Beyond Theory Z - Motivation in

the Knowledge-Value Era

by

Joseph J. Haefner
Engineering Management
 Abstract
Employee motivation in the emerging
knowledge-value era is an extension of
Maslow’s Theory Z. Recent research on
motivation has identified theory Z factors
affecting employee motivation and
performance. The storyboard displays the
result of replacing Theory X motivation
techniques with Theory Z motivation
techniques in a $10,000,000 Production
throughput success.

Copyright 2008 JJ Haefner

 Cost Penalty
Annual Throughput Per Shift

$14,000,000

$12,000,000
$10,000,000 Lost
$10,000,000 Loss
Loss
$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0

A B C
Shift

Copyright 2008 JJ Haefner

 Theory X Does Not Engage
Leadership Environment Individual Positive
Enabling Formulation Org. Values & Dynamics Self-efficacy Valued Work

Task Significance Interest Alignment Prosocial Motivation Enlightened HR Policy

Natural Work Units Trust Commitment Fact-based Management

Intellectual Stimulation Autonomy Self-monitoring Quality Systems

Regulatory Foci Shared Norms Agreeableness Consistency in Task

Significance &
Performance
Participative Decision- Normative Intrinsic Positive Mood & Attitude High Perceived Utility
Making
Job Design Group Rewards Intrinsic Motivation High Task
Interdependence
Extrinsic Motivation Self-determination Task Simplicity

Goal Setting Goal Regulation Low Formalization

Copyright 2008 JJ Haefner

 Systemic Motivation
• The basis for motivation is much more
than Theory X (workers cannot be
trusted), and Theory Y (workers can be
empowered).
• Motivation is a systemic phenomenon with
elements in:
– Leadership
– Environment
– Individual Psychology

Copyright 2008 JJ Haefner

 Leadership
• Enabling formulation
• Task significance forming natural work units
• Intellectual stimulation
• Regulatory foci
• Participative decision-making
• Job design
• Extrinsic motivation
• Goal setting

Copyright 2008 JJ Haefner

 Environment
• Social interaction and normative values
• Interest alignment
• Trust.
• Autonomy
• Shared norms
• Normative intrinsic motivation
• Interaction of reward system and socialization
regime

Copyright 2008 JJ Haefner

 Individual Psychology
• Self-efficacy
• Prosocial motivation
• Commitment.
• Self-monitoring
• Goal regulation
• Agreeableness
• Positive mood
• Intrinsic motivation
• Self-determination

Copyright 2008 JJ Haefner

 Motivation Deterrence
• Employer undervaluing work results.
• Punitive focus.
• “Impression” management, non-fact based.
• Not using Total Quality Management practices.
• Inconsistent relationship between task
significance and job performance.
• Perceived task utility is low.
• Task interdependence is low.
• Task complexity.
• High task formalization

Copyright 2008 JJ Haefner

 Low to High Motivational Saturation
The improvement began with Enabling Management & Intellectual Stimulation
e.g. technical skills.

Non-Deterrent Non-Deterrent
1.00 1.00
0.80
0.60
0.50
0.40
0.20
Individual 0.00 Leadership Individual 0.00 Leadership

Environment Environment

Interest alignment, and trust created the positive synergy to release

other latent motivational behaviors.

Copyright 2008 JJ Haefner

 Motivational Engagement Success
Leadership Environment Individual Positive
Enabling Formulation Social Interaction Self-efficacy Valued Work

Task Significance Interest Alignment Prosocial Motivation Enlightened HR Policy

Natural Work Units Trust Commitment Fact-based Management

Intellectual Stimulation Autonomy Self-monitoring Quality Systems

Regulatory Foci Shared Norms Agreeableness Consistency in Task

Significance &
Performance

Participative Decision- Normative Intrinsic Positive Mood & Attitude High Perceived Utility
Making

Job Design Group Rewards Intrinsic Motivation High Task

Interdependence

Extrinsic Motivation Self-determination Task Simplicity

Goal Setting Goal Regulation Low Formalization

Copyright 2008 JJ Haefner

 Cost Benefit
Motivation
Over $10,000,000 Yield Improvement
Bonus
$14,000,000

$12,000,000

$10,000,000
Loss
Recovery
$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0
A B C
Shift Shift C Employees Became
Self-Motivated And Broke
Production Records

Joseph.Haefner@Waldenu.edu
Copyright 2008 JJ Haefner