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Business in a
Changing World

Chapter 10
Motivating the Work Force

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McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
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 Amadeus Consulting: Where
Employees are the Company

Lisa Calkins and John Basso have created a

company for which people are motivated to
work for the long term.

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Motivating the Workforce

Nature of Human Relations

What motivates employees to perform?

How can managers boost morale?
How do you maximize worker performance?
How can you encourage creativity and innovation?
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Motivating the Workforce

Nature of Human Relations

Determining what motivates employees to

perform on the job is the focus of human
relations.

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Motivating the Workforce

What is motivation?

•Motivation is an inner drive that directs a person’s behavior

toward goals.

•A goal is the satisfaction of a need

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

state.

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Motivating the Workforce

The basic model of motivation shows

that when a need exists, an
individual engages in goal-directed
behavior designed to satisfy that
need.

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Motivating the Workforce

Human Relations

Morale – an employee’s attitude toward his or her job,

employer, and colleagues.

High Morale
•High levels of productivity
•High returns to stakeholders
•Employee loyalty

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Motivating the Workforce

High Morale
•High levels of productivity
•High returns to stakeholders
•Employee loyalty

Low Morale
•Absenteeism
•Lack of commitment
•High turnover

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Motivating the Workforce

Morale Boosters:
•Respect
•Involvement
•Appreciation
•Compensation
•Promotion
•Pleasant work environment
•Positive organizational culture

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Motivating the Workforce

Google’s focus on happy, committed employees --

•Massage therapy
•Laundry service
•Gourmet meals & snacks

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Motivating the Workforce

Perceptions of Rewards

Intrinsic rewards – personal satisfaction derived

from goal attainment
Extrinsic rewards – benefits/recognition received
from someone else.
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Motivating the Workforce

Absenteeism costs a typical large

company more than $3 million a year!

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Classical Theory of Motivation

Money – sole motivator for workers.

Taylor & Gilbreth – scientific focus on work tasks &

productivity.

Satisfactory pay & job security – motivate

employees to work hard.
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Hawthorne Studies

Elton Mayo – postulated that physical conditions in

workplace stimulate productivity.

Productivity increased regardless of light levels

Hawthorne Effect – marks beginning of concern for

human relations in the workplace

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Motivating Employees by Being Green

Interface is a company that is a leader in sustainable

and environmentally sound practices. Mission Zero
involves all employees to reduce environmental
footprint to zero by 2020.

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Work-Life Balance

Primary reason for accepting position

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Theories of Employee Motivation

Colgate-Palmolive
provides new parents three
additional weeks of paid leave in
addition to the leave mandated by
the Family Leave Act.

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Maslow’s Hierarchy of Self-
Actualization
Needs Needs

Esteem Needs

Social Needs

Security Needs

Physiological Needs

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Maslow’s Hierarchy of Needs

Physiological needs – basic needs for food, water,

shelter

Security needs– protection from physical & economic

harm

Social needs – need for love, companionship

Esteem needs – self-respect and respect from others

Self-actualization – maximizing one’s potential

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Herzberg’s Two-Factor Theory

Hygiene factors – focus on the work setting not

the content of the work – wages, working
conditions, company policies, job security.

Motivational factors – focus on content of the work

itself – achievement, recognition, involvement,
responsibility, advancement

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Herzberg’s Two-Factor Theory

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McGregor’s Theory X and Theory Y

Theory X – Assumption that workers

generally dislike work and must be
forced to do their jobs.

Theory Y – Humanistic view of

management. Assumption workers like
to work and seek out responsibility to
satisfy social, esteem, and self-
actualization needs.

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William Ouchi Theory Z

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

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Comparison of American, Japanese &
Theory Z Management Styles

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Variations on Theory Z

Participative Management

Employee Involvement

Self-Directed Work Teams (SDWT)

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Equity Theory

Equity theory – the assumption that how much

people are willing to contribute to an
organization depends on their assessment of the
fairness (equity) of the rewards they will receive
in exchange.

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Expectancy Theory

Expectancy theory – 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.

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Strategies for Motivating Employees

Behavior Modification – changing behavior and

encouraging appropriate actions by relating the
consequences of behavior to the behavior itself.

“Behavior is a function of its consequences.”

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Strategies for Motivating Employees

Job Design – strategies managers use to help

improve employee motivation:
•Job rotation
•Job enlargement
•Job enrichment
•Flexible scheduling
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Job Design Strategies

Job rotation – movement of employees

from one job to another to relieve the
boredom often associated with job
specialization.

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Job Design Strategies

Job enlargement – addition of more tasks

to a job instead of treating each task as
separate.

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Job Design Strategies

Job enrichment – incorporating

motivational factors (achievement,
recognition, responsibility) into the job.

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Job Design Strategies

Flexible scheduling strategies –

• Flextime
• Compressed workweek
• Job sharing
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Importance of Motivational Strategies

•Foster employee loyalty

•Boost productivity
•Influence on pay, promotion, job design
•Nature of relationships
•Nature of the job itself
•Characteristics of the organization

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