Management Chapter 9 Ferrell Hirt Ferrell Instructors Manual Business Summarize Early Studies That Laid

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Instructor’s Manual – Chapter 9

Chapter 9: Motivating the Workforce

Use this Instructor’s Manual to facilitate class discussion and incorporate the unique features of the text’s

highlights. Follow-up via the Connect exercises is then encouraged to provide a holistic understanding of the

chapter.

C H A P T E R F O R E C A S T

Because employees do the actual work of the business and influence whether the firm achieves its objectives,

most top managers agree that employees are an organization’s most valuable resource. To achieve

organizational objectives, employees must have the motivation, ability (appropriate knowledge and skills), and

tools (proper training and equipment) to perform their jobs. We examine employees’ needs and motivation,

managers’ views of workers, and several strategies for motivating employees. Managers who understand the

needs of their employees can help them reach higher levels of productivity and thus contribute to the

achievement of organizational goals.

L E A R N I N G O B J E C T I V E S

LO 1-1 Define basic concepts such as business, product, and profit.

LO 1-3 Define economics and compare the four types of economic systems.

LO 1-5 Specify why and how the health of the economy is measured.

LO 1-7 Evaluate a small–business owner’s situation and propose a course of action.

L E A R N T H E T E R M S

behavior modification (p. 276)

classical theory of motivation

(p. 267)

extrinsic rewards (p. 265)

flextime (p. 277)

human relations (p. 264)

hygiene factors (p. 271)

intrinsic rewards (p. 265)

Maslow’s hierarchy (p. 269)

morale (p. 265)

motivation (p. 264)

motivational factors (p. 272)

physiological needs (p. 269)

Theory Y (p. 272)

Theory Z (p. 273)

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Instructor’s Manual – Chapter 9

K E Y T E R M S A N D D E F I N I T I O N S

behavior

modification

Changing behavior and encouraging appropriate actions by relating the

consequences of behavior to the behavior itself.

classical theory of

motivation

Theory suggesting that money is the sole motivator for workers.

compressed

workweek

A four-day (or shorter) period in which an employee works 40 hours.

equity theory

An assumption that how much people are willing to contribute to an

organization depends on their assessment of the fairness, or equity, of

the rewards they will receive in exchange.

esteem needs

The need for respect—both self-respect and respect from others.

expectancy theory

The assumption that motivation depends not only on how much a

person wants something but also on how likely he or she is to get it.

extrinsic rewards

Benefits and/or recognition received from someone else

flextime

A program that allows employees to choose their starting and ending

times provided that they are at work during a specified core period.

human relations

The study of the behavior of individuals and groups in organizational

settings.

hygiene factors

Aspects of Herzberg’s theory of motivation that focus on the work

setting and not the content of the work; these aspects include adequate

wages, comfortable and safe working conditions, fair company policies,

and job security.

intrinsic rewards

The personal satisfaction and enjoyment felt after attaining a goal.

job enlargement

The addition of more tasks to a job instead of treating each task as

separate.

job enrichment

The incorporation of motivational factors such as opportunity for

achievement, recognition, responsibility, and advancement into a job.

job rotation

Movement of employees from one job to another in an effort to relieve

the boredom often associated with job specialization.

job sharing

Performance of one full-time job by two people on part-time hours.

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Instructor’s Manual – Chapter 9

Maslow’s hierarchy

A theory that arranges the five basic needs of people—physiological,

security, social, esteem, and self-actualization—into the order in which

people strive to satisfy them.

morale

An employee’s attitude toward his or her job, employer, and colleagues.

motivation

An inner drive that directs a person’s behavior toward goals.

motivational factors

Aspects of Herzberg’s theory of motivation that focus on the content of

the work itself; these aspects include achievement, recognition,

involvement, responsibility, and advancement.

physiological needs

The most basic human needs to be satisfied—water, food, shelter, and

clothing.

security needs

The need to protect oneself from physical and economic harm.

self-actualization

needs

The need to be the best one can be; at the top of Maslow’s hierarchy.

social needs

The need for love, companionship, and friendship—the desire for

acceptance by others.

Theory X

McGregor’s traditional view of management whereby it is assumed that

workers generally dislike work and must be forced to do their jobs.

Theory Y

McGregor’s humanistic view of management whereby it is assumed that

workers like to work and that under proper conditions employees will

normally seek out responsibility in an attempt to satisfy their social,

esteem, and self-actualization needs.

Theory Z

A management philosophy that stresses employee participation in all

aspects of company decision making.

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Instructor’s Manual – Chapter 9

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4. Motivating employees to stay engaged is a key responsibility of

management. (Table 9.2)

a. Engagement involves emotional involvement and commitment

by the employee.

5. A person who recognizes or feels a need is motivated to take action

to satisfy the need and achieve a goal.

C. Morale is an employee’s attitude toward his or her job, employer, and

colleagues.

a. When employees have high morale, motivation is high, and goals

are achieved

2. Low morale may cause high absenteeism and turnover.

satisfaction, including involving employees in decision making,

showing appreciation for their efforts, and creating a pleasant work

environment.

motivational incentives to increase morale.

D. Perceptions of rewards

2. An extrinsic reward is the benefit or recognition you receive from

someone else.

3. Intrinsic and extrinsic rewards both increase employee motivation.

promotions, a pleasant work environment, and a positive

organizational culture are all morale boosters.

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Instructor’s Manual – Chapter 9

LO 9-2

Summarize early studies that laid the groundwork for

understanding employee motivation.

Key Terms:

• Classical theory of

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II. Historical Perspectives on Employee Motivation

A. From early studies, researchers have attempted to find ways to motivate

workers.

B. Classical Theory of Motivation

1. According to the classical theory of motivation, money is the sole

motivator for workers and can lead to increased productivity.

2. Frederick Taylor and Lillian Gilbreth conducted studies of employees

who performed specific work tasks, which led to time and motion

studies.

a. Taylor believed managers should break down each job into

3. Managers are increasingly striving to relate pay to performance in

order to motivate employees and boost productivity. However,

studies at the Hawthorne Works Plant of the Western Electric

Company that sought to identify what physical working conditions in

the workplace stimulated employees to be most productive.

2. The Hawthorne studies found that productivity increased regardless

of the physical conditions; this phenomenon has been labeled “the

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Instructor’s Manual – Chapter 9

LO 9-3

Compare and contrast the human-relations theories of Abraham

Maslow and Frederick Herzberg.

• Theories of Employee Motivation

o Maslow’s Hierarchy of Needs

o Herzberg’s Two-Factor Theory

Key Terms:

• Maslow’s hierarchy

• Physiological needs

• Security needs

• Social needs

• Esteem needs

• Self-actualization needs

• Hygiene factors

• Motivational factors

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PPT 9.23

III. Theories of Employee Motivation

A. Maslow’s Hierarchy of Needs (Figure 9.3)

1. According to Maslow, an employee is motivated by where he or she

is at any given time relative to their needs.

2. Managers should understand their employees’ needs in order to

discover what the most appropriate motivators would be at any

given time.

3. Psychologist Abraham Maslow arranged humans’ five basic needs

them.

a. Physiological needs are the first to be satisfied and include the

b. Security needs relate to protecting oneself from physical and

economic harm.

and respect from others. Competition is a form of esteem that

motivates people to be more productive.

e. Self-actualization is the desire to be the best one can be.

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6. Managers can learn from Maslow’s hierarchy that employees will be

motivated to contribute to organizational goals only if they first

satisfy their physiological, security, and social needs through their

work.

B. Herzberg’s Two-Factor Theory (Table 9.3)

1. Frederick Herzberg studied various factors relating to the job and

their relation to employee motivation and concluded that job factors

can be classified into two categories.

a. Hygiene factors relate to the work setting rather than the

content of the work and include adequate wages, comfortable

working conditions, fair company policies, and job security.

performance. Their absence may not lead to dissatisfaction, but

their presence is likely to motivate people to excel.

2. Herzberg’s motivational factors and Maslow’s esteem and self–

3. The higher-level goals in Maslow’s hierarchy and the motivational

factors identified by Herzberg are important in improving

productivity.

LO 9-4

Investigate various theories of motivation, including theories X, Y,

o Theory Z

o Equity Theory

o Expectancy Theory

Key Terms:

• Theory Z

• Equity theory

• Expectancy theory

C. McGregor’s Theory X and Theory Y.

1. Douglas McGregor contrasted two views of management, the

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Instructor’s Manual – Chapter 9

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b. Theory X assumes that the average worker prefers to be

directed, avoids responsibility, has relatively little ambition, and

wants security.

c. Managers who subscribe to Theory X maintain tight control over

workers, provide almost constant supervision, try to motivate

through fear, and make decisions in an autocratic fashion.

d. Theory X focuses on physiological and security needs and

virtually ignores the higher needs discussed by Maslow.

making.

b. Theory Y assumes people will exercise self-direction and self-

control to achieve objectives to which they are committed.

c. Theory Y makes the following assumptions about how

3) People will commit to objectives when they realize that the

achievement of those goals will bring them personal reward.

4) The average person will accept and seek responsibility.

5) Imagination, ingenuity, and creativity can help solve

organizational problems, but most organizations do not

make adequate use of these characteristics in their

6) Organizations today do not make full use of workers’

intellectual potential.

d. Theory Y managers address the high-level needs in Maslow’s

e. Theory Y has gained widespread support and has displaced

Theory X.

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Instructor’s Manual – Chapter 9

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D. Theory Z

1. Theory Z is a management philosophy that stresses employee

participation in all aspects of company decision making.

2. Theory Z was developed by William Ouchi, and it incorporates and

adapts many elements of the Japanese approach to management.

a. Managers and workers share responsibilities; the management

style is participative, and employment is long term.

b. Some have begun to question Theory Z.

c. Theory Z results in employees feeling organizational ownership,

and research has found that these feelings of ownership may

produce positive attitudinal and behavior effects for employees.

2. One adaptation is quality circles, which are small groups of five to

eight members who meet regularly and discuss ways to reduce

waste, eliminate problems, and improve quality, communication,

and work satisfaction.

a. Quality circles have been largely replaced with quality methods.

3. Even more involved than quality circles are programs known as

participative management, employee involvement, or self-directed

work teams.

the outcome of their efforts.

b. Team members are cross-trained and can move from job to job.

c. Each team essentially manages itself and is responsible for its

quality, scheduling, ordering and use of materials, and problem

2. In theory, the rewards an individual receives are proportional to the

contribution made to the organization.

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3. Each worker regularly develops a personal input-output ratio by

taking stock of his or her contribution (inputs) to the organization in

time, effort, skills, and experience and assessing the rewards

(outputs) offered by the organization in pay, benefits, recognition,

and promotions.

4. The worker compares his or her input-output ratio to other

employees. If the ratios are close, the worker will feel that he or she

is being treated equitably.

5. An employee who feels that his or her rewards don’t match his or

the organization.

6. Almost all issues involved in equity theory are subjective and can

cause problems for managers.

7. Managers should try to avoid equity problems by ensuring that

employees clearly understand the basis for their pay and benefits.

G. Expectancy Theory

1. Psychologist Victor Vroom’s expectancy theory assumes that

motivation depends not only on how much a person wants

something but on the person’s perception of how likely he or she is

to get it.

2. A person who wants something and has reason to be optimistic will

be strongly motivated.

LO 9-5

Describe some of the strategies that managers use to motivate

employees.

o Behavior Modification

o Importance of Motivational Strategies

Key Terms:

• Job enlargement

• Flextime

• Job sharing

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IV. Strategies for Motivating Employees

A. Based on the theories of motivation discussed earlier, managers have

developed a number of strategies for motivating employees to achieve

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Instructor’s Manual – Chapter 9

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B. Behavior modification involves changing behavior and encouraging

appropriate actions by relating the consequences to the behavior itself.

1. The concept of behavior modification was developed by psychologist

B. F. Skinner, who showed that reward and punishment can modify

behavior.

2. If behavior is positively reinforced, or rewarded, that behavior will

tend to be repeated, while behavior that is punished will tend to be

eliminated.

3. In the long run, rewarding appropriate behavior will generally be a

more effective way to modify behavior.

1. Managers have several strategies they can use to design jobs to help

improve employee motivation.

relieve the boredom associated with specialization.

to learn new skills.

b. One drawback of job rotation is that employees may eventually

become bored with all the jobs in the cycle.

c. Job rotation is extremely useful when a person is being trained

for a position that requires an understanding of the various units

in an organization.

d. Job rotation is also used to cross–train today’s self-directed work

4. Job enrichment involves incorporating motivational factors such as

opportunity for achievement, recognition, responsibility, and

advancement into a job.

provides opportunities for growth and advancement when the

worker is able to take on more challenging tasks.

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Instructor’s Manual – Chapter 9

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5. Flexible scheduling strategies

a. Managers are using flexible scheduling strategies to meet

b. Flextime is a program that allows employees to choose their

starting and ending times as long as they are at work during a

specified core period. (Figure 9.4)

c. A compressed workweek is a four-day (or shorter) period in

benefits by gaining the skills of two people for one job, often at a

lower total salary. Job sharing gives both people an opportunity

to work as well as time for other obligations, such as parenting.

e. Other flexible scheduling strategies are being used.

1) One strategy allows full-time workers to work part time for a

certain period.

telecommuting).

f. Usually companies offer flexible work schedules to give more

options to employees who are trying to juggle work and family

1) More flexible schedules are associated with healthier

lifestyle choices such as increased physical activity and

healthier sleep habits.

2) However, there may be some downsides. Some have found

that working from home limits their career advancement

opportunities. Also, telecommuting may blur the boundaries

between office and home.

1. Motivation is a process that affects all the relationships within an

organization and influences many areas such as pay, promotion, job

2. Motivating employees to increase satisfaction and productivity is an

important concern for organizations seeking to remain competitive

in the global marketplace.

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Instructor’s Manual – Chapter 9

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3. The economic environment can change an employee’s motivation.

a. In a slow growth or recession economy, sales can flatten or

decrease and morale can drop because of the need to cut jobs.

b. In the most recent recession, many workers feared losing their

along with the types of strategies they use to motivate employees.

LO9-6

Critique a business’s program for motivating its sales force.

Key Terms:

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V. Solve the Dilemma—Motivating to Win

A. Eagle Pharmaceutical has long been recognized for its innovative

techniques for motivating its salesforce.

B. Features the salesperson who has been most successful in previous

quarter in company newsletter “Touchdown”

1. Receive football jersey

3. $1000 worth of Eagle’s stock

C. “Superbowl Club” for employees who reach/exceed their sales goals

D. “Heisman Award” trip to Caribbean to top 20 salespeople

E. Video conference hookup

2. Managers summarize these ideas and pass them along to their

salespeople

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Instructor’s Manual – Chapter 9

F. Discussion Questions

1. Which motivational theories are in use at Eagle?

Eagle uses expectancy theory in combination with the self-esteem

needs of Maslow and the motivational factors of Herzberg to

motivate its employees. Each of the awards, and in particular being

featured in the company newsletter, receiving a jersey, and being

awarded a plaque, enhance employee self-esteem (Maslow) and are

considered motivational factors (Herzberg). The winning salesperson

also gets his or her “successful tactics and strategies” recognized;

they are summarized and passed on to other salespeople (another

than when competing against a goal. Further, competition against a

goal offers each employee the opportunity to succeed, regardless of

the performance of other employees.

modify their expectations and make them feel discouraged from

working as hard.