Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.1

Chapter 10Motivating and Rewarding Employees

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.2

Learning Outcomes Describe the motivation process Define needs Explain the hierarchy or needs theory Differentiate Theory X and Theory Y Describe the motivational implications of

equity theory (continued)

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.3

Learning Outcomes(continued)

Explain the key relationships in expectancy theory

Describe how managers can design individual jobs to maximize employee performance

Describe the effect of workforce diversity on motivational practices

Describe how entrepreneurs motivate their employees

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.4

Motivation and Individual Needs Willingness High level of effort Satisfaction of individual need

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.5

Drives

SearchBehaviour

Tension Reductionof Tension

SatisfiedNeed

The Motivation Process (Exhibit 10-1)

UnsatisfiedNeed

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.6

Maslow’sMaslow’sHierarchyHierarchyof Needsof Needs

SelfSelf

EsteemEsteem

SocialSocial

SafetySafety

PhysiologicalPhysiologicalSource: Motivation and Personality, Second Edition, by A. H. Maslow, 1970.

Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey.

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.7

Theory XTheory XEmployeesEmployees

Dislike WorkDislike Work

Avoid ResponsibilityAvoid Responsibility

Little AmbitionLittle Ambition

Theory YTheory YEmployeesEmployees

Enjoy WorkEnjoy Work

Accept ResponsibilityAccept Responsibility

Self-DirectedSelf-Directed

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.8

The Three-Needs Theory

Affiliation(nAff)

Achievement(aAch)

Power(nPow)

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.9

Equity TheoryPerceived Ratio

Comparison*Employee’sAssessment

Outcomes A

Inputs A

Outcomes A

Inputs A

Outcomes A

Inputs A

Outcomes B

Inputs B

Outcomes B

Inputs B

Outcomes B

Inputs B

<

=

>

Inequity (Under-Rewarded)

Equity

Inequity (Over-Rewarded)

*Where A is the employee, and B is a relevant other or referent.

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.10

Skill Variety

Task Identity

Task Significance

Autonomy

Feedback

JOB DESIGN

INFLUENCES

MOTIVATION

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.11

Expectancy Theory

3. Attractiveness relationship

1. Effort-performance relationship

2. Performance-rewards relationship

IndividualIndividualEffortEffort

IndividualIndividualPerformancePerformance

IndividualIndividualGoalsGoals

OrganizationalOrganizationalRewardsRewards

1 2

3

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.12

Motivating a Diverse Workforce Flexibility

Not everyone sees their job the same way- what

motivates me may not motivate you

Recognize differences People are Different

Accommodate Cultural Differences

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.13

Pay-for-Performance

Piece rate Gainsharing Wage-incentive Profit-sharing Bonuses

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.14

Competency-Based Compensation Skills

Knowledge

Abilities

Behaviour I.e. leadership, decision making,

problem solving, etc

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.15

Motivating Minimum-Wage Employees Employee recognition

Praise

Empowerment

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.16

Motivating Professional and Technical Employees New assignments Challenges Autonomy Training and educational opportunities Recognition Simplify non-work life

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.17

Flexible Work Options

Compressed work week Flex-time Job sharing Telecommuting

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.18

Additional Suggestions for Motivating Employees

Recognize individuals

Match people to jobs

Use goals

Make goals attainable

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.19

Further Suggestions for Motivating Employees

Individualize rewards

Link rewards to performance

Check the system for equity

Don’t ignore money

Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. FOM 10.20

Entrepreneurs and Motivation Motivation for entrepreneurs is critical Employee empowerment is key

motivational tool Gradual process Delegation Job redesign