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

C.“A leader is best when people barely know he exists. 8-3 .” ~ Lao-Tzu. 600 B. when his work is done… they will say: We did it ourselves. Eisenhower. “Leadership is the art of getting someone else to do something you want done because he wants to do it. c.” ~ Dwight D. Inc. 1890 .1969 Copyright ©2003 Prentice Hall.

Inc.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. 8-4 .

Inc. 8-5 .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.

Satisfied Employees Are More Productive and More Committed Job Satisfaction: MORALE TURNOVER MORALE 8-6 Degree of enjoyment employees derive from doing their jobs High Morale: An overall positive employee attitude toward the workplace Low Turnover: A low percentage of employees leave each year Copyright ©2003 Prentice Hall. TURNOVER . Inc.

Inc. 1997 2000 8-7 .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.

February 4th. #1 #15 #28 #41 #58 #94 8-8 Source: Fortune Magazine.” Edward Jones Cisco Systems Microsoft Patagonia Starbucks Wal-Mart Copyright ©2003 Prentice Hall.Fortune Magazine’s 100 Best Companies to Work For “It's not easy being good these days at least if you're an employer. Inc. 2002 .

Highly Motivated Employees Are Critical to Business Success Motivation: The set of forces that cause people to behave in certain ways  Classical  Behavior: The Hawthorne Studies  Contemporary Copyright ©2003 Prentice Hall. 8-9 . Inc.

Theory Y  People are energetic.  People are intelligent.  People resist change.  People can be selfless.  People are ambitious and seek responsibility.10 .  People lack ambition and dislike responsibility. Copyright ©2003 Prentice Hall.  People want to contribute to business growth and change. 8 . Inc.  People are self-centered.The Human Resources Model Theory X and Theory Y Theory X  People are lazy.  People are gullible and not very bright.

Inc.11 . SelfSelfActualization Actualization Needs Needs Esteem Needs Esteem Needs Social Needs Social Needs Security Needs Security Needs Physiological Needs Physiological Needs Organizational Examples Challenging Job Job Title Friends at Work Pension Plan Salary 8 .Maslow’s Hierarchy of Needs General Examples Self-Fulfillment Status Friendship Stability Shelter Copyright ©2003 Prentice Hall.

8 . Inc.12 .Two Factor Theory Hygiene Factors • Supervisors • Working Conditions Motivation Factors • Achievement • Recognition • Interpersonal Relations • Pay & Security • Company Policies & Administration • The Work Itself • Responsibility • Advancement & Growth Dissatisfaction Satisfaction Copyright ©2003 Prentice Hall.

Expectancy Theory Individual Effort Individual Performance Organizational Rewards Personal Goals RewardsPersonal Goals Issue EffortPerformance Issue PerformanceReward Issue Copyright ©2003 Prentice Hall. 8 . Inc.13 .

Inc.14 . 8 .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.

Strategies for Enhancing Job Satisfaction and Morale  Reinforcement/behavior modification  Management by objectives  Participative management and empowerment  Job enrichment and job redesign  Modified work schedules Copyright ©2003 Prentice Hall.15 . Inc. 8 .

Inc.Reinforcement / Behavior Modification Theory Punishment When negative consequences are attached directly to undesirable behavior Positive Reinforcement When rewards are tied directly to performance Copyright ©2003 Prentice Hall. 8 .16 .

Management by Objectives Collaborative Goal-setting Collaborative Goal Setting & Planning Communicating Organizational Goals & Plans Meeting Periodic Review Evaluation Setting Verifiable Goals & Clear Plans Counseling Identifying Resources Copyright ©2003 Prentice Hall.17 . Inc. 8 .

18 . 8 .Participative Management and Empowerment Increasing job satisfaction by encouraging participation Team management represents a growing trend Copyright ©2003 Prentice Hall. Inc.

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. 8 .19 . Inc.

Modified Work Schedules Work share programs Flextime programs and alternative workplace strategies Telecommuting and virtual offices Copyright ©2003 Prentice Hall.20 . 8 . Inc.

M. Inc.M. 2:00 3:00 P. P. NOON P. 4:00 P.M.M. A. 8 . Flexible Time Core Time Flexible Time Core Time Flexible Time Joe Sue Pat Copyright ©2003 Prentice Hall. 5:00 P. 6:00 P. A. A.M.M.21 . A.M.M.M.M.Sample Flextime Scheduling 6:00 7:00 8:00 A. 9:00 10:00 11:00 12:00 1:00 A.M.M.

8 .22 .Evaluating Modified Schedules and Alternative Workplaces Advantages More satisfied. committed employees Less congestion Disadvantages Challenging to coordinate and manage Poor fit for some workers Copyright ©2003 Prentice Hall. Inc.

Inc.23 . 8 .Managerial Leadership The process of motivating others to work to meet specific objectives Copyright ©2003 Prentice Hall.

8 .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.24 . Inc.

Leadership at General Electric “Four E’s 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.25 . 8 . Winter 2002 Copyright ©2003 Prentice Hall. Anderson Assets. Inc.

Inc.26 .Managerial Styles Autocratic Style Democratic Style Free-rein Style Contingency Approach The appropriate style in any situation is contingent on the unique elements of that situation Copyright ©2003 Prentice Hall. 8 .

Motivation and Leadership in the Twenty-first Century Motivation Security and pay are no longer enough Leadership  “Coach” mentality  Diversity  Flexibility Copyright ©2003 Prentice Hall. Inc.27 . 8 .

28 .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 .