Business Essentials: Ninth Canadian Edition

Business Essentials
Ninth Canadian Edition
Chapter 9
Motivating, Satisfying, and
Leading Employees
Copyright © 2020 Pearson Canada Inc. 9-1

Learning Objectives (1 of 2)
• Identify and discuss the basic forms of
behaviour that employees exhibit in
organizations.
• Describe the nature and importance of
individual differences among employees.
• Explain the meaning and importance of
psychological contracts and the person
job-fit in the workplace.
• Identify and summarize the most
important models of employee motivation.

Learning Objectives (2 of 2)
• Describe the strategies used by
organizations to improve job satisfaction
and employee motivation.
• Define leadership and distinguish it from
management.
• Summarize the approaches to leadership
that developed in the twentieth century.
• Describe the most recent ideas about
effective leadership.

Forms of Employee Behaviour (LO 9-1)
Employee Behaviour
• Performance behaviour
• Organizational citizenship
• Counterproductive
behaviours
– absenteeism
– turnover

Individual Differences Among Employees
(LO 9-2) (1 of 3)
• Personality
– five fundamental traits that are especially relevant to organizations

(LO 9-2) (2 of 3)
• Emotional Intelligence (EQ — Emotional Quotient)
• Social Skills
• Self Awareness
• Self Regulation
• Motivation
• Empathy

(LO 9-2) (3 of 3)
• Attitudes
– reflection of our beliefs and feelings about ideas situations and
other people
• Job Satisfaction
– extent to which people have positive attitudes toward their jobs
• Organizational (job) Commitment

– reflects an individual’s identification with the organization and its
mission

Matching People and Jobs (LO 9-3) (1 of 2)
• Psychological Contract
– expectations held by employees concerning their contribution to
an organization and what the organization will provide in return

Matching People and Jobs (LO 9-3) (2 of 2)
Person–Job Fit
matching of the employee’s

contributions, needs, job-related … the needs of the job
behaviours and abilities to …

Motivation in the Workplace (LO 9-4) (1 of 9)
• Motivation
– the set of forces that cause people to behave in certain ways
Motivational Theories Overview

• Classical Theory & Scientific Management
• Behaviour Theory
• Contemporary Motivation Theories
Copyright © 2020 Pearson Canada Inc. 9 - 10

• Classical Theory
– workers are motivated
primarily by money,
ttherefore, paying employees
more would result in higher
levels of production
• Scientific Management
– analyze jobs and find more
efficient ways to perform
them (time-and-motion studies)

• Early Behavioural Theory
Human-Resources Maslow’s Hierarchy of Two-Factor (Motivator-

Model: Theory X and Y Needs Model Hygiene) Theory
• Hawthorne Effect
– tendency for workers
productivity to increase when
they are receiving special
attention from management

• Human Resources Model (Theory X and Theory Y)
– two diametrically opposed perceptions of employees
Theory X Theory Y
• Employees dislike work • Employees like work
– Lazy – Energetic
– Irresponsible – Growth oriented
– Uncooperative – Responsible
• Threaten, or punish, for – Cooperative
results • Use intrinsic, rather than
extrinsic rewards

• Maslow’s Hierarchy of Needs
– basic needs must be met before an individual seeks higher level needs.

• Hertzberg Two-Factor Theory
– highlights two sets of factors associated with satisfaction and
dissatisfaction in the workplace
• Supervisors
• Working
Motivating • Recognition Hygiene Conditions
• Responsibility
Factors Factors • Pay and Security
• Advancement
• (Dissatisfaction • Interpersonal
(Satisfaction vs. Achievement
vs. No Relations
No Satisfaction) • Work itself Dissatisfaction)
• Company Policies
and Procedures

Contemporary Motivation Theory
• Expectancy Theory
• Equity Theory

• Expectancy Theory
– people are motivated to work towards rewards that they want and
believe they have a reasonable chance of obtaining

• Equity Theory
– individuals compare their perception of
what they contribute (inputs ) < others’ inputs
=
what they receive (outputs ) > others’ outputs
– the result is a feeling of equity or inequity

– the ratios must be fair, not the same, to perceive equity

Strategies for Enhancing Motivation (LO 9-5)
(1 of 12)
Reinforcement/Behaviour Modification Theory
Goal Setting Theory
Management by Objectives
Participative Management and Empowerment
Team Management
Job Enrichment and Job Redesign
Modified Work Schedules

(2 of 12)
• Reinforcement
– applying (or withholding) positive (or negative) consequences in
order to motivate employees
(1) positive reinforcement
(2) punishment
(3) omission
(4) negative reinforcement

(3 of 12)
• Goal Setting Theory
– focus on setting goals top help motivate employees
– SMART Goals
Specific
Measurable
Achievable
Realistic
Time framed
(4 of 12)
• Management by Objectives
– system of collaborative goal
setting that extends from the
top to the bottom of the firm
 employees learn more about
company-wide objectives
 feel as though they are part
of a team
 see how they can improve
company performance by
achieving their own goals

(5 of 12)
• Participative Management and Empowerment

– employees are more satisfied if they have a say in how they do
their jobs and how the company is managed
Wikis Quality Circle
– employees feel more committed to goals

 not desired by all employees

(6 of 12)
• Team Management
– individual employees are given decision-making responsibility for
certain narrow activities
• Types of teams
Problem Solving Teams
Transnational Teams
Self-Managed Teams
Project Teams (Venture)
Virtual Teams
(7 of 12)
• Job Enrichment
– expanding or adding one or more motivating factors to a job
– used to increase job satisfaction
• Job Redesign
– increases job satisfaction by improving the employee–job fit
 combining tasks
 creating natural work groups
 establishing client relationships
– useful for individuals with strong need for growth or achievement

(8 of 12)
• Modified Work Schedules

– allow individuals to fulfill work commitments more effectively
around personal or community obligations
compressed
flextime
workweek
workshare
telecommuting
programs

(9 of 12)
• Flextime
– adjusts the
standard daily work
schedule to fit
employees’ needs
 all must be
available during
the core time
 start and end
times can vary

(10 of 12)
• Compressed Workweek
– employees work less days but complete the same amount of hours
Example of a Compressed
Regular Workweek
Workweek
• Monday 9 a.m.–5 p.m. (8hrs) • Monday 8 a.m.–6 p.m. (10hrs)
• Tuesday 9 a.m.–5p.m. (8hrs) • Tuesday 8 a.m.–6p.m. (10hrs)
• Wednesday 9 a.m.–5p.m. (8hrs) • Wednesday 8 a.m.–6p.m. (10hrs)
• Thursday 9 a.m.–5p.m. (8hrs) • Thursday 8 a.m.–6p.m. (10hrs)
• Friday 9 a.m.–5p.m. (8hrs) • Friday OFF

• Sat–Sun. OFF • Sat–Sun. OFF
• Total (8hrs*5 Days) = 40 hrs -break • Total (10hrs*4 Days) = 40 hrs -break
(11 of 12)
• Telecommuting
– employees do all or some

work away from the office
– home-based office
technology is used
(computers, voicemail,
email, modems, smart
phones, overnight delivery
services)

(12 of 12)
• Workshare Programs (job sharing)
– two people share a single, full-time position
– useful for those who wish to stay in the workforce part-time

 mothers with young children
 partially retired persons
– most workshare employees are university-educated women in

professional occupations

Leadership and Motivation (LO 9-6)
• Leadership
– the process of motivating others to meet goals

Approaches to Leadership (LO 9-7) (1 of 3)
• Trait Approach
– identifies traits that would distinguish leaders from non-leaders
• Behavioural Approach
– determines how the behaviours of successful leaders differs from
those of unsuccessful leaders
 task oriented vs. employee oriented

• Leadership Styles
Autocratic Democratic Free-Rein
– many managers use one style but some may use a combination of
styles depending on the situation

Situational (Contingency) Approach
• Leaders behave differently in different situations

• Based on:
– characteristics of the leader
– characteristics of the subordinates
– characteristics of the situation

Recent Trends in Leadership (LO 9-8) (1 of 6)
• Transactional Leadership
– emphasizes routine, regimented activities that focus on maintaining
stability or the status quo
• Transformational Leadership
– the ability of the leader to recognize the need for change; create a
vision to make that change happen

• Charismatic Leadership
– possess a high level of

confidence
– possess a strong need to

influence others
– communicate high expectations

of subordinates
– generally more successful at

influencing subordinates


• Leaders as Coaches
– help select team members and other new employees
– provide some general direction
– help train and develop the team
– help the team get the information and resources

• Gender and leadership
– more women in management roles
– women tend to be more
democratic when making decisions
• Cross-cultural leadership
– new leaders are coming from
diverse backgrounds
– these new leaders may have
different leadership styles

• Strategic Leadership
– able to see the whole picture and envision necessary changes
• Ethical Leadership
– follows high standards of ethical leadership
• Virtual Leadership
– involves communication electronically rather than face to face

Quick-Check Questions (1 of 10)
1) In which motivational theory does the employee
subconsciously ask themselves: “Can I do what is required?”
and “Do I want the reward?”
A) Goal-setting
B) Equity
C) Maslow’s hierarchy of needs
D) Expectancy

1) In which motivational theory does the employee
subconsciously ask themselves: “Can I do what is required?”
and “Do I want the reward?”
A) Goal-setting
B) Equity
C) Maslow’s hierarchy of needs
D) Expectancy
Answer:
D) Expectancy

2) The motivational theory that focuses on inputs and outputs
and the relative ratio between employees is called:
A) Expectancy Theory
B) Hawthorne’s Theory
C) Equity Theory
D) Two-Factor Theory

2) The motivational theory that focuses on inputs and outputs
and the relative ratio between employees is called:
A) Expectancy Theory
B) Hawthorne’s Theory
C) Equity Theory
D) Two-Factor Theory
Answer:
C) Equity Theory

3. A ___________ is a technique for maximizing the quality
of production. Employees are grouped into small teams
that define, analyze, and solve quality and other process-
related problems within their area.
A) Quality Circle
B) Telecommuting Review
C) Job Enrichment Panel
D) Job Redesign Review

3. A ___________ is a technique for maximizing the quality
of production. Employees are grouped into small teams
that define, analyze, and solve quality and other process-
related problems within their area.
A) Quality Circle
B) Telecommuting Review
C) Job Enrichment Panel
D) Job Redesign Review
Answer:
A) Quality Circle

4) Your manager has agreed to allow you to work an additional 2
hours per day from Monday to Thursday and then take every
Friday off. Your modified work schedule is called __________.
A) flextime
B) compressed workweek
C) job sharing
D) self directed scheduling

4) Your manager has agreed to allow you to work an additional 2
hours per day from Monday to Thursday and then take every
Friday off. Your modified work schedule is called __________.
A) flextime
C) job sharing
D) self directed scheduling
Answer:

5) At Humber Lumber and Building Centers, department heads
usually make decisions after meeting with employees and
seeking their ideas and suggestions. Department heads at
Humber Lumber make extensive use of the ___________
style of leadership.
A) autocratic
B) diplomatic
C) democratic
D) free-rein

5) At Humber Lumber and Building Centers, department heads
usually make decisions after meeting with employees and
seeking their ideas and suggestions. Department heads at
Humber Lumber make extensive use of the ___________
style of leadership.
A) autocratic
B) diplomatic
C) democratic
D) free-rein
Answer:
C) democratic

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Business Essentials

Ninth Canadian Edition

Copyright © 2020 Pearson Canada Inc. 9-1

Copyright © 2020 Pearson Canada Inc. 9-2

Copyright © 2020 Pearson Canada Inc. 9-3

Copyright © 2020 Pearson Canada Inc. 9-4

Copyright © 2020 Pearson Canada Inc. 9-5

• Emotional Intelligence (EQ — Emotional Quotient)

Copyright © 2020 Pearson Canada Inc. 9-6

• Organizational (job) Commitment

Copyright © 2020 Pearson Canada Inc. 9-7

Copyright © 2020 Pearson Canada Inc. 9-8

matching of the employee’s

Copyright © 2020 Pearson Canada Inc. 9-9

Motivational Theories Overview

Copyright © 2020 Pearson Canada Inc. 9 - 10

Copyright © 2020 Pearson Canada Inc. 9 - 11

Human-Resources Maslow’s Hierarchy of Two-Factor (Motivator-

Copyright © 2020 Pearson Canada Inc. 9 - 12

Copyright © 2020 Pearson Canada Inc. 9 - 13

Copyright © 2020 Pearson Canada Inc. 9 - 14

Copyright © 2020 Pearson Canada Inc. 9 - 15

Contemporary Motivation Theory

Copyright © 2020 Pearson Canada Inc. 9 - 16

Copyright © 2020 Pearson Canada Inc. 9 - 17

– the result is a feeling of equity or inequity

Copyright © 2020 Pearson Canada Inc. 9 - 18

Reinforcement/Behaviour Modification Theory

Goal Setting Theory

Participative Management and Empowerment

Job Enrichment and Job Redesign

Modified Work Schedules

(1) positive reinforcement

(4) negative reinforcement

Copyright © 2020 Pearson Canada Inc. 9 - 20

Copyright © 2020 Pearson Canada Inc. 9 - 22

• Participative Management and Empowerment

Wikis Quality Circle

– employees feel more committed to goals

Copyright © 2020 Pearson Canada Inc. 9 - 23

Problem Solving Teams

Project Teams (Venture)

Copyright © 2020 Pearson Canada Inc. 9 - 25

• Modified Work Schedules

Copyright © 2020 Pearson Canada Inc. 9 - 26

Copyright © 2020 Pearson Canada Inc. 9 - 27

• Wednesday 9 a.m.–5p.m. (8hrs) • Wednesday 8 a.m.–6p.m. (10hrs)

• Thursday 9 a.m.–5p.m. (8hrs) • Thursday 8 a.m.–6p.m. (10hrs)

• Friday 9 a.m.–5p.m. (8hrs) • Friday OFF

– employees do all or some

Copyright © 2020 Pearson Canada Inc. 9 - 29

• Workshare Programs (job sharing)

– two people share a single, full-time position

– useful for those who wish to stay in the workforce part-time

– most workshare employees are university-educated women in

Copyright © 2020 Pearson Canada Inc. 9 - 30

Copyright © 2020 Pearson Canada Inc. 9 - 31

Copyright © 2020 Pearson Canada Inc. 9 - 32

Autocratic Democratic Free-Rein

Copyright © 2020 Pearson Canada Inc. 9 - 33

Situational (Contingency) Approach

• Leaders behave differently in different situations

Copyright © 2020 Pearson Canada Inc. 9 - 34