Chapter 10 – Motivating Employees
10-16
lecture enhancer 10-2
MOTIVATING WITHOUT MONEY
Three ways to motivate employees during lean times. (See the
complete lecture enhancer on page 10.73 of this manual.)
critical thinking
exercise 10-2
DOES MONEY MOTIVATE?
This exercise involves a debate among small groups as to
whether or not money is a motivator. (See the complete exer-
cise on page 10.79 of this manual.)
PPT 10-15
Maslow’s Theory of Motivation
MASLOW’S
THEORY of MOTIVATION
10-15
LO 10-3
• Hierarchy of Needs — Theory of motivation
based on unmet human needs from basic
physiological needs to safety, social and esteem
needs to self-actualization needs.
• Needs that have already been met do not
motivate.
• If a need is filled, another higher-level need
emerges.
Chapter 10 – Motivating Employees
10-17
2. MASLOW’S HIERARCHY OF NEEDS is a theo-
ry of motivation based on unmet needs, from
basic physiological needs to safety, social, and
esteem needs to self-actualization needs.
a. PHYSIOLOGICAL NEEDS, basic survival
needs including the need for food, water,
and shelter
b. SAFETY NEEDS, the need to feel secure at
work and at home
c. SOCIAL NEEDS, the need to feel loved, ac-
cepted, and part of the group
d. ESTEEM NEEDS, the need for recognition
and acknowledgment from others, as well as
self-respect and a sense of status or im-
portance
e. SELF-ACTUALIZATION NEEDS, the need
to develop to one’s fullest potential
B. When one need is satisfied, the person is motivated
to do something to satisfy a higher-level need.
1. A SATISFIED NEED is no longer a motivator.
2. If LOWER-LEVEL NEEDS are not met, they
may reemerge and take attention away from
higher-level needs.
3. Lower-level needs are met and higher-level
needs dominate in DEVELOPED COUNTRIES.
C. The text uses the example of Chip Conley of Joie de
Vivre.
learning objective 4
Chapter 10 – Motivating Employees
10-18
PPT 10-16
Maslow’s Hierarchy of Needs
TEXT FIGURE 10.1
Maslow’s Hierarchy of Needs
MASLOW’S
HIERARCHY of NEEDS
10-16
LO 10-2
critical thinking
exercise 10-3
TESTING MASLOW’S HIERARCHY
OF NEEDS
This exercise asks each student to evaluate his or her needs.
(See the complete exercise on page 10.80 of this manual.)
Chapter 10 – Motivating Employees
10-19
Distinguish between the motivators and hygiene factors identified by Her-
zberg.
III. HERZBERG’S MOTIVATING FACTORS
A. FREDERICK HERZBERG used interviews to identi-
fy the factors that are most effective in generating
enthusiastic work effort.
1. Herzberg surveyed workers to find out how they
rank JOB-RELATED FACTORS. The results
were:
a. Sense of achievement
b. Earned recognition
c. Interest in the work itself
d. Opportunity for growth
e. Opportunity for advancement
f. Importance of responsibility
g. Peer and group relationships
h. Pay
i. Supervisor’s fairness
j. Company policies and rules
k. Status
l. Job security
m. Supervisor’s friendliness
n. Working conditions
2. Herzberg noted that the HIGHEST-RANKING
FACTORS DEALT WITH JOB CONTENT.
3. Factors relating to job environment were not mo-
tivators.
Chapter 10 – Motivating Employees
10-20
lecture enhancer 10-3
THE BIG THRILL MOTIVATION
Another facet of motivation involves the individual’s tolerance
for risk taking. Some individuals have a kind of psychological
urge to reach beyond the status quo and seek out novelty,
change, and excitement. (See the complete lecture enhancer on
page 10.73 of this manual.)
lecture enhancer 10-4
MCCLELLAND’S ACQUIRED NEEDS
THEORY
Psychologist David McClelland proposed that humans acquire
different needs over time because of life experiences. He clas-
sified these needs that affect motivation in both individuals
and organizations. (See the complete lecture enhancer on page
10.74 of this manual.)
PPT 10-17
Herzberg’s Motivating Factors
HERZBERG’S
MOTIVATING FACTORS
• Herzberg’s research centered on two questions:
10-17
LO 10-4
– What factors controlled by managers are most
effective in increasing worker motivation?
– How do workers rank job-related factors in order
of importance related to motivation?
PPT 10-18
Job Content
JOB CONTENT
10-18
LO 10-4
• Herzberg found job content
factors were most important
to workers – workers like to
feel they contribute to the
company.
• Motivators — Job factors that
cause employees to be
productive and that give them
satisfaction.
PPT 10-19
Job Environment
JOB ENVIRONMENT
• Job environment factors maintained satisfaction,
but did not motivate employees.
10-19
LO 10-4
• Hygiene Factors — Job
factors that can cause
dissatisfaction if missing but
that do not necessarily
motivate employees if
increased.
PPT 10-20
Herzberg’s Motivators and Hygiene
Factors
TEXT FIGURE 10.2
Herberg’s Motivators and Hygiene
Factors
HERZBERG’S FACTORS
10-20
LO 10-4
Chapter 10 – Motivating Employees
10-21
B. HERZBERG’S CONCLUSIONS
1. In Herzberg’s theory of motivating factors, MOTI-
VATORS are job factors that cause employees
to be productive and that give them satisfaction.
2. HYGIENE FACTORS are job factors that can
cause dissatisfaction if missing but that do not
necessarily motivate employees if increased.
3. The best way to motivate employees is to:
a. Make the job interesting
b. Help them achieve their objectives
c. Recognize their achievement through ad-
vancement and added responsibility
C. Maslow’s hierarchy and Herzberg’s two-factor theory
are very similar.
learning objective 5
Differentiate among Theory X, Theory Y, and Theory Z.
IV. MCGREGOR’S THEORY X AND THEORY Y
A. DOUGLAS MCGREGOR observed that managers’
attitudes generally fall into one of two different sets of
managerial assumptions: THEORY X and THEORY
Y.
B. THEORY X
1. The ASSUMPTIONS of Theory X management
are:
a. The average person DISLIKES WORK and
will avoid it if possible.
b. Because of this dislike, workers must be
Chapter 10 – Motivating Employees
10-22
PPT 10-21
Comparison of the Theories of
Maslow and Herzberg
TEXT FIGURE 10.3
Comparison of Maslow’s Hierarchy
of Needs and Herzberg’s Theory of
Factors
COMPARISON of the THEORIES
of MASLOW and HERZBERG
10-21
LO 10-4
PPT 10-22
Reignite Employees’ Drive
REIGNITE EMPLOYEES’ DRIVE
Simple Ways to Reinvigorate Work Life
10-22
Source: Fast Company, www.fastcompany.com, accessed November 2014.
PhotoCredit:NelsHighberg
LO 10-4
1. Don’t work alone all the
time; partners or teams
make work more efficient
and fun.
2. Redecorate your space to
get away from the same–
old, same-old.
3. Don’t complain; think of
things to celebrate.
test
prep
PPT 10-23
Test Prep
TEST PREP
10-23
• What are the similarities and differences between
Taylor’s time-motion studies and Mayo’s
Hawthorne studies?
• How did Mayo’s findings influence scientific
management?
• Draw a diagram of Maslow’s hierarchy of needs.
Label and describe the parts.
• Explain the distinction between what Herzberg
called motivators and hygiene factors.
PPT 10-24
Theory X and Theory Y
THEORY X and THEORY Y
10-24
LO 10-5
• Douglas McGregor proposed managers had two
different sets of assumptions concerning workers.
• Their attitudes about motivating workers were tied
to these assumptions.
• McGregor called them Theory X and Theory Y.
PPT 10-25
Assumptions of Theory X
Managers
ASSUMPTIONS of
THEORY X MANAGERS
10-25
LO 10-5
• Workers dislike work and
seek to avoid it.
• Workers must be forced or
threatened with punishment
to get them to perform.
• Workers prefer to be directed
and avoid responsibility.
• Primary motivators are fear
and punishment.
Chapter 10 – Motivating Employees
10-23
FORCED, CONTROLLED, DIRECTED, or
THREATENED with punishment to be moti-
vated to put forth the effort to achieve the
organization’s goals.
c. The average worker prefers to be directed,
wishes to AVOID RESPONSIBILITY, has
relatively LITTLE AMBITION, and wants
SECURITY.
d. Primary motivators are FEAR and PUNISH-
MENT.
2. The CONSEQUENCE of such attitudes is a
manager who is very “busy.”
a. Motivation is more PUNISHMENT for bad
work rather than REWARD for good work.
b. Theory X managers give workers little re-
sponsibility, authority, or flexibility.
c. Those were the assumptions behind Taylor’s
SCIENTIFIC MANAGEMENT.
3. Theory X management still dominates some or-
ganizations.
C. THEORY Y
1. THEORY Y makes entirely different ASSUMP-
TIONS about people:
a. Most people LIKE WORK; it is as natural as
play or rest.
b. Most people NATURALLY WORK TO-
WARD GOALS to which they are commit-
ted.
Chapter 10 – Motivating Employees
10-24
bonus case 10-1
THE SUPERMARKET MANAGER
A new employee takes initiative to identify areas for im-
provement, but runs into trouble when she approaches her
manager with the suggestions. (See the complete case, discus-
sion questions, and suggested answers beginning on page
10.87 of this manual.)
PPT 10-26
Assumptions of Theory Y
Managers
ASSUMPTIONS of
THEORY Y MANAGERS
10-26
LO 10-5
• People like work, it’s a part of life.
• Workers seek goals to which they are committed.
• Commitment to goals depends on perceived
rewards.
• People can use creativity to solve problems.
• Intellectual capacity is only partially realized.
• People are motivated by a variety of rewards.
Chapter 10 – Motivating Employees
10-25
c. The depth of a person’s commitment to
goals depends on the perceived REWARDS
for achieving them.
d. Under certain conditions, most people not
only accept but SEEK RESPONSIBILITY.
e. People are capable of using a high degree of
IMAGINATION, CREATIVITY, and CLEV-
ERNESS to solve problems.
f. In industry, the average person’s INTEL-
LECTUAL POTENTIAL is only partially real-
ized.
g. People are MOTIVATED BY A VARIETY
OF REWARDS; each worker is stimulated
by a reward unique to that worker.
2. Theory Y emphasizes a RELAXED MANAGE-
RIAL ATMOSPHERE in which workers are free
to set objectives and be flexible.
3. EMPOWERMENT is a key technique in meeting
these objectives.
4. To be a real motivator, empowerment requires
management to:
a. Find out what people think the problems in
the organization are.
b. Let them design the solutions.
c. Get out of the way and let them put those
solutions into action.
Chapter 10 – Motivating Employees
10-26
lecture enhancer 10-5
EMPOWERING EMPLOYEES AT
DARDEN RESTAURANTS
From busboy to general manager? It can happen with Darden
Restaurants. (See the complete lecture enhancer on page 10.75
of this manual.)
Chapter 10 – Motivating Employees
10-27
V. OUCHI’S THEORY Z
A. Another reason to adopt a more flexible managerial
style is to MEET COMPETITION from foreign firms.
B. In the 1980s WILLIAM OUCHI researched why
Japanese firms seemed to be outperforming Ameri-
can firms.
1. The Japanese management approach, which he
called TYPE J, involved:
a. Lifetime employment
b. Consensual decision making
c. Collective responsibility for the outcomes of
decisions
d. Slow evaluation and promotion
e. Implied control mechanisms
f. Nonspecialized career paths
g. Holistic concern for employees
2. The American management approach, called
TYPE A, involved:
a. Short-term employment
b. Individual decision making
c. Individual responsibility for the outcomes of
decisions
d. Rapid evaluation and promotion
e. Explicit control mechanism
f. Specialized career paths
g. Segmented concern for employees
3. Because American managers would not accept a
Chapter 10 – Motivating Employees
10-28
PPT 10-27
Theory Z
THEORY Z
• William Ouchi researched cultural differences
between the U.S. (Type A) and Japan (Type J).
• Type J committed to the organization and group.
10-27
LO 10-5
• Type A focused on the
individual.
• Theory Z is the hybrid
approach of Types A
and J.
lecture enhancer 10-6
THE BOSS SETS THE EXAMPLE
The CEO of Japan Airlines rides the city bus to work and eats
in the employee dining room. He also cut his own salary when
he had to cut employees’. (See the complete lecture enhancer
on page 10.75 of this manual.)
Chapter 10 – Motivating Employees
10-29
concept based on another culture, Ouchi rec-
ommended a hybrid of the two approaches,
THEORY Z.
a. Long-term employment
b. Collective decision making
c. Individual responsibility for the outcome of
decisions
d. Slow evaluation and promotion
e. Moderately specialized career path
f. Holistic concern for employees
C. Economic changes (including the 2010 earthquake
and tsunami) are now forcing Japanese managers
to reevaluate the way they conduct business.
1. Japanese firms need to become more DYNAM-
IC and MORE EFFICIENT.
2. Some Japanese managers are changing the
way they do business.
3. The text uses the example of how electronics
giant Hitachi quit doing company calisthenics.
4. Many managers think that conformity has hurt
Japanese business.
learning objective 6
Explain the key principles of goal-setting, expectancy, reinforcement, and eq-
uity theories.
VI. GOAL-SETTING THEORY AND MANAGEMENT
BY OBJECTIVES
A. GOAL-SETTING THEORY is the idea that setting
ambitious but attainable goals can motivate workers
Chapter 10 – Motivating Employees
10-30
PPT 10-28
Theory Z
TEXT FIGURE 10.4
Theory Z: A Blend of American and
Japanese Management Approach-
es
THEORY Z
10-28
LO 10-5
PPT 10-29
Theory Comparisons
TEXT FIGURE 10.5
A Comparison of Theories X, Y,
and Z
THEORY COMPARISIONS
10-29
LO 10-5
PPT 10-30
Goal-Setting Theory
GOAL-SETTING THEORY
10-30
LO 10-6
• Goal-Setting Theory —
Setting ambitious but
attainable goals can motivate
workers and improve
performance if the goals are
accepted, accompanied by
feedback, and facilitated by
organizational conditions.