Fourth Edition

PART 3 . . . . . . . . . . . . . . . . . . . . . . . .

Understanding People in Organizations

Copyright 2003 Prentice Hall, Inc.

Chapter 8

Motivating, Satisfying,
and Leading Employees

Copyright 2003 Prentice Hall, Inc.

8-2

A leader is best when people barely know

he exists, when his work is done they will
say: We did it ourselves.
~ Lao-Tzu, c. 600 B.C.

Leadership is the art of getting someone

else to do something you want done
because he wants to do it.
~ Dwight D. Eisenhower, 1890 - 1969
Copyright 2003 Prentice Hall, Inc.

8-3

Key Topics
Psychological contracts in the workplace
Job satisfaction and employee morale
Theories of employee motivation
Job satisfaction and employee motivation
Managerial styles of leadership

Copyright 2003 Prentice Hall, Inc.

8-4

Psychological Contract
A Set of Employment Expectations
Contributions:
What does each employee expect to contribute to
the organization?

Inducements:
What will the organization provide to each
employee in return?

Copyright 2003 Prentice Hall, Inc.

8-5

Satisfied Employees Are More

Productive and More Committed

Low Turnover:
A low percentage of employees
leave each year
Copyright 2003 Prentice Hall, Inc.

MORALE

An overall positive employee

attitude toward the workplace

TURNOVER

High Morale:

MORALE

Degree of enjoyment employees

derive from doing their jobs

TURNOVER

Job Satisfaction:

8-6

Raising Morale Is a High Priority When

Unemployment Is Low
0% 10% 20% 30% 40% 50% 60%

Alternative Work Arrangements

Long-term Care Insurance
Group Financial Planning
Group Auto Insurance
Group Home Owners Insurance

NA

1994
Copyright 2003 Prentice Hall, Inc.

1997

2000
8-7

Fortune Magazines
100 Best Companies to Work For
It's not easy being good these days
at least if you're an employer.
Edward Jones
Cisco Systems
Microsoft
Patagonia
Starbucks
Wal-Mart

#1
#15
#28
#41
#58
#94

Source: Fortune Magazine, February 4th, 2002

Copyright 2003 Prentice Hall, Inc.

8-8

Highly Motivated Employees Are

Critical to Business Success
Motivation:
The set of forces that cause people to behave in
certain ways

Copyright 2003 Prentice Hall, Inc.

Classical
Behavior: The Hawthorne Studies
Contemporary
8-9

The Human Resources Model

Theory X and Theory Y
Theory X

Theory Y

People are lazy.

People are energetic.

People lack ambition and

dislike responsibility.

People are ambitious and

seek responsibility.

People are self-centered.

People can be selfless.

People want to contribute

to business growth and
change.

People are intelligent.

People resist change.

People are gullible and

not very bright.

Copyright 2003 Prentice Hall, Inc.

8 - 10

Maslows Hierarchy of Needs

General
Examples
Self-Fulfillment

SelfSelfActualization
Actualization
Needs
Needs

Status

Esteem Needs
Esteem
Needs

Friendship

Social Needs
Needs
Social

Stability

Security Needs
Security
Needs

Shelter

Physiological Needs
Physiological
Needs

Copyright 2003 Prentice Hall, Inc.

Organizational
Examples
Challenging Job
Job Title
Friends at Work
Pension Plan
Salary
8 - 11

Two Factor Theory

Hygiene Factors

Motivation Factors

Supervisors

Achievement

Working Conditions

Recognition

Interpersonal Relations

The Work Itself

Pay & Security

Responsibility

Company Policies &

Administration

Advancement & Growth

Dissatisfaction

Copyright 2003 Prentice Hall, Inc.

Satisfaction

8 - 12

Expectancy Theory

Individual
Effort

Individual
Performance

EffortPerformance
Issue

Copyright 2003 Prentice Hall, Inc.

Organizational
Rewards

PerformanceReward
Issue

Personal
Goals
RewardsPersonal
Goals Issue

8 - 13

Equity Theory

Employees evaluate their treatment relative to

the treatment of others
Inputs: Employee contributions to their jobs
Outputs: What employees receive in return

The perceived ratio of contribution to return

determines perceived equity
Copyright 2003 Prentice Hall, Inc.

8 - 14

Strategies for Enhancing Job

Satisfaction and Morale

Copyright 2003 Prentice Hall, Inc.

Reinforcement/behavior
modification

Management by objectives

Participative management
and empowerment

Job enrichment and job

redesign

Modified work schedules

8 - 15

Reinforcement /
Behavior Modification Theory
Punishment
Punishment
When negative consequences are attached
directly to undesirable behavior

Positive
Positive Reinforcement
Reinforcement
When rewards are tied directly to
performance
Copyright 2003 Prentice Hall, Inc.

8 - 16

Management by Objectives
Collaborative Goal-setting

Collaborative
Goal Setting &
Planning

Communicating
Organizational
Goals & Plans

Periodic
Review

Evaluation

Meeting
Setting
Verifiable Goals
& Clear Plans
Counseling
Identifying
Resources
Copyright 2003 Prentice Hall, Inc.

8 - 17

Participative Management
and Empowerment

Increasing job satisfaction by

encouraging participation
Team management represents
a growing trend

Copyright 2003 Prentice Hall, Inc.

8 - 18

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
Copyright 2003 Prentice Hall, Inc.

8 - 19

Modified Work Schedules

Work share programs

Flextime programs and
alternative workplace
strategies
Telecommuting and
virtual offices
Copyright 2003 Prentice Hall, Inc.

8 - 20

Sample Flextime Scheduling

6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00
A.M.

A.M.

A.M.

Flexible
Time

A.M.

A.M.

Core
Time

A.M.

NOON

Flexible
Time

P.M.

2:00 3:00 4:00

P.M.

Core
Time

P.M.

P.M.

5:00 6:00
P.M.

P.M.

Flexible
Time

Joe

Sue

Pat
Copyright 2003 Prentice Hall, Inc.

8 - 21

Evaluating Modified Schedules and

Alternative Workplaces
Advantages

Disadvantages

More satisfied,
committed
employees

Challenging to
coordinate and
manage

Less congestion

Poor fit for some

workers

Copyright 2003 Prentice Hall, Inc.

8 - 22

Managerial Leadership

The process of
motivating others
to work to meet
specific objectives
Copyright 2003 Prentice Hall, Inc.

8 - 23

Five Fundamental Leadership Practices

Challenge the process

Inspire a shared vision

Enable others to act

Model the way

Encourage the heart

Source: www.theleadershipchallenge.com

Copyright 2003 Prentice Hall, Inc.

8 - 24

Leadership at General Electric

Four Es of GE Leadership
A high energy level
The ability to energize others around common
goals
The edge to make tough decisions
The ability to consistently execute and deliver
on promises
Source: Jack Welch Tells It Straight from the Gut, Anderson Assets, Winter 2002
Copyright 2003 Prentice Hall, Inc.

8 - 25

Managerial Styles

Autocratic Style
Democratic Style
Free-rein Style
Contingency
Contingency Approach
Approach

The
The appropriate
appropriate style
style in
in any
any situation
situation is
is contingent
contingent
on
on the
the unique
unique elements
elements of
of that
that situation
situation
Copyright 2003 Prentice Hall, Inc.

8 - 26

Motivation and Leadership in the

Twenty-first Century
Motivation
Security and pay are no
longer enough

Leadership

Copyright 2003 Prentice Hall, Inc.

Coach mentality
Diversity

Flexibility
8 - 27

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 2003 Prentice Hall, Inc.

8 - 28