Lecture 17

Chapter 9

MOTIVATING AND LEADING EMPLOYEES

Chapter Outcome

•Describe the nature and importance of psychological contracts in the workplace

•Importance of job satisfaction and employee morale

•Important theories of motivation

•Strategies to improve job satisfaction and employee motivation

•Managerial style of leadership

Psychological Contract

• Set of expectation held by employees concerning what they will contribute and what the organization will provide

• Employee’s Contributions

• Organization’s Inducements

• Result – satisfaction and motivation

Psychological Contract

• Human Relations- Interaction Of Employees With Company And Each Other– Job Satisfaction

• Degree of enjoyment derived from work

– Morale• Overall attitude towards work

– Turnover• Annual % of workforce that leaves and must be replaced

– Organizational Success– Satisfied VS dissatisfied worker

Trends In Satisfaction & Morale

• Massive Layoffs/Cutbacks

• Improving Economy Could Mean Reduced Morale

• Reinstate Benefits

High Priorities For Today’s Workforce

Family OrientationSense Of CommunityQuality Of Life IssuesVolunteerismAutonomyFlexibility & Nonconformity

Workplace Motivation

• Motivation- Forces Affecting People’s Behavior

• Classical Theory/Scientific Management• Behavior Theory• Contemporary Motivational Theories

Classical Theory

• Frederick Taylor (1911)

• More Money = Greater Motivation

• Efficient Company = Higher Profits & Pay

• Time-And-Motion Study

Behavior Theory

• Hawthorne Studies (1925)

• Physical Environment Changes Affect Worker Output

• Increased Pay did not increase productivity

• Hawthorne Effect – productivity rose in response to management action that workers interpreted as special attention

Theories X & Y (1960)Belief about how best to use the human resource employed by the firm, Theory Y managers are more likely to have satisfied workforce

Hierarchy Of Needs (1954) Abrahim Maslow

Two-Factor Theory(1959) – Fredrick Herzberg

Job Satisfaction Depends On Two Factors

Expectancy Theory

• Victor Vroom (1964)

• People Work Towards Rewards

Equity Theory

• People evaluate their treatment by employers relative to the treatment of others

Strategies for Enhancing Job Satisfaction and Motivation

Reinforcement/Behavior Modification Theory

• B.F. Skinner (1957)– Behavior can be encouraged or discouraged by

means of reward and punishment

• Reinforcement– Piecework– Performance = Rewards

• Punishment = Negative Reinforcement– Present people with unpleasant consequences

ManagementBy Objectives

• Peter Drucker (1954)• Collaborative Goal Setting

RecentManagement Styles

• Participative Management Or Employee Empowerment– Employees Receive Greater Responsibility– Employees Feel More Committed To Organization

• Team Management- Employees Given Decision-Making Responsibility– Some Employees Frustrated By Increased Responsibility

Job Enrichment

Adding one more motivating factor to the job

Job Enlargement & Job Rotation

Job AJob A

Job BJob B

Job CJob C

Job Redesign•Acknowledges that different people want different things

•Restructures work to have a fit between worker and work

•Job redesign is implemented in one or three ways

•Combining task or job enlargement

•Forming natural workgroups

•Establishing client relationships

•More control and feedback

Modified Work Schedules

• Work-Share• Flextime• Telecommuting/Virtual Office• Advantages

– Employee Freedom/Control Of Life– Improves Individual Productivity

• Disadvantages– Complex Coordination– Difficult To Keep Accurate Records

Flextime Schedule

Questions For Telecommuters

• Can I Manage Deadlines?

• Can I Be Without The Social Context Of The Office?– Networking

– Advancement

• What Will Be The Impact On My Family?

Managerial Styles& Leadership

• Managerial Styles- Patterns Of Management Behavior In Dealing With Employees

• Leadership- Motivating Others To Work

Autocratic Style

• Issue Orders

• Expect Them To Be Followed

• Rapid Decision-Making

Democratic Style

• Ask For Input From Subordinates

• Retains Final Authority

Free-Rein Style

• Manager Is Advisor To Subordinates

• Subordinates Make Decisions

• Fosters Creativity

Contingency Style

• No Specific Style Used All The Time

• Situation Dictates Manager’s Leadership Style

• Different Cultures Have Varying Expectations Of Leaders

21st Century Leadership/Management

• Motivation– Money No Longer Prime– Different Desires At Work– Varying Lifestyles Reflect Varying Goals Of Employee

• Leadership– Flatter Organizations = Less Autocratic– Diversity Of Workplace = Diversity Of Leaders– Network Mentalitys