. 10-49 IMPORTANCE of CULTURAL COMPENTENCY (Reaching Beyond Our Borders) Diversity A better understanding of cultures helps managers increase customer satisfaction and loyalty • It’s not just knowing other languages, it’s knowing what’s proper • UPS operates in over 200 countries successfully by emphasizing diversity 10-50 Motivating Employees Across Generations LG8 MOTIVATING ACROSS the GENERATIONS • Baby Boomers (1946 – 1964) - Experienced great economic prosperity, job security, optimism about their future • Generation X (1965 – 1980) - Raised in dualcareer families, attended day care, feeling of insecurity about jobs • Generation Y or Millennials (1980 – 2004) - Raised by indulgent parents, used to many comforts like computers and cell phones • Generation Z or Digital Generation (2005 to present) - Raised by parents very connected with networks and social networks, computers and all kinds of smartphones, known as digital natives 10-51 Motivating Employees Across Generations LG8 GENERATION X in the WORKPLACE • Desire economic security but focus more on career security than job security • Good motivators as managers due to emphasis on results rather than work hours • Tend to be flexible and good at collaboration and consensus building • Very effective at giving employee feedback and praise 10-52 Motivating Employees Across Generations LG8 GENERATION Y MILLENNIALS and the WORKPLACE • Tend to be impatient, skeptical, blunt and expressive • Are techsavvy and able to grasp new concepts • Able to multitask and are efficient • Highlight a strong sense of commitment • Place a high value on worklife balance • Fun and stimulation are key job requirements 10-53 Motivating Employees Across Generations LG8 MILLENNIALS and the RECESSION • The recession hurt younger workers more deeply than other workers. • In July 2010, the unemployment rate was at a high of 15.3 percent for those aged 20 to 24, while the overall unemployment rate was 9.5 percent. 10-54 Motivating Employees Across Generations LG8 GENERATION Z and the Workplace • They operate totally with the digital world and social networking • Their interpretation skills are lacking and may not have basic manners ingrained in generations at younger ages. • They have tremendous energy and enthusiasm. • There's a big gap in the oldfashioned basics like personal responsibility and work habits. • Managers will have to tap their intelligence and provide the support to young workers 10-55 Motivating Employees Across Generations LG8 COMMUNICATION ACROSS the GENERATIONS • Baby Boomers (1946 – 1964) - Prefer meetings and conference calls • Generation X (1965 – 1980) - Prefer email and will choose meetings only if there are no other options. • Generation Y or Millennials (1980 – 2004) - Prefer to use technology to communicate, particularly through social media. • Generation Z or Digital (2005 – Present) - Prefer to use digital technology and social networking. 10-56 Motivating Employees Across Generations LG8 The BEST COMPANIES for WORKERS Source: Forbes: July 2014 10-57 Progress Assessment PROGRESS ASSESSMENT • What are several steps firms can take to increase internal communications and thus motivation? • What problems may emerge when firms try to implement participative management? • Why is it important to adjust motivational styles to individual employees? Are there any general principles of motivation that today’s managers should follow? 10-58 ... Salary, Status and Job Security Work Itself 10- 19 Herzberg’s Motivating Factors LG4 COMPARISON of the THEORIES of MASLOW and HERZBERG 10- 20 Herzberg’s Motivating Factors LG4 REIGNITE EMPLOYEES DRIVE Simple Ways to Reinvigorate Work Life... cause employees to be productive and that give them satisfaction 10- 17 Herzberg’s Motivating Factors JOB ENVIRONMENT LG4 Job environment factors maintained satisfaction, but did not motivate employees. .. If a need is filled, another higherlevel need emerges 10- 14 Motivation and Maslow’s Hierarchy of Needs LG3 MASLOW’S HIERARCHY of NEEDS 10- 15 Herzberg’s Motivating Factors LG4 HERZBERG’S MOTIVATING FACTORS • Herzberg’s research centered on two questions: