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Chapter 10 - Motivating Employees
10-46
REACHING BE-
YOND
our borders
PPT 10-54
Beyond Just Know-
ing Cross-Culture
Differences
BEYOND JUST KNOWING
CROSS-CULTURE DIFFERENCES
10-54
• A better understanding of cultures helps
managers increase customer satisfaction and
loyalty.
• It is more than just knowing other languages, it’s
knowing what’s proper.
• IBM works closely with many different people
before entering new markets.
PPT 10-55
Motivating across Generations
MOTIVATING ACROSS the
GENERATIONS
10-55
LO 10-8
• Baby Boomers (1946 – 1964)
- Experienced great economic prosperity, job
security, optimism about their future
• Generation X (1965 – 1980)
- Raised in dual-career families, attended day care,
feeling of insecurity about jobs
• Generation Y or Millennials (1980 – 1995)
- Raised by indulgent parents, used to many
comforts like computers and cell phones
PPT 10-56
Upcoming Generations in the
Workplace
UPCOMING GENERATIONS
in the WORKPLACE
10-56
LO 10-8
• Generation Z (1996 – 2009)
- Grew up post 9/11, in the wake of the Great
Recession and amid many reports of school
violence
• Generation Alpha (after 2010)
lecture enhancer 10-9
MILLENIALS: GENERATION OF THE
FUTURE
Just who are the Millenials? (See the complete lecture enhancer
on page 10.77 of this manual.)
Chapter 10 - Motivating Employees
10-47
a. Gen X managers tend to focus more on re-
sults than on hours in the workplace.
b. They give employees the goals and the pa-
rameters of the project and then leave them
alone to do their work.
c. They are better at providing feedback.
4. Each generation questions the VALUES OF
THE NEWER GENERATION.
5. Millennials tend to share common characteris-
tics:
a. They are impatient, skeptical, blunt and ex-
pressive, image driven, and inexperienced.
b. Millennials are adaptable, tech savvy, able to
grasp new concepts, practiced at multitask-
ing, efficient, and tolerant.
D. In general, motivation will come from the JOB IT-
SELF rather than from external punishments or re-
wards.
E. Millennials are “job surfers” and are not looking for
lifetime careers.
F. All generations COMMUNICATE DIFFERENTLY.
a. Traditionalists prefer face-to-face.
b. Boomers prefer meetings or conference
calls.
c. Gen Xers prefer e-mail.
d. Millennials prefer social media.
G. Managers need to give workers what they need to
do a good job—the right tools, the right information,
and the right amount of cooperation.
XII. SUMMARY
Chapter 10 - Motivating Employees
10-48
PPT 10-57
Generation X in the Workplace
GENERATION X in the
WORKPLACE
10-57
LO 10-8
• Desire economic security but focus more on
career security than job security.
• Good motivators as managers due to emphasis
on results rather than work hours.
• Tend to be flexible and good at collaboration and
consensus building.
• Very effective at giving employee feedback and
praise.
PPT 10-58
Millennials and the Workplace
MILLENNIALS and the
WORKPLACE
10-58
LO 10-8
• Tend to be impatient, skeptical, blunt and
expressive.
• Are tech-savvy and able to grasp new concepts.
• Able to multi-task and are efficient.
• Highlight a strong sense of commitment.
• Place a high value on work-life balance.
• Fun and stimulation are key job requirements.
PPT 10-59
Communication across the Genera-
tions
COMMUNICATION
ACROSS the GENERATIONS
10-59
LO 10-8
• Baby Boomers (1946 – 1964)
- Prefer meetings and conference calls.
• Generation X (1965 – 1980)
- Prefer email and will choose meetings only if there
are no other options.
• Generation Y or Millennials (1980 – 1995)
- Prefer to use technology to communicate,
particularly through social media.
PPT 10-58
The Best Companies for Workers
The BEST COMPANIES for
WORKERS
Source: Fortune, www.fortune.com, accessed November 2014. 10-60
Company Location
Google Mountain View, California
SAS Cary, North Carolina
Boston Consulting Group Boston, Massachusetts
Edward Jones St. Louis, Missouri
Quicken Loans Detroit, Michigan
Genentech San Francisco, California
LO 10-8
test
prep
PPT 10-59
Test Prep
TEST PREP
10-61
• What are several steps firms can take to increase
internal communications and thus motivation?
• What problems may emerge when firms try to
implement participative management?
• Why is it important to adjust motivational styles to
individual employees? Are there any general
principles of motivation that today’s managers
should follow?
Chapter 10 - Motivating Employees
10-49
PowerPoint slide notes
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.
Chapter 10 - Motivating Employees
10-50
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!
Company: Maytag
PPT 10-6
Intrinsic Rewards
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
Intrinsic means from within; when you have a drive to
succeed and are motivated by purpose, passion, and mis-
sion.
Chapter 10 - Motivating Employees
10-51
PPT 10-7
Extrinsic Rewards
EXTRINSIC REWARDS
10-7
• Extrinsic Rewards -- Something given as a
recognition of good work.
• Kinds of Extrinsic Rewards:
- Pay Raises
- Promotions
- Awards
Extrinsic rewards are often temporary and driven by
money, recognition, and results.
PPT 10-8
Fringe Benefits
FRINGE BENEFITS
Perks Offered to Employees at Top 50 Employers
Source: Bloomberg BusinessWeek, www.businessweek.com, accessed November 2014. 10-8
1. This slide displays the most common perks or re-
wards used by companies to motivate employees.
2. Other examples of extrinsic rewards include the fol-
lowing:
• Pay
• Improved working environment or condi-
tions
• Status
• Security
3. While these rewards do offer some value, there is
much research that indicates many problems with
extrinsic motivation. Share with the students some of
those ideas:
• Extrinsic rewards do not produce permanent
changes.
• Extrinsic rewards reduce intrinsic interest.
• The use of extrinsic rewards can be control-
ling.
• Reinforcement of extrinsic rewards can lead
to expectations of permanence in the form of
job rewards.
Chapter 10 - Motivating Employees
10-52
PPT 10-9
Taylor’s Scientific Management
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
PPT 10-10
Taylor’s Four Key Principles
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.
Taylor was looking for the most efficient way or the one
right way to do something. Workers were, in a sense,
thought of as machines that could be fine-tuned.
PPT 10-11
Time-Motion Studies
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.
Chapter 10 - Motivating Employees
10-53
PPT 10-12
Are You Stressed?
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
1. Employers can often spot impending stress or on-the-
job stress by understanding the signs listed.
2. Ask the students: Have you experienced any of these
symptoms when trying to juggle your academic, pro-
fessional, and personal lives? What did you do to
cope with the rigors of stress?
3. Share the following tips for reducing stress:
• Learn to plan.
• Recognize and accept limits.
• Be a positive person.
• Learn to tolerate and forgive.
• Avoid unnecessary competition.
• Get regular exercise.
• Learn a systematic, drug-free method of re-
laxing.
• Change your thinking.
PPT 10-13
Taylor and UPS
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
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.
The Hawthorne studies were conducted in Cicero, Illi-
nois, at the Western Electric plant over a six-year period.
Chapter 10 - Motivating Employees
10-54
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.
PPT 10-16
Maslow’s Hierarchy of Needs
MASLOW’S
HIERARCHY of NEEDS
10-16
LO 10-2
1. This slide reproduces the illustration of Maslow’s hier-
archy from the chapter.
2. Most people in the class, especially those who have
taken basic psychology, may be familiar with Maslow
and the premise of human needs hierarchy.
3. Use this opportunity to relate Maslow’s needs theory to
the work environment:
• Workers require competitive salaries, benefits,
and clean work environments.
• Employees have the need for security against
termination in their jobs and the feeling of be-
ing safe against bodily harm while performing
their job functions.
• On the job, workers have the need to feel a
part of a successful group, driven by achieve-
ment.
• Employees seek opportunities for advance-
ment, empowerment, recognition, and respon-
sibility through additional work-related per-
formance. Companies must attempt to satisfy
these needs through opportunities within the
organization.
Chapter 10 - Motivating Employees
10-55
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.
Herzberg’s article in the Harvard Business Review, “One
More Time: How Do You Motivate Employees?” is a
classic and explores his idea of job content in depth.
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.
Chapter 10 - Motivating Employees
10-56
PPT 10-20
Herzberg’s Motivators and Hygiene Fac-
tors
HERZBERG’S MOTIVATORS
and HYGIENE FACTORS
10-20
LO 10-4
1. This slide illustrates another “need” theory regarding
workers and their job needs.
2. This theory is based on what an organization can do
to fulfill the individual needs of workers while moti-
vating them to excel.
3. The key component of Herzberg’s work was that the
opposite of “satisfaction” is “no satisfaction.” If the
basic hygiene factors are not in place, a worker is not
satisfied. To have a satisfied, motivated workforce,
a company needs to provide the following:
• Achievement
• Recognition
• Work itself
• Responsibility
• Advancement
• Growth
PPT 10-21
Comparison of the Theories of Maslow
and Herzberg
COMPARISON of the THEORIES
of MASLOW and HERZBERG
10-21
LO 10-4
1. This slide gives students a good starting point to see
the relationship between Maslow and Herzberg.
2. To start a discussion, ask students: Are you motivat-
ed by money? (This question always starts a discus-
sion with most students stating that money is a real
motivating factor.)
3. Follow up this discussion with the following: If you
dislike your current job and your boss offers you
more money will it change your feelings about your
job in the long run?
Chapter 10 - Motivating Employees
10-57
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.
PhotoCredit:NelsHighberg
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.
1. Motivators don’t have to be big or grand gestures
like awards.
2. Employees can motivate themselves.
3. Ask students: Why do you think redecorating your
desk, cube or office is helpful and reinvigorating?
PPT 10-23
Progress Assessment
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.
1. Frederick Taylor’s time-motion studies measured
output. Taylor inspired the Hawthorne studies.
Originally Elton Mayo wanted to determine the op-
timal level of lighting necessary to increase produc-
tion on the factory floor which is a type of scientific
management. He later determined that people who
were empowered worked harder. Ultimately Mayo’s
study brought about behavioral management.
2. The findings at Hawthorne plant in Cicero, Illinois,
completely changed how people thought about em-
ployees and motivation. One finding was that mon-
ey was not a primary motivator. These new assump-
tions led to to many theories about the human side of
motivation.
3. Students should be able to draw and label Maslow’s
hierarchy.
4. As Herzberg studied the results of his research study,
he concluded that motivators made employees pro-
ductive and gave them satisfaction. These factors re-
lated to job content. Hygiene factors related to the
job environment and could, if left unattended, cause
employee dissatisfaction but would not provide long-
term motivation. Hygiene factors include such
things as pay and working conditions.
Chapter 10 - Motivating Employees
10-58
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.
1. Theory X suggests that employees dislike work,
avoid responsibility, have little ambition, and are
motivated by threat and fear. Theory Y argues that
people like work, seek responsibility, and are moti-
vated by empowerment. If a manager believes theory
X or Theory Y, he or she would tend to treat the em-
ployees accordingly.
2. Ask the students: Would you be a Theory X or Y
manager? How do you believe employees should be
treated? Would you prefer to work for a Theory X or
Y manager? (The majority if not all would say they
would rather work for a Theory Y manager. It
should be pointed out that how a manager treats
employees is often dictated by the situation. A man-
ager may hold Theory Y values but may have to use
Theory X perspective depending on the situation
with the employee.)
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.
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
10-59
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.
Demographic changes, the worst recession in their coun-
try’s history and fierce global competition have forced
Japanese managers to reevaluate the way they conduct
business. The effects of the 2011 earthquake on Japanese
businesses reinforced the need to change.
PPT 10-28
Theory Z
THEORY Z
10-28
LO 10-5
PPT 10-29
Theory Comparisons
THEORY COMPARISIONS
10-29
LO 10-5
Chapter 10 - Motivating Employees
10-60
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.
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.
Peter Drucker developed the idea of MBO in his 1954
book The Practice of Management.
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.
1. Management by objectives (MBO) was popularized
by Peter Drucker in the 1950s.
2. Ask the students: What are the benefits of MBO?
(This theory is based on the notion that setting at-
tainable goals with all employees of the organization
will create more support for the goals leading to
greater motivation.)
3. To better understand Peter Drucker visit the follow-
ing website: www.druckerinstitute.com/.
