Chapter 10 – Motivating Employees
10-1
chapter
.
Motivating Employees
what’s new in this edition 10.3
brief chapter outline and learning objectives 10.5
lecture outline and lecture notes 10.7
PowerPoint slide notes 10.49
lecture enhancers 10.72
lecture enhancer 10–1: UPS’S TRUCK DRIVER BOOT CAMP 10.72
lecture enhancer 10-2: MOTIVATING WITHOUT MONEY 10.73
lecture enhancer 10-3: THE BIG THRILL MOTIVATION 10.73
lecture enhancer 10-4: MCCLELLAND’S ACQUIRED NEEDS THEORY 10.74
lecture enhancer 10-5: EMPOWERING EMPLOYEES AT DARDEN RESTAURANTS 10.75
lecture enhancer 10-6: THE BOSS SETS THE EXAMPLE 10.75
lecture enhancer 10-7: AMERICA’S MINIMUM WAGE DEBATE 10.76
lecture enhancer 10-8: RECOGNITION: MAKING HEROES 10.76
lecture enhancer 10-9: MILLENIALS: GENERATION OF THE FUTURE 10.77
10
Chapter 10 – Motivating Employees
10-2
critical thinking exercises 10.78
critical thinking exercise 10–1: MANAGING A FAMILY BUSINESS 10.78
critical thinking exercise 10–2: DOES MONEY MOTIVATE? 10.79
critical thinking exercise 10–3: TESTING MASLOW’S HIERARCHY OF NEEDS 10.80
critical thinking exercise 10–4: THE MANAGEMENT CHALLENGE 10.83
critical thinking exercise 10–5: WHICH ARE THE BEST COMPANIES TO 10.84
WORK FOR?
critical thinking exercise 10-6: MOTIVATION SURVEY 10.85
bonus cases 10.87
bonus case 10–1: THE SUPERMARKET MANAGER 10.87
bonus case 10–2: MANAGING VOLUNTEERS 10.89
Chapter 10 – Motivating Employees
10-3
what’s new in
this edition
additions to the 11th edition:
• Getting to Know David Novak of Yum Brands
• Name That Company: Maytag
• Adapting to Change: When is Social Media too Social?
• Spotlight on Small Business: Going Up Against the Heavyweights
• Video Case: Appletree Answers
revisions to the 11th edition:
• Reaching Beyond Our Borders: Beyond Just knowing Cross–Culture Differences
• Statistical data and examples throughout the chapter were updated to reflect current information.
• Discussion was expanded on comparisons of generational characteristics in the workplace in sec-
tion Motivating Employees across Generations.
deletions from the 10th edition:
• Getting to Know Andrew Cherng
• Name That Company: UPS
• Social Media in Business
• Spotlight on Small Business
• Reaching Beyond Our Borders
Chapter 10 – Motivating Employees
10-4
Chapter 10 – Motivating Employees
10-5
brief chapter outline
and learning objectives
CHAPTER 10
MOTIVATING EMPLOYEES
Getting to Know DAVID NOVAK of YUM BRANDS
I. THE VALUE OF MOTIVATION
learning objective 1
Explain Taylor’s theory of scientific management.
A. Frederick Taylor: The Father of Scientific Management
learning objective 2
Describe the Hawthorne studies and their significance to manage-
ment.
B. Elton Mayo and the Hawthorne Studies
learning objective 3
Identify the levels of Maslow’s hierarchy of needs and apply them to
employee motivation.
II. MOTIVATION AND MASLOW’S HIERARCHY OF NEEDS
learning objective 4
Distinguish between the motivators and hygiene factors identified by
Herzberg.
III. HERZBERG’S MOTIVATING FACTORS
learning objective 5
Differentiate among Theory X, Theory Y, and Theory Z.
IV. MCGREGOR’S THEORY X AND THEORY Y
A. Theory X
B. Theory Y
V. OUCHI’S THEORY Z
learning objective 6
Explain the key principles of goal-setting, expectancy, reinforcement,
and equity theories.
Chapter 10 – Motivating Employees
10-6
VI. GOAL-SETTING THEORY AND MANAGEMENT BY OBJECTIVES
VII. MEETING EMPLOYEE EXPECTATIONS: EXPECTANCY THEORY
VIII. REINFORCING EMPLOYEE PERFORMANCE: REINFORCEMENT
THEORY
IX. TREATING EMPLOYEES FAIRLY: EQUITY THEORY
learning objective 7
Show how managers put motivation theories into action through such
strategies as job enrichment, open communication, and job recognition.
X. PUTTING THEORY INTO ACTION
A. Motivating through Job Enrichment
B. Motivating through Open Communication
C. Applying Open Communication in Self-Managed Teams
D. Recognizing a Job Well Done
learning objective 8
Show how managers personalize motivation strategies to appeal to
employees across the globe and across generations.
XI. PERSONALIZING MOTIVATION
A. Motivating Employees across the Globe
B. Motivating Employees across Generations
XII. SUMMARY
Chapter 10 – Motivating Employees
10-7
Getting to Know DAVID NOVAK of YUM BRANDS
Rubber chickens and chattering false teeth have played a key role in David Novak’s
success with brands like Pepsi, KFC, and Pizza Hut.
I. THE VALUE OF MOTIVATION
A. Satisfaction is an important factor in the workforce.
1. Happy workers lead to happy customers.
a. Unhappy workers may leave.
b. Losing an employee can cost the equivalent
of 6 to 18 months’ salary.
c. There are also “SOFT” COSTS, such as loss
of intellectual capital and decreased morale of
remaining workers.
2. ENGAGEMENT describes employees’ level of
motivation, passion, and commitment.
a. ENGAGED or MOTIVATED EMPLOYEES
feel a connection to their company.
b. DISENGAGED WORKERS have essentially
“checked out.”
c. The lower productivity of disengaged workers
costs the U.S. economy between $450 and
$550 billion a year.
Job enlargement combines a series of tasks into one challenging and interesting assignment.
This home appliance manufacturer redesigned its washing machine production process so that
employees could assemble an entire water pump instead of just adding one part. Name that
company.
(Students should read the chapter before guessing the company’s name: Maytag.)
Chapter 10 – Motivating Employees
10-8
PPT 10-1
Chapter Title
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
CHAPTER 10
Motivating
Employees
PPT 10-2
Learning Objectives
LEARNING OBJECTIVES
10-2
1. Explain Taylor’s theory of scientific management.
2. Describe the Hawthorne studies and their
significance to management.
3. Identify the levels of Maslow’s hierarchy of needs
and apply them to employee motivation.
4. Distinguish between the motivators and hygiene
factors identified by Herzberg.
5. Differentiate among Theory X, Theory Y, and Theory
Z.
PPT 10-3
Learning Objectives
LEARNING OBJECTIVES
10-3
6. Explain the key principles of goal-setting,
expectancy, reinforcement, and equity theories.
7. Show how managers put motivation theories into
action through such strategies as job enrichment,
open communication, and job recognition.
8. Show how managers personalize motivation
strategies to appeal to employees across the globe
and across generations.
PPT 10-4
David Novak
DAVID NOVAK
Yum Brands
10-4
• One of the largest food
companies, a restaurant is
opened every 14 hours.
• Novak stresses the
importance of his team of
employees worldwide.
• He is committed to growing
the company by boosting
employee morale.
PPT 10-5
Name That Company
NAME that COMPANY
10-5
Job enlargement combines a series of tasks into
one challenging and interesting assignment. This
home appliance manufacturer redesigned its
washing machine production process so that
employees could assemble an entire water pump
instead of just adding one part.
Name that company!
critical thinking
exercise 10-1
MANAGING A FAMILY BUSINESS
Management and motivation can be difficult in family firms.
This exercise presents such a situation. (See the complete exer-
cise on page 10.78 of this manual.)
Chapter 10 – Motivating Employees
10-9
3. Motivating the right people to JOIN AND RE-
MAIN WITH THE ORGANIZATION is a key
function of managers.
4. People are motivated by a variety of things.
a. An INTRINSIC REWARD is the personal
satisfaction you feel when you perform well
and complete goals.
b. An EXTRINSIC REWARD is something giv-
en to you by someone else as recognition
for good work; extrinsic rewards include pay
increases, praise, and promotions.
learning objective 1
Explain Taylor’s theory of scientific management.
B. FREDERICK TAYLOR: THE FATHER OF SCIEN-
TIFIC MANAGEMENT
1. FREDERICK TAYLOR’S book The Principles of
Scientific Management was published in 1911.
a. Taylor’s goal was to INCREASE WORKER
PRODUCTIVITY in order to benefit both the
firm and the worker.
b. The way to improve productivity was through
SCIENTIFIC MANAGEMENT, studying
workers to find the most efficient ways of do-
ing things and then teaching people those
techniques.
c. Three elements of his approach were TIME,
METHODS, and RULES OF WORK.
d. TIME-MOTION STUDIES, begun by Freder-
ick Taylor, study which tasks must be per-
Chapter 10 – Motivating Employees
10-10
INTRINSIC REWARDS
• Intrinsic Rewards — Personal satisfaction you feel
when you perform well and complete goals.
10-6
• Examples of
Intrinsic Rewards:
– Pride in your
performance
– Sense of
achievement
EXTRINSIC REWARDS
10-7
• Extrinsic Rewards — Something given as a
recognition of good work.
• Kinds of Extrinsic Rewards:
– Pay Raises
– Promotions
– Awards
FRINGE BENEFITS
Perks Offered to Employees at Top 50 Employers
Source: Bloomberg BusinessWeek, www.businessweek.com, accessed November 2014. 10-8
TAYLOR’S SCIENTIFIC
MANAGEMENT
10-9
LO 10-1
• Scientific Management — Studying workers to find
the most efficient ways of doing things and then
teaching people those techniques.
• Three Key Elements to Increase Productivity
1. Time
2. Methods of Work
3. Rules of Work
Chapter 10 – Motivating Employees
10-11
formed to complete the job and the time
needed to do each task.
2. Henry L. Gantt, one of Taylor’s followers, devel-
oped GANTT CHARTS, which managers used
to plot the work of employees down to the
smallest detail.
3. Frank and Lillian Gilbreth used Frederick Tay-
lor’s ideas in a study of brick laying.
a. The PRINCIPLE OF MOTION ECONOMY is
the theory, developed by Frank and Lillian
Gilbreth, that every job can be broken down
into a series of elementary motions.
b. They analyzed every motion (“THERBLIG”)
to make them more efficient.
4. Scientific management viewed PEOPLE AS
MACHINES that needed to be properly pro-
grammed.
a. There was little concern for the PSYCHO-
LOGICAL or HUMAN ASPECTS of work.
b. In some companies, the emphasis is still on
CONFORMITY TO WORK RULES rather
than on creativity, flexibility, and responsive-
ness.
c. The text uses the example of UPS.
learning objective 2
Describe the Hawthorne studies and their significance to management.
C. ELTON MAYO AND THE HAWTHORNE STUDIES
1. The HAWTHORNE STUDIES, begun in 1927,
Chapter 10 – Motivating Employees
10-12
TAYLOR’S FOUR KEY
PRINCIPLES
10-10
LO 10-1
1. Study how a job is performed.
• Gather time & motion information.
• Check different methods.
2. Codify the best method into rules.
3. Choose workers whose skill matches the rules.
4. Establish a fair level of performance and pay.
TIME-MOTION STUDIES
10-11
LO 10-1
• Time-Motion Studies — Studies of which tasks
must be performed to complete a job and the time
needed to do each task.
• Led to the development of the Principle of
Motion Economy — Every job can be broken down
into a series of elementary motions; developed by
Frank and Lillian Gilbreth.
ARE YOU STRESSED?
Warnings of Employee Stress
10-12
LO 10-1
• Negative attitudes about work
• Drops in productivity
• Chronic lateness
• Absenteeism
• Careless with details
• Unable to work with others
• Withdrawal from co-workers
• Easily upset or angered
UPS needs to hire 25,000 new drivers to replace retiring em-
ployees. Prospective drivers go through intensive training at
Integrad. (See the complete lecture enhancer on page 10.72 of
this manual.)
TAYLOR and UPS
• UPS drivers work under strict rules and work
requirements.
10-13
LO 10-1
• How to get out of their trucks:
– Right foot first
• How fast to walk:
– 3 ft per second
• How to hold their keys:
– Teeth up, third finger
Chapter 10 – Motivating Employees
10-13
were conducted by Elton Mayo at the Western
Electric Company’s Hawthorne plant in Cicero,
Illinois.
a. The PURPOSE of the studies was to deter-
mine the best lighting for optimum produc-
tivity.
b. The PRODUCTIVITY of the experimental
group INCREASED compared to the control
group whether the lighting was bright or dim.
c. The researchers had expected productivity
to fall as the lighting was dimmed.
2. A second series of 13 experiments were con-
ducted to see if OTHER FACTORS, such as
temperature and humidity, contributed to in-
creased production.
a. PRODUCTIVITY INCREASED during each
of the 13 experimental periods.
b. When conditions were returned to their origi-
nal status (before the studies were started),
PRODUCTIVITY CONTINUED TO GO UP.
Why?
3. Mayo guessed that some HUMAN or PSYCHO-
LOGICAL FACTORS caused the increases.
a. The workers in the test room thought of
themselves as a SOCIAL GROUP—they felt
special and worked hard to stay in the
group.
b. The workers were involved in the PLAN-
NING of the experiments—they felt that their
Chapter 10 – Motivating Employees
10-14
PPT 10-14
Hawthorne Studies: Purpose and
Results
HAWTHORNE STUDIES:
PURPOSE AND RESULTS
• Researchers studied worker efficiency under
different levels of light.
• Productivity increased regardless of light
condition.
10-14
LO 10-2
• Researchers decided it was
a human or psychological
factor at play.
• Hawthorne Effect — People
act differently when they know
they are being studied.
Chapter 10 – Motivating Employees
10-15
ideas were respected.
c. The workers enjoyed the SPECIAL AT-
MOSPHERE and ADDITIONAL PAY for the
increased productivity.
4. The term HAWTHORNE EFFECT refers to the
tendency for people to behave differently when
they know they’re being studied.
a. The results of this study encouraged re-
searchers to STUDY HUMAN MOTIVATION
and the MANAGERIAL STYLES that lead to
more productivity.
b. Mayo’s findings led to NEW ASSUMPTIONS
ABOUT EMPLOYEES.
c. MONEY was found to be a relatively ineffec-
tive motivator.
learning objective 3
Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
II. MOTIVATION AND MASLOW’S HIERARCHY
OF NEEDS
A. MASLOW’S HIERARCHY OF NEEDS
1. Psychologist Abraham Maslow believed that
MOTIVATION ARISES FROM NEED.
a. People are motivated to satisfy unmet
needs.
b. Satisfied needs NO LONGER MOTIVATE.
c. Maslow placed needs on a HIERARCHY of
importance.