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Management Tools & Principles
1º Grado en Administración de Empresas
Facultad de Ciencias Humanas, Sociales y de Comunicación

IE Universidad
Reservados todos los derechos.

No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad.
MANAGEMENT TOOLS & PRINCIPLES
PART 4
a64b0469ff35958ef4ab887a898bd50bdfbbe91a-7323366
Reservados todos los derechos. No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad.
PART 4: SUPPORTING THE WORKFORCE: Motivation
and Human Resources
Chapter 10: Employee Motivation
What Motivates Employees to Peak Performance?
What is Motivation?
Motivation: the combination of forces that move individuals to take certain actions and avoid
other actions.
Engagement: an employee’s rational and emotional commitment to his or her work.
→ Four indicators of motivation:
→ This detects who is motivated but not why.
4 Fundamental Drives to Motivation

- The drive to acquire physical and
emotional goods
- The drive to bond (feeling connected)
- The drive to comprehend (learn)
- The drive to defend (justice)
Satisfying all 4 is essential.
Classical theories of motivation

I. Taylor’s specific management theory
A management approach designed to improve employees’ efficiency by scientifically
studying their work. Search for one best way to do it.
And making them specialize in concrete part of their job
- Popularized financial incentives for motivation.
- However does not consider other motivational elements, such as oppor-
tunities for personal satisfaction , self actualisation and justice.
- Was not done in the search of motivation but of efficiency, but later found out
they needed incentives ( financial incentives)
- Replicable- easy to expand
II. Hawthorne studies, hawthorne effect

A supposed effect of organizational research, in which employees change their
behavior because they are being studied and given special treatment.
Studies wanting to increase productivity , changing light to see in which they perform
better. All of a sudden productivity of both increases- because they know they are
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being observed.
III. Maslow’s hierarchy of needs
Abraham Maslow suggested that
needs on the lower levels of the
hierarchy must be satisfied before
higher-level needs can be addressed.
This model offers a convenient way to
categorize needs but it lacks empirical
validation.
IV. Mcgregor Theory X and Theory Y → Theory about management thinking

- Theory X- managers believe that employees dislike working are
irresponsible, unambitious and can only be motivated by money, promotions
or fear of losing their jobs. - extrinsic rewards, hygiene.
- Theory Y- managers believe that employees enjoy work and can be
motivated by goals, self improvement. - intrinsic rewards , motivators
(autonomy, mastery, purpose)
V. Herzberg’s Two Factor Theory → motivators (intrinsic), hygiene (extrinsic)
VI. McClelland’s 3 Needs Theory

David McClelland’s model of motivation that highlights the needs for power, affiliation, and
achievement.
The model highlights the needs for
- Power: having and demonstrating control over others
- Affiliation: being accepted by others and having opportunities for social interaction
- Achievement: attaining personally meaningful goals
Those with a high need for achievement tend to make successful entrepreneurs
Managers who are most successful in a conventional organizational structure tend to have a
higher need for power and relatively little need for affiliation.
Explaining Employee Choices

Expectancy Theory
Connects an employee’s efforts to his/her expectations about the outcome. Quantity and
Quality of effort depend on:
- Own ability to perform
- Expectations about likely rewards
- Attractiveness of those rewards
Equity Theory
The idea that employees base their level of satisfaction on the ratio of their inputs to the job
to the outputs or rewards they receive from it.
Also compare yourself to other people- looking for fairness in rewards, what do employees
feel like they deserve. Am I being recognized according to my inputs?
Goal Setting Theory

A motivational theory suggesting that setting goals can be an effective way to motivate
employees.
- Clear goals
- Diculty enough to require effort
- Individuals belief in their own ability
- Timely feedback
Tell people where we are going to motivate them.
Motivating and Challenging Goals

Management by Objectives (MBO)
MBO: Technique used to implement Goal setting theory
A motivational approach in which managers and employees work together to structure
personal goals and objectives for every individual, department, and project to mesh with the
organization’s goals.
Risks and limitations of goal-setting theory

- Overly narrow goals → people can miss or intentionally ignore vital aspects of the
bigger picture.
- Overly challenging goals → can also lead to risky behavior and ethical lapses as
employees cut corners or commit ethical lapses to reach targets.
- Inappropriate time horizons → too much emphasis on short- term performance can
degrade long-term performance.
- Unintentional performance limitations → Goals can limit performance potential when
employees reach their targets and then stop trying
- Missed learning opportunities → Employees can get so focused on meeting deadlines
and other goals that they overlook opportunities to learn
- Unhealthy internal competition
- Decreased intrinsic motivation → Relying too heavily on exterior goals and their
extrinsic rewards can eventually dull the intrinsic motivation to do well for the sake of
the work.
Redesigning Jobs to Stimulate Performance
The Job Characteristics Model
→ A model suggesting that five core job dimensions influence three critical psychological
states that determine motivation, performance and other outcomes.
Five core job dimensions on employee motivation:
1. Skill variety → the range of skills and talents needed to accomplish the
responsibilities associated with the job. The broader the range of skills required, the
more meaningful the work is likely to be to the employee.
2. Task identity →the degree to which the employee has responsibility for completing
an entire task. Greater task identity contributes to the sense of meaning in work.
3. Task significance → the employee’s perception of the impact the job has on the lives
of other people.
4. Autonomy → the degree of independence the employee has in carrying out the job.
5. Feedback → timely information that tells employees how well they’re doing in their
jobs.
All of them contribute in one way or another to three critical psychological states:
- Experienced meaningfulness of the work: a measure of how much employees care
about the jobs they are doing.
- Experienced responsibility for results: the sense each employee has that his or her
efforts contribute to the outcome
- Knowledge of actual results: employees’ awareness of the real-life results of their
efforts.
Approaches to Modifying core job dimensions

- Job enrichment: Making jobs more challenging and interesting by expanding the
range of skills required.
- Cross-training: Training workers to perform multiple jobs and rotating them through
these various jobs to combat boredom or burnout. (job rotation)
- Job enlargement: adding tasks that aren’t necessarily any more challenging. If it
simply gives workers more to do
Reinforcing High-Performance Behavior
Reinforcement theory: a motivational approach based on the idea that managers can
motivate employees by influencing their behaviors with positive and negative reinforcement
Types of Reinforcement
Positive reinforcement: offers pleasant consequences for particular actions or behaviors,
increasing the likelihood that the behaviors will be repeated.
- Many companies use some form of incentives, monetary payments and other
rewards of value for positive reinforcement, to motivate employees to achieve specific
performance targets.
Negative reinforcement: encouraging the repetition of a particular behavior (desirable or
not) by removing unpleasant consequences for the behavior.
Unintended Consequences of Reinforcement

Because they often focus on a single variable, incentive programs can distort
performance by encouraging employees to focus on that variable to the detriment of
other responsibilities.
Motivational Strategies
Providing Timely and Frequent Feedback
Feedback “closes the loop” in two important ways: It gives employees the information they
need in order to assess their own performance and make improvements if necessary, and it
serves the emotional purpose of reassuring employees that their work is meaningful and
valued. Even if the feedback is constructive criticism, it lets employees know that what they
do is important enough to be done correctly.
Making it Personal
Gamifying for Healthy Competition

Gamification: applying game principles such as scorekeeping to various business
processes.
- Encouraging participation in and contribution to social networks and other
communities is a good example of how gamification can motivate employees and
other stakeholders
Addressing Workplace Negativity

In the workplace managers must address problems and conflicts quickly, before they
multiply and erode employee morale. Left to fester long enough, these problems can
destroy the sense of community in a company and leave employees feeling hopeless about
the future. Jumping on a problem quickly can have a double positive impact: It solves the
problem, and it demonstrates to everyone that managers care about the emotional health of
the workforce.
Being an Inspiring Leader
Inspired motivation in a business enterprise requires inspired leadership. To a
large degree, good employees come to work already motivated
- Micromanaging: overseeing every small detail of employees’ work and
refusing to give them freedom or autonomy.
Motivating yourself
Every employee has an ethical obligation to find the motivation to accomplish the tasks for
which he or she is getting paid. Managers can foster motivation (and they can certainly
diminish it through clumsy leadership), but the motivation must originate from within each
employee.
Chapter 11: Human Resources Management
Guiding the Human Side of Business
Human resources (HR) management: the specialized function of planning how to obtain
employees, oversee their training, evaluate them, and compensate them.
Contemporary HR Challenges
I. Aligning the Workforce with Business Requirements
Matching the right employees to the right jobs at the right time is a constant
challenge. Externally, changes in market needs, competitive moves, advances in
technology, and new regulations can all affect the ideal size and composition of the
workforce. Internally, shifts in strategy, process changes, and growing or declining
revenue can force managers to realign their workforces
II. Creating Safe Workspace

Every company has a responsibility to create safe workplaces for its employees, and
that includes physical as well as psychological safety. In addition, all employees
share the responsibility to conduct themselves in ways that don’t compromise the
physical or psychological safety of their colleagues.
- Sexual harassment: either unwelcome requests for sexual favors with an
implicit reward or punishment related to work or the creation of an
environment in which employees are made to feel uncomfortable by lewd
jokes, remarks, or gestures.
III. Ensuring Fair Treatment and Equal Opportunity

Companies must ensure that employees are treated fairly and given equal
opportunities.
A. Fairness in Recruiting
Candidate screening, interviewing, and hiring, making sure that all qualified
applicants are given the opportunity to present themselves and their
qualifications to potential employers.
B. Fairness in Employee Development

Once employees are hired, they should be given equal opportunities to
improve their skills and gain important experience.
C. Transparent and Inclusive Networking Opportunities

Informal connections among people at various levels in the company
hierarchy and interactions that take place outside the regular course of
business can unfairly advantage some employees and disadvantage others.
D. Fairness in Project Assignments and Promotion Opportunities

HR leaders must ensure that all qualified employees have the chance to be
considered for desirable project assignments and promotion opportunities.
E. Fairness in Compensation
The gender pay gap is one of the most discussed questions of equity in
today’s workplace.
Promoting Employee Well-Being

- As companies try to outrace competitors and keep workforce costs to a minimum,
managers need to be on guard for employee burnout, a state of physical and
emotional exhaustion that can result from constant exposure to stress over a long
period of time.
- Work-life balance: efforts to help employees balance the competing demands of
their personal and professional lives.
- To improve the quality of work life (QWL): an overall environment that
results from job and work conditions.
The Evolving Role of HR

HR departments also need to balance competing interests in two important ways.
1. HR sometimes gets caught in a battle of loyalties between employees and
management. While many HR departments have employee representatives who can
assist workers with both routine matters and special circumstances such as
harassment complaints, HR ultimately works for the company, not for the employees.
2. While supporting employees and contributing to an enjoyable work experience, HR
also has a wide range of important legal responsibilities that cannot be compromised.
Managing a Diverse Workforce

Dimensions of Workforce Diversity
Diversity: all the characteristics and experiences that define each of us as individuals.
1. Age
Today’s workplaces can have three, four, or even five generations working side by
side. Each has been shaped by dramatically different world events, social trends, and
technological advances, so it is not surprising that they often have different values,
expectations, and behaviors.
2. Gender
Perceptions, roles, and treatment of men and women in the workplace have been
complex and at times contentious issues.
- Sexism: discrimination on the basis of gender.
Companies can also take steps to make sure their nondiscrimination policies protect
employees’ right to gender expression based on personal gender identity.
3. Race and Ethnicity

The element of race and ethnicity in the diversity picture involves the same concerns
as gender: equal pay for equal work, access to promotion opportunities, and ways to
break through the glass ceiling.
4. Religion
On one hand, some employees feel they should be able to express their beliefs in the
workplace. On the other hand, companies want to avoid situations in which openly
expressed religious differences might cause friction between employees or distract
employees from their responsibilities.
5. Ability
People whose hearing, vision, cognitive ability, or physical ability to operate digital
devices or machinery is impaired can be at a significant disadvantage in today’s
workplace. As with other elements of diversity, success starts with respect for
individuals and sensitivity to differences.
Diversity and Inclusion Initiatives

Diversity and inclusion initiatives: programs and policies that help companies support
diverse workforces and markets
- Contracting with more diverse suppliers, targeting a more diverse customer base,
and supporting the needs and interests of a diverse workforce.
For these initiatives to have meaningful impact, they must be integrated in a company’s
strategic planning, decision-making, and employee development efforts.

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Management-Tools-and-Principles-...

Management Tools & Principles

1º Grado en Administración de Empresas

Facultad de Ciencias Humanas, Sociales y de Comunicación

Reservados todos los derechos.

What Motivates Employees to Peak Performance?

→ This detects who is motivated but not why.

4 Fundamental Drives to Motivation

Classical theories of motivation

II. Hawthorne studies, hawthorne effect

III. Maslow’s hierarchy of needs

IV. Mcgregor Theory X and Theory Y → Theory about management thinking

V. Herzberg’s Two Factor Theory → motivators (intrinsic), hygiene (extrinsic)

VI. McClelland’s 3 Needs Theory

Explaining Employee Choices

Goal Setting Theory

Motivating and Challenging Goals

Risks and limitations of goal-setting theory

Approaches to Modifying core job dimensions

Unintended Consequences of Reinforcement

Gamifying for Healthy Competition

Addressing Workplace Negativity

II. Creating Safe Workspace

III. Ensuring Fair Treatment and Equal Opportunity

B. Fairness in Employee Development

C. Transparent and Inclusive Networking Opportunities

D. Fairness in Project Assignments and Promotion Opportunities

Promoting Employee Well-Being

The Evolving Role of HR

Managing a Diverse Workforce

3. Race and Ethnicity

Diversity and Inclusion Initiatives

strategic planning, decision-making, and employee development efforts.

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