Students,

Read Chapter 10, Motivating and Satisfying Employees and Teams

WHAT IS MOTIVATION? Most often, motivation is the term used to explain people’s behavior. Successful athletes are said to be highly motivated. A student who avoids work is said to be unmotivated. Motivation is the individual, internal process that energizes, directs, and sustains behavior. It is a personal “force” that causes one to behave in a particular way.

Morale is the employee’s feeling toward the job, superiors, and the firm itself. High morale results mainly from the satisfaction of needs on the job or as a result of the job and leads to dedication, loyalty, and a desire to do a job well. Low morale can lead to shoddy work, absenteeism, and high rates of turnover.

HISTORICAL PERSPECTIVES ON MOTIVATION

Scientific Management. Toward the end of the 19th century, Frederick W. Taylor became interested in improving the efficiency of individual workers.

Taylor’s interest stemmed from his own experiences in manufacturing plants.

His research eventually led to scientific management, the application of scientific principles to management of work and workers.

One of Taylor’s first jobs was with Midvale Steel Company. While there, he developed a strong distaste for waste and inefficiency.

He observed a practice dubbed “soldiering,” in which workers worked slowly, because they feared if they worked faster, they would run out of work and lose their jobs.

After he left Midvale, Taylor spent several years at Bethlehem Steel. While there, he made his most significant contribution. In particular, he suggested that each job should be broken down into separate tasks and then management should:

Determine the best way to perform the tasks.

Determine the job output to expect when the tasks were performed properly.

Choose the best person for each job and train that person to do the job properly.

Monitor workers to ensure that all jobs are performed as planned.

Taylor also developed the idea that most people work only to earn money.

He reasoned that pay should be tied directly to output: The more a person produces, the more he or she should be paid.

This concept gave rise to the piece-rate system, under which employees are paid a certain amount for each unit of output they produce.

Under Taylor’s piece-rate system, each employee is assigned an output
If they exceed the quota, they receive a higher per-unit rate for all work produced. (See Figure 10-1.)

Taylor’s system was put into practice at Bethlehem Steel, and the results were

Taylor’s revolutionary ideas had a profound impact on management practice. However, his view of motivation was overly simplistic and narrow. People work for a variety of reasons other than pay; therefore, simply increasing a person’s pay may not increase that person’s motivation or productivity.

The Hawthorne Studies. Between 1927 and 1932, two experiments were conducted by Elton Mayo at the Hawthorne plant of Western Electric Company in Chicago.

The original objective of these studies, now referred to as the Hawthorne Studies, was to determine the effects of the work environment on employee productivity.

The first set of experiments tested the effect of lighting levels on productivity. One group of workers was subjected to varying lighting, while a second was not.

Productivity increased for both groups.

For the group whose lighting was varied, productivity remained high until the light was reduced to the level of moonlight.

The second set of experiments focused on the effectiveness of the piece-rate system in increasing the output of groups of workers.

Researchers expected that output would increase because faster workers would put pressure on slower workers to produce more.

However, output remained constant, no matter what “standard” rates management set.

The researchers concluded that human factors were responsible for the results of the two experiments.

In the lighting experiments, researchers had given both groups of workers a sense of involvement in their jobs merely by asking them to participate in the research. The level of light did not matter.

In the piece-rate experiments, each group of workers informally set the acceptable rate of output for the group. To gain the social acceptance of the group, each worker felt pressure to produce at the same rate as the group pace.

The Hawthorne Studies demonstrated that such human factors are at least as important as pay rates are to motivation. From these and other studies, the human relations movement in management was born.

Maslow’s Hierarchy of Needs. The concept of a hierarchy of needs was advanced by Abraham Maslow, a psychologist. A need is a personal requirement. Maslow assumed that humans are “wanting” beings who seek to fulfill a variety of needs, which he argued can be arranged from the most basic to most complex in a sequence known as Maslow’s hierarchy of needs. (See Figure 10-2.)

At the bottom of the pyramid are physiological needs, the things we require to survive. These needs include food and water, clothing, shelter, and sleep.

At the next level are safety needs, the things we require for physical and emotional security. They may be satisfied through job stability, health insurance, pension plans, and safe working conditions.

Next are the social needs, the human requirements for love, affection, and a sense of belonging. These needs are fulfilled in the workplace through the work environment and the informal organization and outside of the workplace by family and friends.

Esteem needs include the need for respect and recognition (the esteem of others) as well as a sense of accomplishment and worth (self-esteem). These needs may be satisfied through personal accomplishment, promotion to positions with greater responsibility, various honors and awards, and other forms of recognition.

At the uppermost level are self-actualization needs, the needs to grow and develop as people and to become all that we are capable of being. These are the most difficult needs to satisfy, and the means of satisfying them tend to vary with the individual.

Maslow suggested that people work up the hierarchy, satisfying their physiological needs before safety needs, for example.

However, needs at one level do not have to be completely satisfied before needs at the next-higher level come into play.

People can also move up and down the hierarchy. For example, if a person loses a good job, he may find himself trying to satisfy safety needs when he only recently had focused on social needs.

Maslow’s hierarchy of needs provides a useful way of viewing employee motivation. American business has largely been able to satisfy workers’ basic needs, but the higher-order needs present more of a problem.

Herzberg’s Motivation–Hygiene Theory. Frederick Herzberg interviewed approximately 200 accountants and engineers in Pittsburgh. He asked them to think of a time when they had felt especially good about their jobs and their work and describe the factor or factors that had caused them to feel that way. Next, he asked them about a time when they had felt especially bad about their work. He was surprised to find that feeling good and feeling bad resulted from entirely different factors. (See Figure 10-3.)

Satisfaction and Dissatisfaction. Herzberg’s interviews convinced him that satisfaction and dissatisfaction are different dimensions altogether.

The idea that satisfaction and dissatisfaction are separate and distinct dimensions is referred to as the motivation–hygiene theory.

The job factors that Herzberg found most frequently associated with satisfaction are achievement, recognition, responsibility, advancement, growth, and the work itself. These factors are generally referred to as motivation factors because their presence increases motivation. However, their absence does not necessarily result in dissatisfaction. When motivators are present, they act as satisfiers.

Dissatisfaction is caused by job factors such as supervision, working conditions, interpersonal relationships, pay, job security, and company policies and administration. These hygiene factors reduce dissatisfaction when they are present to an acceptable degree. However, they do not necessarily result in high levels of motivation.

Using Herzberg’s Motivation–Hygiene Theory. Herzberg provides explicit guidelines for using the motivation–hygiene theory of employee motivation.

He suggests that the hygiene factors must be present to ensure that a worker can function comfortably. But he warns that a state of no dissatisfaction cannot exist.

Managers should utilize hygiene factors to make the work environment as positive as possible but should then expect only short-term improvements in motivation.

Managers must focus instead on providing those satisfiers that will enhance motivation and long-term effort.

Employee pay has proven to have more effect than is explained by Herzberg’s theory. He suggests that pay provides only short-term motivation. Yet, in many organizations, pay is a form of recognition and reward for achievement—and recognition and achievement are both motivation factors.

Theory X and Theory Y. The concepts of Theory X and Theory Y were advanced by Douglas McGregor in his book, The Human Side of Enterprise. They represent opposing sets of assumptions that underlie management’s attitudes and beliefs regarding worker

Theory X is a concept of employee motivation generally consistent with Taylor’s scientific management. Theory X is based on the following assumptions:

People dislike work and try to avoid it.

Because people dislike work, managers must coerce, control, and frequently threaten employees to achieve organizational goals.

People generally must be led because they have little ambition and will not seek responsibility. They are concerned mainly with security.

Theory Y is a concept of employee motivation generally consistent with the ideas of the human relations movement. Theory Y is based on the following assumptions:

People do not naturally dislike work. In fact, work is an important part of all of our lives.

People will work toward goals to which they are committed.

People become committed to goals when it is clear that accomplishing the goal will bring personal rewards.

People often seek out and willingly accept responsibility.

Employees have the ability to help accomplish organizational goals.

Organizations generally do not make full use of their human resources.

McGregor argued that most managers behave in accordance with Theory X, but he maintained that Theory Y is more appropriate and effective as a guide for managerial action. (See Table 10-1.)

Theory Z. William Ouchi, a management professor at UCLA, studied business practices in American and Japanese firms.

In Japan, Ouchi found what he calls “type J” firms. They are characterized by the following:

Lifetime employment

Collective (or group) decision making

Collective responsibility for the outcomes of decisions

Slow evaluation and promotion

Implied control mechanisms

Nonspecialized career paths

A holistic concern for employees as people

American industry is dominated by what Ouchi calls “type A” firms, which follow a different pattern. They emphasize:

Short-term employment

Individual decision making

Individual responsibility for the outcomes of decisions

Rapid evaluation and promotion

Explicit control mechanisms

Specialized career paths

A segmented concern for employees only as employees

A few very successful American firms represent a blend of the type J and type A patterns. These “type Z” organizations emphasize the following:

Long-term employment

Collective decision making

Individual responsibility for the outcomes of decisions

Slow evaluation and promotion

Informal control along with some formalized measures

Moderately specialized career paths

A holistic concern for employees

Ouchi’s Theory Z posits that some middle ground between his type A and type J practices is best for American business. (See Figure 10-4.) A major part of Theory Z emphasizes participative decision making.

Reinforcement Theory. Reinforcement theory is based on the premise that people will repeat behavior that is rewarded and will cease behavior that is punished.

A reinforcement is an action that follows directly from a particular behavior. Reinforcements can take a variety of forms and can be used in a number of different ways.

A positive reinforcement strengthens desired behavior by providing a reward.

A negative reinforcement strengthens desired behavior by eliminating an undesirable task or situation.

Punishment is a consequence of undesirable behavior.

Managers who rely on extinction hope to eliminate undesirable behavior by not responding to it.

The effectiveness of reinforcement depends on which type is used and how it is timed.

Generally, positive reinforcement is considered the most effective action, and it is recommended when the manager has a choice.

Continual reinforcement can become tedious for both managers and employees, especially when the same behavior is being reinforced over and over in the same way. At the same time, it may be necessary to reinforce a desired behavior every time it occurs. Generally, once a desirable behavior has been more or less established, only occasional reinforcement will be needed.

CONTEMPORARY VIEWS ON MOTIVATION. More recently, managers have begun to explore three other models that take a more dynamic view of motivation: equity theory, expectancy theory, and goal-setting theory.

Equity Theory. The equity theory of motivation is based on the premise that people are motivated to obtain and preserve equitable treatment for themselves.

“Equity” refers to the distribution of rewards in direct proportion to the contribution of each employee to the organization.

Everyone need not receive the same rewards, but the rewards should be in accordance with individual contributions.

According to the theory, we conceive the idea of equity as follows:

First, we develop an input-to-outcome ratio. Inputs are the things we contribute to the organization. Outcomes are the things we get from the organization.

Next, we compare this ratio to what we perceive as the input-to-outcome ratio for some other person, called the comparison other.

If the two ratios are roughly the same, we feel that the organization is treating us equitably, and we are motivated to leave things as they are.

If our ratio is the higher of the two, we feel under-rewarded and are motivated to change things. We may:

Decrease our own inputs by not working so hard.

Try to increase our outcomes by asking for a raise.

Expectancy Theory. Expectancy theory, developed by Victor Vroom, is a very complex model of motivation that is based on a simple assumption: motivation depends on how much we want something and on how likely we are to get it. (See Figure 10-5.)

Consider three sales representatives who are candidates for promotion to one sales manager’s job.

Bill has had a very good sales year and always gets positive performance evaluations. However, he isn’t sure he wants the job because it requires travel, long working hours, and stress and pressure.

Paul wants the job badly but does not think he has much chance of getting it. He has had a terrible sales year and gets only mediocre performance evaluations from his present boss.

Susan wants the job as much as Paul, and she thinks she has a pretty good shot. Her sales have improved this past year, and her evaluations are the best in the company.

Expectancy theory would predict that Bill and Paul are not very motivated to seek the promotion. Susan is very motivated to seek the promotion because she wants it and thinks she can get it.

Expectancy theory is complex because each action we take is likely to lead to several outcomes, some of which we want and others we do not.

For example, a person who works hard and puts in many extra hours may get a pay raise, be promoted, and gain valuable new job skills.

However, that person also may be forced to spend less time with his or her family and cut back on social activities.

Expectancy theory is difficult to apply, but it does provide several useful guidelines for managers. It suggests that managers must recognize the following:

Employees work for a variety of reasons.

These reasons, or expected outcomes, may change over time.

It is necessary to show employees how they can attain the outcomes they

Goal-Setting Theory. Goal-setting theory states that employees are motivated to achieve goals they establish together with managers.

Rewards should be tied directly to goal achievement.

Using goal-setting theory, a manager can design rewards that fit employee needs, clarify expectations, maintain equity, and provide reinforcement.

This theory takes into account the goal the employee is to achieve and the rewards that will accrue if the goal is accomplished.

KEY MOTIVATION TECHNIQUES

Management by Objectives. Management by objectives (MBO) is a motivation process in which managers and employees collaborate in setting goals.

The primary purpose of MBO is to clarify the roles that the employees are expected to play in reaching the organization’s goals.

MBO increases employee motivation by empowering them with an active role in goal-setting and performance evaluation.

Most MBO programs consist of five steps.

The first step is to secure the acceptance of top management.

Next, top management and other parties must establish preliminary goals that reflect a firm’s mission and strategy.

In the third step, the manager and employee establish goals and decide what resources the employee will need to accomplish those goals.

Fourth, the manager and employees meet periodically to review each employee’s progress.

The fifth step is evaluation.

Like many other management methods, MBO has advantages and disadvantages.

MBO motivates employees by involving them in the MBO process, improves communication, and makes employees feel that they are an important part of the organization.

However, MBO must have the support of top management, it can result in a lot of paperwork, and managers may not like to work out goals with subordinates.

Job Enrichment. Job enrichment is an attempt to provide workers with variety in their tasks. It gives them some responsibility for, and control over, their jobs.

Job enlargement, which means expanding a worker’s assignments to include additional but similar tasks, can lead to job enrichment.

Job redesign is a type of job enrichment in which work is restructured in ways that cultivate the worker-job match.

Behavior Modification. Behavior modification is a systematic program of reinforcement to encourage desirable behavior. Specific steps include the following:

This technique begins with identifying and measuring a target behavior—the behavior that is to be changed.

Next, managers provide positive reinforcement in the form of a reward when employees exhibit the desired behavior.

Finally, levels of the target behavior are measured again, to determine whether the desired changes have been achieved.

Try to get the comparison other to increase some inputs or receive decreased outcomes.

Leave the work situation.

Do a new comparison with a different comparison other

Equity theory is most relevant to pay as an outcome.

Flexible Scheduling Options . Flextime is a system in which employees choose their own work hours within certain limits set by employers. Typically, the firm establishes two bands of time:

Core time is when all employees must be at work.

Flexible time is the time employees may choose whether to be at work. The only condition is that every employee must work a total of eight hours each day.

However, two common problems associated with using flextime are (1) supervisors sometimes find their jobs complicated by having employees who come and go at different times and (2) employees without flextime sometimes resent co-workers who have it.

Part-Time Work and Job Sharing

Part-time work is permanent employment in which individuals work less than a standard work week.

Job sharing is an arrangement whereby two people share one full-time position.

Job sharing combines the security of a full-time position with the flexibility of a part-time one.

For firms, job sharing provides an opportunity to attract highly skilled employees who are not available on a full-time basis.

Job sharing is difficult if tasks are not easily divisible or if two people don’t work well or communicate well with each other.

A growing number of companies allow telecommuting—working at home all of the time or for a portion of the work week.

In addition to increased productivity, companies that allow occasional telecommuting have lower real estate and travel expenses, improved morale, and the flexibility to access larger labor pools. It also reduces fossil fuel emissions from putting fewer cars on the road.

Among the disadvantages of telecommuting are feelings of isolation, putting in long hours, and being distracted by family responsibilities.

Employee Empowerment. Empowerment means giving employees greater involvement in their jobs and in the operations of the organization by increasing their participation in decision making.

For empowerment to work effectively, management must be involved. They should:

Set expectations.

Communicate standards.

Institute periodic evaluations.

Guarantee follow-up.

Empowerment can lead to increased job satisfaction, improved job performance, higher self-esteem, and increased organizational commitment.

Obstacles to empowerment can include resistance by management, distrust of management by workers, inadequate training, and poor communication between levels of the organization.

Employee Ownership. An effective technique for motivating employees is employee ownership—that is, when employees own the company they work for by virtue of being stockholders.

Employee-owned businesses directly reward employees for success. When the company benefits from increased sales or lower costs, employees benefit directly.

Employee stock ownership plans (ESOPs) provide considerable employee incentives and increase employee involvement and commitment.

In the United States today, about 14.7 million employees participate in 8,926 ESOPs and stock bonus plans.

TEAMS AND TEAMWORK

What Is a Team? In a business organization, a team is a group of workers functioning together as a unit to accomplish a specific task or goal.

Types of Teams. Businesses may have several types of teams to achieve many purposes.

Problem-Solving Teams. A problem-solving team is a team of knowledgeable employees brought together to tackle a specific problem.

Self-Managed Work Teams. Self-managed teams are groups of employees with the authority and skills to manage themselves. The major advantages and disadvantages of self-managed teams are mentioned in Figure 10-6.

Cross-Functional Teams. A cross-functional team consists of individuals with varying expertise, specialties, and skills that are brought together to achieve a common task.

Virtual Teams. A virtual team consists of members who are geographically dispersed but communicate electronically.

Developing and Using Effective Teams. As a team matures, it may pass through five common stages of development. (See Figure 10-7.)

Forming. In the first stage, forming, team members are introduced to one another and begin to develop a social dynamic. Through group interaction over time, team members become more comfortable and a group dynamic emerges.

Storming. During the storming stage, the interaction may be volatile and the team may lack unity. This is the stage at which goals and objectives begin to develop. The success or failure of the ideas in the storming stage determines how long the team will take to reach the next step.

Norming. The team begins to stabilize during the norming stage. Each person’s role within the group begins to solidify, and members recognize the roles of others. If it has not occurred already, an identified leader will emerge.

Performing. The fourth stage, performing, is when the team achieves its full potential. The members of the team finally work in harmony under the established roles to accomplish the necessary goals.

Adjourning. In the final stage, the team is disbanded because the project is complete. Team members may be reassigned to other teams or tasks.

Roles Within a Team. Within any team, each member has a role to play in helping the team attain its objectives. Each of these roles adds important dimensions to team member interactions.

The group member who pushes the team toward achieving goals and objectives plays the task-specialist role by concentrating fully on the assigned task.

The socioemotional role is played by the individual who supports and encourages the emotional needs of the other members.

Some team members play a dual role, which is a combination of the socioemotional and task-specialist roles.

The nonparticipant role behavior is characterized by a person who does not contribute to accomplishing the task and does not provide favorable input with respect to team members’ socioemotional needs.

Team Cohesiveness. Team cohesiveness is affected by different factors, internal and external to the team.

The ideal team size is generally 5 to 12. Anything larger and relationship development becomes too complicated. Anything smaller and the group may be excessively burdened and tasks may not get completed.

One of the most reliable ways to build cohesiveness within a team is through competition with other teams.

A favorable appraisal from an outsider may strengthen team cohesiveness.

Teams are also more successful when goals have been agreed upon beforehand.

Frequent interaction also builds team cohesiveness.

Team Conflict and How to Resolve It

Conflict occurs when a disagreement arises between two or more team members.

If handled properly, conflict can improve a team.

However, if conflict turns hostile and affects the work environment, then steps must be taken to arrive at a compromise.

Conflict must be acknowledged before it can be dealt with or used in a constructive manner.

Ignoring conflict may cause it to simmer or grow, disrupting team progress.

Benefits and Limitations of Teams

Teamwork can be a key to reducing turnover and costs and increasing productivity, customer service, and product quality.

There is also evidence that working in teams leads to higher levels of job satisfaction among employees and a harmonious work environment.

However, the process of organizing teams can be stressful and time consuming, and there is no guarantee that the team will develop effectively.

If a team lacks cohesiveness and is unable to resolve conflict, the company may experience lower productivity.