Chapter 10

MOTIVATING
EMPLOYEES

Introduction to Business Administration – Instructor: Phuoc Van Hanh

LEARNING OBJECTIVES
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity
theories.
LO 10-7 Show how managers put motivation theories into action through such strategies
as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees
across the globe and across generations.
GETTING TO KNOW

Rose Marcario,
former CEO of Patagonia
 The Value of Motivation

The word engagement is used to describe employees’ level of motivation,

passion, and commitment.

Intrinsic reward
The personal satisfaction you feel when you perform well and complete
goals.

Extrinsic reward
Something given to you by someone else as recognition for good work;
extrinsic rewards include pay increases, praise, and promotions.
 Taylor’s theory of scientific management

IN-CLASS ACTIVITY Hawthorne studies

Maslow’s hierarchy of needs

Groups discuss these theories (30 minutes).
Take notes on: Herzberg’s two-factor theory
- author, year published.
Theory X, Theory Y, Theory Z
- 3 keywords.
- a situational example.
Goal-setting theory
=> Notes submitted: 5 bonus points.
Expectancy theory
Then I’ll pick groups to present (5 minutes), including
other groups discussing/asking questions. Equity theory
=> Good presentations: 5 bonus points.
LEARNING OBJECTIVES
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity
theories.
LO 10-7 Show how managers put motivation theories into action through such strategies
as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees
across the globe and across generations.
Frederick Taylor: The Father of Scientific Management

Taylor’s goal was to increase worker productivity to benefit both the firm
and the worker.
=> The solution: teach people the one “best way” to perform each task.

Scientific management
Studying workers to find the most efficient ways of doing things and then
teaching people those techniques.
Frederick Taylor: The Father of Scientific Management

Three elements were basic to Taylor’s approach:

- Time - Methods - Rules of work

His most important tools were observation and the stopwatch.

Time-motion studies
Studies of the tasks performed in a job and the time needed for
each.
Frederick Taylor: The Father of Scientific Management

Scientific management viewed people largely as machines that needed to

be properly programmed.

Taylor believed that workers would perform at a high level of effectiveness

- that is, be motivated - if they received high enough pay.
LEARNING OBJECTIVES
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity
theories.
LO 10-7 Show how managers put motivation theories into action through such strategies
as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees
across the globe and across generations.
 Elton Mayo and the Hawthorne Studies

One study began at the Western Electric Company’s Hawthorne plant

in Cicero, Illinois, in 1927 and ended six years later.

The research gave birth to the concept of human-based motivation by

showing that employees behaved differently simply because they
were involved in planning and executing the experiments.
 Elton Mayo and the Hawthorne Studies

Some conclusions:
- The workers in the test room thought of themselves as a social group.
- The workers were included in planning the experiments.
- No matter the physical conditions, the workers enjoyed the atmosphere
of their special room and the additional pay for being more productive.

Hawthorne effect
People’s tendency to behave differently when they know they’re
being studied.
LEARNING OBJECTIVES
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity
theories.
LO 10-7 Show how managers put motivation theories into action through such strategies
as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees
across the globe and across generations.
 Motivation and Maslow’s Hierarchy of Needs

People are motivated to satisfy unmet needs. Needs that have already been
satisfied no longer provide motivation.

Maslow’s hierarchy of needs

Theory of motivation based on unmet human needs from basic physiological
needs to safety, social, and esteem needs to self-actualization needs.
 Fig 10.1 Maslow’s hierarchy of needs

Self-actualization needs: The need to develop to

one’s fullest potential.

Esteem needs: The need for recognition and

acknowledgment from others, as well as self-respect
and a sense of status or importance.

Social needs: The need to feel loved, accepted,

and part of the group.

Safety needs: The need to feel secure at work and

at home.

Physiological needs: Basic survival needs, such as

the need for food, water, and shelter.
LEARNING OBJECTIVES
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity
theories.
LO 10-7 Show how managers put motivation theories into action through such strategies
as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees
across the globe and across generations.
 Herzberg’s Motivating Factors

What creates enthusiasm for workers and makes them work to full potential?

Motivators
Job factors that cause employees to be productive and give them satisfaction.

Hygiene factors
Job factors that can cause dissatisfaction if missing but that do not
necessarily motivate employees if increased.
Fig 10.2 Herzberg’s motivators and hygiene factors
LEARNING OBJECTIVES
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity
theories.
LO 10-7 Show how managers put motivation theories into action through such strategies
as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees
across the globe and across generations.
McGregor’s Theory X and Theory Y

The way managers go about motivating

people at work depends greatly on their
attitudes toward workers.

Ouchi’s Theory Z

Theory Z views the organization as

a family that fosters cooperation
and organizational values.
 McGregor’s Theory X and Theory Y

The assumptions of Theory X management are:

• The average person dislikes work and will avoid it if possible.

• Workers must be forced, controlled, directed, or threatened
with punishment to make them put forth the effort to achieve
the organization’s goals.
• The average worker prefers to be directed, wishes to avoid
responsibility, has relatively little ambition, and wants security.
• Primary motivators are fear and punishment.
 McGregor’s Theory X and Theory Y

Theory Y makes entirely different assumptions about people:

• Most people like work; it is as natural as play or rest.

• Most people naturally work toward goals to which they are
committed.
• The depth of a person’s commitment to goals depends on the
perceived rewards for achieving them.
• Most people not only accept but also seek responsibility.
• People are capable of using a relatively high degree of imagination,
creativity, and cleverness to solve problems.
• People are motivated by a variety of rewards.
 McGregor’s Theory X and Theory Y

A key technique here is empowerment, giving employees authority

to make decisions and tools to implement the decisions they make.

For empowerment to be a real motivator, management should follow

these three steps:

1. Find out what people think the problems in the organization

are.
2. Let them design the solutions.
3. Get out of the way and let them put those solutions into action.
 Ouchi’s Theory Z

Theory Z includes long-term employment, collective decision making,

individual responsibility for the outcomes of decisions, slow evaluation
and promotion, moderately specialized career paths, and holistic
concern for employees (including family).
Fig 10.4
Theory Z: A blend of American and Japanese management approaches
 Fig 10.5 A comparison of theories X, Y, and Z

Discussion question:

Which environment would

you prefer to work?
Explain your reasons.
LEARNING OBJECTIVES
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity
theories.
LO 10-7 Show how managers put motivation theories into action through such strategies
as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees
across the globe and across generations.
 Goal-setting theory and
Management by Objectives

Goal-setting theory says setting ambitious but attainable goals

can motivate workers and improve performance …
if the goals are accepted and accompanied by feedback,
and
if conditions in the organization pave the way for achievement.
Goal-setting theory and Management by Objectives

Management by objectives (MBO)

Peter Drucker’s system of goal setting and implementation.

It involves a cycle of discussion, review, and evaluation of objectives
among top and middle-level managers, supervisors, and employees.
 Goal-setting theory and
Management by Objectives

Management by objectives (MBO)

Helping means working with the subordinate and doing part of the work if
necessary.
Coaching means acting as a resource— teaching, guiding, and
recommending—but not participating actively or doing the task.

The central idea of MBO is that employees need to motivate themselves.

 Meeting employee expectations:
Expectancy Theory

Victor Vroom’s expectancy theory

The amount of effort employees exert on a specific task depends on

their expectations of the outcome.

Fig 10.6 Expectancy theory

 Meeting employee expectations:
Expectancy Theory

An example from group 7: Assume Phuc is working at a sales department.

She believes that if She also believes Last but not least,
she puts in extra that if she achieves she highly values
effort by making better sales the bonus as it
more sales calls, performance, she would allow her to
she will achieve will receive a afford a vacation
better sales significant bonus. she has been
performance dreaming of.

• expectancy • instrumentality • valence

 Meeting employee expectations:
Expectancy Theory

Researchers David Nadler and Edward Lawler modified Vroom’s

theory and suggested that managers follow five steps to
improve employee performance:

1. Determine what rewards employees value.

2. Determine each employee’s desired performance standard.
3. Ensure that performance standards are attainable.
4. Guarantee rewards tied to performance.
5. Be certain that employees consider the rewards adequate.
Treating Employees Fairly:
Equity Theory

Equity theory
Employees try to maintain equity
between what they put into the job
and what they get out of it,
comparing those inputs and outputs
to those of others in similar positions.
 Treating Employees Fairly:
Equity Theory

When workers perceive inequity, they will try to reestablish fairness

in a number of ways.

In the workplace, perceived inequity may lead to lower

productivity, reduced quality, increased absenteeism, and voluntary
resignation.
LEARNING OBJECTIVES
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity
theories.
LO 10-7 Show how managers put motivation theories into action through such strategies
as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees
across the globe and across generations.
 Motivation through Job Enrichment

Job enrichment
A motivational strategy that emphasizes motivating the worker
through the job itself.
 Motivation through Job Enrichment

Job enrichment Job simplification

Individuals can complete an Breaking a job into simple steps
identifiable task from beginning and assigning people to each.
to end and are held responsible
for successful achievement.
 Motivation through Job Enrichment

Five characteristics of work are important in motivation and performance:

1. Skill variety. The extent to which a job demands different skills.

2. Task identity. The degree to which the job requires doing a task with a visible outcome
from beginning to end.
3. Task significance. The degree to which the job has a substantial impact on the lives
or work of others in the company.
4. Autonomy. The degree of freedom, independence, and discretion in scheduling work
and determining procedures.
5. Feedback. The amount of direct and clear information given about job performance.
 Motivation through Job Enrichment

Job enlargement
A job enrichment strategy that involves combining a series of tasks
into one challenging and interesting assignment.

Job rotation
A job enrichment strategy that involves moving employees from one
job to another.
Discussion question:

Q: Glassblowers like this use a variety of dangerous tools to create vibrant

works of art. One of the hallmarks of job enrichment is the worker’s ability
to perform a complete task from beginning to end. Why do you think this
might be more motivating than simply adding a few parts to a product on
an assembly line?
 Motivation through Open Communication

Procedures for encouraging open communication include the following:

• Create an organizational culture that rewards listening.

• Train supervisors and managers to listen.
• Use effective questioning techniques.
• Remove barriers to open communication.
• Avoid vague and ambiguous communication.
• Make it easy to communicate.
• Ask employees what is important to them.
 Motivation through Recognition

Letting people know you appreciate their work is usually more powerful
than giving a raise or bonus alone.

Promotions aren’t the only way to celebrate a job well done.

Recognition can be as simple as noticing positive actions out loud,

making employees feel their efforts are worthwhile and valued enough to
be noticed.

*Adapting to Change: Instant Insight into Employee Engagement (p. 206)

LEARNING OBJECTIVES
LO 10-1 Explain Taylor’s theory of scientific management.
LO 10-2 Describe the Hawthorne studies and their significance to management.
LO 10-3 Identify the levels of Maslow’s hierarchy of needs and apply them to employee
motivation.
LO 10-4 Distinguish between the motivators and hygiene factors identified by Herzberg.
LO 10-5 Differentiate among Theory X, Theory Y, and Theory Z.
LO 10-6 Explain the key principles of goal-setting, expectancy, reinforcement, and equity
theories.
LO 10-7 Show how managers put motivation theories into action through such strategies
as job enrichment, open communication, and job recognition.
LO 10-8 Show how managers personalize motivation strategies to appeal to employees
across the globe and across generations.
 Motivating Employees across the Globe

Different cultures experience motivational approaches differently.

In a high-context culture, workers build personal relationships and

develop group trust before focusing on tasks.
In a low-context culture, workers often view relationship building as
a waste of time that diverts attention from the task.
 Motivating Employees across Generations

• Baby boomers (born between 1946 and 1964),

• Generation X (born between 1965 and 1980),
• Generation Y, also known as Millennials or echo boomers
(born between 1980 and 1995),
• Generation Z (born 1995–2009),
• Generation Alpha (born after 2010)

(Note: The year spans for Gen X, Y, and Z are widely debated so these dates are just approximations.)
 Motivating Employees across Generations

How do generational differences among these groups affect motivation

in the workplace?

• Rather than focusing on job security, Gen Xers tend to focus on career security
instead and are willing to change jobs to find it.
• Millennials tend to place a higher value on work–life balance, expect their employers
to adapt to them (not the other way around), and are more likely to rank fun and
stimulation in their top five ideal job requirements.
• Gen Zers are likely to be more cautious and security-minded, but inspired to improve
the world. They are tech-savvy and are looking to be part of a community within their
workplaces. They are interested in more practical benefits like healthcare, and less
job hop than Millennials.
 Motivating Employees across Generations

It is important for managers of all ages to be aware that employees of

different generations communicate differently.

• The traditionalists, the generation that lived through the Great Depression and World War
II, prefer to communicate face-to-face.
• Boomers generally prefer to communicate in meetings or conference calls.
• Gen Xers typically prefer e-mail and will choose meetings only if there are no other options.
• Millennials most often use technology to communicate, particularly through social media.
• Gen Zers are starting to trend back toward face-to-face meetings and shy away from phone
calls.
 SUMMARY

Much motivation will come from the job itself rather than from external
punishments or rewards.

Managers need to give workers what they require to do a good job: the right
tools, the right information, and the right amount of cooperation.

Motivation doesn’t have to be difficult. It begins with acknowledging a job well

done—and especially doing so in front of others. After all, the best motivator
is frequently a sincere “Thanks, I really appreciate what you’re doing.”