Motivating and Rewarding

Employees/ Leading

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What is Motivation?
1. Energy
2. Direction
3. Persistence

Motivation refers to the process by which a person’s efforts are energized,

directed, and sustained toward attaining a goal. Individuals differ in
motivational drive and their overall motivation varies from situation to situation

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Compare and
contrast early
theories of
motivation.

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 Maslow’s Hierarchy of Needs
Self fulfillment

Self respect,
achievement,
recognition
Association, belonging,
friendship

Security, protection

Food, drink, shelter,

sleep etc

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McGregor’s Theory X and Theory Y
Theory X: Theory Y:
•Little ambition •Enjoy work
•Dislike work •Seek and accept
•Avoid responsibility responsibility
•Must be closely •Exercise self-direction
controlled

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 Herzberg’s Two-Factor Theory( Expectations in
job)

extrinsic intrinsic

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Satisfaction vs. Dissatisfaction

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 McClelland’s Three-Needs Theory
Three acquired needs are work motives:
1. Need for achievement-which is the drive to succeed and excel
2. Need for power-which is the need to make others behave in a way that
they would not behave otherwise
3. Need for affiliation-which is the desire for friendly and close
interpersonal relationships

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Contemporary
theories of
motivation.

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Goal-Setting Theory

• Setting specific goals –major

source of motivation
• Goal should be challenging
• Feed back is important for
progress

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Influences on Job Performance(Goal setting theory
contd.)
• Feedback
• Goal commitment
• Adequate self-efficacy
• National culture

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Job Characteristics Model(Job design)

• Administrative
assistant
• Interior designer
• A surgeon

• Sales person

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Equity Theory

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With whom employees compare
• Present job vs past job
• Co workers
• Friends
Referent comparison
Self/Intrinsic- Personal experience in difference levels/job
Person/Extrinsic- Comparison with employees in same organization
System/External- Comparison with workers outside the organization
 Expectancy Theory

expectancy theory states that an individual tends to act in a certain way based on the expectation
that the act will lead to a given outcome and on the attractiveness of that outcome to the individual.

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Current issues in
motivating
employees.

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Current Issues

11-17
Country Culture and Motivation

Managers can’t assume that motivational

programs that work in one geographic location
are going to work in others.

In countries such as Japan, Greece, and Mexico,

where uncertainty avoidance characteristics are
strong, security needs would be on top of the
need hierarchy.
In US self esteem is on top
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Unique Groups of Workers
Motivating:
1. Diverse employees
2. Professionals
3. Contingent workers

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Unique Groups of Workers (cont.)
Motivating:
1. Diverse employees
2. Professionals
3. Contingent workers

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Designing Appropriate Rewards
Programs
• Open-book management
• Employee recognition programs

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Pay-for-Performance

11-22
Low-Cost Rewards Program

• Clarify role in organization

• Keep communication open
• Show individual company cares

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Leadership

12-24
Define leader and
leadership.

12-25
Leaders and Leadership
Leader:
Someone who can influence others and/or who has
managerial authority.

Leadership:
Leadership is the art or process of influencing people
so that they will strive willingly and enthusiastically
toward the achievement of group goals.

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Trait Theories of Leadership(1920s-30s)
• Research focused on identifying personal characteristics
that differentiated leaders (Charisma, intelligence,
strength, enthusiasm, bravery, confidence etc.)from non-
leaders-was unsuccessful
• Later researchers identified 7 traits of leadership

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What Traits Do Leaders Have?

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Behavioral Theories of Leadership

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University of Iowa and Ohio State Studies

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University of Michigan Study and Managerial
Grid

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Modern views of
leadership and the
issues facing
today’s leaders.

12-32
Leader-Member Exchange Theory

A leadership theory that says leaders create in-

groups and out-groups and those in the in-
group will have higher performance ratings,
less turnover, and greater job satisfaction.

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Transactional vs. Transformational Leaders
Transactional Leaders: Transformational Leaders
• Leaders who lead primarily by using
• leaders who stimulate and
social exchanges (or transactions).
inspire (transform) followers to
• identify what subordinates need to achieve extraordinary outcomes.
do to achieve objectives, clarify
organizational roles and tasks, set up • They have the capacity to
an organization structure, reward motivate, shape the
performance, and provide for the organization culture, and create
social needs of their followers. a climate favorable for
organizational change.

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Charismatic vs. Visionary Leaders

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Leaders and Teams

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Contemporary Issues: Employee
Empowerment
Managers are increasingly leading by not leading; that
is, by empowering their employees.

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Contemporary Issues: National Culture
Cross-Cultural Leadership
• Korean leaders are expected to be paternalistic toward
employees.
• Arab leaders who show kindness or generosity without being
asked to do so are seen by other Arabs as weak.
• Japanese leaders are expected to be humble and speak
frequently.

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Contemporary Issues: Emotional
Intelligence (EI)

EI, more than any other single factor, is the

best predictor of who will emerge as a leader.

• five components of emotional intelligence—

self-awareness, self-management, self-
motivation, empathy, and social skills—allows
an individual to become a star performer.

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The Importance of Trust(How to Build
Trust?)
1. Practice openness.
2. Be fair.
3. Speak your feelings.
4. Tell the truth.
5. Be consistent.
6. Fulfill your promises.
7. Maintain confidences.
8. Demonstrate confidence.

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