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OBJECTIVES
1. 2. 3. 4. Define human relations and determine why its study is important. Summarize early studies that laid the groundwork for understanding employee motivation. Compare and contrast the human-relations theories of Abraham Maslow and Frederick Herzberg. Investigate various theories of motivation, including Theories X, Y, and Z; equity theory; and expectancy theory. 5. Describe some of the strategies that managers use to motivate employees. 6. Critique a businesss program for motivating its sales force.

KEY TERMS AND DEFINITIONS

behavior modification classical theory of motivation compressed workweek equity theory Changing behavior and encouraging appropriate actions by relating the consequences of behavior to behavior itself. A theory that suggests that money is the sole motivator for workers. A four-day (or shorter) period in which an employee works 40 hours. An assumption that 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. The need for respectboth self-respect and respect from others. An assumption that motivation depends not only on how much a person wants something but also on how likely he or she is to get it. A program that allows employees to choose their starting and ending times provided that they are at work during a specified core period. The study of the behavior of individuals and groups in organizational settings. Aspects of Herzbergs theory of motivation that relate to the work setting rather than the content of the work; these aspects include adequate wages, comfortable and safe working conditions, fair company policies, and job security. Adding more tasks to a job instead of treating each task as separate. Incorporating motivational factors such as opportunity for achievement, recognition, responsibility, and advancement into a job. Allowing employees to move from one job to another in an effort to relieve the boredom often associated with job specialization.

esteem needs expectancy theory flextime human relations hygiene factors

job enlargement job enrichment job rotation

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job sharing Maslows hierarchy Performance of one full-time job by two people on part-time hours. A theory that arranges the five basic needs of peoplephysiological, security, social, esteem, and self-actualizationinto the order in which people strive to satisfy them. An employees attitude toward his or her job, employer, and colleagues. An inner drive that directs a persons behavior toward goals. Aspects of Herzbergs theory of motivation that relate to the content of the work itself; these aspects include achievement, recognition, involvement, responsibility, and advancement. The most basic human needs to be satisfiedwater, food, shelter, and clothing. The need to protect oneself from physical and economic harm. The need to be the best one can be; at the top of Maslows hierarchy. The need for love, companionship, and friendshipthe desire for acceptance by others. McGregors theory of the traditional view of management whereby it is assumed that workers generally dislike work and must be forced to do their jobs. McGregors theory of the humanistic view of management whereby it is assumed that workers like to work and that under proper conditions employees will normally seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs. A management philosophy that stresses employee participation in all aspects of organizational decision making.

morale motivation motivational factors

physiological needs security needs self-actualization needs social needs Theory X

Theory Y

Theory Z

LECTURE OUTLINE AND NOTES

(PPT notations below refer to the Premium Content slides.) I. Introduction A. Employees are a firms most valuable resources. B. To achieve organizational objectives, employees must have the motivation, ability, and tools to perform their jobs.

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II. Nature of Human Relations PPT10.05-10.06

A. Human relations is the study of individual and group behavior in

organizational settings; it is concerned with what motivates employees to perform their jobs. PPT 10.07 B. Motivation is an inner drive that directs behavior toward goals. 1. A goal is the satisfaction of a need, while a need is the difference between a desired state and an actual state. 2. Motivation explains why people behave as they do; a lack of motivation explains why people avoid doing what they should do. 3. Human relations is concerned with the needs of employees, their goals and how they try to achieve them, and the impact of those needs and goals on job performance. PPT 9.09-9.10

C. Morale is an employees attitude toward his or her job, employer, and

colleagues. 1. High morale contributes to high levels of productivity, high returns to stakeholders, and employee loyalty. 2. Low morale may cause high absenteeism and turnover. 3. Respect, involvement, appreciation, adequate compensation, promotions, a pleasant work environment, and a positive organizational culture are morale boosters. 4. Many companies offer diverse benefits to boost morale and satisfaction. PPT 9.13 D. Perceptions of rewards 1. Intrinsic rewards 2. Extrinsic rewards III. Perspectives on Employee Motivation PPT10.15 A. From early studies, researchers have attempted to find ways to motivate workers. B. Classical Theory of Motivation 1. According to the classical theory of motivation, money is the sole motivator for workers. 2. Frederick Taylor conducted studies of employees who performed specific work tasks. a. Taylor believed managers should break down each job into component tasks, determine how best to perform each task, and specify the output for each worker in order to improve productivity. b. Taylor suggested that managers link a workers pay directly to output. c. Taylor and most early twentieth-century managers generally felt that money and job security were the primary motivators of employees. 3. Managers are increasingly striving to relate pay to performance in order to motivate employees and boost productivity. PPT 9.16 C. The Hawthorne Studies 1. Elton Mayo continued Taylors work in studies at the Hawthorne Works
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Plant of the Western Electric Company that sought to identify what physical working conditions in the workplace stimulated employees to be most productive. 2. The Hawthorne studies found that productivity increased regardless of the physical conditions; this phenomenon has been labeled the Hawthorne effect. 3. The researchers concluded that social and psychological factors could significantly affect productivity and morale. 4. The Hawthorne experiments marked the beginning of a concern for human relations in the workplace. IV. Theories of Employee Motivation A. Maslows Hierarchy of Needs PPT10.20-10.21

1. Psychologist Abraham Maslow arranged humans five basic needs into

Maslows hierarchy in the order in which people strive to satisfy them. a. Physiological needs are the first to be satisfied, and include the needs for the essentials of lifewater, food, shelter, and clothing. b. Security needs relate to protecting oneself from physical and economic harm. c. Social needs are the needs for love, companionship, and friendship the desire for acceptance from others. d. Esteem needs relate to the desire for respectboth self-respect and respect from others. Competition is a form of esteem that motivates people to be more productive. e. Self-actualization is the desire to be the best one can be. 2. Maslows theory maintains that needs at the bottom of the hierarchy must be satisfied before higher-level needs can be met. 3. Managers can learn from Maslows hierarchy that employees will be motivated to contribute to organizational goals only if they first satisfy their physiological, security, and social needs through their work. B. Herzbergs Two-Factor Theory PPT10.22 1. Frederick Herzberg studied various factors relating to the job and their relation to employee motivation and concluded that job factors can be classified into two categories. a. Hygiene factors relate to the work setting rather than the content of the work and include adequate wages, comfortable working conditions, fair company policies, and job security. These factors do not necessarily motivate employees, but their absence may be a source of dissatisfaction. b. Motivational factors relate to the content of the work and include achievement, recognition, the work itself, involvement, responsibility, and advancement. They promote higher levels of performance. 2. Herzbergs motivational factors and Maslows esteem and selfactualization needs are similar. 3. The higher-level goals in Maslows hierarchy and the motivational factors

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identified by Herzberg are important in motivating employees to work harder. C. McGregors Theory X and Theory Y. Douglas McGregor contrasted two views of management, the traditional view called Theory X, and a humanistic view which he called Theory Y. PPT 10.24

1. Theory X managers assume that workers generally dislike work and must
be forced to do their jobs. a. Managers maintain tight control over workers, try to motivate through fear, and make autocratic decisions. b. Theory X assumes that the average worker prefers to be directed, avoids responsibility, has relatively little ambition, and wants security. c. Theory X focuses on physiological and security needs and virtually ignores the higher needs discussed by Maslow. 2. Theory Y assumes that workers like to work and will normally seek out responsibility to satisfy their social, esteem, and self-actualization needs. a. Theory Y managers maintain less control and supervision, do not use fear as a motivator, and are more democratic in decision making. b. Theory Y assumes people will exercise self-direction and self-control to achieve objectives to which they are committed. c. Theory Y managers address the high-level needs in Maslows hierarchy as well as physiological and security needs. D. Theory Z PPT10.25

1. Theory Z is a management philosophy that stresses employee

participation in all aspects of company decision making. 2. Theory Z was developed by William Ouchi, and it incorporates and adapts many elements of the Japanese approach to management. a. Managers and workers share responsibilities; the management style is participative, and employment is long term. b. The traditional American management style is formal and impersonal, but Theory Z is less formal and more personal. c. With Theory Z, there is less specialization and more group decision making, control is more informal, and managers focus on the workers whole life. 3. Theory Y and Theory Z are complementary. E. Variations on Theory Z. Theory Z has been adapted and modified for use in a number of American organizations. PPT10.26 1. One adaptation is quality circles, which are small groups of five to eight members who meet regularly to discuss ways to improve their work. 2. Even more involved than quality circles are programs known as participative management, employee involvement, or self-directed work teams. a. Participative management programs give employees more control over their jobs while making them more responsible for the outcome
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of their efforts. b. Team members are cross-trained and can move from job to job. c. Each team essentially manages itself and is responsible for its quality, scheduling, ordering and use of materials, and problem solving. PPT10.27

F. Equity Theory. 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. 1. In theory, the rewards an individual receives are proportional to the contribution made to the organization. 2. Each worker regularly develops a personal input-output ratio by taking stock of his or her contribution (inputs) to the organization in time, effort, skills, and experience and assessing the rewards (outputs) offered by the organization in pay, benefits, recognition, and promotions. 3. An employee who feels that his or her rewards dont match his or her contributions (in equity) will probably try to get a raise or leave the organization. 4. Almost all issues involved in equity theory are subjective and can cause problems for managers. 5. Managers should try to avoid equity problems by ensuring that rewards are distributed on the basis of performance and that all employees clearly understand the basis for their pay and benefits. PPT 10.29

G. Expectancy Theory.

Psychologist Victor Vrooms expectancy theory assumes that motivation depends not only on how much a person wants something but on the persons perception of how likely he or she is to get it. 1. This theory is complex because it suggests that every action leads to a number of different outcomes, some of which are desirable and some that are not. 2. Expectancy theory suggests that managers should show employees that they can achieve the outcomes they desire.

V. Strategies for Motivating Employees A. Based on the theories of motivation discussed earlier, managers have developed a number of strategies for motivating employees to achieve organizational objectives and boosting morale. B. Behavior Modification PPT10.30

1. Behavior modification involves changing behavior and encouraging

appropriate actions by relating the consequences to the behavior itself. 2. The concept of behavior modification was developed by psychologist B. F. Skinner, who showed that reward and punishment can modify behavior. 3. If behavior is positively reinforced, or rewarded, that behavior will tend to be repeated, while behavior that is punished will tend to be eliminated. 4. In the long run, rewarding appropriate behavior will generally be a more effective way to modify behavior. C. Job Design PPT10.31
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1. Managers have several strategies they can use to design jobs to help improve employee motivation. PPT 10.32

2. Job rotation allows employees to move from one job to another to relieve
the boredom associated with specialization. a. Job rotation allows workers to undertake a variety of tasks and to learn new skills. b. One drawback of job rotation is that employees may eventually become bored with all the jobs in the cycle. c. Job rotation is extremely useful when a person is being trained for a position that requires an understanding of the various units in an organization. PPT 10.33

3. Job enlargement involves adding tasks to a job instead of treating each

task as a separate job. a. Job enlargement, like job rotation, was developed to overcome the boredom associated with specialization. b. Jobs are more satisfying as the number of tasks performed by an individual increases. PPT 10.34

4. Job enrichment involves incorporating motivational factors such as

opportunity for achievement, recognition, responsibility, and advancement into a job. a. Job enrichment gives workers not only more tasks within the job but more control and authority over the job. b. Job enrichment enhances a workers feeling of responsibility and provides opportunities for growth and advancement when the worker is able to take on more challenging tasks. 5. Flexible scheduling strategies PPT10.35 a. Managers are using flexible scheduling strategies to meet problems of poor motivation and high absenteeism. b. 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. c. A compressed workweek is a four-day (or shorter) period in which an employee works 40 hours. d. Job sharing occurs when two people do one job. The company benefits by gaining the skills of two people for one job, often at a lower total salary. Job sharing gives both people an opportunity to work as well as time for other obligations, such as parenting. e. Other flexible scheduling strategies are being used. 1) One strategy allows full-time workers to work part time for a certain period. 2) Another allows employees to split their time between the office and home. Some firms allow employees to work at home a few days of the week (sometimes called telecommuting). f. Usually companies offer flexible work schedules to give more options to employees who are trying to juggle work and family

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responsibilities. g. Preliminary findings indicate such plans increase job satisfaction, and in turn, increase productivity. D. Importance of Motivational Strategies PPT10.36 1. Motivation 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. 2. Motivating employees to increase satisfaction and productivity is an important concern for organizations seeking to remain competitive in the global marketplace.

BOXED TEXT DISCUSSION QUESTIONS

Consider Ethics and Social Responsibility: Best Buy Brings Diversity to the Geek Squad 1. Why is racial and gender diversity important when motivating employees? Attention to racial and gender diversity helps employees feel more secure and comfortable, filling both Maslows Security Needs level (feeling safe from discrimination) and Social Needs (feeling accepted by others). A diverse workforce would allow employees to focus on their work without worrying about being the target of discrimination. 2. How does Best Buys trip to Memphis encourage racial diversity among managers and employees? Best Buys trip to Memphis immerses managers in the history of the Civil Rights Movement. This first-hand look at the struggles and achievements of the powerful individuals in the Movement provides managers a deeper understanding of the need for inclusion and tolerance in the workplace. Managers are able to take this message back to employees in their own ways, further spreading and personalizing the meaning of racial diversity. 3. Why does a diverse workforce help increase the bottom line in a retail company such as Best Buy? A large retail company such as Best Buy, but its size and nationwide nature, must deal with both a diverse workforce a diverse customer base. Having a diverse workforce that matches the companys customer demographics helps the company better understand how to meet customer needs and respond to customer problems. Customers may appreciate the efforts the company goes through to include all members of the community, leading to a better reputation and increased sales. Going Green Box: Motivating Employees by Being Green 1. How does Ray Anderson set an example as CEO to motivate employees toward green business practices?

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Ray Andersons passion for the environment is clear to everyone at Interface. He has received many awards and speaks to people all over the world about sustainability and environmentallyfriendly business. This sets a strong example for Interface employees, who can feel proud of the work they are doing and the international attention around it. 2. How does being green motivate employees in their every day jobs? Being environmentally sustainable gives Interface employees something to be passionate about at work. It makes their jobs meaningful, and gives them a feeling of truly contributing to their community and the world at large. Interface also invented the Fast Forward training program to establish every employee as a Mission Zero ambassador. 3. What does Interface do to involve employees in its decisions for running a green business? Interface involves employees through the Fast Forward training program, which educates every employee about Mission Zero. The company listens to feedback from employees about Mission Zero while encouraging them to take their own steps to help the environment. It also considers employee suggestions, such as the Cool Co2mmute program. Solve the Dilemma 1. Which motivational theories are in use at Eagle? 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 criteria for award selection are clear and understood by each employee. The drives to excel and accomplish the objectives necessary for reward are consistent with the expectancy theory of motivation. 2. What is the value of getting employees to compete against a goal instead of against one another? 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. 3. Put yourself in the shoes of one of the four regional sales managers and argue against potential cutbacks to the motivational program. Students answers will vary, but should be logical arguments that demonstrate relevant understanding of the chapter material.

SUPPLEMENTAL LECTURE
The Importance of Morale and Esprit de Corps in Management

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There is a tendency in management literature to compare a company with a military unit. The analogy works well when we are talking of mission, organization, discipline, and control. The military example is especially appropriate when we come to the human relations involved in persuading subordinates to accomplish a goal. When comparing companies and military units, two terms that are frequently used are morale and esprit de corps. Morale generally refers to an employees attitude toward his or her job, employer, and colleagues. An employee with high morale would show signs of happiness, contentment, and pleasure in being at the workplace, and freedom from that level of tension that restricts productive output. A successful firm wants its employees to have high morale. Whereas morale focuses on the individuals attitude, esprit de corps refers to both a sense of cohesiveness within a group and a high level of satisfaction (within individuals) with the goals, status, and potential of the group. Traditionally, we have thought of organizations such as the United States Marine Corps, the French Foreign Legion, the British commandos, and General Pattons Third Army as units with both high morale and a splendid sense of esprit de corps. A member of such a unit was expected to be extremely proud just to be a member of the group. Rituals developed over many years were calculated to keep morale high, and legends and anecdotes kept a special spirit of camaraderie alive along with a deep devotion to the institution and its missions. Because such groups place high value on good morale and esprit de corps, the test of a leader within these groups was the degree to which the leader could foster these qualities. Officers and top noncommissioned officers, therefore, became adept at noticing when these qualities were beginning to slip and took quick action to correct the lapse. Here is an example of corrective action taken in the United States Army. Lieutenant Colonel Roger Brakeson commanded the 700-man 12th Tank Battalion on duty in West Germany. The colonel had noticed around the battalion area some signs of a lapse in morale and esprit de corps. It had come to his attention that some of the enlisted men were contemplating requesting a transfer to another outfit. What especially bothered Colonel Brakeson was the rumor that one of his second lieutenants wanted out. Brakesons plan to control the damage was announced to his four company commanders at a special meeting at battalion headquarters: Gentlemen, on Friday were going to spruce up our team spirit around here. At 1630 hours, this battalion will stage a military review or parade, and I want every man except the guards and cooks to take part. To make the whole affair special, Ive engaged a 70-piece military band from Heidelberg to play as our fine troops pass in review. Prior to that, the band will lead a half-mile parade of our men through the village and onto our official parade ground. Now, we are going to look sharp. Go back and have your men polish every boot and every tiny item of brass on their uniforms. During the week, have your companies work on close order drill; get them shaped up. Have a white-glove inspection of both the barracks and the men. This parade has to be the most advanced spit-and-polish affair we have ever had. Do I make myself clear? One last itemwhen the parade is over and your men have marched back to the company areas in formation, do not dismiss them until you have given the company the opportunity to come see you with any complaint about anything or a request for transfer. Gentlemen, thats all. Dismissed.

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The military review preceded by a half-mile parade was a resounding success. The troops looked like brightly painted tin soldiers, their rhythm and swagger as they marched were remarkable, and the 70piece band inspired the utmost faith in the patriotic military way of life. As ordered by Colonel Brakeson, each company commander announced that he would be happy to have any complaints brought to his office immediately and that requests for transfer would be honored on the spot. Not one member of the battalion stepped forward with a complaint or a request for transfer. When Colonel Brakeson was informed of this result, he was not at all surprised. He had known for a long time just exactly how many men would step forwardnone! Many years of military experience had told him that if a soldier was going to be depressed and ready to transfer, such a phenomenon would not surface after a highly successful and inspiring military review on the parade ground. That beautiful moment at the end of the parade is hard to maintain, but it is amazing how many elite military units can do it. There are some firms in the civilian world that can keep their workers at such a high state of morale and esprit de corps. Those firms that do usually have a good bottom-line figure each year. Japanese firms do a good job in this way, often starting each work day with the company song. Sam Walton, deceased founder of Wal-Mart, frequently led workers in company cheers. All of this says that workers who can strongly identify with what the group or institution is trying to do will be better able to advance the organization and also themselves. Questions 1. Can you explain why a successful military review and parade would be so effective in raising morale and a sense of esprit de corps? 2. Will having a military review and parade maintain morale if there are problems within the organization?

CONTROVERSIAL ISSUE
A Second Look at Sinclairs The Jungle Early in the 20th century, Upton Sinclair spent several weeks in Packingtown, the part of Chicago in which meat-processing plants were located. His assignment was to write a novel about the plight of processing-plant workers. His writing first appeared as a serial in a periodical called Appeal to Reason, and was later printed in book form as The Jungle. The Jungle had an immediate impact, but it was not the impact that the author and his sponsors had expected. Passages concerning the filth in which meat was made captured the nations attention and led to some corrective federal legislation. The plight of the workers was lost in the shuffle. Lets look at these workers in greater detail. Sinclairs novel and the resulting legislation attacked the owners/operators of the meat-processing plants for the filthy conditions they allowed to exist. For example, the most graphic passages explained in great detail that the processed meat could contain one or more of the following items: rat poison, rat dung, rats, human tuberculosis germs, bread set out (and poisoned) to catch rats, two-year-old sausages that had been rejected at foreign ports of entry, and human urine. Such conditions were deplorable, and the owners/operators received all the blame. However, if you reread the graphic passages with an open mind, free from anti-management preconceptions, you may pause to carefully consider the actions of workers who carelessly threw dead

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rats into vats in which sausage was being prepared and scooped up rat dung and poisoned bread and knowingly threw both into the vats. Individually, the processing-plant workers were unhappy, dissatisfied, uncomfortable, and depressed the very essence of low morale. As a group, their actions proved that they did not care about the welfare of the employer or the health of the buying public. These workers were not identifying with the organization and its goals. Rather, it was apparent that the workers hated their employer and gained some fleeting glee from doing things to subvert the employers goals. This scenario is a perfect example of an absence of esprit de corps. It was many years after The Jungle was published that working conditions improved to any appreciable degree. Federal law quickly improved cleanliness and product standards, however. The lesson to be learned from this information is that enlightened employers should be aware that worker attitudes can still degenerateas they did in Packingtownunless management is ever alert to the welfare of workers. Questions 1. Who should be responsible for the filthy sausage? The owners/operators? Or the workers? 2. Was there something in the employers actions and attitude that drove the workers to such behavior? 3. What had happened to morale and esprit de corps? REVISIT THE WORLD OF BUSINESS 1. In what ways do founders Lisa Calkins and John Basso motivate employees for the long term? Calkins and Basso are devoted to Amadeus for the long term and are not growing the company just to sell it. Employees know this and respond to the founders commitment to making life work balance a reality for everyone in the company. Employee retreats include employees families and Amadeus supports the causes for which employees volunteer. 2. How does Amadeus office building help to motivate employees? The office building has no cubicles, allowing for more open communication among employees. Lots of windows and natural light make the building more comfortable and inviting. Meeting places like a bistro lounge and living room-type space encourage employees to relax and communicate with each other while at work, creating stronger teams. 3. What could other companies learn from Amadeus performance in relation to its treatment of employees? It is clear that Amadeus performance has been stellar, with $2.6 million in revenues and a doubling of workforce. Other companies can learn that attention to employees work life balance pays off for the company. Employees that are treated better, such as those at Amadeus, make a company stronger and more successful.

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CHECK YOUR PROGRESS
1. Why do managers need to understand the needs of their employees? Managers need to understand the needs of their employees because in an organizational setting individuals and groups need to be satisfied in order to achieve organizational goals. Human relations is concerned with the needs of employees, their goals, and the impact of these needs and goals on job performance. Social and psychological factors significantly affect productivity and morale. Managers who understand employees needs, beliefs, and expectations are most successful in motivating them. 2. Describe the motivation process. Motivational factors relate to the content of the work and include achievement, recognition, the work itself, involvement, responsibility, and advancement. These factors promote higher levels of performance. 3. What was the goal of the Hawthorne studies? What was the outcome of those studies? In the Hawthorne studies, Elton Mayo and a team of researchers tried to determine what physical conditions in the workplace, such as light and noise levels, stimulate employees to be most productive. Their studies revealed that social and psychological factors significantly affect productivity and morale. 4. Explain Maslows hierarchy of needs. What does it tell us about employee motivation? Abraham Maslow theorized that human beings have five basic needs: psychological, security, social, esteem, and self-actualization. Maslows hierarchy arranged these needs in the order in which people strive to satisfy them. Maslows theory suggests that employees will be motivated to contribute to organizational goals only if they are first able to satisfy their physiological, security, and social needs through their work. 5. What are Herzbergs hygiene and motivational factors? How can managers use them to motivate workers? Hygiene factors relate to the work settingnot work contentand include adequate wages, comfortable working conditions, fair company policies, and job security. Motivational factors relate to the content of the work and include achievement, recognition, the work itself, involvement, responsibility, and advancement. Managers must make certain that hygiene factors are present or workers will become dissatisfied and possibly leave. They can motivate workers by providing motivational factors. 6. Contrast the assumptions of Theory X and Theory Y. Why has Theory Y replaced Theory X in management today? Theory X assumes that (1) workers do not like work and will avoid it when possible; (2) workers must be coerced, controlled, directed, or threatened with punishment to get them to work toward achievement of organizational goals; and (3) workers prefer to be directed, prefer to avoid responsibility, want security, and have little ambition.

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By contrast, Theory Y assumes (1) the expenditure of physical and mental effort and work is natural; (2) workers will exercise self-direction and self-control in the service of objectives to which they are committed; (3) workers will commit to objectives when they realize that achievement to those objectives will bring about their personal reward; and (4) workers will accept and seek out responsibilities. Probably the main reason Theory Y has supplanted Theory X is that managers had determined that Theory X management styles did not lead to improved productivity. Also, many organizations have studied the success of the Japanese in worker productivity. The Japanese had long ago dropped Theory X management styles. 7. What is Theory Z? How can businesses apply Theory Z to the workplace? Theory Z stresses employee participation in all aspects of organizational decision making. This theory includes many elements of the Japanese approach to management. Theory Z is less formal and more personal, work relationships are long term, there is less specialization, there is more group decision making, control is more informal, and managers focus on the workers whole life. Businesses wishing to apply Theory Z have to change to a more participative, employee-involved, or work-team oriented program. This means dropping old traditional manager-employee management styles. For Theory Z to work, management must be committed to employee involvement. 8. Identify and describe the job-design strategies. There are several strategies managers may use to structure jobs to promote employee motivation. a. Job rotation allows employees to move from one job to another in an effort to relieve boredom associated with specialization. b. Job enlargement involves adding tasks to a job instead of treating each task as a separate job. c. Job enrichment involves achievement, recognition, responsibility, and advancement into the job situation. d. Flexible scheduling strategies involve deviations from the traditional 40-hour work week consisting of five 8-hour days with fixed starting and ending times. 9. Name and describe some flexible scheduling strategies. How can flexible schedules help motivate workers? Flexible scheduling strategies include: a. Flextimeallows employees to choose their starting and ending times as long as they are at work during a specified core period. b. The compressed workweeka four-day (or shorter) period in which an employee works 40 hours. c. Job sharingwhen two people do one job. A business may use flexible scheduling strategies to accommodate the needs of employees (students, parents, for example) as well as to motivate them. Alternative schedules may be needed to survive tough economic times. 10. Why are motivational strategies important to both employees and employers? Motivation can foster employee loyalty and boost productivity. It affects all relationships within

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an organization and influences many areas, such as pay, promotion, job design, training opportunities, and reporting relationships. Motivating employees is important for organizations seeking to remain competitive in the global marketplace.

GET INVOLVED
1. Consider a person who is homeless: How would he or she be motivated and what actions would that person take? Use the motivation process to explain. Which of the needs in Maslows hierarchy are likely to be most important? Least important?

2. View the video Cheaper by the Dozen (1950) and report on how the Gilbreths tried to incorporate
their passion for efficiency into their family life. 3. What events and trends in society, technology, and economics do you think will shape management theory in the future?

BUILD YOUR SKILLS

Suggestions for Use Before assigning the exercise, you might ask some or all of the following questions to lay the groundwork for the exercise. What is your favorite recreational activity you enjoy during your leisure time? Maybe you have a passion for playing tennis, rollerblading, hiking in the mountains, water skiing, snowboarding, golfing, or bicycling. What is it about yourself that is different when youre at play doing whatever activity it is you enjoy doing and when youre on the job performing a task? [Because I have chosen when to play, what to play, and where to play, there are no pressures, deadlines, or requirements imposed on me by others. The freedom that comes from play often does not exist when Im on the job, so my approach to both tend to be totally different.] What characteristics does play possess that work often does not that can make play more appealing than work? [See column two of the exercise chart of the textbook for some ideas here.] Discussion Questions Here are some suggested answers for the Discussion Questions at the end of the exercise: 1. What prevents managers from making work more like play? Many managers believe that people cant enjoy themselves and get work done at the same time. Work, to them, is serious business. Therefore, they tend not to encourage many of the practices outlined in column four of the chart. Many of these options also cause some managers to feel as though they have lost control over employees behavior because the environment is too loose or because employees have so much say about how, where, and when the work gets done. 2. Are these forces real, or imagined?

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For the most part, these forces are imagined because research supports there is increased productivity in environments that allow creativity, humor, and other less restrictive behaviors to take place. Obviously, it is possible for everybody to be focused on having fun to the point of not getting the job done. As with everything in life, balance is necessary. 3. What would be the likely (positive and negative) results of making work more like play? Likely positive results are increased synergy, more creative approaches to solving problems, increased feelings of ownership for whats going on, greater job satisfaction, and increased productivity. Likely negative results are controlling bosses will not be able to adapt very well to this environment; without the right kind of leadership, these systems can be misdirected; and not all employees are suited to many of these approaches. 4. Could others in the organization accept such creative behaviors? It depends on how they perceive the behaviors. Most likely, however, if others in the organization see tangible results coming out of work groups characterized by such creative behaviors, they will be more inclined to accept the behaviors.

SO YOU THINK YOU MIGHT BE GOOD AT MOTIVATING A WORKFORCE

Why are human relations programs important in the workforce? They are necessary to teach employees about sensitivity to other cultures, religions, and beliefs, as well as for teaching the workforce about the organization so that they understand how they fit in the larger picture. Employees need to appreciate the benefits of working together to make the firm run smoothly, and they also need to understand how their contributions help the firm. In order stay motivated, most employees need to feel like what they do each day contributes something of value to the firm. Disclosing information and including employees in decision-making processes also will help employees feel valuable and wanted within the firm.

BUILD YOUR BUSINESS PLAN

Consider having an open discussion with the students about what their previous employers have used to motivate them. Did it cost the employer much to implement this program? Perhaps it wasnt money, but time, which is an opportunity cost. Following a discussion of what students think works and what doesnt as motivators to employees, challenge the students to be creative when selecting motivating techniques that would work for their business.

SEE FOR YOURSELF VIDEOCASE: Taking Vacations Can Improve Your Career
Case Overview Thirty-six percent of US workers do not use their vacation time. This case examines the dangers of not taking time off occasionally. Exhausted employees are less efficient and therefore take more time to complete tasks. Employees are more likely to make mistakes, and employers and employees alike are likely to burn out or become ill if they do not take occasional breaks. Vacation time is much more valued in other cultures around the world, and research is beginning to support what workers in other
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countries have known all alongthat taking time off is good for a person. Although more American companies are realizing the benefits of allowing their employees time off, it is difficult to fully disengage in this digital age. It may take some time yet for employees in the US to find the correct balance of work and play. Questions for Discussion

1. What are some reasons employees do not take all of the vacation time allotted to them?
Much about the workplace contributes to this issue. Many companies, in America at least, maintain a work, work, work, 24/7 mindset, causing employees to fear that taking time off will indicate that they lack the dedication needed to maintain or move up in their positions. Another major deterrent for the employee wary of taking a vacation is the amount of work that will be waiting upon his or her return. 2. What can employers do to actively encourage employees to take their vacation time? Employers can help employees plan in advance for vacations, easing their minds about leaving the office while ensuring that needed work gets done. Employers may set up work share-type programs to further encourage employees that they will not be chastised if they take time off. Employers can communicate the benefits of vacation time and provide programs such as those at Sanyo (earn extra time off by volunteering), Hyperion (earn time off by remaining continuously with the company) and T-Mobile (all employees to begin earning time off immediately). 3. What are the benefits of employee vacations, both to the employer and to the employee? Research clearly states that both employers and employees would benefit by each person taking his or her allotted vacation time. Employees who take vacations are more productive and more creative at work. There are also the health benefits to consider of the reduced stress and extra rest time gained during a vacation. Healthier, happier employees benefit the company through increased production, less sick time off, and lower health insurance bills.

TERM PAPER OR PROJECT TOPICS

These topics could be assigned as individual or collaborative projects: 1. Advantages and Disadvantages of Flexible Scheduling 2. Japanese Management 3. Frederick Taylor: Father of Scientific Management 4. B. F. Skinner and Behavior Modification 5. Motivational Factors of Frederick Herzberg 6. Analysis of the lack of human relations in Upton Sinclairs The Jungle

GUEST SPEAKER SUGGESTIONS

1. A human relations professor to speak about the study of human relations, motivation, or job design. 2. A representative of a business firm to talk about management styles, team concept, job design, or

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flexible scheduling. (If the representative cannot come to class, the instructor may wish to go to the firm. Videotape segments of the firm illustrating the different management styles or team concepts.) 3. A management information systems professor to talk about the potential for telecommuting.

TEACHING SUGGESTIONS
1. Begin the class session with a brief writing assignment. Have students write for a few minutes on the following: Why is the study of human relations important? Call on different students to give their written answers. Use these answers and/or your discussion as a lead-in to the lecture. 2. Use the Lecture Outline and Notes and slides to emphasize the main points of the chapter. 3. Review the quiz provided.

4. Discuss the Check Your Progress questions in the textbook. To give students additional
questions, use Additional Discussion Questions available in this Instructors Manual.

5. Examine the boxed materials. Questions and answers are provided in this Instructors Manual.
6. Have students discuss the relative advantages and disadvantages of Theory X, Theory Y, and Theory Z.

DESTINATION CEO VIDEO NOTES

(The Destination CEO Videos can be found on the OLC at www.mhhe.com/ferrell7e.) Corporate Health Summary: United States corporations are confronting a crisis of epic proportions. Health care and insurance costs are exorbitant. Companies have come to realize and embrace the fact that investment in proactive programs designed to promote health and healthy lifestyles is an important business decision. In fact, an investment of $1 in proactive healthy choice programs such as exercise clinics, nutritional education, or even on-site health care clinics, saves an average of $2-$3 on lost productivity. Pitney Bowes is a leader among businesses in programs designed to promote and develop healthy lifestyles among their employees. In their corporate facilities, there is a fully staffed health care clinic, an exercise facility, and a cafeteria that emphasizes nutritionally healthy food choices including fresh fruits and vegetables. In addition, there are numerous educational programs designed to promote healthy lifestyles. According to Pitney Bowes and to its employees, healthy employees are happier and more productive than those who are not focused on promoting healthy lifestyles. For the corporation, promoting health is a sound business decision that positively impacts the bottom line, and that is great for shareholders. These types of programs must be driven from the top down and this is true at Pitney Bowes. The CEO walks the talk, literally. He wears a pedometer on his waist throughout the working day to ensure that he is walking a sufficient amount. If he finds that he is not meeting his goals, he will have those in his

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meetings walk around with him and hold the meeting in that fashion. The key to successfully promoting this proactive approach is education. More companies will be willing to make an investment in improving the health of their employees given the outstanding financial results from the Pitney Bowes experience. Instructors should focus on the importance of creating health conscious employees. The data are clear that healthy employees are more productive, more satisfied, and more motivated. The financial results are clear as well. For every dollar spent on education, nutrition, and health care facilities, the company saves and/or realizes two to three dollars in savings or improved productivity. Discussion Questions: 1. What is the primary motivation of companies such as Pitney Bowes in investing in health care programs? Answer: They are clearly financial. The motivational benefits to the company improve productivity and financial performance, reduce health care costs, improve the morale of employees, and reduce the costs of absenteeism, and other non productive health related problems. 2. Which theory of motivation, would Pitney Bowes emphasis on health care programs be most aligned with? Answer: Students may provide different examples from various theories including Maslow in terms of physiological and/or self actualization; Herzbergs motivators, McGregors Theory Y assumptions, and Expectancy theory could all qualify. 3. Would a health care onsite facility be a motivator or hygiene factor according to Herzbergs theory of motivation? Answer: Most likely, the onsite health care facility would be considered a motivator in the Herzberg framework. The nutrition emphasis, the education, and the development of a healthy lifestyle are all motivating factors associated with the work environment.. Additional Discussion Questions: 1. How could one demonstrate that Pitney Bowes program improves the morale of employees? Answer: In two ways: First, the observation from the film from employees that they are healthier and happier given the companys emphasis and programming. Secondly, morale can be inferred from the productivity enhancements and contributions to the bottom line or profitability of the firm. 2. How would low morale among employees most likely impact Pitney Bowes? Answer: Morale is an important consideration for managers and leaders. An employees attitude toward the employer, the work, and ones colleagues are important factors that can determine the relative success of the company. When there is low morale, productivity can suffer, absenteeism is high, and turnover is high. These are important considerations for Pitney Bowes and provide a sound basis for the business investment in the onsite clinics, exercise facilities, and nutritionally focused cafeteria. Multiple Choice Questions for Students on the OLC: 1. The CEO of Pitney Bowes wears a pedometer on his waist during his time at work. This observation indicates that he is highly: a. Motivated b. Isolated c. Alienated d. Deferential e. Particular Answer: a. Motivated

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2. Which of the following theories of motivation would Pitney Bowes subscribe to if they were convinced that employees are motivated exclusively by money? a. Classical theory of motivation b. Hawthorne studies c. Two-Factor Theory d. Theory X e. Theory Y Answer: a. Classical theory of motivation 3. According to the Maslow Hierarchy of Needs, Pitney Bowes onsite health care clinic would satisfy which of the following needs of employees? a. Esteem needs b. Physiological needs c. Psychological needs d. Self actualization e. Security needs Answer: d. Self actualization 4. Achievement, recognition, involvement and responsibility are clearly factors that are attributed to Pitney Bowes proactive program to improve the health of its employees. According to Herzberg, what would these factors be called? a. Self actualization b. hygiene c. motivational d. Theory X e. Theory Y Answer: c. motivational 5. An individual at Pitney Bowes assumes that if he produces a high quality product, the company will be fair in determining his reward. This approach is best explained by which of the following theories of motivation? a. Expectancy Theory b. Two Factor Theory c. Hierarchy of Needs Theory d. Equity Theory e. Theory X and Theory Y. Answer: d. Equity theory.

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