CHAPTER 10 Motivating Employees McGraw-Hill/Irwin Copyright © 2015 by the McGraw-Hill Companies, Inc All rights reserved LEARNING OBJECTIVES 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 LEARNING OBJECTIVES Explain the key principles of goal-setting, 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 DAVID NOVAK Yum Brands • One of the largest food companies, a restaurant is opened every 14 hours • Novak stresses the importance of his team of employees worldwide • He is committed to growing the company by boosting employee morale 10-4 NAME that COMPANY Job enlargement combines a series of tasks into one challenging and interesting assignment This home appliance manufacturer redesigned its washing machine production process so that employees could assemble an entire water pump instead of just adding one part Name that company! 10-5 INTRINSIC REWARDS • Intrinsic Rewards Personal satisfaction you feel when you perform well and complete goals • Examples of Intrinsic Rewards: - Pride in your performance - Sense of achievement 10-6 EXTRINSIC REWARDS • Extrinsic Rewards Something given as a recognition of good work • Kinds of Extrinsic Rewards: - Pay Raises - Promotions - Awards 10-7 FRINGE BENEFITS Perks Offered to Employees at Top 50 Employers Source: Bloomberg BusinessWeek, www.businessweek.com, accessed November 2014 10-8 TAYLOR’S SCIENTIFIC MANAGEMENT LO 10-1 • 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 10-9 TAYLOR’S FOUR KEY PRINCIPLES LO 10-1 Study how a job is performed • Gather time & motion information • Check different methods Codify the best method into rules Choose workers whose skill matches the rules Establish a fair level of performance and pay 10-10 WHEN TOO MUCH is TOO MUCH 24/7 Access Isn’t Always a Good Thing • Schedule correspondence: - Don’t check email whenever it arrives, schedule times to check • Pick one task: - Having too much open at once takes attention away from singular tasks • Don’t answer the phone: - Don’t be afraid of voicemail • Maintain human contact: - Don’t look at your computer or phone while someone is at your desk Keep attention (and respect!) on them Source: Entrepreneur, www.entrepreneur.com, accessed November 2014 10-47 RECOGNIZING GOOD WORK LO 10-7 • Raises are not the only ways to recognize an employee’s performance Recognition can also include: - 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 10-48 WORK WELL with OTHERS LO 10-7 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 10-49 WHAT’S GOOD for YOU LO 10-7 Most Positive Remedies for Employee Moral 10-50 WHAT’S BAD for YOU LO 10-7 Most Negative Actions for Employee Morale 10-51 GOING UP AGAINST the HEAVYWEIGHTS • Sparta Systems employees play video games during breaks • Bigcommerce offers bootcamps with a trainer • Zoosk allows employees to bring dogs to work • Shift Communications has recess 10-52 MOTIVATING EMPLOYEES ACROSS the GLOBE LO 10-8 • Cultural differences make worker motivation a challenging task for global managers • High-Context cultures require relationships and group trust before performance • Low-Context cultures believe relationship building distracts from tasks 10-53 BEYOND JUST KNOWING CROSS-CULTURE DIFFERENCES • A better understanding of cultures helps managers increase customer satisfaction and loyalty • It is more than just knowing other languages, it’s knowing what’s proper • IBM works closely with many different people before entering new markets 10-54 MOTIVATING ACROSS the GENERATIONS LO 10-8 • Baby Boomers (1946 – 1964) - Experienced great economic prosperity, job security, optimism about their future • Generation X (1965 – 1980) - Raised in dual-career families, attended day care, feeling of insecurity about jobs • Generation Y or Millennials (1980 – 1995) - Raised by indulgent parents, used to many comforts like computers and cell phones 10-55 UPCOMING GENERATIONS in the WORKPLACE LO 10-8 • Generation Z (1996 – 2009) - Grew up post 9/11, in the wake of the Great Recession and amid many reports of school violence • Generation Alpha (after 2010) 10-56 GENERATION X in the WORKPLACE LO 10-8 • 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 10-57 MILLENNIALS and the WORKPLACE LO 10-8 • Tend to be impatient, skeptical, blunt and expressive • Are tech-savvy and able to grasp new concepts • Able to multi-task and are efficient • Highlight a strong sense of commitment • Place a high value on work-life balance • Fun and stimulation are key job requirements 10-58 COMMUNICATION ACROSS the GENERATIONS LO 10-8 • 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 – 1995) - Prefer to use technology to communicate, particularly through social media 10-59 The BEST COMPANIES for WORKERS Source: Fortune, www.fortune.com, accessed November 2014 LO 10-8 10-60 TEST PREP • 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? 10-61 ... if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions 10-30 APPLYING GOAL-SETTING THEORY LO 10-6 • Management by Objectives (MBO) Involves a cycle... 10-7 FRINGE BENEFITS Perks Offered to Employees at Top 50 Employers Source: Bloomberg BusinessWeek, www.businessweek.com, accessed November 2014 10-8 TAYLOR’S SCIENTIFIC MANAGEMENT LO 10-1 •... 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 LEARNING OBJECTIVES Explain