Copyright © 2005 Prentice Hall, Inc. All rights reserved.9–1 Chapter 8 Employee Behavior and...

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 9–1

Chapter 8Chapter 8

Employee Employee Behavior and Behavior and

MotivationMotivation

If all it took was a pretty picture and a catchy saying to motivate people, running a business would be a whole lot simpler.


MPC’s Deeper Offerings

• Busi 22 Human Behavior/LeadershipPsychological techniques in job performance and

satisfactionLeadership skills, human motivation, time

management, values, decision making, career management

Instructor: Leandro Castillo aka MPC’s running back coach!


Key Topics

• Psychological contracts in the workplace

• Job satisfaction and employee morale

• Theories of employee motivation

• Managerial motivation techniques

• Running theme: Putting these concepts into action.


Psychological Contract: A Set of Employment Expectations

• Contributions: What does each employee expect to contribute to

the organization? Performance behaviors & citizenship Counterproductive behaviors

• Inducements: What will the organization provide to each

employee in return? Pay, benefits, security, opportunity, and more

Table 9–1

What should you expect as a worker: Get paid more then work hard, or work hard then get paid more?

Which results in a higher return to the employer: A higher paid worker or a lower paid worker?


Satisfied Employees Are More Committed and Productive

• Job Satisfaction: Degree of enjoyment employees

derive from their jobs

• High Morale: An overall positive employee

attitude toward the workplace

• Low Turnover: A low percentage of employees

leave each year

• Productivity Maximizing output from inputs

Marginal cost = marginal benefitM

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Effective Motivation leads to desired behavior, satisfaction, and performance

• Motivation: The set of forces that cause people to behave in

certain ways

• So how do we do it already?

• Job Satisfaction • High Morale • Low Turnover • Productivity


The Effective Motivation DisconnectManager – Employee Motivation Index


Key Topics

• Psychological contracts in the workplace

• Job satisfaction and employee morale

• Theories of employee motivation

• Managerial motivation techniques

• Running theme: Putting these concepts into action.


The evolution of motivational theory

• Classical TheoryFredrick Taylor’s Scientific Management

• BehaviorThe Hawthorne Effect

• Contemporary motivational theoriesMore detailed psychological approachesRecognizing people as individuals


Scientific Management

• Fredrick Taylor, the father of Scientific ManagementGantt charts!Time & motion studiesStandardization, methods,

layout, task-training Improve efficiency so you

can afford to pay higher wages (motivation)

Scientific Management C&C with TQM & Lean?


The Hawthorn Studies: 1925ish-1933

• A Harvard group led by Elton Mayo invaded the Hawthorn Western Electric plant in Cicero Illinois

• Experimented with the effects of lighting levels on productivity

• Any change increased productivity, even very dim lighting.

• The productivity increases were maintained even when lighting was returned to previous levels…….

• They thought their experiments were a total failure


The Hawthorn Effect was born:

• The workers thought of themselves as a team, or group with something in common.

• The workers helped plan the experiments. Their ideas were appreciated and implemented.

• The workers got special attention. Their increased productivity was compensated.

• Learned: People perform better when they matter.

• This unleashed the storm of modern motivational theories that we will now explore.


Douglas McGregor’s Model of Management’s Views:

• Theory X

People are lazy.

People lack ambition and dislike responsibility.

People are self-centered.

People resist change.

People are gullible and not very bright.

• Theory Y

People are energetic.

People are ambitious and seek responsibility.

People can be selfless.

People want to contribute to business growth and change.

People are intelligent.

Table 9–1

• Which manager will feel most comfortable in a tall organization?

• Which manager has trouble delegating?• Which manager gives workers the “in the loop” updates to make them feel involved?

• Which manager runs more risk of being taken advantage of by employees?

• Which manager attracts more high-contributing workers to their organization?

• Which manager misses deadlines because they didn’t follow up with employees enough?

• Which traits are strongest in you?


Abraham Maslow’s Hierarchy of Needs

Figure 9–1


What level motivates me if I am:

• Starving• Homeless, but fed• Isolated• Needing to prove

something to myself• Trying to make a

difference in the world

• A typical American worker


Two-Factor Theory of Motivation(Herzberg)

Figure 9–2


Which is it?

Figure 9–2

Motivation Factors•achievement•recognition•the work itself•responsibility•advancement and growth

Hygiene Factors•supervisors•working conditions•interpersonal relations•pay & security•company policies and administration

• You got a bonus for outstanding performance?

• You just love driving that cab like a maniac.

• You are learning new things everyday.

• Your boss is completely unreasonable.

• You earn a comfortable living.

• You get the keys to the executive washroom.


Expectancy Theory

Figure 9–3

Do I want the reward?

Will my performance get me the

reward?

Is the reward big enough?

Where did the manager fail in goal setting?

Oh boy! A whole $5.00 for winning the sales contestThat open promotion is sure to go to the boss’s daughter.

To get my next promotion I have to move to TimbuktuThe harder you work around here, the more work you get.

We work toward rewards that are worth the effort, we have a reasonable chance of getting, and we want.


Equity Theory

• Employees evaluate their treatment relative to the treatment of others Inputs: Employee contributions to their jobsOutputs: What employees receive in return

• The perceived ratio of contribution to return determines perceived equity.

• Workers will attempt to adjust their inputs and/or outputs until they feel their perceived equity is….. equitable.


Equity Theory: Situation Outcomes

Figure 9–4

• I will do my best work possible next time

• I will work less next time

• I will steal from the company

• I will sabotage the quality of the product

• That test was way too easy. We are all going to get A’s.

• That test was way too hard, I’ll never be able to get an “A”.

• My boss just won’t pay me as much as I am worth.

• My boss took all the credit for that production process suggestion I made.

• That test was hard, but it was because I just didn’t study enough.

• Whew, I barely got an “A”. That studying paid off!


Individual differences in employees

Different people are at different points in all of these scales.

Personality typing is one technique to gauge how to manage or lead individuals.

• Personality type lessons we’ll learn:Your strengthsYour weaknessesHow you need to be treatedHow others need you to treat them


Situational Approach to LeadershipThe Four Square model

High Skill Low

High

Motivation

Low

Basically leave them alone.

Provide strong coaching light

motivation

Provide light coaching and

strong motivation

Provide strong coaching and strong

motivation


Decoding Personality

Popular

+ Enthusiastic, spontaneous, creative

- Loud, too-happy, forgetful, not believable

Powerful

+ Lead, meets goals, strong-willed, ME

- Bossy, know it all, deny failure

Peaceful

+ Calm, steady, listens, compassionate

- Worrier, slow starter, seems indifferent

Perfect

+ Analytical, serious, finish everything

- Overly critical, over-plan, unforgiving

Where do conflicts happen?Can any type lead?What types make strong teams?What makes each type happy?


Follow up questions:• What strengths does your personality type give you? How do these strengths show up

in your behaviors?

• What weaknesses does your personality type give you? How do these weaknesses show up in your behaviors?

• What other personality type do you find most irritating? Which of their behaviors are the most troublesome to you?

Which of your behaviors most upset them?

• Create two scripts to role play. Try to get them to take charge of organizing a customer appreciation party for you.

Script 1: What you want to naturally say.– What happens when you actually use this approach?

Script 2: The approach your target would find most effective – long term.


Strategies for Enhancing Job Satisfaction and Morale

• Reinforcement/behavior modification

• Management by objectives

• Participative management and empowerment

• Job enrichment and job redesign

• Modified work schedules

Then we will see if we can connect strategy theory to apply some serious motivation!


Reinforcement/Behavior Modification

Positive ReinforcementPositive ReinforcementPositive ReinforcementPositive Reinforcement

PunishmentPunishmentPunishmentPunishment

When rewards are tied directly to When rewards are tied directly to performance.performance.

When negative consequences are When negative consequences are attached directly to undesirable attached directly to undesirable behavior.behavior.

No one is apathetic except in the pursuit of someone else’s goals. - Anonymous


Positive Positive ReinforcementReinforcement

Positive Positive ReinforcementReinforcement

PunishmentPunishmentPunishmentPunishment

• Psychological Contract Stop bad behavior, encourage good Job Satisfaction, Turnover, morale

• Scientific Management Efficiency allows money incentives

• The Hawthorne Effect Watch, display, improve

• McGregor’s X & Y Theories X (lazy), Y (dedicated)

• Maslow’s Hierarchy of Needs Reaching next level motivates

• Herzberg’s 2 factors Hygiene vs. motivating

• Expectancy Theory Size, Expectations, Valued

• Equity theory Getting even

• Personality

Strategy & Theory Relationships

Relate the theories Relate the theories to the strategyto the strategy


Identifying Resources

Counseling

SettingVerifiable Goalsand Clear Plans

Meeting

Management by Objectives (MBO): Collaborative Goal-setting

Collaborative Goal Setting and Planning

Communicating Organizational Organizational

Goals and PlansGoals and Plans

Periodic Review

Evaluation

Figure 9–5

Provide Reward


Management by Objectives (MBO): Collaborative Goal-setting

Strategy & Theory Relationships• Psychological Contract

Stop bad behavior, encourage good Job Satisfaction, Turnover, morale








• Personality



Participative Management, Empowerment & Teams

• Increasing job satisfaction by encouraging participation

• Team management represents a growing trend.

“There is no “I” in team, but there is an “M”and an“E”.”

- Jon Mikkelsen



Empowerment & Teams









• Personality



Job Enrichment and Job Redesign

• Job Enrichment:Adding one or more motivating

factors to job activities

• Job Redesign:Designing a better fit between

workers and their jobs Combining tasks Forming natural work groups Establishing client relationships


Modified Work Schedules

• Work share programs

• Flextime programs and alternative workplace strategies

• Telecommuting and virtual offices


Sample Flextime Scheduling

Figure 9–6


Evaluating Modified Schedules and Alternative Workplaces

• Advantages More satisfied, committed

employees Less congestion

• Disadvantages Challenging to coordinate

and manage Poor fit for some workers



Job Enrichment & Job Redesign









• Personality



The process of The process of motivating others motivating others to work to meet to work to meet specific objectivesspecific objectives

Leadership


Managerial Leadership Styles

Contingency ApproachThe appropriate style in any situation is contingent

on the unique elements of that situation

Contingency ApproachThe appropriate style in any situation is contingent

on the unique elements of that situation

Autocratic StyleAutocratic Style

Democratic StyleDemocratic Style

Free-rein StyleFree-rein Style


Managerial Managerial Leadership Leadership

Style:Style:AutocraticAutocraticDemocraticDemocraticFree-reignFree-reign

Managerial Managerial Leadership Leadership

Style:Style:AutocraticAutocraticDemocraticDemocraticFree-reignFree-reign

Strategy & Theory Relationships• Psychological Contract

Stop bad behavior, encourage good Job satisfaction, turnover, morale


• The Hawthorne Effect Watch, teamwork, improve






• Personality


Motivation and Leadership in the 21st Century

• MotivationMotivation Security and pay are no Security and pay are no

longer enoughlonger enough

• LeadershipLeadership ““Coach” mentalityCoach” mentality

Supporting roleSupporting role DiversityDiversity FlexibilityFlexibility

• Leading down, Leading down, sideways, & upsideways, & up


Chapter Review

• Describe psychological contracts

• Discuss the importance of job satisfaction and employee morale

• Summarize the most important theories of employee motivation

• Describe strategies to improve job satisfaction and employee motivation

• Discuss different managerial styles

Copyright © 2005 Prentice Hall, Inc. All rights reserved.9–1 Chapter 8 Employee Behavior and...

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