One reason engagement and empowerment have such high motivational potential is that they address higher level needs and provide intrinsic rewards by applying some recent ideas about what it takes to have a high-performance workplace in which people feel that they are a part of something special.
The Making Progress Principle
Recent research points to the importance of making progress toward goals as a key to high motivation. The making progress principle is the idea that the single most important factor that can boost motivation, positive emotions, and percep- tions during a workday is making progress toward meaningful goals.65People are most motivated when they have the opportunity to experience achievement.
Knowing that they are making everyday progress, even small steps, can make all the difference in how motivated people feel to continue pursuing a course of action.
Leaders can support making progress by setting clear goals, giving people autonomy, providing sufficient time and resources, and helping people see how they are contributing. In addition, leader encouragement and recognition can enable people to see their work as important and meaningful. Providing feedback on how well people are progressing and giving them a way to track their progress toward goals provides a renewable energy that fuels motivation. Sometimes managers underestimate the importance of the continuous feedback aspect of the job charac- teristics model, described earlier.
Building a Thriving Workforce
Taken together, many of the ideas in this chapter enable leaders to create an envi- ronment in which people can thrive. Athriving workforceis one in which people are NEW LEADER
ACTION MEMO
As a leader, you can build an environment that unleashes employee potential and allows people to become engaged with their work and the orga- nization. You can help people feel good about their jobs by giving them a sense of making progress toward meaningful goals.
248 PART 4THE LEADER AS A RELATIONSHIP BUILDER
Making progress principle
the idea that the single most important factor that can boost motivation, positive emotions, and perceptions during a workday is making progress toward meaningful goals
Thriving workforce A workforce in which people are not just satisfied and productive but also engaged in creating a better future for themselves and the organi- zation; incorporates vitality and learning
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not just satisfied and productive but also engaged in creating the future—their own and that of the organization.66 Two components of thriving individuals are vitality and learning. A thriving employee is one who feels alive, energized, and passionate about what he or she is doing. The individual has a sense that his or her work has purpose and meaning. In addition, a thriving employee is one who is learning and growing, developing new knowledge, skills, and abilities that can be applied now and in the future.
Leaders promote thriving by applying many of the motivational techniques described throughout this chapter, such as meeting higher level needs, helping peo- ple get intrinsic rewards from their work, and providing regular feedback on perfor- mance and progress. A long-term commitment to empowerment and engagement can provide the basis for a thriving workplace. The goal of empowerment and engagement is to transform the culture. Leaders talk with people one on one to understand what each individual wants and needs to feel engaged and empowered, and then follow through with everyday action. Although there are some key dri- vers, there is no cookie-cutter approach because each individual and organization is different.67 As described earlier, the immediate supervisor plays a key role in whether employees are engaged and thriving.
Now that you’ve read the chapter, check out how today’s leaders are applying these concepts.
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LEADERSHIP ESSENTIALS
• This chapter introduced a number of important ideas about motivating people in organizations. Individuals are motivated to act by various motives and to satisfy a range of needs. The leadership approach to motivation tends to focus on positive motives and meeting the higher needs of employees. The role of the leader is to create a situation in which followers’ higher needs and the needs of the organization can be met simultaneously.
• Needs-based theories focus on the underlying needs that motivate how people behave. Maslow’s hierarchy of needs proposes that individuals satisfy lower needs before they move on to higher needs. Herzberg’s two-factor theory holds that dissatisfiers must be removed and motivators then added to cause high motivation. McClelland asserted that people are motivated differently depending on which needs they have acquired.
• Other motivation theories, including the reinforcement perspective, expec- tancy theory, and equity theory, focus primarily on extrinsic rewards and punishments, sometimes called carrot-and-stick methods of motivation.
The reinforcement perspective proposes that behavior can be modified by the use of rewards and punishments. Expectancy theory is based on the idea that a person’s motivation is contingent upon his or her expectations that a given behavior will result in desired rewards. Equity theory proposes that individuals’ motivation is affected not only by the rewards they receive but also by their perceptions of how fairly they are treated in relation to others. People are motivated to seek equity in the rewards they receive for performance.
• A highly effective way to meet higher level needs is to empower employees.
Empowerment lets subordinates know the direction of the organization and
CHAPTER 8MOTIVATION AND EMPOWERMENT 249
gives them the autonomy to act as they see fit to go in that direction. Leaders provide employees with the knowledge to contribute to the organization, the power to make consequential decisions, and the necessary resources to do their jobs.
• Jobs can be designed to increase empowerment. The job characteristics model proposes that jobs are more empowering and motivating when they have greater skill variety, task identity, task importance, autonomy, and feedback.
• Employee engagement is tied to the trend toward helping employees find value and meaning in their jobs. The most motivated employees are engaged employ- ees who enjoy their jobs and feel they are making a valuable contribution.
Engaged employees contribute enthusiastically to meeting goals. Leaders create the environment that determines employee engagement.
• Two recent motivational ideas that relate to engagement are the making prog- ress principle and creating a thriving workforce. Research suggests that the sin- gle most important factor for motivation is a sense of making progress toward meaningful goals. A thriving workforce is made up of people who are enthusi- astically learning and growing as they acquire new knowledge and skills to apply in their current jobs or in the future.
DISCUSSION QUESTIONS
1. Describe the kinds of needs that people bring to an organization. How might a person’s personality characteristics such as introversion/extroversion or openness to experience, as described in Chapter 4, influence the needs he or she brings to work?
2. With the economy still in a slump, some companies are freezing pay raises or even cut- ting pay for some employees so they can offer substantial raises to people considered star performers. As a motivational technique, does this practice seem like a good one to you? What might be some disadvantages of this technique?
3. How might empowerment provide the two conditions (vitality and learning) for a thriv- ing workforce as described in the chapter? Consider both psychological factors and the job characteristics model in your answer.
4. Google wants employees to mingle more but not to waste a lot of time. So as part of its
“people strategy,” Google analyzes reams of data to determine the optimal size and shape for the cafeteria tables and the best length for the lunch line. If hygiene factors, as defined in Herzberg’s two-factor theory, will not provide increased satisfaction and motivation, why do you think Google would try to increase lunchtime mingling? Discuss.
5. Why do you think making progress in meaningful work ranks as the most important factor contributing to motivation according to a recent study? How might leaders pro- vide a sense of progress for employees working on long-range projects that might not show results for months or even years?
6. One small business owner says she doesn’t offer her sales representatives incentives because people try to sabotage one another to get more business and stop paying atten- tion to smaller accounts. As a leader, how would you develop a program to motivate and reward high performers without promoting the wrong type of behavior?
7. Can you think of specific motivational techniques that would motivate you in each of the four categories in Exhibit 8.3 (positive extrinsic, positive intrinsic, negative extrinsic, negative intrinsic)? Describe them.
250 PART 4 THE LEADER AS A RELATIONSHIP BUILDER
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8. Do you agree that it is the behavior of leaders that largely determines employee engage- ment, as defined in the text? What might be some other factors that influence engagement?
9. Discuss whether you believe it is a leader’s responsibility to help people find meaning in their work. How might leaders do this for employees at a credit card call center? How about for employees who empty waste containers and clean restrooms at sports or entertainment venues?
10. As part of the federal health-care overhaul in the United States, patient satisfaction survey scores are now used to help determine how much the federal government will pay medical facilities for treating patients on Medicare. What motivation theory described in the chapter does this example illustrate? Do you think this approach will motivate employees to provide better care? What might be some potential problems with this approach?
Complete this assignment online with CengageNOW.
C a C
LEADERSHIP AT WORK
Should, Need, Like, Love
Think of a school or work task that you feel an obligation or commitment to complete but that you don’t really want to do. Write the task here:
Think of a school or work task you do because you need to, perhaps to get the benefit, such as money or credit. Write the task here:
Think of a school or work task you like to do because it is enjoyable or fun. Write the task here:
Think of a task you love to do—one in which you become completely absorbed and from which you feel a deep satisfaction when finished. Write the task here:
Now reflect on those four tasks and what they mean to you. How motivated (high, medium, low) are you to accomplish each of these four tasks? How much mental effort (high, medium, low) is required from you to complete each task?
CHAPTER 8MOTIVATION AND EMPOWERMENT 251
Now estimate the percentage of your weekly tasks that you would rate as should, need, like, love. The combined estimates should total 100%.
Should: %
Need: %
Like: %
Love: %
If your should and need percentages are substantially higher than your like and love categories, what does that mean for you? Does it mean that you are forcing yourself to do tasks you find unpleasant? Why? Why not include more like and love tasks in your life?
Might you grow weary of the should and need tasks at some point and select a new focus or job in your life? Think about this and discuss your percentages with another student in the class.
Tasks you love connect you with the creative spirit of life. People who do something they love have a certain charisma, and others want to follow their lead. Tasks you like typi- cally are those that fit your gifts and talents and are tasks for which you can make a contri- bution. Tasks you do because of need are typically practical in the sense that they produce an outcome you want, and these tasks often do not provide as much satisfaction as the like and love tasks. Tasks you do strictly because you should, and which contain no love, like, or need, may be difficult and distasteful and require great effort to complete. You are unlikely to become a leader for completing should tasks.
What does the amount of each type of task in your life mean to you? How do these tasks relate to your passion and life satisfaction? Why don’t you have more like and love tasks? As a leader, how would you increase the like and love tasks for people who report to you? Be specific.
In Class:The instructor can have students talk in small groups about their percentages and what the percentages mean to them. Students can be asked how the categories of should, need, like, and love relate to the theories of motivation in the chapter. Do leaders have an obligation to guide employees toward tasks they like and love, or is it sufficient at work for people to perform need and should tasks?
The instructor can write student percentages on the board so students can see where they stand compared to the class. Students can be asked to interpret the results in terms of the amount of satisfaction they receive from various tasks. Also, are the percentages related to the students’ stage of life?
Check out CengageNOW for additional cases with interactive activities.
C f i
LEADERSHIP DEVELOPMENT: CASES FOR ANALYSIS
Commissions for Charlotte
Doris Ann Riley, the head of HR for King Conductors, was amused by the conversation drifting over the planter that separated the two booths in the employee cafeteria. She recognized the voices on the other side as those of Pete Morris, Carter Henry, and Rachael Parker. The three were involved in a heated discussion about the opening of the NFL season one week away and the continued hold-out of the local team’s star quarterback.
“Hey, if he can hold out for a $50 million dollar contract, I say more power to him.
He’s worth it,” Pete announced “I say …”
252 PART 4THE LEADER AS A RELATIONSHIP BUILDER
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“The guy already has millions,” Rachael cut in. “He got it last year as a rookie, for hea- ven’s sake. He’s a selfish jerk. His selfishness is making everyone, the fans, the owner, prob- ably the other players, angry.”
“Yeah, and what about those other players who have been there, winning games for us for years?” Carter asked. “They get us in the play-offs year after year, and then here comes this guy who’s been there one year, one year, Pete, and he’s going to get millions or he won’t play. Well, that really breaks my heart.”
“Just be glad that Charlotte Forsythe knows nothing about American football or that you can make demands like that, or she’ll hit up this company,” Rachael remarked, breaking the tension at the table by making everyone laugh.
On the other side of the planter, Doris Ann was not laughing.
Charlotte had worked for years in the international arena as the top salesperson for rival Merrill International in the United Kingdom. A native Londoner, she followed a life-long desire to immigrate to the United States. Doris Ann was part of the team that had lured Charlotte from U.S. rival Martin Conductor to take a sales position with King Conductors (whose owners, Wylie King and James Conway, long ago hoisted the humor- ous nickname, King-Con). Capturing Charlotte was considered a real coup in the world of conductors. Long considered the big three in the industry, the companies produced in-demand conductors for electronics. King-Con’s own formulation was designed for use to counter continuous flexing in data processing, rotating servo platforms, and other applications.
To capture such a high-profile salesperson, Doris Ann was the first to admit the com- pany had given in more than usual on wage and other job perks. Charlotte had skipped the regular salary in order to receive straight commissions on sales—an arrangement that had been made by her previous employer. The arrangement was unusual but, the team thought, a necessary step in luring Charlotte away from Martin. In addition, as a native of England with the habit of driving on the left-hand side of the road, Charlotte’s unfamiliarity with American driving conditions, particularly in congested metropolitan areas, resulted in the unusual arrangement of allowing her office assistant to also serve as a driver on various occasions, particularly when she was out of town. While working in the company headquar- ters, however, she took the train to work and made use of trains or cabs. Still, there was a rumble of discontent among employees about Queen Charlotte and royal treatment.
“Her sales are a huge percentage and she’s made a tremendous difference in the year since her arrival. She really is worth the trouble,” Doris Ann told company vice president Charles Owenby. “But she has come to me to suggest raising her commission—substantially—and I just don’t know. But I think you and I and Wylie and Jim need to discuss this.”
“I agree,” Charles said. “I think they will bend within reason … ”
“But the problem here, I believe, will be the reaction of other employees,” Doris Ann said. I hear a lot about Queen Charlotte and royal treatment, and comparisons to how those who have put in the years here are not getting the same respect as the rookie, to bor- row a football analogy. So the question is, do we give in or stand firm?”
“Knowing she can always move over to Martin,” Charles added. “There’s a risk either way, so we have to explore our options before we bring all of the parties together to hash this thing out.”
QUESTIONS
1. What theories of motivation help explain Charlotte’s demands and the reactions of other employees to those demands?
2. What options can you think of for handling Charlotte’s demand for even higher com- missions? Which option would you choose? Why?
3. How might Doris Ann Riley deal with employee morale in light of the extremely high pay demanded by a star salesperson?
© Cengage Learning 2015
CHAPTER 8MOTIVATION AND EMPOWERMENT 253
Sun Spots
SunDax CEO Dax Hollandsworth turns his leather desk chair from the blinding sunlight streaming through the large office window and leans back, facing Mark Roberts, the com- pany CFO.
“You know, Mark, on the surface this seems impossible. We look at the numbers, we look at energy trends, we look at tax breaks and the grants and loans poured into this effort, and…” his voice trails off as he raises his hands in a gesture of surrender.
“I dread the quarterly meeting and video feed,” Mark says. “Everyone has been work- ing really hard and they’ve come to expect the year-end bonus. Hell, they plan for it, their families budget for it.”
“I realize this will come as a huge disappointment, but I really don’t think it will come as a big shock to them. Do you want some of these?” Dax asks, taking a handful of jelly beans and extending the jar to Mark who takes a few. “They’re working their tails off, but I’ve detected a decline in overall morale. Everyone here keeps a close eye on the industry and on the mood and efforts at the Federal level. They deal every day with the competition from the Chinese, and they see this big trend toward mergers and acquisitions. They may not want to admit it any more than we want to say it, but I think they know the bonus pool is empty and they wonder what the future holds.”
The question hanging over the offices throughout the U.S. solar industry echoes that of California-based SunDax, “how could this happen?”
To the outsider, things appear great for solar power. The numbers are staggering with an over-all increase in usage of more than 60 percent over the previous year. And American home and commercial construction shows the rising popularity of solar energy as a viable power alternative. Like the electric automobile, it is the wave of the future. But the public sees only the sun; industry insiders are looking at the sun spots.
Private investments in the early years followed by federal tax credits and Energy Depart- ment loan guarantees enabled solar companies such as SunDax to refine their products, increase inventory, and expand sales worldwide. Boom time brought U.S. Treasury grants to the industry of several hundred million dollars, and as sales increased so did employee bonuses. Many bonuses equaled up to a third of an employee’s salary—money for a child’s college tuition, down-payments on homes, trips, and other luxuries.
Now, amid shaky global economic conditions, SunDax and others see a decline in U.S.
and European solar energy incentives while Chinese competitors undercut costs, providing an inventory glut for many U.S. producers. In this climate, there is reluctance on the part of Congress to renew mini-grants or to extend tax credits. The stimulus packages upon which so many companies depended to jump-start market expansion are a thing of the past.
“I’m afraid that employees will believe we are bending to public pressure in withholding their bonuses or they will think we are holding onto financial assets in order to look stronger for a potential merger or acquisition,” Dax tells Mark.
“Mergers and acquisitions are the trend right now and some big names have given in. If we are acquired, they can share in the gains.”
“We’re not there yet,” Dax says. “Our challenge is to shore up faith in our future among employees while dealing with the realities of the market. But if you say ‘look at all of these challenges’ and, ‘oh, by the way, don’t expect a year-end bonus,’ what can we offer to shore up that faith and restore enthusiasm?”
QUESTIONS
1. What options can you think of for Dax and Mark to mitigate the damage from unfilled expectations for the annual bonus?
2. What specific steps would you take if you were a senior manager in this situation?
Explain why for each step.
3. Do you consider it motivational and equitable when a substantial part of an employee’s pay is a bonus based on company results in a highly uncertain environment? Why?
254 PART 4 THE LEADER AS A RELATIONSHIP BUILDER
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