The classical theory of motivation suggests that _____ is the sole motivator for workers.

Motivating the Workforce

Chapter 9

©Steve Allen/ Getty Images

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

1

Learning Objectives

9-1 Define human relations and determine why its study is important.

9-2 Summarize early studies that laid the groundwork for understanding employee motivation.

9-3 Compare and contrast the human relations theories of Abraham Maslow and Frederick Herzberg.

9-4 Investigate various theories of motivation, including Theories X, Y, and Z; equity theory; expectancy theory; and goal-setting theory.

9-5 Describe some of the strategies that managers use to motivate employees.

9-6 Critique a business’s program for motivating its sales force.

©McGraw-Hill Education.

2

Nature of Human Relations 1

Human Relations

The study of the behavior of individuals and groups in organizational settings

Involves motivating employees to achieve organizational objectives efficiently and effectively

Motivation

Inner drive that directs a person’s behavior toward a goal

A goal is the satisfaction of some need

A need is the difference between an actual state and a desired state

©McGraw-Hill Education.

Operations management (OM), the development and administration of the activities involved in transforming resources into goods and services, is of critical importance. Operations managers oversee the transformation process and the planning and designing of operations systems, managing logistics, quality, and productivity.

Historically, operations management has been called “production” or “manufacturing” primarily because of the view that it was limited to the manufacture of physical goods. Its focus was on methods and techniques required to operate a factory efficiently. The change from “production” to “operations” recognizes the increasing importance of organizations that provide services and ideas. Additionally, the term operations represents an interest in viewing the operations function as a whole rather than simply as an analysis of inputs and outputs.

3

POLLING QUESTION

One objective of _____ involves motivating employees to achieve organizational goals efficiently and effectively.

Motivation

Human relations

Employee morale

Motivational theory

©McGraw-Hill Education.

©McGraw-Hill Education.

4

Answer: B. Human relations

This has become a very important part of business, such as keeping employees motivated and happy.

Motivation

Motivation is important both in business and outside of it. For instance, coaches motivate athletes before major games to increase their chances they will play their best.

©Chris Szagola/CSM/REX/Shutterstock

©McGraw-Hill Education.

5

Figure 9.1 The Motivation Process

©McGraw-Hill Education.

6

Nature of Human Relations 2

Morale

An employee’s attitude toward his or her job, employer, and colleagues

High morale leads to:

High levels of productivity

High returns to stakeholders

Employee loyalty

Low morale leads to:

High rates of absenteeism

High rates of employee turnover

©McGraw-Hill Education.

One prominent aspect of human relations is morale on an employee’s attitude toward his or her job, employer, and colleagues. High morale contributes to high levels of productivity, high returns to stakeholders, and employee loyalty. Conversely, low morale may cause high rates of absenteeism and turnover (when employees quit or are fired and must be replaced by new employees).

7

Nature of Human Relations 3

Both intrinsic and extrinsic rewards contribute to motivation

Intrinsic Rewards

Personal satisfaction and enjoyment you feel from attaining a goal

Extrinsic Rewards

Benefits and/or recognition you receive from someone else

©McGraw-Hill Education.

Both intrinsic and extrinsic rewards contribute to motivation that stimulates employees to do their best in contributing to business goals. An intrinsic reward is the personal satisfaction and enjoyment that you feel from attaining a goal. For example, in this class you may feel personal enjoyment in learning how business works and aspire to have a career in business or to operate your own business one day. Extrinsic rewards are benefits and/or recognition that you receive from someone else. In this class, your grade is extrinsic recognition of your efforts and success in the class. In business, praise and recognition, pay increases, and bonuses are extrinsic rewards.

8

Table 9.1 How to Retain Good Employees

Offer training and mentoring

Create a positive organizational culture

Build credibility through communication

Blend compensation, benefits, and recognition

Encourage referrals and don’t overlook internal recruiting

Give coaching and feedback

Provide growth opportunities

Create work/life balance and minimize stress

Foster trust, respect and confidence in senior leadership

Source: Sarah K. Yazinski, “Strategies for Retaining Employees and Minimizing Turnover,” HR.BLR.com, August 3, 2009, https://hr.blr. com/whitepapers/Staffing-Training/Employee-Turnover/Strategies-for-Retaining-Employees-and-Minimizing- (accessed April 25, 2018).

©McGraw-Hill Education.

9

POLLING QUESTION

Susie has been asked to help increase employee retention at Winning Smiles Dentistry. Where do you think she should focus all of her efforts?

Training and mentorship

Compensation, benefits, and recognition

Work/life balance

Interactions with senior leadership

©McGraw-Hill Education.

©McGraw-Hill Education.

Student answers will vary. This should encourage students to consider all the factors that are important when trying to attract and retains employees. Students should consider the following points.

A. Training and mentoring

Creates the potential for employee advancement/pay raises

Provides employees with the confidence to know they are performing their tasks competently

Helps employs adjust to changing technologies

B. Compensation, benefits, and recognition

Employees receive compensation for their work in many forms, such as hourly wages/salary, overtime, medical benefits, and retirement accounts.

Anyone who’s held a job is intimately aware that people invest varying amounts of effort into accomplishing their tasks. Employees who become more competent than their peers should receive recognition for their hard work. Many businesses encourage employees to nominate each other for outstanding work, team efforts, etc.

C. Work/life balance

Modern families tend to be made up of two working parents. This limits the ability of both parents to put in long hours in the office due to child care concerns. Business are starting to take this into consideration when developing employee schedules.

D. Interactions with Senior Leadership

As a company increases in scope and size, the interactions between senior, middle, and lower management tend to decrease, often to the detriment of open lines of communication. Employees begin to feel marginalized; representing a number on a spreadsheet instead of a person. To combat this sense of alienation, management often schedules townhalls and luncheons where they can mingle with junior employees.

10

Historical Perspectives on Employee Motivation 1

Classical Theory of Motivation

Suggests that money is the sole motivator for workers

Time and motion studies

Frederick W. Taylor, Frank and Lillian Gilbreth

Analyzed how workers performed tasks to improve productivity

Led to the application of scientific principles to management

Taylor’s ideas still in practice today

Financial incentives for productivity

©McGraw-Hill Education.

The birth of the study of human relations can be traced to time and motion studies conducted at the turn of the century by Frederick W. Taylor and Frank and Lillian Gilbreth. Their studies analyzed how workers perform specific work tasks in an effort to improve the employees’ productivity. These efforts led to the application of scientific principles to management.

According to the classical theory of motivation, money is the sole motivator for workers. Taylor suggested that workers who were paid more would produce more, an idea that would benefit both companies and workers. To improve productivity, Taylor thought that managers should break down each job into its component tasks (specialization), determine the best way to perform each task, and specify the output to be achieved by a worker performing the task.

We can still see Taylor’s ideas in practice today in the use of financial incentives for productivity. Moreover, companies are increasingly striving to relate pay to performance at both the hourly and managerial level.

11

Historical Perspectives on Employee Motivation 2

The Hawthorne Studies

1924 to 1932 at the Hawthorne Works Plant

Elton Mayo

Postulated that physical conditions in the workplace stimulate productivity

Productivity increased regardless of physical conditions (the Hawthorne effect)

Findings showed that social and psychological factors could affect productivity and morale

Marked the beginning of concern for human relations in the workplace

©McGraw-Hill Education.

Elton Mayo and a team of researchers from Harvard University wanted to determine what physical conditions in the workplace—such as light and noise levels—would stimulate employees to be most productive. From 1924 to 1932, they studied a group of workers at the Hawthorne Works Plant of the Western Electric Company and measured their productivity under various physical conditions.

What the researchers discovered was quite unexpected and very puzzling: Productivity increased regardless of the physical conditions. This phenomenon has been labeled the Hawthorne effect. When questioned about their behavior, the employees expressed satisfaction because their co-workers in the experiments were friendly and, more importantly, because their supervisors had asked for their help and cooperation in the study. In other words, they were responding to the attention they received, not the changing physical work conditions.

The Hawthorne experiments marked the beginning of a concern for human relations in the workplace. They revealed that human factors do influence workers’ behavior and that managers who understand the needs, beliefs, and expectations of people have the greatest success in motivating their workers.

12

Theories of Employee Motivation 1

Maslow’s Hierarchy of Needs

A theory that arranges the five basic needs of people—physiological, security, social, esteem, and self-actualization—into the order in which people strive to satisfy them.

Source: Adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review 50 (1943), pp. 370–396. American Psychology Association.

©McGraw-Hill Education.

Psychologist Abraham Maslow theorized that people have five basic needs: physiological, security, social, esteem, and self-actualization. Maslow’s hierarchy arranges these needs into the order in which people strive to satisfy them.

13

Theories of Employee Motivation 2

Maslow’s Hierarchy of Needs continued

Physiological needs

Security needs

Social needs

Esteem needs

Self-actualization needs

©McGraw-Hill Education.

Physiological needs, the most basic and first needs to be satisfied, are the essentials for living—water, food, shelter, and clothing. According to Maslow, humans devote all their efforts to satisfying physiological needs until they are met. Only when these needs are met can people focus their attention on satisfying the next level of needs—security.

Security needs relate to protecting yourself from physical and economic harm. Actions that may be taken to achieve security include reporting a dangerous workplace condition to management, maintaining safety equipment, and purchasing insurance with income protection in the event you become unable to work. Once security needs have been satisfied, people may strive for social goals.

Social needs are the need for love, companionship, and friendship—the desire for acceptance by others. To fulfill social needs, a person may try many things: making friends with a co-worker, joining a group, volunteering at a hospital, throwing a party, and so on. Once their social needs have been satisfied, people attempt to satisfy their need for esteem.

Esteem needs relate to respect—both self-respect and respect from others. One aspect of esteem needs is competition—the need to feel that you can do something better than anyone else. Competition often motivates people to increase their productivity. Esteem needs are not as easily satisfied as the needs at lower levels in Maslow’s hierarchy because they do not always provide tangible evidence of success. However, these needs can be realized through rewards and increased involvement in organizational activities. Until esteem needs are met, people focus their attention on achieving respect. When they feel they have achieved some measure of respect, self-actualization becomes the major goal of life.

Self-actualization needs, at the top of Maslow’s hierarchy, mean being the best you can be. Self-actualization involves maximizing your potential. A self-actualized person feels that she or he is living life to its fullest in every way.

14

Theories of Employee Motivation 3

Herzberg’s Two-Factor Theory

Hygiene factors

Relate to the work setting and not to the content of the work

Do not necessarily motivate people to excel, but their absence may dissatisfy workers

Motivational factors

Relate to the content of the work itself

Absence may not result in dissatisfaction, but presence is likely to motivate

©McGraw-Hill Education.

In the 1950s, psychologist Frederick Herzberg proposed a theory of motivation that focuses on the job and on the environment where work is done. Herzberg studied various factors relating to the job and their relation to employee motivation and concluded that they can be divided into hygiene factors and motivational factors.

Hygiene factors, which relate to the work setting and not to the content of the work, include adequate wages, comfortable and safe working conditions, fair company policies, and job security. These factors do not necessarily motivate employees to excel, but their absence may be a potential source of dissatisfaction and high turnover. Employee safety and comfort are clearly hygiene factors.

Motivational factors, which relate to the content of the work itself, include achievement, recognition, involvement, responsibility, and advancement. The absence of motivational factors may not result in dissatisfaction, but their presence is likely to motivate employees to excel.

15

Table 9.2 Herzberg’s Hygiene and Motivational Factors

Hygiene Factors Motivational Factors
Company policies Achievement
Supervision Recognition
Working conditions Work itself
Relationships with peers, supervisors, and subordinates Responsibility
Salary Advancement
Security Personal growth
©McGraw-Hill Education.

16

Motivational Factors at Google

Google’s employee-friendly offices feature elements like basketball courts, pinball machines, and photo booths to foster creativity and make work more enjoyable.

©Daniel Brenner/Bloomberg via Getty Images

©McGraw-Hill Education.

17

Theories of Employee Motivation 4

McGregor’s Theory X is a traditional view of management

The average person naturally dislikes work and will avoid it when possible

Most workers must be coerced, controlled, directed, or threatened with punishment to get them to work toward achieving organizational objectives

The average worker prefers to be directed, avoids responsibility, has little ambition, and wants security

©McGraw-Hill Education.

Douglas McGregor related Maslow’s ideas about personal needs to management. McGregor contrasted two views of management—the traditional view, which he called Theory X, and a humanistic view, which he called Theory Y.

According to McGregor, managers adopting Theory X assume that workers generally dislike work and must be forced to do their jobs. They believe that the following statements are true of workers:

1. The average person naturally dislikes work and will avoid it when possible.

2. Most workers must be coerced, controlled, directed, or threatened with punishment to get them to work toward the achievement of organizational objectives.

3. The average worker prefers to be directed and to avoid responsibility, has relatively little ambition, and wants security

Managers who subscribe to the Theory X view maintain tight control over workers, provide almost constant supervision, try to motivate through fear, and make decisions in an autocratic fashion, eliciting little or no input from their subordinates. The Theory X style of management focuses on physiological and security needs and virtually ignores the higher needs discussed by Maslow.

18

Theories of Employee Motivation 5

McGregor’s Theory Y is a humanistic view of management

The expenditure of physical and mental effort in work is as natural as play or rest

People will exercise self-direction and self-control to achieve objectives to which they are committed

People will commit to objectives when they realize that the achievement of those goals will bring them personal reward

The average person will accept and seek responsibility

Imagination, ingenuity, and creativity can help solve organizational problems, but most organizations do not make adequate use of these characteristics in their employees

Organizations today do not make full use of workers’ intellectual potential

©McGraw-Hill Education.

Managers subscribing to the Theory Y view assume that workers like to work and that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs. McGregor describes the assumptions behind Theory Y in the following way:

1. The expenditure of physical and mental effort in work is as natural as play or rest.

2. People will exercise self-direction and self-control to achieve objectives to which they are committed.

3. People will commit to objectives when they realize that the achievement of those goals will bring them personal reward.

4. The average person will accept and seek responsibility.

5. Imagination, ingenuity, and creativity can help solve organizational problems, but most organizations do not make adequate use of these characteristics in their employees.

6. Organizations today do not make full use of workers’ intellectual potential.

Obviously, managers subscribing to the Theory Y philosophy have a management style very different from managers subscribing to the Theory X philosophy. Theory Y managers maintain less control and supervision; do not use fear as the primary motivator; and are more democratic in decision making, allowing subordinates to participate in the process. Theory Y managers address the high-level needs in Maslow’s hierarchy as well as physiological and security needs.

19

Theories of Employee Motivation 6

Theory Z

Management philosophy that stresses employee participation in all aspects of company decision making

First described by William Ouchi

Incorporates elements of the Japanese approach to management; trust and intimacy

Managers and workers share responsibilities

Participative management style

Long-term, often lifelong employment

©McGraw-Hill Education.

Theory Z is a management philosophy that stresses employee participation in all aspects of company decision making. It was first described by William Ouchi in his book, Theory Z—How American Business Can Meet the Japanese Challenge. Theory Z incorporates many elements associated with the Japanese approach to management, such as trust and intimacy, but Japanese ideas have been adapted for use in the United States. In a Theory Z organization, managers and workers share responsibilities; the management style is participative; and employment is long term and, often, lifelong.

20

Table 9.3 Comparisons of Theories X, Y, and Z

Factor Theory X Theory Y Theory Z
Countries that use this style China United States Japan
Philosophy Tight control over workers Assume workers will seek out responsibility and satisfy social needs Employee participation in all aspects of company decision making
Job description Considerable specialization Less control and supervision; address higher levels of Maslow’s hierarchy Trust and intimacy with workers sharing responsibilities
Control Tight control Commitment to objectives with self-direction Relaxed but required expectations
Worker welfare Limited concern Democratic Commitment to worker’s total lives
Responsibility Managerial Collaborative Participative
©McGraw-Hill Education.

21

Theories of Employee Motivation 7

Equity Theory

How much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange

Equity is a subjective notion

May explain why many consumers are upset about CEO compensation

Feelings of inequity may lead to unethical behavior

©McGraw-Hill Education.

According to equity theory, how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange. In a fair situation, a person receives rewards proportional to the contribution he or she makes to the organization. However, in practice, equity is a subjective notion.

Equity theory might explain why many consumers are upset about CEO compensation. Although the job of the CEO can be incredibly stressful, the fact that they take home millions in compensation, bonuses, and stock options has been questioned. To counter this perception of pay inequality, several corporations have now begun to tie CEO compensation with company performance.

Because almost all the issues involved in equity theory are subjective, they can be problematic. Author David Callahan has argued that feelings of inequity may underlie some unethical or illegal behavior in business. Some employees may take company resources to restore what they perceive to be an inequity (inadequate pay, working hours, or other deficient benefits).

22

Theories of Employee Motivation 8

Expectancy Theory

Motivation depends not only on how much a person wants something, but also on how likely he or she is to get it

Goal-Setting Theory

Refers to the impact that setting goals has on performance

Management by objectives (MBO)

©McGraw-Hill Education.

Psychologist Victor Vroom described expectancy theory, which states that motivation depends not only on how much a person wants something, but also on the person’s perception of how likely he or she is to get it. A person who wants something and has reason to be optimistic will be strongly motivated.

Goal-setting theory refers to the impact that setting goals has on performance. According to this philosophy, goals act as motivators to focus employee efforts on achieving certain performance outcomes. Setting goals can positively affect performance because goals help employees direct their efforts and attention toward the outcome, mobilize their efforts, develop consistent behavior patterns, and create strategies to obtain desired outcomes.

In 1954, Peter Drucker introduced the term management by objectives (MBO) that has since become important to goal-setting theory. MBO refers to the need to develop goals that both managers and employees can understand and agree upon.25 This requires managers to work with employees to set personal objectives that will be used to further organizational objectives. By linking managerial objectives with personal objectives, employees often feel a greater sense of commitment toward achieving organizational goals.

23

Expectancy Theory

Managers should be transparent with employees about opportunities for advancement. According to expectancy theory, your motivation depends not only on how much you want something, but also on how likely you are to get it.

©Monkey Business Images/Shutterstock

©McGraw-Hill Education.

24

POLLING QUESTION

Google offers employees work areas where they can gather, share ideas, relax, play basketball, and just unwind. According to McGregor, this style of management is most likely following the _____ theory of motivation.

V

X

Y

Z

©McGraw-Hill Education.

©McGraw-Hill Education.

Answer: C. Y

According to McGregor, the Y Theory is a more humanistic approach to employee motivation and is often found in U.S. businesses. The theory purports that most employees will do their work, meet deadlines, and be motivated due the nature of intrinsic rewards.

25

Strategies for Motivating Employees 1

Behavior Modification

Involves changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself

Reinforcement theory

Behavior that is rewarded will tend to be repeated

Behavior that is punished will tend to be eliminated

Two strategies may not be equally effective

Generally, rewarding appropriate behavior is more effective

©McGraw-Hill Education.

Behavior modification involves changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself. Behavior modification is the most widely discussed application of reinforcement theory, the theory that behavior can be strengthened or weakened through the use of rewards and punishments. The concept of behavior modification was developed by psychologist B. F. Skinner. Skinner found that behavior that is rewarded will tend to be repeated, while behavior that is punished will tend to be eliminated.

However, the two strategies may not be equally effective. Punishing unacceptable behavior may provide quick results but may lead to undesirable long-term side effects, such as employee dissatisfaction and increased turnover. In general, rewarding appropriate behavior is a more effective way to modify behavior.

26

Strategies for Motivating Employees 2

Job Design

Managers can use job design strategies to improve employee motivation

Job rotation

Job enlargement

Job enrichment

©McGraw-Hill Education.

Herzberg identified the job itself as a motivational factor. Managers have several strategies that they can use to design jobs to help improve employee motivation. These include job rotation, job enlargement, job enrichment, and flexible scheduling strategies.

Job rotation allows employees to move from one job to another in an effort to relieve the boredom that is often associated with job specialization. Job rotation is a good idea, but it has one major drawback. Because employees may eventually become bored with all the jobs in the cycle, job rotation does not totally eliminate the problem of boredom.

Job enlargement adds more tasks to a job instead of treating each task as separate. Like job rotation, job enlargement was developed to overcome the boredom associated with specialization. The rationale behind this strategy is that jobs are more satisfying as the number of tasks performed by an individual increases.

Job enrichment incorporates motivational factors such as opportunity for achievement, recognition, responsibility, and advancement into a job. It gives workers not only more tasks within the job, but more control and authority over the job. Job enrichment programs enhance a worker’s feeling of responsibility and provide opportunities for growth and advancement when the worker is able to take on the more challenging tasks.

27

Table 9.4 Benefits of Job Rotation

Exposure to a diversity of viewpoints

Motivating ongoing lifelong learning

Preparing for promotion and leadership roles

Building specific skills and abilities

Supporting recruitment efforts

Boosting overall productivity

Retaining employees

Source: Tim Hird, “The Lasting Benefits of Job Rotation,” Treasury & Risk, January 24, 2017, https://www.treasuryandrisk.com/sites/ treasuryandrisk/2017/01/24/the-lasting-benefits-of-job-rotation/ (accessed April 30, 2018).

©McGraw-Hill Education.

28

Strategies for Motivating Employees 3

Job Design continued

Flexible scheduling strategies

Flextime

Compressed workweek

Job sharing

Allowing full-time workers to work part-time for a certain period

Allowing workers to work at home

©McGraw-Hill Education.

Many U.S. workers work a traditional 40-hour workweek consisting of five 8-hour days with fixed starting and ending times. Facing problems of poor morale and high absenteeism as well as a diverse workforce with changing needs, many managers have turned to flexible scheduling strategies such as flextime, compressed workweeks, job sharing, part-time work, and telecommuting.

Flextime is a program that allows employees to choose their starting and ending times, as long as they are at work during a specified core period.

The compressed workweek is a four-day (or shorter) period in which an employee works 40 hours. Under such a plan, employees typically work 10 hours per day for four days and have a three-day weekend. The compressed workweek reduces the company’s operating expenses because its actual hours of operation are reduced.

Job sharing occurs when two people do one job. One person may work from 8:00 a.m. to 12:30 p.m.; the second person comes in at 12:30 p.m. and works until 5:00 p.m. Job sharing gives both people the opportunity to work as well as time to fulfill other obligations, such as parenting or school. With job sharing, the company has the benefit of the skills of two people for one job, often at a lower total cost for salaries and benefits than one person working eight hours a day would be paid.

Two other flexible scheduling strategies attaining wider use include allowing full-time workers to work part-time for a certain period and allowing workers to work at home either full- or part-time.

29

Figure 9.3 Flextime, Showing Core and Flexible Hours

Access the text alternative for these images.

©McGraw-Hill Education.

30

Working Remotely

Working remotely is becoming increasingly common. Telecommuting, job sharing, and flextime can be beneficial for employees who cannot work normal work hours.

©nd3000/Shutterstock

©McGraw-Hill Education.

31

POLLING QUESTION

Isa, a recent college graduate, is hired by Lean Street Consulting and given several options for a work schedule. Each one requires her to work a minimum of 40 hours per week. In your opinion, which should she choose?

Flexible hours

Work remotely

Compressed workweek

Traditional 9:00 to 5:00

©McGraw-Hill Education.

©McGraw-Hill Education.

Student answers will vary. Students should discuss the advantages and disadvantages of each of these work schedules.

A. Flexible hours

Advantages:

Can work around appointments, childcare obligations, etc.

Can potentially choose which days work best for her

Disadvantages:

She may not be at work when others are there

Delayed feedback from peers/management

B. Work remotely

Advantages:

Can work from home

Time normal spent commuting to work can be spent in more productive ways

Less spent on car maintenance and gas

Decreased likelihood of being involved in a car accident

Disadvantages:

Minimal social interactions with fellow employees

Will not learn many necessary job skills for future growth

Working from home tends to involve discipline and focus

C. Compressed Workweek

Advantages:

Four-day work weeks

Three-day weekends

More flexibility with childcare

Disadvantages:

Four long days

Possibility of being called in on the fifth day to resolve a work issue

D. Traditional 9:00 – 5:00

Advantages:

Social Interaction

Learn from peers/management/mentors

On-hand should problems arise

Disadvantages:

Less flexibility than one of the hybrid schedule

32

Strategies for Motivating Employees 4

Importance of Motivational Strategies

Fosters employee loyalty

Boosts productivity

Influences pay, promotion, job design, training opportunities, and reporting relationships

Employees are motivated by the nature of:

The relationship they have with supervisors

Their jobs

The characteristics of the organization

©McGraw-Hill Education.

Motivation is more than a tool that managers can use to foster employee loyalty and boost productivity. It is a process that affects all the relationships within an organization and influences many areas such as pay, promotion, job design, training opportunities, and reporting relationships. Employees are motivated by the nature of the relationships they have with their supervisors, by the nature of their jobs, and by characteristics of the organization.

33

Motivational Strategies

Businesses have come up with different ways to motivate employees, including rewards such as trophies and plaques to show the company’s appreciation.

©Caiaimage/Paul Bradbury/Getty Images

©McGraw-Hill Education.

34

Table 9.5a Companies with Excellent Motivational Strategies

Company Motivational Strategies
3M Gives employees 15 to 20 percent of their time to pursue own projects
Google Perks include a massage every other week, free gourmet lunches, tuition reimbursement, a volleyball court, and time to work on own projects
Whole Foods Employees receive 20 percent discounts on company products, the opportunity to gain stock options, and the ability to make major decisions in small teams
Patagonia Provides areas for yoga and aerobics, in-house child care services, organic food in its café, and opportunities to go surfing during the day
The Container Store Provides more than 260 hours of employee training and hosts “We Love Our Employees” Day
©McGraw-Hill Education.

35

Table 9.5b Companies with Excellent Motivational Strategies

Company Motivational Strategies
Southwest Airlines Gives employees permission to interact with passengers as they see fit, provides free or discounted flights, and hosts the “Adopt-a-Pilot” program to connect pilots with students across the nation
Nike Offers tuition assistance, product discounts, onsite fitness centers, and the ability for employees to give insights on how to improve the firm
Apple Creates a fast-paced, innovative work environment where employees are encouraged to debate ideas
Marriott International Offers discounts at hotels across the world as well as free hotel stays and travel opportunities for employees with exceptional service
Zappos Creates a fun, zany work environment for employees and empowers them to take as much time as needed to answer customer concerns
©McGraw-Hill Education.

36

Solve the Dilemma Motivating to Win 1

Eagle Pharmaceutical has long been recognized for its innovative techniques for motivating its salesforce

Features the salesperson who has been most successful during the previous quarter in the company newsletter “Touchdown”

Receive football jersey

Plaque

$1,000 worth of Eagle’s stock

“Superbowl Club” for employees who reach or exceed their sales goals

“Heisman Award” trip to Caribbean for top 20 salespeople

©McGraw-Hill Education.

This Solve the Dilemma is taken from Chapter 9, Learning Objective 9-6.

Eagle Pharmaceutical has long been recognized for its innovative techniques for motivating its salesforce. It features the salesperson who has been the most successful during the previous quarter in the company newsletter, “Touchdown.” The salesperson also receives a football jersey, a plaque, and $1,000 worth of Eagle stock. Eagle’s “Superbowl Club” is for employees who reach or exceed their sales goal, and a “Heisman Award,” which includes a trip to the Caribbean, is given annually to the top 20 salespeople in terms of goal achievement.

37

Solve the Dilemma Motivating to Win 2

Video conference hookup

Between honored salesperson and four regional sales managers to share some tactics and strategies winning salesperson uses to succeed

Managers summarize these ideas and pass them along to their salespeople

Sales managers feel strongly that by sharing strategies and tactics, they can be successful

©McGraw-Hill Education.

Eagle employs a video conference hookup between the honored salesperson and four regional sales managers to capture some of the successful tactics and strategies the winning salesperson uses to succeed. The managers summarize these ideas and pass them along to the salespeople they manage. Sales managers feel strongly that programs such as this are important and that, by sharing strategies and tactics with one another, they can be a successful team.

38

Solve the Dilemma Motivating to Win 3

Critical Thinking Questions

Which motivational theories are in use at Eagle?

What is the value of getting employees to compete against a goal instead of against one another?

Put yourself in the shoes of one of the four regional sales managers and argue against potential cutbacks to the motivational program.

©McGraw-Hill Education.

Answers:

Eagle uses expectancy theory in combination with the self-esteem needs of Maslow and the motivational factors of Herzberg to motivate its employees. Each of the awards, and in particular being featured in the company newsletter, receiving a jersey, and being awarded a plaque, enhance employee self-esteem (Maslow) and are considered motivational factors (Herzberg). The winning salesperson also gets his or her “successful tactics and strategies” recognized; they are summarized and passed on to other salespeople (another way of encouraging salespeople to work toward a common goal rather than compete against one another). The criteria for award selection are clear and understood by each employee. The drives to excel and accomplish the objectives necessary for the rewards are consistent with the expectancy theory of motivation.

Competition against a goal instead of against one another is important because of its impact on teamwork. Employees are less likely to help each other out when competing against one another than when competing against a goal. Further, competition against a goal offers each employee the opportunity to succeed, regardless of the performance of other employees.

Students’ answers will vary but should present logical arguments that demonstrate relevant understanding of the chapter material. One possible answer is that cutbacks will force salespeople to modify their expectations and may discourage them from working as hard.

39

Accessibility Content: Text Alternatives for Images

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

40

Appendix 1 Figure 9-3 Flextime, Showing Core and Flexible Hours

Employees can choose to start work anytime between 6 and 10 A M. Employees must work during the core hours of 10 A M to 2 P M. Employees can choose to end work anywhere from 2 P M to 6 P M.

Return to slide containing original image.

©McGraw-Hill Education.

41