Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 10 - Motivating Employees
10-61
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
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.
Victor Vroom developed the expectancy theory.
PPT 10-35
Expectancy Theory
EXPECTANCY THEORY
10-35
LO 10-6
Chapter 10 - Motivating Employees
10-62
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.
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
10-63
PPT 10-39
Progress Assessment
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.
1. Douglas McGregor developed Theories X and Y af-
ter observing that managers’ attitudes fall into one of
two different assumptions. Theory X assumes the
following: People dislike work and will avoid work,
workers must be forced, controlled, directed or
threatened with punishment to make them work to-
ward the organization’s goals, the average worker
prefers to be directed, wishes to avoid responsibility,
has little ambition and wants security, and the prima-
ry motivators are fear and money. Theory Y manag-
ers have completely different views on managing
people. Theory Y managers believe: Most people
like to work, the depth of a person’s commitment to
goals depends on the perceived rewards for achiev-
ing them, under certain circumstances people will
seek responsibility, employees tend to be imagina-
tive, creative, and clever, and employees are moti-
vated by a variety of rewards. Theory Z was devel-
oped by William Ouchi of UCLA and is a blending
of American management style, Theory A, with Jap-
anese management style, Theory J, into Theory Z.
2. The idea behind goal-setting theory is the process of
setting attainable goals to motivate employees and
improve performance. The key to goal-setting theo-
ry is that the goals must be accepted and accompa-
nied by feedback to truly be effective.
3. Victor Vroom created the expectancy theory. His
central premise was the amount of effort employees
exert on a specific task depends on their expectations
of the outcome. He contends that employees will ask
three specific questions before committing maximum
effort: Can I accomplish the task? If I do accomplish
it, what’s my reward? Is the reward worth the effort?
Like goal-setting theory the key to expectancy theory
is setting attainable goals. If the goal is not attaina-
ble employees will simply give up, thus reducing
motivation.
4. Equity theory looks at how employee’s perceptions
of fairness affect their willingness to perform. Em-
ployees will try to balance or maintain equity be-
tween what they put into the job and what they get
out of it, comparing those inputs and outputs to those
of others in similar positions.
Chapter 10 - Motivating Employees
10-64
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.
Herzberg argued factors such as responsibility, achieve-
ment and recognition were more important motivational
factors in the long run than pay. He believed that if you
wanted to motivate employees you should focus on en-
riching the job.
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
1. In this recent recession, companies have had to ease
up on offering monetary rewards for employee per-
formance.
2. Ask students: Would you be satisfied with these op-
tions, excluding monetary rewards?
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
Chapter 10 - Motivating Employees
10-65
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.
1. Many employees see time outside of the office as a
perk. This may include work from home, library or
remote location.
2. Some companies are following this trend. However,
the majority of people surveyed said their company
still doesn‘t offer the possibility.
3. Ask students: Would you take a job with lower pay if
it meant you could work remotely? Would you prefer
to work only in the office?
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
10-66
PPT 10-46
When is Social Media Too Social?
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.
1. We have become accustomed to checking our
emails, calls, and Facebook wall at all hours of the
day.
2. Maintaining constant contact has caused some em-
ployees to lose track of the tasks at hand.
3. Ask students: How often do you check your email?
How much time do you spend on Facebook daily?
Do you tweet all day? Do you let your phone go to
voicemail?
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
Remember rewarding performance can come in different
formats than money. What are other ways to recognize
good performance?
Chapter 10 - Motivating Employees
10-67
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.
1. This slide presents characteristics of high perfor-
mance teams.
2. This list is compiled from the Wall Street Journal on
high performance teams.
3. Ask the students in teams to explore these character-
istics as they relate to teams they have been on.
Which of these characteristics apply to their team
and which are lacking? What modifications do they
need to make to move toward being a high perfor-
mance team?
PPT 10-50
What’s Good for You
WHAT’S GOOD for YOU
Most Positive Remedies for Employee Moral
10-50
LO 10-7
1. This slide offers simple tips for motivating employ-
ees in your business.
2. A motto to remember is the Golden Rule: Treat oth-
ers like you want to be treated.
3. Ask the students: Where do the recommendations in
the slide fit in Maslow’s or Herzberg’s theories?
PPT 10-51
What’s Bad for You
WHAT’S BAD for YOU
Most Negative Actions for Employee Morale
10-51
LO 10-7
1. This slide ties into the previous slide and offers tips
on what to avoid in order to enhance employee mo-
rale.
2. Ask students why these factors negatively impact
employee morale.
Chapter 10 - Motivating Employees
10-68
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.
In a globalized world, managers must recognize that what
is appropriate in one culture might not work in another.
PPT 10-54
Beyond Just Knowing Cross-Culture Dif-
ferences
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.
Chapter 10 - Motivating Employees
10-69
PPT 10-55
Motivating across the 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
1. Managers must consider cultural differences, and
they must also contend with employees in different
age groups.
2. To start a discussion ask students: What issues might
you encounter if you manage employees of various
generations (Baby Boomers, Generation X, and Gen-
eration Y)?
3. The main constant in the lives of Gen Xers and Mil-
lennials is inconstancy. Consider the unprecedented
change in the past 10-20 years in every area (i.e.
economic, technological, scientific, social, and polit-
ical). Gen Xers and Millennials expect change. It is
the absence of change that they find questionable.
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)
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.
Chapter 10 - Motivating Employees
10-70
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 Generations
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.
Ask the students: How might the differences in how the
generations prefer to communicate affect the workplace?
PPT 10-60
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
1. This list is generated by Fortune magazine.
2. Ask the students: What makes a company “employee
friendly”? (Answers will vary.)
3. Use the Fortune research to profile one or all of the
companies, so students can understand what pro-
grams these companies have implemented to en-
hance worker satisfaction.
Chapter 10 - Motivating Employees
10-71
PPT 10-61
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?
1. To increase communication managers can: Reward
listening across the organization, train supervisors
and managers to listen using effective questioning
techniques, remove barriers to communication,
avoid vague and ambiguous communication, make it
easy to communicate, and ask employees what is
important to them. Focusing on communication is
important, but managers can also focus on job en-
richment, such as skill variety and task significance.
2. Participative management if implemented properly
can be successful, but like everything in life, there
are benefits and weaknesses to this type of manage-
ment style. One problem with this approach is that it
is difficult to implement and workers may spend
more time formulating suggestions than actually
solving the problem at hand.
3. In today’s multicultural workplace managers cannot
use one motivational formula for all employees.
While they must adjust motivational styles, it is es-
sential that managers give all employees the keys to
do a good job: the tools, right information, and the
right amount of cooperation. Motivating employees
across cultures and generations can be simple, if
managers acknowledge a job well done.
Chapter 10 - Motivating Employees
10-72
lecture
enhancers
“Motivation is everything. You can do the work of two people, but you can’t be two people;
Instead, you have to inspire the next guy down the line and get him to inspire his people.”
Lee Iacocca
“Good management is the art of making problems so interesting and their solutions so
constructive that everyone wants to get to work and deal with them.”
Paul Hawken
“Motivation is what gets you started. Habit is what keeps you going.”
Jim Ryun
“Good judgment comes from bad experience. Experience comes from bad judgment.”
Higdon’s Law
lecture enhancer 10-1
UPS’S TRUCK DRIVER BOOT CAMP
In the chapter, we briefly mentioned the intensive training that prospective UPS drivers must un-
dergo at the company’s 11,500-square-foot facility in Landover, Maryland. Called Integrad, the training
center has had 1,629 UPS driver candidates go through the program since its 2007 opening. Of that num-
ber, only 10% failed. That’s great news for UPS, which needs to hire 25,000 new drivers over the next
five years to replace retiring baby boomers. The company plans to open another Integrad center in Chica-
go this summer and eventually expand the training to current drivers instead of just new hires.
At Integrad, candidates are trained in UPS’s gargantuan set of driving guidelines, the “340 Meth-
ods.” Unlike past UPS drivers who were trained in classrooms and by handbooks, Integrad utilizes tech-
nology to simulate real-world experiences that the drivers will encounter. For instance, candidates start
out driving in a video game where they are taught to spot obstacles. From there they progress to “Clarks-
ville,” a UPS-constructed simulation village where drivers, behind the wheel of a real truck, are chal-
lenged to complete five deliveries in 19 minutes. Another training module, dubbed the “slip and fall ma-
chine,” places drivers on a greased tiled runway with a 10-pound box to carry. If that wasn’t enough,
they’re given shoes without tread. Thankfully, candidates wear safety harnesses, as most of them wipe out
continuously until they teach themselves to ignore UPS’s “2.5 brisk paces per second” rule when on slick
surfaces.
Driving candidates spend one week of their 60-day training program at Integrad. In a lot of ways,
Integrad is UPS boot camp. Trainees work together in teams and, like the military, get reprimanded as a
team when one individual makes a mistake. For example, if a student isn’t wearing a clean, ironed UPS
uniform or doesn’t have his or her keys at the ready, the entire team loses points. For prospective hires, all
the hassle is worth it if they can make it to the driver’s job. UPS’s 99,000 drivers make an average of
$74,000 a year, a big step up from the hourly wage of $12.50 that warehouse loaders earn.i
Chapter 10 - Motivating Employees
10-73
lecture enhancer 10-2
MOTIVATING WITHOUT MONEY
How can you motivate employees during lean times? Andrea Nierenberg, founder of the busi-
ness-consulting firm Nierenberg Group, has some suggestions to motivate workers.
Plum Projects
Exciting, new assignments can motivate employees more than a few extra dollars. In lean times, most
companies are understaffed, so it should be easy to find challenging projects that will allow talented em-
ployees to expand their skills and prepare themselves for more responsibility. For example, a junior em-
ployee might be asked to join a task force that puts him or her in a key decision-making role.
15 Minutes of Fame
Mary Kay Ash, the founder of Mary Kay Cosmetics, used to say, “There are two things people want more
than sex and money, and that is praise and recognition.” As a result, telling people how their specific con-
tributions make a difference—and making sure others hear about it—is a powerful way to build loyalty.
Highlighting employees’ accomplishments in a company newsletter should be standard practice. Manag-
ers can put an employee in the spotlight by sending newsworthy information about his or her accom-
plishments to trade publications as well as the person’s neighborhood newspaper. Another option is to
take out an ad in a trade publication or local newspaper that thanks employees by name for their work on
a key project. But keep in mind that some people like public praise and to others, it’s embarrassing. Hon-
or employees by learning their preference.
Customized Work Schedules
In the age of terrorist attacks many people have placed a renewed emphasis on spending time with their
loved ones. Employees may be caring for children, elderly parents, friends, or beloved pets. Most will
appreciate any efforts made to allow them to adjust their schedules to accommodate these responsibilities.
Many bosses find that their employees are more productive when they’re not distracted by worries about
getting to the daycare center on time or squeezing in a visit to a friend in the hospital during a half-hour
lunch break. ii
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 ex-
citement. Psychologist Frank Farley, of the University of Wisconsin, has spent 20 years examining what
he calls the Type T (thrill-seeking) personality. According to Farley’s theory, Big T types are high-profile
individuals who seek excitement and stimulation wherever they can find it or create it. For some, the
thrills are mostly physical; for others, they’re mental.
The degree of risk that individuals are willing to assume spans a broad continuum. Big T person-
alities, those who continually live on the edge, are at one end of the scale. Little t’s, who cling to certainty
and predictability, are at the other end. Most people fall somewhere in the middle. But Farley believes it’s
the Big T segment, a group that makes up an estimated 10 to 30% of the American population, that holds
the key to America’s future. “Type T’s are the people who are likely to have enormous impact on socie-
ty,” he says. “They are the great experimenters in life; they break the rules.”
Chapter 10 - Motivating Employees
10-74
Whether male or female, risk-taking individuals tend to be what Farley calls “transmutative
thinkers,” adept at shifting from one cognitive process to another, and from the abstract to the concrete
and vice versa. Thrill seekers are happiest in jobs that provide change, excitement, and an ample outlet for
their creativity. They are often drawn to careers in advertising, journalism, or in the brokerage business,
where novelty and uncertainty are a given.
Whether individuals seek risks or avoid them affects not only their own job performance but also
boss–employee relationships and coworker production. An organization with too many risk takers can
spell trouble. So can an organization top-heavy with cautious, security-minded individuals. A synergistic
mix is best. If it’s the thrill-seeking visionaries who drive a company with their ideas, it’s their more
pragmatic peers who help implement those concepts.
Finally, says Farley, “People who are the most successful realize that if they’re going to take
risks, they’re going to fail once in a while.”iii
lecture enhancer 10-4
MCCLELLAND’S ACQUIRED NEEDS THEORY
Psychologist David McClelland proposed that humans acquire different needs over time as a re-
sult of life experiences. He classified these needs that affect motivation in both individuals and organiza-
tions:
1. Need for achievement
2. Need for affiliation
3. Need for power
Persons with a high need for achievement, according to McClelland’s theory, like to work for
challenging, but not risky, goals. They like concrete feedback about their work. Rewards, such as salary,
are important only as a measure of achievement. They prefer to work alone or with others with a need for
achievement. People with a high need for achievement are frequently found in engineering and technical
fields; they are generally frustrated in management positions.
People with a need for affiliation need harmonious relationships; they desire to form and maintain
friendships. They tend to conform to the norms of their group. These individuals prefer work that pro-
vides significant personal interactions. They perform well in customer service and client interaction situa-
tions.
Persons with a need for power are of two types: personal power and institutional power. Those
with a need for personal power want to direct others, which can be seen as undesirable. People with a
need for institutional power want to organize others to achieve the goals of the organization. Managers
with a high need for institutional power are generally more successful that those with a need for personal
power.
Just as a manager can use Herzberg’s motivating factors to enhance employee performance, rec-
ognizing employees’ needs can suggest the right types of jobs for individuals. Authors of Organizational
Behavior, John Schermmerhorn, James Hunt, and Richard Osborn, believe that McClelland’s findings are
useful when each need is linked with a combination of Herzberg’s work preferences such as individual
responsibility, challenging but achievable goals, interpersonal relationships, influence over others, and
attention and recognition.
Chapter 10 - Motivating Employees
10-75
lecture enhancer 10-5
EMPOWERING EMPLOYEES AT DARDEN RESTAURANTS
Although servers in restaurants can earn a lot of money over the course of a shift, it’s still not a
job that many people would describe as “enjoyable.” Stressful customers, heavy trays and long hours all
contribute to the lucrative yet taxing world of serving. That’s what makes it all the more incredible that
Darden Restaurants landed onto Fortune’s Best Companies to Work For list for two years running. The
only restaurant chain to ever make the list, the company behind Red Lobster, Olive Garden and others
provides chances for employee advancement not found at many other companies.
Darden provides career planning and talent development services to each of its more than
180,000 workers. Each employee is encouraged to dream beyond a world where trays are constantly
perched on their shoulders. For instance, Mike Stroud started working as a busboy in a Georgia Red Lob-
ster when he was 16. Now he oversees 215 locations as a senior vice president in the company’s Orlando
headquarters. Lisa Hoggs experienced a similar climb to the top, working up from a server at a Longhorn
Steakhouse to a managing partner at a $3 million location in 11 years. Both credit Darden’s advancement
program for giving them the tools to succeed both in and out of the company.
Besides offering career counseling, the company also provides a credit union that allows employ-
ees to take out low-or no-interest loans. Darden has also been especially successful in empowering wom-
en and minorities. Minorities account for 42 percent of the company’s work force, while women hold 39
percent of managerial positions. “We want our employees to recognize that everyone who walks in our
doors can go all the way to the top,” says CEO Clarence Otis. As a result of this affirming culture, turno-
ver rates at Darden are 20 points lower than their competitors; in large part because of the way jobs at the
company can often become careers.iv
lecture enhancer 10-6
THE BOSS SETS THE EXAMPLE
The CEO of Japan Airlines represents the differences between the American management ap-
proach and the Japanese approach. CEO Haruka Nishimatsu comes to work on the city bus. No corporate
jets for him. He believes that management will not work if leaders treat themselves one way and employ-
ees another way.
Nishimatsu buys his suits at a discount store because he believes that a boss who wears Armani
puts himself at arm’s length from his people. While Merrill Lynch boss John Thain spent $1 million deco-
rating his office, Nishimatsu knocked down his office walls so anyone can walk in. Got an idea? Catch
him at lunch in the company cafeteria.
All CEOs say that service is important, but Nishimatsu goes a step beyond. He says that if you’re
having a bad experience, don’t get angry with the people you’re dealing with—blame it on the people in
charge. And Nishimatsu not only talks the talk, he walks the walk. He pops into planes, chats with flight
attendants, even sorts the newspapers.
His salary for running the world’s 10th largest airline: not millions, but one year as low as
$90,000. When he was forced to cut salaries for everyone else, he also cut his own. To him, a leader
shares the economic pain.
Nishimatsu says a CEO doesn’t motivate by how many millions he makes, but by convincing
employees “you’re all together in the same boat.”v
