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1. Fundamentals of Management Global Edition Chapter 11 Motivating and Rewarding Employees Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

2. Learning Objectives 11.1 Define and explain motivation. 11.2 Compare and contrast early theories of motivation. 11.3 Compare and contrast contemporary theories of motivation. 11.4 Discuss current issues in motivating employees.

3. Learning Objective 11.1 Define and explain motivation.

4. What Is Motivation? Motivation refers to the process by which a person’s efforts are energized, directed, and sustained toward attaining a goal. Individuals differ in motivational drive and their overall motivation varies from situation to situation. 78 percent of managers say they do a fair job of motivating their people. 2 21 percent of employees feel they’re managed in a motivating way. 3

5. What Is Motivation? Motivation has three key elements: Energy: is a measure of intensity or drive where the quality of the effort is considered along with its intensity. Direction: High levels of effort lead to favorable job performance when the effort is directed toward, and consistent with, organizational goals Persistence: motivation includes a persistence dimension where employees keep putting forth effort to achieve those goals.

6. Learning Objective 11.2 Compare and contrast early theories of motivation.

7. Early Theories of Motivation Abraham Maslow Hierarchy of Needs Theory Douglas McGregor’s Theory X and Theory Y Frederick Herzberg’s Motivation-Hygiene Theory McClelland’s Three-Needs Theory

8. Maslow ’ s Hierarchy of Needs Exhibit 11-1 Maslow’s Hierarchy of Needs Source: Maslow, Abraham H., Frager , Robert D., Fadiman, James, Motivation and Personality , 3rd ed., ©1987 . Reprinted and electronically reproduced by permission of Pearson Education, Inc., New York, NY.

9. McGregor ’ s Theory X and Theory Y Theory X: ( A manager views employees from a negative perspective ) Little ambition Dislike work Lazy Avoid responsibility Must be closely controlled Must be coerced or threatened to perform Theory Y: ( A manager views employees from a positive perspective ) Enjoy work Seek and accept responsibility Creative Exercise self-direction Is dominated by social and esteem needs

10. Herzberg Motivation-Hygiene Theory Herzberg’s two-factor theory proposes that: Intrinsic factors are related to job satisfaction Achievement, recognition, and responsibility Extrinsic factors are related to job dissatisfaction Company policy, administration, supervision, working conditions and interpersonal relationships Hygiene factors: Factors that eliminate job dissatisfaction but don’t motivate. Ex: working conditions and salary Motivators: Factors that increase job satisfaction and motivation Ex: recognition and growth

11. Herzberg ’ s Two-Factor Theory Exhibit 11-2 Herzberg’s Two-Factor Theory

12. Satisfaction vs. Dissatisfaction Exhibit 11-3 Contrasting Views of Satisfaction and Dissatisfaction Source: Robbins, Stephen P., Coulter, Mary, Management , 13th Ed., © 2016, p. 465. Reprinted and electronically reproduced by permission of Pearson Education, Inc., New York, NY.

13. McClelland ’ s Three-Needs Theory Three acquired needs are work motives: Need for achievement : Drive to excel, to achieve in relation to a set of standards, to strive to succeed. Desire to do something better than it has been done before. Assume personal responsibility for finding solutions to problems. They dislike succeeding by chance (they are not gamblers ) Need for power: Desire to have an impact and to be influential. Enjoy being in charge, strive for influence over others and prefer to be in a competitive and status-oriented situation. Need for affiliation: The desire for friendly and close interpersonal relationships. Desire to be liked and accepted by others. Prefer cooperative situations and not competitive .

14. Learning Objective 11.3 Compare and contrast contemporary theories of motivation.

15. Contemporary Theories of Motivation Goal Setting Theory Job Characteristics Model (JCM) Equity Theory Expectancy Theory

16. Goal Setting Theory The proposition that specific goals increase performance and that difficult goals, when accepted, result in higher performance than easy goals. Specific & challenging g oals are superior motivating forces and produces a higher output than general goals. Setting one’s own goals sometimes caused superior performance; in other cases, individuals performed better when their manager assigned goals. However, when employees might resist accepting difficult challenges , participation in goal setting is more effective than assigning goals. People do better if they get feedback on how well they’re progressing toward their goals. (self-generated feedback)

17. Goal-Setting Theory Exhibit 11-4 Goal-Setting Theory

18. Influences on Goal-Performance Relationship Feedback Goal commitment Adequate self-efficacy National culture Goals CAN be powerful motivators!

19. Job Design And Motivation The Job Characteristics Model (JCM) proposes that any job can be described in terms of the five core job dimensions: Skill variety Task identity Task significance Autonomy Feedback

20. JCM: Core Job Dimensions When these 3 characteristics exist in a job the person will view his job as valuable and important. Skill variety: The degree to which the job requires a variety of activities so the worker can use a number of different skills and talents. Task identity: The degree to which the job requires completion of a whole and identifiable piece of work. Task significance: The degree to which the job affects the lives or work of other people.

21. JCM: Core Job Dimensions Autonomy: The degree to which the job provides freedom, independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out. Feedback: The degree to which carrying out the work activities required by the job results in the individual’s obtaining direct and clear information about the effectiveness of his or her performance.

22. How Does Job Design Influence Motivation? Exhibit 11-5 Job Characteristics Model Source: Reprinted by permission from Judith D. Hackman (w/o) J. Richard Hackman .

23. Job Design and Motivation Internal rewards are obtained when an employee learns that he or she personally has performed well on a task he or she cares about. Yes—you can design jobs that motivate!

24. Job Redesign Guidelines Exhibit 11-6 Guidelines for Job Redesign Source: Reprinted by permission from Judith D. Hackman (w/o) J. Richard Hackman.

25. Equity Theory Employees perceive what they get from a job situation (outcomes) in relation to what they put into it (inputs) and then compare their input-outcome ratio with the input-outcome ratios of relevant others. Inputs: effort, experience education, competence, time… Outputs: Salary, raises, recognition, status, bonuses, promotions… When people perceive an imbalance in their input-outcome ratio relative to those of others, they experience tension . This tension provides the basis for motivation

26. The Referent with whom employees choose to compare themselves is an important variable in equity theory. the “Persons”: includes individuals with similar jobs in company, friends, neighbors… the “System”: includes pay policies of the company, procedures and allocation the “Self”: includes past personal experiences against which individuals compare themselves to assess equity. The choice of a particular set of referents is related to the information available about referents as well as to the perceived relevance . Equity Theory

27. Equity Theory Exhibit 11-7 Equity Theory Relationships

28. Equity Theory Equity Theory focused on: Distributive Justice: This is the perceived fairness of the amount and allocation of rewards among individuals. Greater influence on employee satisfaction than procedural justice Procedural Justice: This is the perceived fairness of the process and system used to determine the distribution of rewards. Tend to affect an employee’s commitment, trust in the boss and intention to quit

29. Equity Theory When employees perceive an inequity they may behave in the following ways: Lower or higher productivity Improved or reduced quality of output Increased absenteeism Voluntary resignation Choose a different comparison referent

30. Expectancy Theory Exhibit 11-8 Expectancy Model Career Advice: “Always go above and beyond because then your managers will have no choice but to reward you.” 38 An individual tends to act in a certain way, based on the expectation that the act will be followed by a given outcome, and on the attractiveness of that outcome to the individual.

31. It includes 3 variables: Effort–Performance Linkage: The perceived probability that exerting a given amount of effort will lead to performance. Performance–Reward Linkage: The belief that performing at a particular level will lead to the attainment of a desired outcome. Attractiveness of reward: The importance placed on the potential outcome or reward that can be achieved on the job. This variable considers the goals and needs of the individual. Expectancy Theory

32. Integrating Motivation Theories Exhibit 11-9 Integrating Contemporary Theories of Motivation

33. A Closer Look at the Model Exhibit 11-9 Integrating Contemporary Theories of Motivation

34. Learning Objective 11.4 Discuss current issues in motivating employees.

35. Current Issues

36. Country Culture and Motivation Managers can ’ t assume that motivational programs that work in one geographic location are going to work in others.

37. Cross-Cultural Differences The desire for interesting work seems to be global.

38. Unique Groups of Workers Motivating : Diverse employees Professionals Contingent workers

39. Designing Appropriate Rewards Programs Open-book management : A motivational approach in which an organization’s financial statements (“the books”) are shared with all employees. Employee recognition programs: Programs that consist of personal attention and expressions of interest, approval, and appreciation for a job well done . A survey of organizations found that 84% had some type of program to recognize worker achievements. 65

40. Should Employees Be Paid for Performance or Time on the Job? Pay-for-Performance Programs: Compensation plans that pay employees on the basis of performance measures not directly related to time spent on the job. Piece-rate plans Gainsharing Wage-incentive Profit sharing Lump-sum bonuses

41. Low-Cost Rewards Program Clarify role in organization Keep communication open Show individual company cares