Chapter 20

Motivating and Rewarding

Employees

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.1
 Learning Outcomes
 Describe the motivation process
 Define needs
 Explain the hierarchy or needs theory
 Differentiate Theory X and Theory Y
 Describe the motivational implications of
equity theory (continued)

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.2
 Learning Outcomes
(continued)
 Explain the key relationships in expectancy
theory
 Describe how managers can design individual
jobs to maximize employee performance
 Describe the effect of workforce diversity on
motivational practices
 Describe how entrepreneurs motivate their
employees

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.3
 Motivation and Individual
Needs
 Willingness
 High level of effort
 Satisfaction of individual need

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.4
 The Motivation Process (Exhibit 10-1)

Unsatisfied
Need
Search
Behaviour

Tension Reduction
of Tension

Satisfied
Drives Need

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.5
Maslow’s
Hierarchy Self
of Needs
Esteem

Social

Safety

Physiological
Source: Motivation and Personality, Second Edition, by A. H. Maslow, 1970.
Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey.

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.6
 Little Ambition

Theory X Dislike Work

Employees
Avoid Responsibility

Self-Directed

Theory Y
Enjoy Work
Employees
Accept Responsibility

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.7
 The Three-
Needs Theory

Achievement Affiliation
(aAch) (nAff)
Power
(nPow)

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.8
 Equity Theory
Perceived Ratio Employee’s
Comparison* Assessment
Outcomes A < Outcomes B Inequity (Under-Rewarded)
Inputs A Inputs B
Outcomes A = Outcomes B Equity
Inputs A Inputs B
Outcomes A > Outcomes B Inequity (Over-Rewarded)
Inputs A Inputs B
*Where A is the employee, and B is a relevant other or referent.

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.9
 Skill Variety

Task Identity

JOB DESIGN Task Significance

INFLUENCES
Autonomy
MOTIVATION
Feedback
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 10.10
 Expectancy Theory

Individual 1 Individual 2 Organizational

Effort Performance Rewards

1. Effort-performance relationship
Individual
2. Performance-rewards relationship
Goals
3. Attractiveness relationship

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.11
 Motivating a Diverse
Workforce
 Flexibility
 Not everyone sees their job the same way- what
motivates me may not motivate you

 Recognize differences
 People are Different

 Accommodate
 Cultural Differences
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 10.12
 Pay-for-Performance
 Piece rate
 Gainsharing
 Wage-incentive
 Profit-sharing
 Bonuses

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.13
 Competency-Based
Compensation
 Skills
 Knowledge
 Abilities
 Behaviour
 I.e. leadership, decision making,
problem solving, etc
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 10.14
 Motivating Minimum-Wage
Employees
 Employee recognition
 Praise
 Empowerment

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.15
 Motivating Professional and
Technical Employees
 New assignments
 Challenges
 Autonomy
 Training and educational opportunities
 Recognition
 Simplify non-work life

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.16
 Flexible Work Options
 Compressed work week
 Flex-time
 Job sharing
 Telecommuting

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.17
 Additional Suggestions for
Motivating Employees
 Recognize individuals
 Match people to jobs
 Use goals
 Make goals attainable

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.18
 Further Suggestions for
Motivating Employees

 Individualize rewards
 Link rewards to performance
 Check the system for equity
 Don’t ignore money

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.19
 Entrepreneurs and Motivation
 Motivation for entrepreneurs is critical
 Employee empowerment is key
motivational tool
 Gradual process
 Delegation
 Job redesign

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 10.20