Chapter 10 Motivating and Rewarding Employees

1. Chapter 10Motivating and Rewarding Employees

2. 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)

3. 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

4. Motivation and Individual Needs • Willingness • High level of effort • Satisfaction of individual need

5. The Motivation Process (Exhibit 10-1) Unsatisfied Need Search Behaviour Tension Reduction of Tension Satisfied Need Drives

6. Maslow’s Hierarchy of Needs Self 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.

7. Little Ambition Theory X Employees Dislike Work Avoid Responsibility Self-Directed Theory Y Employees Enjoy Work Accept Responsibility

8. The Three- Needs Theory Achievement (aAch) Affiliation (nAff) Power (nPow)

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

10. Skill Variety Task Identity Task Significance Autonomy Feedback JOB DESIGN INFLUENCES MOTIVATION

11. 1. Effort-performance relationship 2. Performance-rewards relationship 3. Attractiveness relationship Expectancy Theory Individual Effort Individual Performance Organizational Rewards 1 2 3 Individual Goals

12. 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

13. Pay-for-Performance • Piece rate • Gainsharing • Wage-incentive • Profit-sharing • Bonuses

14. Competency-Based Compensation • Skills • Knowledge • Abilities • Behaviour • I.e. leadership, decision making, problem solving, etc

15. Motivating Minimum-Wage Employees • Employee recognition • Praise • Empowerment

16. Motivating Professional and Technical Employees • New assignments • Challenges • Autonomy • Training and educational opportunities • Recognition • Simplify non-work life

17. Flexible Work Options • Compressed work week • Flex-time • Job sharing • Telecommuting

18. Additional Suggestions for Motivating Employees • Recognize individuals • Match people to jobs • Use goals • Make goals attainable

19. Further Suggestions for Motivating Employees • Individualize rewards • Link rewards to performance • Check the system for equity • Don’t ignore money

20. Entrepreneurs and Motivation • Motivation for entrepreneurs is critical • Employee empowerment is key motivational tool • Gradual process • Delegation • Job redesign