Chapter 9

1. Chapter 9 Motivating, Satisfying, and Leading Employees

2. Learning Objectives • Describe the nature and importance of psychological contracts in the workplace • Discuss the importance of job satisfaction and employee morale and summarize their roles in human relations in the workplace • Identify and summarize the most important theories of employee motivation • Describe some of the strategies used by organizations to improve job satisfaction and employee motivation • Discuss different managerial styles of leadership and their impact on human relations in the workplace

3. Psychological Contract • The set of expectations held by an employee concerning what he or she will contribute to an organization and what the organization will provide the employee in return • If either party perceives an inequity in the contract, that party may seek a change • Employees may seek increased wages, or they may reduce their efforts • Employers may fire staff, offer more training, or transfer staff

4. Job Satisfaction and Morale • Job satisfaction • The sense of accomplishment employees feel from performing their jobs well • When job satisfaction is high, so is employee morale • Employee morale • The mental attitude that employees have towards their workplace

5. Satisfaction Enhances Performance • Increased commitment to their work and the firm • Work harder to contribute to the organization • Have fewer grievances • Have lower absenteeism • Are less likely to leave the organization

6. Motivation in the Workplace • Motivation • The set of forces that cause people to behave in certain ways • Motivational theories • Classical theory and scientific management • Behaviour theory • Contemporary theory

7. Classical theory Workers are motivated primarily by money If money motivates, then paying employees more would result in higher levels of production Scientific management Analyzes jobs and finds more efficient ways to perform them Time-and-motion studies Classical Theory & Scientific Management

8. Hawthorne Studies • Researchers attempted to measure the impact of lighting on productivity • Productivity increased whether or not the lighting was high or low • Something, other than money and lighting, was impacting on performance • Key factor: attention • Hawthorne effect • The tendency of workers to increase productivity when they receive special attention from management

9. Contemporary Motivation Theories • Based on the importance of good human relations in motivating employees • Human-resources model • Hierarchy of needs model • Two-factor theory • Expectancy theory • Equity theory • Goal-setting theory

10. The Human Resources Model: Theories X and Y • Two different management views of the firm’s human resources • Theory X • Employees must be forced to be productive because they are naturally lazy, irresponsible, and unco-operative • Theory Y • Employees want to be productive because they are naturally energetic, responsible, and co-operative

11. Theory X Employees • Lazy • Lack ambition • Dislike responsibility • Self-centred • Resist change • Gullible and unintelligent • Must be punished or rewarded to stimulate motivation

12. Theory Y Employees • Energetic • Ambitious • Responsible • Selfless • Want to contribute to business success • Intelligent

13. Maslow’s Hierarchy of Needs • Needs are hierarchical • Lower level needs must be met first • Only unsatisfied needs motivate workers • Needs levels • Self-actualization • Esteem • Social • Security • Physiological

14. Physiological Needs • Basic survival requirements • Food • Shelter • Water • Sleep • Business addresses these needs by providing comfortable work environments and sufficient salaries to buy food and shelter

15. Security Needs • Need for stability and protection from unknown • Employers offer • Pension plans • Job security • Personal safety

16. Social Needs • Need for friendship and companionship • Need to belong to a group • Need to “fit in” and be accepted • Making friends at work can help satisfy social needs

17. Esteem Needs • Need for status and recognition from others • Need for self-respect • Respected job titles and large offices are among the things that business can provide to address these needs

18. Self-actualization Need • Need for self-fulfillment • Need for personal growth and development • Need to contribute to society and achieve meaningful goals • Need to be true to yourself and satisfy yourself • Challenging job assignments can help satisfy these needs

19. Two-factor Theory • Two different factors affect job satisfaction and dissatisfaction • Hygiene factors • Cause job dissatisfaction if they are missing or inadequate • Motivation factors • Cause job satisfaction if they are present and satisfactory

20. Hygiene Factors • Working conditions and clearly stated policies • If present, the employee is not dissatisfied • If absent or deficient, the employee is dissatisfied • Working conditions • Interpersonal relations • Pay and security • Company policies and administration

21. Motivation Factors • Recognition or added responsibility • if absent, the employee is not satisfied(but not dissatisfied either) • achievement • recognition • the work itself • responsibility • advancement and growth

22. Expectancy Theory • People are motivated to work towards rewards that they want and that they believe they have a reasonable chance of obtaining • Motivation is based on the belief that • performance is linked to the reward • he/she can perform at a level to achieve the required results • the reward is valuable

23. Expectancy Theory Model Individual Effort Individual Performance Organizational Rewards Personal Goals Performance- Reward issue Rewards- Personal Goals issue Effort- Performance issue

24. Equity Theory • Employees use social comparisons to evaluate their treatment by the organization • Individuals compare • What they contribute relative to what they get in return • Their input/output ratio with what they feel others are getting • The result is a feelings of equity or inequity • The ratios must be fair, not the same, to have a sense of equity

25. Dealing with Inequity • Employees will attempt to restore equity in an inequitable situation • seeking raises • reducing work effort • reducing work week • complaining to their superiors • seeking different employees for comparison • quitting the job

26. Goal-setting Theory • Employees perform better when they set specific, quantified, time-framed goals • Goals are challenging and specific • Energy and attention can be focused on the task to be accomplished • Employees participate in setting their own goals, which increases their commitment and motivation to achieve the goals

27. Programs for Enhancing Job Satisfaction • Reinforcement & punishment • Management by objectives • Participative management • Quality circles • Job enrichment • Job redesign • Modified work schedules • Workshare programs

28. Reinforcement • Positive behaviour is reinforced through rewards • Cash bonuses for performance • Negative behaviour is punished • Less pay, fewer hours, suspension, dismissal • This management approach is most effective when employees are trying to master new skills or behaviours

29. Management by Objectives • Employees will be motivated to obtain goals that they help to set • Improves relations between superior and subordinates by nature of the consultative process • Assessment of performance in meeting goals provides immediate feedback on success and individual contributions, which can lead to feelings of equity in the firm

30. Participative Management • Employees will be more satisfied on the job if they have a say in how they do their jobs and how the company is managed • Can make employees more committed to the organization and achieving goals • Popular in Japanese firms and gaining acceptance in Canada

31. Job Enrichment • Changing the nature of the job, the way various jobs work together, or through having employees rotate through jobs • Increases job satisfaction by changing the job • Increased responsibility or growth • Employees acquire new skills and feel valued

32. Job Redesign • Increases job satisfaction by improving the employee-job fit • Combining tasks • Forming natural workgroups • Establishing client relationships • Useful when individuals have a high personal need for growth or achievement

33. Redesign Methods • Combining tasks • Enlarges the job thus increasing responsibility • Work seems more meaningful • Natural workgroups • Creates teams among individuals who work on projects • Enhances their understanding of the function of the organization, and the problem-solving abilities of the team • Establish client relationships • Allows employees to interact with customers • More variety and more control over their jobs

34. Modified Work Schedules • Allows individuals to fulfill work commitments more effectively around personal or community obligations • Helps increase job satisfaction • Flextime • Compressed workweek • Telecommuting • Workshare programs

35. Flextime • Adjusts the standard daily work schedule to fit employees’ needs • Basic office hours (9:00 a.m. To 5:00 p.m.) • They must all be available from 10:00 a.m. To 3:00 p.m. (The core time) • Therefore, they may come in from 7:00 a.m. To 3:00 p.m., Or as late as 10:00 a.m. To 6:00 p.m • Some offices will also allow flexible hours between 11:00 a.m. And 1:00 p.m. For lunch

36. The Compressed Workweek • Employees may work their required weekly hourly requirement over fewer than five working days • Employees work longer hours on the days they work • Potential scheduling options • 40 hours = 5 days x 8 hours • 40 hours = 4 days x 10 hours • 40 hours = 3 days x 13.33 hours (often worked into a 36-hour week at 12 hours/day)

37. Telecommuting • Employees are permitted to work away from the office • Home-based office technology are employed • Computers, voicemail, e-mail, fax modems, cell phones, overnight delivery services • Barriers • Fear of not being internally motivated & missing deadlines • Coordinating family and work responsibilities

38. Worksharing • Two people share a single, full-time position • Also referred to as job sharing • Useful for those who wish to stay in the workforce part-time • Parents of young children • Individuals easing into retirement • 8% of part-time Canadian workers are worksharing • Most workshare employees are university-educated women in professional occupations

39. Managerial Styles and Leadership • Leadership • The process of motivating others to work to meet specific objectives • Managerial style • Patterns of behaviour that a manager exhibitsin dealing with subordinates • Autocratic style • Democratic style • Free-rein style

40. Autocratic Style • Managers issue orders and expect them to be obeyed without question or discussion • Decision making occurs rapidly due to lack of consultation • Useful for situations where quick decision making and conformity is required • Military applications • This style suits employees who do not want to make decisions

41. Democratic Style • Managers ask for input from subordinates but retain final decision-making power • Benefits those who wish to have input • Can lead to frustration if the manager’s decisions are not consistent with the input • Annoys those who do not wish to have input

42. Free-rein Style • Managers simply advise subordinates • Employees have the authority to make the final decisions themselves • May be useful in circumstances where a loose structure exists • A volunteer organization

43. Canadians Vs. Americans • Canadian managers tend to be • More quiet or subdued • More committed to their organizations • More independent thinkers • More culturally tolerant

44. Contingency Approach to Leadership • The most effective management style depends on the situation being managed • Observes cultural differences that affect the interpretation of situations and employee needs • Not all subordinates wish to have a role in decision making • Success is achieved by adjusting one’s management style to suit the situation involved

45. Motivation & Leadership in the 21st Century • Changing patterns of motivation • Rewards desired by today’s employees are different from those of yesterday’s • Money may not be the prime motivator • Individual goals vary more than ever before • Changing patterns of leadership • Less of an emphasis on autocratic styles as employees become more empowered