Chapter 10 – Motivating Employees
10-31
and improve performance if the goals are accepted,
accompanied by feedback, and facilitated by organi-
zational conditions.
1. All organization members should have basic
AGREEMENT ABOUT THE ORGANIZATION’S
GOALS and the specific objectives of each unit.
2. Peter Drucker developed one system in the
1960s called MANAGEMENT BY OBJECTIVES
(MBO).
B. MANAGEMENT BY OBJECTIVES (MBO) is a sys-
tem of goal setting and implementation that involves
a cycle of discussion, review, and evaluation of ob-
jectives among top and middle-level managers, su-
pervisors, and employees.
1. Managers:
a. Formulate goals in cooperation with every-
one in the organization
b. Commit employees to those goals
c. Monitor results and reward accomplishment
2. The Department of Defense uses MBO.
3. Management by objectives is most effective in
RELATIVELY STABLE SITUATIONS.
4. Managers need to understand the difference be-
tween helping and coaching subordinates:
a. HELPING tends to make subordinates weak
and dependent.
b. COACHING makes them feel capable and
part of the team.
Chapter 10 – Motivating Employees
10-32
PPT 10-31
Applying Goal-Setting Theory
APPLYING GOAL-SETTING
THEORY
10-31
LO 10-6
• Management by Objectives (MBO) — Involves a
cycle of discussion, review and evaluation of
objectives among top and middle-level managers,
supervisors and employees.
• Managers formulate goals in cooperation with
everyone in the organization.
• Need to monitor results and reward achievement.
PPT 10-32
What is MBO?
WHAT is MBO?
10-32
LO 10-6
Set organizational objectives
Link objectives to
employee’s goals
Monitor
Reward
performance
Evaluate
performance
Source: Bloomberg Business Week, accessed November 2014.
PPT 10-33
Organizations Using MBO
ORGANIZATIONS USING MBO
10-33
LO 10-6
• Toyota Motor Company
• Emerson Electric Company
• U.S. Department of Defense
Chapter 10 – Motivating Employees
10-33
5. HELPING is working with the subordinate, even
doing part of the work if necessary.
6. COACHING means acting as a resource⎯
teaching guiding, recommending⎯but not help-
ing by doing the task.
C. Problems can arise when management uses MBO
to FORCE managers to commit to goals that are not
mutually agreed upon.
VII. MEETING EMPLOYEE EXPECTATIONS: EX-
PECTANCY THEORY
A. According to VICTOR VROOM’s EXPECTANCY
THEORY, employee expectations can affect an in-
dividual’s motivation.
1. EXPECTANCY THEORY is Victor Vroom’s the-
ory that the amount of effort employees exert on
a specific task depends on their expectations of
the outcome.
2. Vroom contends that employees ask THREE
QUESTIONS before committing maximum effort
to a task:
a. Can I accomplish the task?
b. If I do accomplish it, what’s my reward?
c. Is the reward worth the effort?
3. The text illustrates this theory by using the ex-
ample of a student’s effort in class.
4. Expectation varies from individual to individual.
Chapter 10 – Motivating Employees
10-34
PPT 10-34
Expectancy Theory in Motivation
EXPECTANCY THEORY in
MOTIVATION
10-34
LO 10-6
• Expectancy Theory — The amount of effort
employees exert on a specific task depends on their
expectations of the outcome.
• Employees ask:
– Can I accomplish the task?
– What’s my reward?
– Is the reward worth the effort?
• Expectations can vary from person to person.
PPT 10-35
Expectancy Theory
TEXT FIGURE 10.6
Expectancy Theory
EXPECTANCY THEORY
10-35
LO 10-6
critical thinking
exercise 10-4
THE MANAGEMENT CHALLENGE
Managers at a manufacturing plant are faced with a decision:
Motivate employees to significantly increase production or see
the plant close. (See the complete exercise on page 10.83of
this manual.)
Chapter 10 – Motivating Employees
10-35
B. FIVE STEPS TO IMPROVE EMPLOYEE PER-
FORMANCE, developed by David Nadler and Ed-
ward Lawler, state:
1. Determine what rewards employees value.
2. Determine each employee’s desired perfor-
mance standard.
3. Ensure that performance standards are attaina-
ble.
4. Guarantee rewards tied to performance.
5. Be certain that employees consider the rewards
adequate.
VIII. REINFORCING EMPLOYEE PERFORMANCE:
REINFORCEMENT THEORY
A. REINFORCEMENT THEORY states that positive
and negative reinforcers motivate a person to be-
have in certain ways.
B. TYPES OF REINFORCEMENT
1. POSITIVE REINFORCEMENTS are rewards
such as praise, recognition, or a pay raise.
2. NEGATIVE REINFORCEMENT includes repri-
mands, reduced pay, and layoff or firing.
3. EXTINCTION is trying to stop undesirable be-
havior by not responding to it.
IX. TREATING EMPLOYEES FAIRLY: EQUITY
THEORY
A. EQUITY THEORY is the idea that employees try to
maintain equity between inputs and outputs com-
Chapter 10 – Motivating Employees
10-36
PPT 10-36
Nadler & Lawler’s Modification
NADLER & LAWLER’S
MODIFICATION
10-36
LO 10-6
• Researchers Nadler and Lawler modified
expectancy theory and suggested five steps for
managers:
1. Determine what rewards employees value.
2. Determine workers’ performance standard.
3. Make sure performance standards are attainable.
4. Tie rewards to performance.
5. Be sure employees feel rewards are adequate.
PPT 10-37
Using Reinforcement Theory
USING
REINFORCEMENT THEORY
10-37
LO 10-6
• Reinforcement Theory — Positive and negative
reinforcers motivate a person to behave in certain
ways.
• Positive reinforcement includes praise, pay
increases and recognition.
• Negative reinforcement includes reprimands,
reduced pay, and layoff or firing.
• Extinction is a way of trying to stop behavior by
not responding to it.
TEXT FIGURE 10.7
Reinforcement Theory
This text figure illustrates how a manager can use reinforce-
ment theory to motivate workers.
lecture enhancer 10–7
AMERICA’S MINIMUM WAGE DE-
BATE
As a type of reinforcement, employee pay is a tricky job; es-
pecially with minimum wage positions. This is a constant de-
bate for our nation. (See the complete lecture enhancer on
page 10.76 of this manual.)
PPT 10-38
Equity Theory
EQUITY THEORY
10-38
LO 10-6
• Equity Theory — Employees try to maintain equity
between inputs and outputs compared to others in
similar positions.
• Workers often base perception of their outcomes
on a specific person or group.
• Perceived inequities can lead to reduced quality
and productivity, absenteeism, even resignation.
Chapter 10 – Motivating Employees
10-37
pared to people in similar positions.
B. When workers do perceive inequity, they will try to
REESTABLISH EQUITABLE EXCHANGES.
1. They can REDUCE or INCREASE their efforts
or rationalize the situation.
2. In the workplace, inequity leads to lower produc-
tivity, reduced quality, increased absenteeism,
and voluntary resignation.
C. Equity judgments are based on PERCEPTIONS,
and are therefore subject to errors in perception.
1. Organizations can try to keep salaries secret,
but this often makes things worse.
2. The best remedy, in general, is clear and fre-
quent communication.
learning objective 7
Show how managers put motivation theories into action through such strate-
gies as job enrichment, open communication, and job recognition.
X. PUTTING THEORY INTO ACTION
A. MOTIVATING THROUGH JOB ENRICHMENT
1. JOB ENRICHMENT is a motivational strategy
that emphasizes motivating the worker through
the job itself.
a. JOB ENRICHMENT is based on Herzberg’s
higher motivators.
b. JOB SIMPLIFICATION, in contrast, produc-
es task efficiency by breaking down the job
into simple steps.
2. The FIVE CHARACTERISTICS of work that af-
Chapter 10 – Motivating Employees
10-38
test
prep
PPT 10-39
Test Prep
TEST PREP
10-39
• Briefly explain the managerial attitudes behind
Theories X, Y and Z.
• Explain goal-setting theory.
• Evaluate expectancy theory. When could
expectancy theory apply to your efforts or lack of
effort?
• Explain the principles of equity theory.
PPT 10-40
Enriching Jobs
ENRICHING JOBS
• Job Enrichment — A motivational strategy that
emphasizes motivating the worker through the job
itself.
10-40
LO 10-7
• Based on Herzberg’s
motivators, such as
responsibility,
achievement and
recognition.
PPT 10-41
Motivation on a Budget
MOTIVATION on a BUDGET
Tactics of Today’s HR Managers
Source: Wall Street Journal, March 1, 2010. 10-41
LO 10-7
Chapter 10 – Motivating Employees
10-39
fect motivation and performance are:
a. SKILL VARIETY, the extent to which a job
demands different skills of the person
b. TASK IDENTITY, the degree to which the
job requires doing a task with a visible out-
come from beginning to end
c. TASK SIGNIFICANCE, the degree to which
the job has a substantial impact on the lives
of others in the company
d. AUTONOMY, the degree of freedom, inde-
pendence, and discretion in scheduling work
and determining procedures
e. FEEDBACK, the amount of direct, clear in-
formation received about job performance
3. CONTRIBUTIONS:
a. VARIETY, IDENTITY, and SIGNIFICANCE
contribute to meaningfulness of the job.
b. AUTONOMY gives people a feeling of re-
sponsibility
c. FEEDBACK contributes to a feeling of
achievement and recognition.
4. JOB ENLARGEMENT is a job enrichment strat-
egy that involves combining a series of tasks in-
to one challenging and interesting assignment.
5. JOB ROTATION is a job-enrichment strategy
that involves moving employees from one job to
another.
B. MOTIVATING THROUGH OPEN COMMUNICA-
TION
1. Create an organizational culture that rewards lis-
tening.
Chapter 10 – Motivating Employees
10-40
PPT 10-42
Key Characteristics of Work
KEY CHARACTERISTICS
of WORK
1. Skill Variety
2. Task Identity
3. Task Significance
4. Autonomy
5. Feedback
10-42
LO 10-7
PPT 10-43
Types of Job Enrichment
TYPES of JOB ENRICHMENT
10-43
LO 10-7
• Job Enlargement — A job enrichment strategy
that involves combining a series of tasks into one
challenging and interesting assignment.
• Job Rotation — A job enrichment strategy that
involves moving employees from one job to
another.
PPT 10-44
Enrichment by Way of Flexibility
ENRICHMENT
by WAY of FLEXIBILITY
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014. 10-44
LO 10-7
• 60% of employees think they can be productive and
efficient outside of the office.
• 66% of employees would take a lower-paying job if it
came with more flexibility.
• 59% of employees say their company doesn’t have a
formal out-of-office work policy.
PPT 10-45
Using Open Communication
USING OPEN COMMUNICATION
10-45
LO 10-7
• Create a culture that
rewards listening.
• Train managers to listen.
• Use effective questioning
techniques.
• Remove barriers to open
communication.
• Ask employees what’s
important to them.
Chapter 10 – Motivating Employees
10-41
2. Train supervisors and managers to listen.
3. Use effective questioning techniques.
4. Remove barriers to open communication
5. Avoid vague and ambiguous communication.
6. Make it easy to communicate.
7. Ask employees what is important to them.
C. APPLYING OPEN COMMUNICATION IN SELF-
MANAGED TEAMS
1. Companies with highly motivated workforces
usually have OPEN COMMUNICATION SYS-
TEMS and SELF–MANAGED TEAMS.
2. When teams are empowered to make decisions,
communication must flow freely.
3. The text offers the example of communication
among members of self-managed teams at Ford
Motor Company.
4. To implement such self-managed teams, com-
panies must REINVENT WORK.
5. In doing so, it is essential that managers behave
ethically toward all employees.
D. RECOGNIZING A JOB WELL DONE
1. Letting people know you appreciate their work is
more powerful than a bonus alone.
2. Providing advancement opportunity is important
in retaining valuable employees.
3. Recognition can be as simple as noticing posi-
tive actions out loud.
4. The text gives several examples of companies
using recognition to motivate employees.
Chapter 10 – Motivating Employees
10-42
ADAPTING TO
change
PPT 10-46
When is Social
Media Too So-
cial?
WHEN is SOCIAL MEDIA
TOO SOCIAL?
10-46
• Sites like Facebook are banned in 20% of
workplaces.
• Some argue this is a bad idea because:
1. It alienates younger employees.
2. It suggests businesses don’t trust employees.
3. It can make employees feel disengaged.
4. It takes away an element of relaxation.
PPT 10-47
When Too Much Is Too Much
WHEN TOO MUCH is TOO MUCH
24/7 Access Isn’t Always a Good Thing
10-47
• Schedule correspondence:
– Don’t check email whenever it arrives, schedule times to
check.
• Pick one task:
– Having too much open at once takes attention away from
singular tasks.
• Don’t answer the phone:
– Don’t be afraid of voicemail.
• Maintain human contact:
– Don’t look at your computer or phone while someone is at your
desk. Keep attention (and respect!) on them.
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.
bonus case 10-2
MANAGING VOLUNTEERS
How does motivating volunteers differ from managing em-
ployees? (See the complete case, discussion questions, and
suggested answers beginning on page 10.89 of this manual.)
PPT 10-48
Recognizing Good Work
RECOGNIZING GOOD WORK
10-48
LO 10-7
• Raises are not the only ways to recognize an
employee’s performance. Recognition can also
include:
– Paid time off
– Flexible scheduling
– Work from home opportunities
– Paid child or elder care
– Stock options or profit sharing
– Company awards
– Company events or teams
lecture enhancer 10–8
RECOGNITION: MAKING HEROES
Companies often make the mistake of equating pay with re-
wards. The reward for outstanding performance should be a
special gain for special achievement. (See the complete lecture
enhancer on page 10.76 of this manual.)
PPT 10-49
Work Well with Others
WORK WELL with OTHERS
Keys for Productive Teamwork
10-49
LO 10-7
• Have a common
understanding of your
task.
• Clarify roles and
responsibilities.
• Set rules.
• Get to know each
other.
• Communicate openly
and often.
Chapter 10 – Motivating Employees
10-43
5. Employees may be motivated by the prospect of
future compensation, such as stock options.
6. The same things don’t motivate all employees.
learning objective 8
Show how managers personalize motivation strategies to appeal to employ-
ees across the globe and across generations.
XI. PERSONALIZING MOTIVATION
A. Managers cannot use one motivational formula for
all employees.
1. The motivational effort must be tailored to the
individual.
2. Managers’ jobs are more complicated now due
to working with employees from a variety of cul-
tural backgrounds.
B. MOTIVATING EMPLOYEES ACROSS THE
GLOBE
1. Different cultures experience motivational ap-
proaches differently.
a. In a high-context culture (Korea, Thailand,
and Saudi Arabia), workers build personal
relationships and develop group trust before
focusing on tasks.
b. In low-context culture, workers often view re-
lationship-building as a waste of time.
2. Text example: Dow Chemical solved a cross–
cultural problem with a Web-based program
called Recognition@Dow.
3. Understanding motivation in global organizations
is still a new task for most companies.
Chapter 10 – Motivating Employees
10-44
PPT 10-50
What’s Good for You
WHAT’S GOOD for YOU
Most Positive Remedies for Employee Moral
10-50
LO 10-7
PPT 10-51
What’s Bad for You
WHAT’S BAD for YOU
Most Negative Actions for Employee Morale
10-51
LO 10-7
critical thinking
exercise 10-5
WHICH ARE THE BEST COMPANIES
TO WORK FOR?
This exercise asks students to use the Internet to research
which companies are rated best to work for. (See the complete
exercise on page 10.84 of this manual.)
critical thinking
exercise 10-6
MOTIVATION SURVEY
This exercise gives the result of a motivation survey for two
supervisors and asks students to interpret the results. (See the
complete exercise on page 10.85 of this manual.)
SPOTLIGHT ON
small
business
PPT 10-52
Going Up
Against the
Heavyweights
GOING UP AGAINST
the HEAVYWEIGHTS
10-52
• Sparta Systems employees
play video games during
breaks.
• Bigcommerce offers
bootcamps with a trainer.
• Zoosk allows employees to
bring dogs to work.
• Shift Communications has
recess
PPT 10-53
Motivating Employees across the
Globe
MOTIVATING EMPLOYEES
ACROSS the GLOBE
• Low-Context cultures
believe relationship
building distracts from
tasks.
10-53
LO 10-8
• Cultural differences make worker motivation a
challenging task for global managers.
• High-Context cultures require relationships and
group trust before performance.
Chapter 10 – Motivating Employees
10-45
C. MOTIVATING EMPLOYEES ACROSS GENERA-
TIONS
1. Generations can be classified as follows:
a. BABY BOOMERS (born between 1946 and
1964) experienced economic prosperity and
optimism about the future.
b. GENERATION X members (born between
1965 and 1980) were raised with dual-career
families and insecurity about a lifelong job.
c. GENERATION Y members (born between
1981 and 1995) are also called “millennials.”
d. GENERATION Z members (born between
1995 and 2009) grew up post-9/11 and in
the wake of the Great Recession.
e. GENERATION ALPHA members are those
born after 2010.
f. The beliefs you accept as a child affect fu-
ture relationships and management deci-
sions.
2. GENERATIONAL DIFFERENCES affect moti-
vation.
a. Boomer managers need to be flexible with
Gen X and Millennial employees.
b. Employees from this generation will need to
use their enthusiasm for change.
c. Gen Xers tend to focus on career security,
not job security, and look for opportunities to
expand their skills.
3. Generation Xers are now managers themselves.