Chapter 10 – Motivating Employees
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lecture link 10–10
POSITIVE FEEDBACK
Employees and managers may have different levels of experience, but they worry about the same
thing: “How can I do a better job?” Kathryn Lemaire, vice president at the Hay Group, a consulting firm
that helps organizations manage people, has some advice. Performance reviews, she says, should not be a
single, dreaded day at the end of the year but an ongoing dialogue incorporated into the company’s cul-
ture. Her advice:
• Employees constantly want to know where they stand in the company, and good managers
should clue them in regularly. If someone is doing a good job, give him or her immediate,
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critical
thinking exercises
Name: ___________________________
Date: ___________________________
critical thinking exercise 10-1
MANAGING A FAMILY BUSINESS
Nicholas Stavros opened his first restaurant in Cedar City 25 years ago. Stavros’s family-style
Greek food and atmosphere proved popular, and three additional restaurants were opened in outlying sub-
urbs. One of Papa Nick’s children now runs each: Maria’s Stavros, Peter’s Stavros, and Eric’s Stavros.
Nick Junior runs the original Nick’s Stavros.
The menu is consistent across all four restaurants, but each restaurant features a daily special pre-
Chapter 10 – Motivating Employees
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Name: ___________________________
Date: ___________________________
critical thinking exercise 10-2
DOES MONEY MOTIVATE?
Chapter 10 – Motivating Employees
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Name: ___________________________
Date: ___________________________
critical thinking exercise 10-3
TESTING MASLOW’S HIERARCHY OF NEEDS
According to Abraham Maslow, we all have certain needs ranging from physical needs to self-
actualization. Maslow believed that when needs are unmet, they motivate us to behave a certain way.
When the needs are met, they no longer motivate us. He also said that when lower-order needs remain
unmet, we give them our attention and don’t attend to the higher needs.
Let’s test Maslow’s theory to see if it holds true. Which needs are you giving your attention to
right now (not for the day, not for the future, but for this minute)? Mark the need getting the most atten-
Chapter 10 – Motivating Employees
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notes on critical thinking exercise 10-3
Tally the results on the board. How many class members are focusing on each need? Have all the
lower-level needs for each person been met (checked off)?
What does this information tell you? Are some classmates hungry and concentrating on physical
Name: ___________________________
Date: ___________________________
critical thinking exercise 10-4
THE MANAGEMENT CHALLENGE
Antonio Lacosta is the plant manager at the North Monticello factory. He has always believed in
the abilities of his department heads and let them share in decision making. The four department heads
have each been with the company for over 20 years and are very loyal to the organization.
Lacosta called a meeting this morning to inform the department heads of a report just received
from the home office. It seems that the North Monticello plant has the highest costs of the 10 plants in the
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Name: ___________________________
Date: ___________________________
critical thinking exercise 10-5
WHICH ARE THE BEST COMPANIES TO WORK FOR?
Despite stories of bad bosses and demotivating bureaucracy, some companies are able to come up
1. List the top five companies.
3. Follow the links to the institute’s listing for the previous year. Are there any companies in com-
mon for the two years?
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Name: ___________________________
Date: ___________________________
critical thinking exercise 10-6
MOTIVATION SURVEY
Recently Jacobs Construction Company conducted a survey of its supervisors asking them to
complete the following form. They were asked to rank each factor from 1 (low) to 10 (high) as to how
important each would be in increasing their motivation. The survey results for two of the supervisors are
given below.
1. Which factors are hygiene factors and which are motivating factors?
2. Using Maslow’s needs hierarchy theory, explain how you would use this information to motivate
Hal Barrington.
3. Using Maslow’s needs hierarchy theory, explain how you would use this information to motivate
Frank Ramone.
4. In the final column, rank each factor as to how it would motivate you.
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notes on critical thinking exercise 10-6
1. Which factors are hygiene factors and which are motivating factors?
2. Using Maslow’s needs hierarchy theory, explain how you would use this information to motivate
Hal Barrington.
3. Using Maslow’s needs hierarchy theory, explain how you would use this information to motivate
Frank Ramone.
4. In the final column, rank each factor as to how it would motivate you.
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bonus
cases
bonus case 10–1
WHEN FAILURE IS THE NORM
Few companies would accept a 96% failure rate. But in the pharmaceutical industry, a one-digit
success rate is the norm. One such company is Pfizer Inc. To find the next big drug, Pfizer spends $152
million a week funding over 400 early-stage drug development projects. Ninety-six percent of those ef-
How does she manage a workforce that routinely fails? Instead of focusing on the big successes,
she encourages the scientists to live for small victories, the small steps that may provide the foundations
for an ultimate star drug. When a researcher publishes a paper, or when a lab gets some positive results on
a new therapy, it is trumpeted throughout the organization. “Science folks don’t live for the big day when
discussion questions for bonus case 10-1
1. Does the 4% success rate appear to be a good return on the company’s investment? What addi-
tional information might you need to better answer this question?
2. With such a high failure of idea to market environment, how does this affect the culture of the
company? Could you work in such an environment?
3. From your own perspective, how has the drug industry changed in types of products offered?
How has this affected advertising?
4. Would Pfizer be a good investment? Why or why not?
10–84
1. Does the 4% success rate appear to be a good return on the company’s investment? What addi-
tional information might you need to better answer this question?
2. With such a high failure of idea to market environment, how does this affect the culture of the
company? Could you work in such an environment?
3. From your own perspective, how has the drug industry changed in types of products offered?
How has this affected advertising?
4. Would Pfizer be a good investment? Why or why not?
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bonus case 10-2
THE SUPERMARKET MANAGER
Fred Ferrell is the store manager of the Right-Way Supermarket in Beaumont, a small suburban
area of some 1,300 families. The store’s staff consists of a produce manager, a meat manager and butcher,
five checkers, four stockers, and a receiving clerk. The store operates six days per week from 9 a.m. to 9
p.m.
Over the weekend between her first and second weeks, Amy studied the inventory procedures and
records. She roughed out a system for streamlining the handling and felt she had found a way to reduce
the amount of paperwork by combining several forms into one and using the computer system to print
forms simultaneously. Amy felt if she could sell these proposals to Mr. Ferrell, not only his store, but all
stores in the chain, could benefit. After some hasty calculations, she figured that nearly one hour per day
would be saved and several hundred dollars in unnecessary forms could be eliminated.
discussion questions for bonus case 10-2
1. What motivational approach is Mr. Ferrell using?
2. Amy has asked your advice. What would you suggest that she do? What are her alternatives?
3. What advice would you have for the general manager of Right-Way’s Supermarket parent corpo-
ration?
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notes on discussion questions for bonus case 10-2
1. What motivational approach is Mr. Ferrell using?
2. Amy has asked your advice. What would you suggest that she do? What are her alternatives?
Note the timing of her approach to Ferrell—she met him at the door at 8:00 a.m. on Monday
morning. Could she have picked a worse time? Amy should wait until the appropriate time—most likely
3. What advice would you have for the general manager of Right-Way’s Supermarket parent corpo-
ration?
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bonus case 10-3
MANAGING VOLUNTEERS
The executive director of the Oakview Humane Society, Jordan Webster, sometimes wishes he
Alice is a 30-something entrepreneur who owns and manages a dinner theater with her husband.
She has no children, just three dogs. The theater is open on Thursday, Friday, and Saturday nights. Be-
cause of this schedule, she has considerable flexibility and uses her free time to care for animals at the
shelter. Alice is also the society adoption coordinator, doing an excellent job of matching pets with pro-
spective adopters. Her manner is a little blunt, and people frequently complain that she is “bossy.” Her e-
mails to society officers and volunteers are frequently one-line commands to do something.
discussion questions for bonus case 10-3
1. How does managing volunteers differ from managing paid employees?
2. What incentives can Webster use to motivate volunteers?
3. What should the director do next, if anything?
notes on discussion questions for bonus case 10-3
1. How does managing volunteers differ from managing paid employees?
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2. What incentives can Webster use to motivate volunteers?
3. What should the director do next, if anything?
endnotes
i Source: Jennifer Levitz, “UPS Thinks Outside the Box on Driver Training,” The Wall Street Journal, April 6,
2010.
v Source: “Japan Airline Boss Sets Exec Example,” CBS News, January 29, 2009.
vi Sources: Noelle Barton DeFazio and Caroline Preston, “Wal-Mart Tops List of Charitable Cash Contributors,
AT&T No. 2,” USA Today, August 9, 2010; Amy Reeves, “Wal-Mart Contract Could Spell Influx of Students for
Online School,” Investor’s Business Daily, June 7, 2010.