Principles and practises of management ppt

Principles and practises of management

1. Management Chapter Fifteen: Managing Employee Motivation and Performance

2. Warm Up Why do some people seem to be great team members who automatically work hard, and others seem to be okay with letting others do the work? What motivates you to accomplish your goals, do your best, and go above expectations?

3. Learning Objectives (1 of 2) By the end of this chapter, you should be able to: 15-1 Discuss the nature of motivation, including its importance and historical perspectives. 15-2 Describe the major content perspectives on motivation. 15-3 Describe the major process perspectives on motivation.

4. Learning Objectives (2 of 2) By the end of this chapter, you should be able to: 15-4 Describe reinforcement perspectives on motivation. 15-5 Discuss popular motivational strategies. 15-6 Describe the role of organizational reward systems in motivation.

5. 15-1a The Importance of Employee Motivation in the Workplace Motivation: The set of forces that cause people to behave in certain ways Determinants of individual performance Motivation Ability Work environment

6. Figure 15.1 The Motivation Framework

7. 15-1b Historical Perspectives on Motivation Traditional approach: Frederick Taylor assumed people were motivated by money. Human relations approach: People want to feel useful and important Strong social needs Human resource approach: Contributions are valuable to individuals and organizations.

8. Poll 1 Which theory of motivation do you agree with most? Most people are motivated by money. Most people want to feel useful and contribute to something. Most people are motivated because there is a need they wish to fill.

9. 15-2 Content Perspectives On Motivation Content perspectives Approach to motivation that tries to answer the question “What factors motivate people?” Focus on needs and need deficiencies of individuals Content perspectives of motivation Maslow’s hierarchy of needs Herzberg’s two-factor theory McClelland’s achievement, power, and affiliation needs

10. 15-2a The Needs Hierarchy Approach (1 of 2) Maslow’s hierarchy of needs suggests that people must satisfy five groups of needs in order Physiological: Attending to basic survival and biological functions Security: Seeking a safe physical and emotional environment Belongingness: Experiencing love and affection Esteem: Having a positive self-image/self-respect and recognition and respect from others Self-actualization: Realizing one’s potential for personal growth and development

11. 15-2a The Needs Hierarchy Approach (2 of 2) Contributions of Maslow’s theory Identified and categorized individual needs Emphasized importance of needs to motivation Weaknesses of Maslow’s theory All levels of need are not always present. Ordering or importance of needs is not always the same. Cultural differences can impact the ordering and salience of needs.

12. 15-2a The ERG Theory ERG theory of motivation: People’s needs are grouped into three possibly overlapping categories: Existence Relatedness Growth Frustration-regression element: If needs remain unsatisfied, the person will become frustrated, regress to a lower level, and begin to pursue those things again.

13. 15-2b The Two-Factor Theory Motivation becomes a two-stage process: Ensuring that deficient hygiene factors are not blocking motivation Using job enrichment and redesign of jobs to increase motivational factors for employees Criticisms of the two-factor theory Interview findings are subject to different explanations. Sample population was not representative. Subsequent research has not upheld theory.

14. Figure 15.3 The Two-Factor Theory of Motivation

15. 15-2c Mc Clelland - Individual Human Needs Need for achievement The desire to accomplish a goal or task more effectively than in the past Need for affiliation The desire for human companionship and acceptance Need for power The desire to be influential in a group and to control one’s environment

16. Knowledge Check 1 Which theory of motivation argued that there are two stages in the process of motivating employees: ensuring hygiene factors are not deficient and giving employees an opportunity to experience motivation factors? Maslow’s hierarchy of needs The ERG theory Herzberg’s two-factor theory McClelland’s human needs theory

17. Knowledge Check 1: Answer Which theory of motivation argued that there are two stages in the process of motivating employees: ensuring hygiene factors are not deficient and giving employees an opportunity to experience motivation factors? C. Herzberg’s two-factor theory Motivation factors are related specifically to the work content. Hygiene factors are related to the work environment. Herzberg argued that there are two stages in the process of motivating employees. First, managers must ensure that the hygiene factors are not deficient. By providing hygiene factors at an appropriate level, managers do not necessarily stimulate motivation but merely ensure that employees are “not dissatisfied.” In stage two, employees are given the opportunity to experience motivation factors such as achievement and recognition. The result is predicted to be higher levels of satisfaction and motivation.

18. 15-3 Process Perspectives on Motivation Process perspectives: Approaches to motivation that focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained those goals Process perspectives on motivation: Expectancy theory Porter-Lawler extension of expectancy theory Equity theory Goal-setting theory

19. 15-3a Expectancy Theory (1 of 3) Expectancy theory : Suggests that motivation depends on two things—how much we want something and how likely we think we are to get it. Theory assumes that: Behavior is determined by personal and environmental forces. People make decisions about their own behavior. Different people have different types of needs, desires, and goals. People choose among alternatives of behaviors in selecting one that that leads to a desired outcome.

20. Figure 15.4 Expectancy Theory

21. 15-3a Expectancy Theory (2 of 3) Effort-to-performance expectancy The individual’s perception of the probability that effort will lead to a high level of performance Performance-to-outcome expectancy The individual’s perception of the probability that performance will lead to a specific outcome, consequence, or reward in an organizational setting

22. 15-3a Expectancy Theory (3 of 3) Valences An index of how much an individual values a particular outcome. It is also the attractiveness of the outcome to the individual. Outcomes (Consequences) Attractive outcomes have positive valences and unattractive outcomes have negative valences. Outcomes to which an individual is indifferent have zero valences.

23. 15-3a The Porter-Lawler Extension The Porter-Lawler extension Assumptions: If performance results in equitable and fair rewards, people will be more satisfied. High performance can lead to rewards and high satisfaction. Types of rewards: Extrinsic rewards are outcomes set and awarded by external parties (pay and promotion). Intrinsic rewards are outcomes that are internal to the individual (self-esteem and sense of accomplishment).

24. Figure 15.5 The Porter-Lawler Extension of Expectancy Theory

25. 15-3b Equity Theory (1 of 2) Equity theory Contends that people are motivated to seek social equity in the rewards they receive for performance Inputs to the job include: Time, experience, effort, education, and loyalty Outcomes from a job include: Pay, recognition, promotions, social relationships, and intrinsic rewards Feeling overrewarded: Increase or decrease inputs, distort ratios by rationalizing, help the object person gain more outcomes

26. 15-3b Equity Theory (2 of 2) Feeling equitably rewarded: Maintain performance and accept comparison as fair estimate Feeling underrewarded—reduce inequity by: Changing inputs by trying harder or slacking off Changing outcomes by demanding a raise Distorting ratios by altering perceptions of self or of others Leaving situation by quitting the job Choosing another object person

27. 15-3c Goal-Setting Theory Theory’s assumptions Behavior is a result of conscious goals and intentions. Setting goals influences behavior in organizations. Characteristics of goals Goal difficulty Goal specificity Goal acceptance Goal commitment

28. Figure 15.6 The Expanded Goal-Setting Theory

29. Knowledge Check 2 According to the Porter-Lawler extension, what is the relationship between satisfaction and performance? High performance leads to high satisfaction. High satisfaction leads to high performance. Performance leads to higher rewards. Rewards lead to satisfaction.

30. Knowledge Check 2: Answer According to the Porter-Lawler extension, what is the relationship between satisfaction and performance? High performance leads to high satisfaction Porter and Lawler suggested that there may indeed be a relationship between satisfaction and performance but that it goes in the opposite direction—that is, high performance may lead to high satisfaction. Performance results in rewards for an individual. Some of these are extrinsic (such as pay and promotions); others are intrinsic (such as self-esteem and accomplishment). The person evaluates the equity, or fairness, of the rewards relative to the effort expended and the level of performance attained. If the rewards are perceived to be equitable, the person is satisfied.

31. 15-4 Reinforcement Perspective on Motivation Reinforcement theory: Approach to motivation that argues that behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated Focuses on the role of rewards as they cause behavior to change or remain the same over time

32. 15-4a Kinds of Reinforcement in Organizations (1 of 2) Positive reinforcement A method of strengthening behavior with rewards or positive outcomes after a desired behavior is performed Avoidance Used to strengthen behavior by avoiding unpleasant consequences that would result if the behavior were not performed

33. 15-4a Kinds of Reinforcement in Organizations (2 of 2) Punishment Used to weaken undesired behaviors by using negative outcomes or unpleasant consequences when the behavior is performed Extinction Used to weaken undesired behaviors by simply ignoring or not reinforcing them

34. 15-4b Providing Reinforcement in Organizations (1 of 2) Arrangement of the reinforcement contingencies: Fixed-interval schedule Provides reinforcement at fixed intervals of time, such as regular weekly paychecks Variable-interval schedule Provides reinforcement at varying intervals of time, such as occasional visits by the supervisor

35. 15-4b Providing Reinforcement in Organizations (2 of 2) Schedules for applying reinforcement Fixed-ratio schedule Provides reinforcement after a fixed number of behaviors, regardless of the time interval involved, such as a bonus for every fifth sale Variable-ratio schedule Provides reinforcement after varying numbers of behaviors are performed, such as the use of compliments by a supervisor on an irregular basis

36. 15-4b Behavior Modification Organizational behavior modification (OB Mod) Method for applying the basic elements of reinforcement theory in an organizational setting Specific behaviors are tied to specific forms of reinforcement.

37. Discussion #1 Consider a class you have taken or a job you have held. Using that one experience, offer examples of times when the professor or manager used positive reinforcement, avoidance, punishment, and extinction to manage students’ or employees’ behavior. Were there other types of reinforcement that might have worked better? Why or why not?

38. 15-5a Empowerment and Participation Empowerment and participation Empowerment The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority Participation The process of giving employees a voice in making decisions about their own work

39. 15-5b Alternative Forms of Work Arrangements (1 of 2) Variable work schedules Compressed work schedule Working a full 40-hour week in fewer than the traditional five days “Nine-eighty” schedule Working one full week (five days) and one compressed week (four days), yielding one day off work every other week

40. 15-5b Alternative Forms of Work Arrangements (2 of 2) Flexible work schedules Work schedules that allow employees to select, within broad parameters, the hours they work Job sharing When two part-time employees share one full-time job Telecommuting Allowing employees to spend part of their time working offsite, usually at home

41. Poll 2 During the recent COVID-19 pandemic, many people worked alternative work schedules. Did you? If so, which? Compressed work week Telecommuting Flexible hours No, I worked the same way as I usually do

42. 15-6 Using Reward Systems to Motivate Performance Reward system Formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded Effects of organizational rewards: Higher-level performance-based rewards motivate employees to work harder. Rewards help align employee self-interest with organizational goals. Rewards foster increased retention and citizenship.

43. 15-6a Merit Reward Systems Merit pay Pay awarded to employees on the basis of the relative value of their contributions to the organization The greater the contribution, the greater the reward Merit pay plan Compensation plan that formally bases at least some meaningful portion of compensation on merit

44. 15-6b Incentive Reward Systems Monetary incentives Piece-rate incentive plan Reward system wherein the organization pays an employee a certain amount of money for every unit he or she produces Sales commissions plan Employee is paid a percentage of the employee’s sales to customers for selling the firm’s products or services. Nonmonetary Incentives Immediate, and one-time rewards Days off, additional paid vacation time, and special perks

45. 15-6c Team and Group Reward Systems Gainsharing programs Designed to share the cost savings from productivity improvements with employees Scanlon plan Similar to gainsharing, but the distribution of gains is tilted much more heavily toward employees Profit-sharing plans Provide an annual bonus to all employees based on corporate profits

46. 15-6d Executive Compensation Standard forms of executive compensation Base salary Incentive pay (bonuses) Special forms of executive compensation Stock option plans Executive perks Criticism of executive compensation Excessively large compensation amounts Compensation not tied to overall and long-term performance of the organization Earnings gap between executive pay and typical employee pay

47. 15-6e New Approaches to Performance-Based Rewards Employee participation Allowing employee participation in deciding the distribution of rewards Innovation in incentive programs Offering stock options to all employees Individualizing reward systems such that different employees can be offered different incentives More effective communication Sharing information about how awards are earned and distributed

48. Poll 3 Which type of benefit would you prefer? Flexible hours Additional vacation Work from home Bonus

49. Summary Now that the lesson has ended, you will have learned how to: Discuss the nature of motivation, including its importance and historical perspectives. Describe the major content perspectives on motivation. Describe the major process perspectives on motivation. Describe reinforcement perspectives on motivation. Discuss popular motivational strategies. Describe the role of organizational reward systems in motivation.

50. Consider each of the following perspectives on motivation : needs hierarchy , two-factor theory , expectancy theory , equity theory , and goal-setting theory . How does each of these perspectives depend upon learned motivation ? On personal motivation ? Personal motivation is important for achieving the layers of Maslow’s hierarchy of needs. Personal motivation may lead a person to seek a job offering the security needs that he or she desires. Personal motivation may even satisfy the person’s belongingness needs themselves if the manager is unable to fulfill those needs. Even the top two tiers require personal motivation to apply for that higher-level job or continuing to grow in their job. The two-factor theory requires personal motivation to achieve the motivation factors. Learned motivation could be used on the hygiene factors. Personal motivation would play into expectancy theory if the person believed there was a good chance of achieving the outcome. It would require learned motivation if the person did not believe the outcome was an option. Personal motivation and learned motivation could come into play if an employee perceives an imbalance in the equity theory. The worker will try to correct the imbalance, and this may take motivation from both internal and learned motivation. Goal-setting theory relies mainly on personal motivation but also some learned motivation. Workers motivated to complete goals (personal) sometimes require some extra motivation (learned) in order to achieve the tougher goals.

51. What about you? Which form of motivation— learned motivation or personal motivation —has played a greater role in your pursuit of your goals, whether in school, at work, or in both areas? Given this assessment of your own experience with motivation, which of the motivational perspectives listed in Question 1 is most likely to help you in your work life? Whatever your answers to these questions, be sure to give examples from your own experience. Due to the personal nature of these questions, students’ answers will vary widely.

52. The theory that too few students get the help they need in setting clear career paths suggests that colleges should provide more career counseling. However, according to the National Survey of Student Engagement, only 43 percent of college seniors talked very often or often about career plans with a faculty member or adviser; 39 percent did sometimes , and 17 percent never did. How about you? Have you sought career advice or counseling from resources available at your school? Do you plan to? Have you sought advice elsewhere? If so, where elsewhere and why elsewhere? Student responses will vary.

53. The Gallup survey measured levels of engagement by asking respondents whether they agreed or disagreed with several statements about post-graduation work experiences. Here are six of those statements: I have opportunities to learn and grow. My opinions seem to count. I have the opportunity to do what I do best every day. I have the tools and resources I need to do my job. My supervisor encourages my development. I know what is expected of me. List these six statements in their order of importance to you as probable factors in your satisfaction with a job . Be prepared to discuss your priorities. One of these statements proved to be the strongest predictor of workplace engagement among all of the statements in the survey The ordering of the statements will vary by student. The item “ I have the opportunity to do what I do best every day” is the strongest predictor of workplace engagement.