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CHAPTER 10 - MOTIVATING AND REWARDING EMPLOYEES LEARNING OUTCOMES

After reading this chapter, students should be able to: 1. Describe the motivation process. 2. Define needs. 3. Explain the hierarchy of needs theory. 4. Differentiate Theory X from Theory Y. 5. Explain the motivational implications of the motivation-hygiene theory. 6. Describe the motivational implications of equity theory. 7. Explain the key relationships in expectancy theory. 8. Describe how managers can design individual jobs to maximize employee performance. 9. Describe the effect of workforce diversity on motivational practices. Opening Vignette SUMMARY Incentives are dangerous, according to Pat Lancaster, founder and CEO of Lantech, Inc. Starting the company in 1972, Lancaster always had an affinity for setting up incentive plans that would help increase employee productivity. One of his first ventures in incentives caused too much employee anxiety, and Lancaster decided to stop the program. In its place, he set up another incentive plan. While in theory the plan sounded good, it didnt work either due to the many interdependent activities from each of the five divisions. The uncertainty of who added what value led to excessive secrecy in the organization and a lot of politicking when it came time to figure out the bonus awards. As a result, Pat Lancaster was spending more than 95 percent of his time refereeing the conflicts. Lancaster abandoned the incentive plan. Lancaster, always looking for ways to motivate employees, felt that a plan could be found. Lancaster coupled his new incentive plan with a continuous improvement program. He also placed employees on teams, independent of divisional affiliation. He then linked incentives to the company's end-of-year profits, with all employees sharing in the "rewards." What he found from this "simple" formula is just short of remarkable. Employee productivity has nearly doubled over the past five years. Shipping time has decreased from the norm of five weeks in the early 1990s to something less than five hours today. And defective products have been reduced by more than 50 percent. Employees feel involved, empowered, and part of the decision-making team. They believe they have a personal stake in making sure the company does well. Teaching notes 1. Discuss with students when incentives become counter-productive or even harmful. 2. Under what conditions do employees (or students) begin to think of incentives as entitlements? 3. What can managers do to maintain the motivational value of incentives while avoiding getting into an increasing escalation of the incentives? I. MOTIVATION AND INDIVIDUAL NEEDS A. Definitions 1. Many incorrectly view motivation as a personal trait. 2. Motivation is the result of the interaction between the individual and the situation. a) Individuals differ in motivational drive. b) An individual's motivation varies from situation to situation.

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3. We'll define motivation as the willingness to exert high levels of effort to reach organizational goals, conditioned by the effort's ability to satisfy some individual need. 4. Three key elements; effort, organizational goals, and needs. a) The effort element is a measure of intensity. (1) When someone is motivated, he or she tries hard. b) The effort must be channeled in a direction that benefits the organization. (1) Effort directed toward, and consistent with, the organization's goals. c) Motivation is a need-satisfying process. d) This is depicted in Exhibit 10-1. 5. A need, in our terminology, means some internal state that makes certain outcomes appear attractive. a) An unsatisfied need creates tension that stimulates drives within an individual. b) These drives generate a search behavior to satisfy the need and reduce the tension. 6. We can say that motivated employees are in a state of tension. a) To relieve this tension, they exert effort. b) The greater the tension, the higher the effort level. 7. Inherent in our definition of motivation is the requirement that the individual's needs be compatible and consistent with the organization's goals. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ II. EARLY THEORIES OF MOTIVATION A. Introduction 8. In the 1950s, three specific theories were formulated. a) Now considered questionably valid, are probably still the best-known explanations for employee motivation. b) The hierarchy of needs theory. c) Theories X and Y. d) The motivation-hygiene theory. 9. More valid explanations of motivation have been developed; students should know these theories because: a) They represent the foundation from which contemporary theories grew. b) Practicing managers regularly use these theories and their terminology. B. What Is Maslow's Hierarchy of Needs Theory? 1. The best-known theory of motivation. 2. Within every human being, there exists a hierarchy of five needs. a) Physiological needs. b) Safety needs. c) Social needs. d) Esteem needs. e) Self-actualization needs. 3. As each need is substantially satisfied, the next need becomes dominant. a) See Exhibit 10-2. 4. No need is ever fully gratified; a substantially satisfied need no longer motivates.
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5. To motivate, you need to understand where that person is in the hierarchy and focus on satisfying needs at or above that level. 6. Widely recognized, particularly among practicing managers, its popularity can be attributed to the theory's intuitive logic and ease of understanding. 7. Research does not generally validate the theory. 8. Maslow had no empirical substantiation for his theory, and several studies found no support. C. What Is McGregor's Theory X and Theory Y? 1. Douglas McGregor proposed two distinct views of the nature of human beings. a) A basically negative view, labeled Theory X. b) A basically positive view, labeled Theory Y. 2. McGregor held that a manager's view of human nature and, therefore, his/her approach to management is based on a group of assumptions. a) See Exhibit 10-3. 3. Theory X assumes that physiological and safety needs dominate the individual. 4. Theory Y assumes that social and esteem needs are dominant. 5. McGregor held to the belief that the assumptions of Theory Y were the most valid. 6. There is no evidence to confirm that either set of assumptions. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ D. What Is Herzberg's Motivation-Hygiene Theory? 1. An individual's relation to his or her work is a basic one, and his or her attitude toward work can very well determine success or failure. 2. Herzberg investigated the question: What do people want from their jobs? a) Exhibit 10-4 represents Herzberg's findings. 3. He concluded that certain characteristics were consistently related to job satisfaction (factors on the left side of 10-4) and others to job dissatisfaction (the right side of 10-4). a) Intrinsic factors such as achievement, recognition, and responsibility were related to job satisfaction. b) When dissatisfied, they tended to cite extrinsic factors such as company policy and administration, supervision, interpersonal relationships, and working conditions. 4. The opposite of satisfaction is not dissatisfaction, as was traditionally believed. a) Removing dissatisfying characteristics does not necessarily make the job satisfying. b) Exhibit 10-5, the opposite of "satisfaction" is "no satisfaction," and the opposite of "dissatisfaction" is "no dissatisfaction." 5. Managers who eliminate factors that create job dissatisfaction bring about peace but not motivation. a) The factors that eliminate job dissatisfaction were characterized as hygiene factors. b) To motivate people on their jobs, emphasize motivators, those factors that increase job satisfaction. 6. The criticisms of the theory include the methodology Herzberg used. a) His failure to account for situational variables. 7. Much of the enthusiasm for enriching jobs can be attributed to Herzberg's findings. Teaching Notes _______________________________________________________________________
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_____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ III. CONTEMPORARY THEORIES OF MOTIVATION A. "State-of-the-Art" Explanations of Employee Motivation B. What Is McClelland's Three-Needs Theory? 8. David McClelland and others have proposed the three-needs theory. 9. Need for achievement (nAch). The drive to excel, to achieve in relation to a set of standards, to strive to succeed; a) Striving for personal achievement rather than for the rewards of success per se (nAch). b) The desire to do something better or more efficiently than it has been done before. c) High achievers differentiate themselves from others by their desire to do things better. d) They seek situations in which they can attain personal responsibility for finding solutions to problems, in which they can receive rapid and unambiguous feedback, and in which they can set moderately challenging goals. e) High achievers dislike succeeding by chance. f) They avoid what they perceive to be very easy or very difficult tasks. 10. Need for power (nPow). The need to make others behave in a way that they would not have behaved otherwise; a) The need for power (nPow) is the desire to have impact and to be influential. b) Individuals high in nPow enjoy being "in charge," strive for influence over others, and prefer to be in competitive and status-oriented situations. 11. Need for affiliation (nAff). The desire for friendly and close interpersonal relationships. a) This need has received the least attention by researchers. b) Striving for friendships, prefer cooperative situations rather than competitive ones, and desire relationships involving a high degree of mutual understanding. E. How Do Inputs and Outcomes Influence Motivation? 1. Employees make comparisons. 2. There is considerable evidence that employees make comparisons of their job inputs and outcomes relative to others and that inequities influence the degree of effort that employees exert. 3. Developed by J. Stacey Adams, equity theory says that employees perceive what they get from a job situation (outcomes) in relation to what they put into it (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others. a) See Exhibit 10-6. b) If they perceive their ratio to be equal to those of the relevant others with whom they compare themselves, a state of equity exists. c) If the ratios are unequal, inequity exists; that is, they view themselves as under-rewarded or over-rewarded. 4. The referent is an important variable in equity theory. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________
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_____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ A Management Classic David McClelland and the Three-Needs Theory SUMMARY David McClelland's work focused on aspects of personality characteristics. The questions then are: How do you find out if someone is, for instance, a high achiever, and what effect can that person's need for achievement have on an organization? McClelland would give individuals a projective test in which subjects responded to a set of pictures. The responses were then classified as focusing on a need for achievement, power, or affiliation. Those who had a high need for achievement, however, shared some similar attributes. High achievers perform best when they perceive their probability of success as 50-50. They dislike gambling, they dislike high probability of success, and they like to set goals that require stretching. Some reasonably well-supported predictions can be made between the relationship of the achievement need and job performance. There are consistent findings for power and affiliation needs also. When job situations have personal responsibility, feedback, and an intermediate degree of risk, high achievers are strongly motivated; they are successful in entrepreneurial activities. The needs for affiliation and power are closely related to managerial success. The best managers are high in the need for power and low in the need for affiliation. Last, employees can be trained successfully to stimulate their achievement need. Teaching notes 1. Have students identify themselves as power, achievement, or affiliation motivated. 2. Move them into three groups based on their self-identification. 3. Have them create a list of motivators for their group. 4. Have the lists posted on the board. 5. Now discuss as a class the differences among the lists and the consequences of using the wrong motivator with each of these groups. 5. There are three referent categories; "other," "system," and "self." a) Other includes other individuals with similar jobs in the same organization and also includes friends, neighbors, or professional associates. b) The system considers organizational pay policies and procedures and the administration of that system. c) Self refers to inputs-outcomes ratios that are unique to the individual. It reflects past personal experiences and contacts. 6. The choice of a particular set of referents is related to the information available as well as to their perceived relevance. 7. When employees perceive an inequity, they might a) distort either their own or others' inputs or outcomes. b) behave in some way to induce others to change their inputs or outcomes. c) behave in some way to change their own inputs or outcomes. d) choose a different comparison referent. e) quit their job. 8. Individuals are concerned with both absolute rewards and the relationship of those rewards to what others receive.

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9. On the basis of one's inputs, such as effort, experience, education, and competence, one compares outcomes such as salary levels, raises, recognition, and other factors. 10. An imbalance in inputs-outcomes ratio relative to others' creates tension. 11. The theory establishes the four propositions relating to inequitable pay. a) Listed in Exhibit 10-7. 12. Whenever employees perceive inequity, they will act to correct the situation. 13. Equity theory is not without problems. a) The theory leaves some key issues still unclear. (1) How do employees define inputs and outcomes? (2) How do they combine and weigh their inputs and outcomes to arrive at totals? (3) When and how do the factors change over time? 14. Equity theory has an impressive amount of research support and offers important insights. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ F. Does Job Design Influence Motivation? 1. What differentiates one job from another? 2. The job characteristics model (JCM), developed by J. Richard Hackman and Greg R. Oldham helps managers describe any job can be in terms of five core job dimensions. a) Skill variety. b) Task identity. c) Task significance. d) Autonomy. e) Feedback. 3. The core dimensions can be combined into a single index called the Motivating Potential Score (MPS). [skill variety + task identity + task significance] x autonomy x feedback/3 4. Exhibit 10-8 offers examples of job activities that rate high and low for each characteristic. 5. Exhibit 10-9 presents the model. a) The links between the job dimensions and the outcomes are moderated or adjusted by the strength of the individual's growth need. 6. Individuals with a high growth need are more likely to experience the psychological states when their jobs are enriched than are their counterparts with a low growth need. 7. Research on the JCM has found that the first three dimensions--skill variety, task identity, and task significance--combine to create meaningful work. a) If these three characteristics exist in a job, we can predict that the person will view his or her job as being important, valuable, and worthwhile. 8. Jobs that possess autonomy give the job incumbent a feeling of personal responsibility. 9. Jobs that provide feedback let the employee know how effectively he or she is performing. 10. JCM says that internal rewards are obtained when one learns (knowledge of results) that one personally (experienced responsibility) has performed well on a task that one cares about (experienced meaningfulness). C. What does the JCM tell us? 11. Jobs will score high on motivating potential if they are high in at least one of the three factors that lead to experiencing meaningfulness (skill variety, task identity, or task significance).
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12. 13. 14. 15.

They must also be high on both autonomy and feedback. The job characteristics model has been well researched. Most of the evidence supports the general framework of the theory. But there is still considerable debate around the five specific core dimensions and the validity of growth-need strength as a moderating variable. a) There is some question whether task identity adds to the model's predictive ability, and there is evidence suggesting that skill variety may be redundant with autonomy. b) The strength of an individual's growth needs as a meaningful moderating variable has recently been called into question. 16. Other variables may be more valid in moderating the job characteristics-outcome relationship. 17. One should be cautious in unequivocally accepting growth-need strength as originally included in the JCM. D. Where Does This Leave Us? 18. The JCM provides a reasonably valid framework for defining the core characteristics in a cross section of jobs. 19. People who work on jobs with high core job dimensions are generally more motivated, satisfied, and productive than are those who do not. 20. Job dimensions operate through the psychological states in influencing personal and work outcome variables rather than influencing them directly. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ E. Why Is Expectancy Theory Considered a Comprehensive Theory of Motivation? 21. The most comprehensive explanation of motivation is Victor Vroom's expectancy theory. 22. It states that an individual tends to act on the basis of the expectation that the act will be followed by a given outcome and the attractiveness of that outcome to the individual. 23. It includes three variables or relationships. a) Effort-performance linkage. b) Performance-reward linkage. c) Attractiveness. The importance that the individual places on the potential outcome. 24. It can be summed up in the following questions: a) How hard do I have to work to achieve a certain level of performance, and can I actually achieve that level? b) What reward will performing at that level get me? c) How attractive is this reward to me, and does it help achieve my goals? F. How Does Expectancy Theory Work? 25. Exhibit 10-10 shows a very simple version of expectancy theory. 26. The strength of a person's motivation to perform (effort) depends on how strongly that individual believes that he or she can achieve what is being attempted. 27. If this goal is achieved (performance), will he or she be adequately rewarded by the organization? 28. If so, will the reward satisfy his or her individual goals? a) First, what perceived outcomes does the job offer the employee?
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(1) The critical issue is what the individual employee perceives the outcome to be, regardless of whether his or her perceptions are accurate. b) Second, how attractive do employees consider these outcomes to be? (1) This is an internal issue and considers the individual's personal attitudes, personality, and needs. c) Third, what kind of behavior must the employee exhibit to achieve these outcomes? (1) What criteria will be used to judge the employee's performance? d) Fourth, how does the employee view his or her chances of doing what is asked? (1) What probability does he or she place on successful attainment? Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Dilemma in Management Rewarding Appropriate Behavior SUMMARY You have just been hired as a customer service representative at the Barnett World Travel Agency in San Diego, California. In this job, customers call you to arrange travel plans. Most car rental agencies and hotels frequently run contests for the customer service representative. The incentives are attractive enough for you to "steer" customers toward those companies even though it might not be the best or the cheapest for them. The programs are viewed as a bonus for your hard work. Questions 1. Is there anything wrong with doing business with those car rental and hotel firms that offer "kickbacks" to you? 2. How could your organization design a performance reward system that would encourage you to high levels of "bookings" while at the same time ensure that you gave highest priority to customer satisfaction? Teaching notes 1. Set this up as a debate by either dividing the class in half or choosing two small debate teams of 3 members each. 2. One side should approach the questions from the consumer's perspective, the others from the travel business/travel agent. 3. In the debate, make certain that the students discuss the benefits of such programs for both the travel agent and for the consumer. Are there benefits for the consumer? Are all consumers concerned about the lowest possible price? 4. As you wrap up the discussion, ask students how the word "kickbacks" shaped their perception of the task. G. How Can Expectancy Theory Be Applied? 29. A classroom analogy as an illustration. 30. Most students prefer an instructor who tells them what is expected of them in the course. 31. Consider that five weeks into a class you are really enjoying (we'll call it MNGT 301), an examination is given back to you.

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32. You studied hard, you believe top grades are important for getting a good job upon graduation. Also, you think grades are important for getting into a good graduate school. 33. Well, the results of that first examination are in. a) The class average was 76. b) Ten percent of the class scored an 88 or higher and got an A. c) Your grade was 54; the minimum passing mark was 60. d) You're mad and perplexed. 34. Suddenly, you may no longer be driven to attend MNGT 301 classes regularly. a) You may find several reasons why you don't want to study for the course either. 35. Exhibit 10-10 can help us understand this situation. a) Studying for MNGT 301 (effort) is conditioned by the resulting correct answers on the examination (performance), which will produce a high grade (reward), which will lead, in turn, to the security, prestige, and other benefits that accrue from obtaining a good job (individual goal). b) The attractiveness of the outcome, which in this case is a good grade, is high. c) The performance-reward linkage is strong if you feel the test fairly measure, what you know. If it is weak, at least part of the reason for your reduced motivational level is your belief that the test was not a fair measure of your performance. 36. Another possible demotivating force may be the effort-performance relationship. a) If, after you took the examination, you believe that you could not have passed it, then your desire to study may drop. b) You place a low value on your effort leading to answering the examination questions correctly; hence, your motivational level decreases, and you lessen your effort. 37. Summarize of the issues surrounding the theory. a) First, expectancy theory emphasizes payoffs, or rewards. b) Second, expectancy theory stresses that managers understand why employees view certain outcomes as attractive or unattractive. c) Third, the expectancy theory emphasizes expected behaviors. d) Finally, the theory is concerned with perceptions. What is realistic is irrelevant. There must be continuous feedback to align perceptions with reality. 38. The individual's perception of the outcome will determine the effort expended. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ G. How Can We Integrate the Contemporary Theories of Motivation? 1. There is a tendency to view the motivation theories independently even though many of the ideas underlying the theories are complementary. 2. Exhibit 10-11 presents a model that integrates much of what we know about motivation. a) Its basic foundation is the simplified expectancy model shown in Exhibit 10-10. 3. The goals-effort loop is meant to remind us that goals direct behavior. a) Expectancy theory predicts that an employee will exert a high level of effort if he/she perceives a strong relationship between effort and performance, performance and rewards, and rewards and satisfaction of personal goals.

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b) Need theories tells us that motivation would be high to the degree that the rewards an individual received for his or her high performance satisfied the dominant needs consistent with his or her individual goals. 4. The model considers the need for achievement, equity, and the job characteristics model. 5. Finally, we can see the JCM in this exhibit. Task characteristics (job design) influence job motivation at two places. a) First, jobs that score high in motivating potential are likely to lead to higher actual job performance since the employee's motivation is stimulated by the job itself. b) Second, jobs that score high in motivating potential also increase an employee's control over key elements in his or her work. 6. If you were a manager concerned with motivating your employees, what specific recommendations could you draw from this integration? a) See Developing a Management Skill. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ IV. CONTEMPORARY ISSUES IN MOTIVATION A. What Is the Key to Motivating a Diverse Workforce? 7. Flexibility is key to maximize motivation among today's diversified workforce. 8. Studies show that men place considerably more importance on autonomy in their jobs than do women. 9. The opportunity to learn, convenient work hours, and good interpersonal relations are more important to women than to men. 10. What motivates a single mother with two dependent children working full-time may be very different from the needs of a young, single, part-time worker or the older employee. 11. Employees have different personal needs and goals that they seek to satisfy through their job. 12. Motivating a diverse workforce also means that managers must be flexible by being aware of cultural differences. a) The theories of motivation we have been studying were developed largely in the United States. b) Therefore, these theories need to be modified for different cultures. (1) The self-interest concept is consistent with capitalism and the extremely high value placed on individualism in countries such as the United States. (2) These motivation theories should be applicable to employees in such countries as Great Britain and Australia. (3) In more collectivist nations--such as Venezuela, Singapore, Japan, and Mexico-employees should be more receptive to team-based job design, group goals, and group-performance evaluations. 13. The need-for-achievement concept also has a U.S. bias. a) It presupposes the existence of two cultural characteristics: a willingness to accept a moderate degree of risk and a concern with performance. b) These characteristics would exclude countries with high uncertainty avoidance scores and high quality-of-life ratings. 14. Several recent studies among employees in other countries other indicate that some aspects of motivation theory are transferable.
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a) Motivational techniques were shown to be effective in changing performance-related behaviors of Russian textile mill workers. 15. Managers must change their motivational techniques to fit their culture. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ B. Should Employees Be Paid for Performance or Time on the Job? 16. What's in it for me? 17. People do what they do to satisfy some need. They look for a payoff or reward. 18. Pay is an important variable in motivation; managers need to look at how pay is used to motivate high levels of employee performance. 19. Pay-for-performance programs are compensation plans that pay employees on the basis of some performance measure. a) Piece-rate plans, gainsharing, wage incentive plans, profit sharing, and bonuses. 20. These forms of pay reflect some performance measures. 21. Performance-based compensation is probably most compatible with expectancy theory. 22. Pay-for-performance programs are gaining in popularity in organizations. 23. The growing popularity can be explained in terms of both motivation and cost control. 24. Making some or all of a worker's pay conditional on performance measures focuses his or her attention and effort on that measure, then reinforces the continuation of that effort with rewards. a) However, if the employee, team, or the organization's performance declines, so too does the reward. b) On the cost-savings side, performance-based bonuses and other incentive rewards avoid the fixed expense of permanent--and often annual--salary increases. 25. A recent extension of this concept is called competency-based compensation. a) It pays and rewards employees on the basis of the skills, knowledge, or behaviors employees possess. b) Pay levels are established on the basis of the degree to which these competencies exist. c) Pay increases in a competency-based system are awarded for growth in personal competencies as well as for the contributions one makes to the overall organization. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ H. How Can Managers Motivate Minimum-Wage Employees? 1. One of the toughest motivational challenges facing many managers today is how to achieve high performance levels among minimum-wage workers. 2. One trap many managers fall into is thinking that employees are motivated only by money. 3. In motivating minimum-wage employees, managers should look at other types of rewards that help motivate employees.
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a) Employee recognition programs such as employee of the month, quarterly employeeperformance award ceremonies, or other celebrations of employee accomplishment. b) These types of programs serve the purpose of highlighting employees whose work performance has been of the type and level the organization wants to encourage. 4. The power of praise. When praise is used, you need to be sure that these "pats on the back" are sincere and done for the right reasons. 5. In service industries, successful companies are empowering these front-line employees with more authority to address customers' problems. a) If we use the JCM to examine this change, we can see that this type of job redesign provides enhanced motivating potential because employees now experience increased skill variety, task identity, task significance, autonomy, and feedback. I. What's Different in Motivating Professional and Technical Employees? 1. Professional and technical employees are typically different from nonprofessionals. a) They have a strong and long-term commitment to their field of expertise. b) Their loyalty is more often to their profession than to their employer. c) Their commitment to their profession means they rarely define their workweek in terms of 9 to 5 and 5 days a week. 2. Money and promotions into management typically are low on their priority list. 3. Job challenge tends to be ranked high. a) They like to tackle problems and find solutions. b) Their chief reward in their job is the work itself. c) They value support. d) They want others to think that what they are working on is important. 4. Managers should provide them with new assignments and challenging projects. a) Give them autonomy to follow their interests and allow them to structure their work in ways they find productive. b) Reward them with educational opportunities. c) Reward them with recognition. d) And managers should demonstrate that they're sincerely interested in what they're doing. 5. They put a high value on organizational efforts to simplify their nonwork lives. 6. An increasing number of companies are creating alternative career paths for these employees. 7. These allow employees to earn more money and status, without assuming managerial responsibilities. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ C. How Can Flexible Work Options Influence Motivation? 8. Example--Barry Cunningham is the classic "morning person." a) Barry's work schedule as a claims processor at Chubb Insurance is flexible. b) It allows him some degree of freedom as to when he comes to work and when he leaves. 9. Many employees continue to work an eight-hour day, five days a week. 10. A number of scheduling options have been introduced to give management and employees more flexibility. 11. A compressed workweek is a workweek consisting of four 10-hour days (a 4-40 program).
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a) Proponents claim a favorable effect on employee absenteeism, job satisfaction, and productivity. b) A new twist to compressed workweeks is a 9-80 schedule. (1) Employees work nine hours every Monday through Thursday, eight hours on Friday, and zero hours the next Friday. c) Historical studies of organizations that use compressed workweeks, however, have shown that there are also drawbacks such as a decrease in workers' productivity near the end of their longer workday, a decrease in service to customers or clients, and unwillingness to work longer days if a deadline needs to be met, and underutilization of equipment. 12. Flextime is short for flexible work hours. a) Employees have to work a specific number of hours a week, but they are free to vary the hours of work within certain limits. b) Each day consists of a common core, usually six hours, with a flexibility band surrounding the core. c) Some flextime programs allow extra hours to be accumulated and turned into a free day off each month. d) Flextime has become an extremely popular scheduling option. e) The potential benefits from flextime. (1) Improved employee motivation and morale, reduced absenteeism, and the ability of the organization to recruit higher quality and more diverse employees. f) Flextime's major drawback. (1) It is not applicable to every job. (2) It works well with clerical tasks. (3) It is not a viable option when key people must be available during standard hours. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ J. Can Employees Share Jobs? 1. Job sharing is a special type of part-time work. a) It allows two or more individuals to split a traditional forty-hour-a-week job. 2. Job sharing is growing in popularity, but it is less widespread than flextime. 3. Job sharing allows the organization to draw upon the talents of more than one individual for a given job. 4. Telecommuting might be close to the ideal job for many people. a) It refers to employees who do their work at home on a computer that is linked to their office. b) About 16 million people work at home in the United States. c) It is presently the fastest growing trend in work scheduling. d) For employees, the two big advantages of telecommuting. (1) The decrease in time and stress of commuting. (2) The increase in flexibility in coping with family demands. e) Some potential drawback. (1) Telecommuting employees miss the regular social contact. (2) They may be less likely to be considered for salary increases and promotions.

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(3) Non-work-related distractions significantly reduce productivity for those without superior willpower and discipline. Teaching Notes _______________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ SUMMARY 1. The motivation process begins with an unsatisfied need, which creates tension and drives an individual to search for goals that, if attained, will satisfy the need and reduce the tension. 2. Needs are some internal state that makes certain outcomes appear attractive. 3. The hierarchy of needs theory states that there are five needs--physiological, safety, social, esteem, and self-actualization. 4. Theory X is basically a negative view of human nature, assuming that employees dislike work, are lazy, seek to avoid responsibility, and must be coerced to perform. Theory Y is basically positive, assuming that employees are creative, seek responsibility, and can exercise self-direction. 5. The motivation-hygiene theory states that not all job factors can motivate employees. The presence or absence of certain job characteristics, or hygiene factors, can only placate employees. Factors that people find intrinsically rewarding, such as achievement, recognition, responsibility, and growth, act as motivators and produce job satisfaction. 6. In equity theory, individuals compare their job's inputs-outcomes ratio with those of relevant others. 7. The expectancy theory states that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. 8. Managers can design individual jobs to maximize employee performance by combining tasks, creating natural work units, establishing client relationships, expanding jobs vertically, and opening feedback channels. 9. Maximizing motivation in contemporary organizations requires that managers be flexible in their practices.

REVIEW AND APPLICATION QUESTIONS Reading for Comprehension

1. How do needs affect motivation? Answer Motivation is a need-satisfying process. A need, in our terminology, means some internal state that makes certain outcomes appear attractive. An unsatisfied need creates tension that stimulates drives within an individual. These drives generate a search behavior to satisfy the need and reduce the tension. We can say that motivated employees are in a state of tension. To relieve this tension, they exert effort. The greater the tension, the higher the effort level. 2. Contrast lower-order and higher-order needs in Maslow's needs hierarchy. Answer Within every human being, there exists a hierarchy of five needs. Lower-order needs are physiological needs and safety needs. Higher order needs are social needs, esteem needs, and selfactualization needs. See Exhibit 10-2. 3. Describe the three needs in the three-needs theory. Answer David McClelland and others have proposed the three-needs theory.
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Need for achievement (nAch). The drive to excel, to achieve in relation to a set of standards, to strive to succeed. Striving for personal achievement rather than for the rewards of success per se (nAch). The desire to do something better or more efficiently than it has been done before. They seek situations in which they can attain personal responsibility for finding solutions to problems, in which they can receive rapid and unambiguous feedback, and in which they can set moderately challenging goals. Need for power (nPow). The need to make others behave in a way that they would not have behaved otherwise. The need for power (nPow) is the desire to have impact and to be influential. Individuals high in nPow enjoy being "in charge," strive for influence over others, and prefer to be in competitive and status-oriented situations. Need for affiliation (nAff). The desire for friendly and close interpersonal relationships. Striving for friendships, prefer cooperative situations rather than competitive ones, and desire relationships involving a high degree of mutual understanding. 4. What are some of the possible consequences of employees' perceiving an inequity between their inputs and outcomes and those of others? Answer There is considerable evidence that employees make comparisons of their job inputs and outcomes relative to others and that inequities influence the degree of effort that employees exert. The relationships are charted in Exhibit 10-6. If the ratios are unequal, inequity exists; that is, they view themselves as under-rewarded or overrewarded. When inequities occur, employees attempt to correct them. On the basis of equity theory, when employees perceive an inequity, they might (1) distort either their own or others' inputs or outcomes, (2) behave in some way to induce others to change their inputs or outcomes, (3) behave in some way to change their own inputs or outcomes, (4) choose a different comparison referent, and/or (5) quit their job. The theory establishes the four propositions relating to inequitable pay. These propositions, listed in Exhibit 10-7. 5. What are some advantages of using pay-for-performance to motivate employee performance? Are there drawbacks? Explain. Answer People do what they do to satisfy some need. They look for a payoff or reward. Pay is an important variable in motivation; managers need to look at how pay is used to motivate high levels of employee performance. Pay-for-performance programs are compensation plans that pay employees on the basis of some performance measure and is probably most compatible with expectancy theory. Pay-for-performance programs are gaining in popularity in organizations. Making some or all of a worker's pay conditional on performance measures focuses his or her attention and effort on that measure, then reinforces the continuation of that effort with rewards. However, if the employee, team, or the organization's performance declines, so too does the reward. Failure to reach the performance measures can result in the forfeiture of a percentage of salary placed at risk.

Linking Concepts to Practice

1. What role would money play in (a) the hierarchy of needs theory, (b) motivation-hygiene theory, (c) equity theory, (d) expectancy theory, and (e) motivating employees with a high nAch? Answer (a) Money might be a security need, providing shelter, food, clothing, or it could be a selfesteem need in giving the individual a sense of self-worth. (b) Money is a hygiene theory. (c) Money becomes a measure of fairness--Is my raise, salary appropriate to my position? (d) Money is relevant only to the degree the individual perceives that the monetary reward is appropriate for the amount of effort put forth. (e) Money could be achievement as a way to measure success.
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2. If you accept Theory Y assumptions, how would you be likely to motivate employees? Answer By using recognition programs, using enrichment and empowerment efforts, and focusing on giving employees opportunities to grow in their jobs. 3. Would an individual with a high nAch be a good candidate for a management position? Explain. Answer Maybe. No, because the individual is striving for personal achievement rather than achievement through the efforts of others. Yes, if the individual is managing a process rather than people and has the opportunity to make something better. The drive to excel, to achieve in relation to a set of standards, to strive to succeed. Striving for personal achievement rather than for the rewards of success per se (nAch). The desire to do something better or more efficiently than it has been done before. They seek situations in which they can attain personal responsibility for finding solutions to problems, in which they can receive rapid and unambiguous feedback, and in which they can set moderately challenging goals. 4. What difficulties do you think workforce diversity causes for managers who are trying to use equity theory? Answer Equity theory is heavily dependent on employee perception. Perceptions will vary based on cultural backgrounds. So managers need to be sensitive to cultural differences. 5. Describe several means that you might use to motivate a minimum-wage employee. Professional and technical employees. Which of your suggestions do you think is best? Support your position. Answer One of the toughest motivational challenges facing many managers today is how to achieve high performance levels among minimum-wage workers. Managers should look at other types of rewards that help motivate employees. Many companies use employee recognition programs such as employee of the month, quarterly employee-performance award ceremonies, or other celebrations of employee accomplishment. In service industries, successful companies are empowering these frontline employees with more authority to address customers' problems. If we use the JCM to examine this change, we can see that this type of job redesign provides enhanced motivating potential because employees now experience increased skill variety, task identity, task significance, autonomy, and feedback. Professional and technical employees are typically different from nonprofessionals. They have a strong and long-term commitment to their field of expertise. Their loyalty, however, is more often to their profession than to their employer. Money and promotions into management typically are low on their priority list. Their chief reward in their job is the work itself. Professional and technical employees generally also value support. This implies that managers should provide professional and technical employees with new assignments and challenging projects. Give them autonomy to follow their interests and allow them to structure their work in ways they find productive. Reward them with educational opportunities--training, workshops, attending conferences--that allow them to keep current in their field and to network with their peers. Also reward them with recognition. An increasing number of companies are creating alternative career paths for these employees-especially those in highly technical fields such as IT.

MANAGEMENT WORKSHOP TEAM SKILL-BUILDING EXERCISE: How Can You Motivate Others?
Purpose: This exercise is designed to help increase your awareness of how and why you motivate others and to help focus on the needs of those you are attempting to motivate. Time: 50 minutes Instructions: 1. Break students into groups of five to seven; each group member is to respond to the following:
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4. 5. 6. 7.

a. Situation 1: You are the owner and president of a fifty-employee organization. Your goal is to motivate all fifty employees to their highest effort level. 1. Task 1: On a separate piece of paper, list the factors you would use to motivate your employees. Avoid general statements such as "give them a raise." Rather, be as specific as possible. 2. Task 2: Rank order (from highest to lowest) all the factors listed in task 1 above. b. Situation 2: Consider now that you are one of the fifty employees who has been given insight as to what motivates you. 1. Task 3: As an employee, list those factors that would most effectively motivate you. Again, be as specific as possible. 2. Task 4: Rank order (from highest to lowest) all the factors listed in task 3. Step 2: Each member should share his or her prioritized lists (the lists from tasks 2 and 4) with the other members of the group. Step 3: After each member has presented his or her lists, the group should respond to the following questions: Are each individual's lists (task 2 and task 4) similar or dissimilar? What do the differences or similarities suggest to you? What have you learned about how and why to motivate others, and how can you apply these data?

DEVELOPING YOUR SKILL AT MOTIVATING EMPLOYEES:

SUMMARY The following suggestions draw on the essence of what we know about motivating employees. Steps in practicing the skill 1. Recognize individual differences. 2. Match people to jobs. 3. Use goals. 4. Ensure that goals are perceived as attainable. 5. Individualize rewards. 6. Link rewards to performance. 7. Check the system for equity. 8. Don't ignore money. Practicing the Skill Employees at Zero-Knowledge Systems in Montreal can get their laundry washed, dried, and folded for them at work. At Gymboree Corp.'s California headquarters the benefits include free cookies and milk and daily breaks for "recess." Arcnet, A New Jersey architectural firm, gives the use of a BMW to employees who stay more than a year. The firm believes the car makes a most lasting impression on employees than cash. Teaching tips 1. Using the above scenario have students share all the traditional and offbeat benefits that they know are currently offered at various U.S. firms. Rank order them for yourself putting those that are most likely to motivate you at the top of your list. Now look at your top five choices. How do you think you will rank them in 10 years? Why? 2. Discuss as a class the students rankings. 3. Ask volunteers to explain their rankings and why they changed or dont change over time.

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A CASE APPLICATION: Developing Your Diagnostic and Analytical Skills Involving Family Member in Incentive Programs
SUMMARY Build a better mousetrap! Richard Gaeta, President of Premier Incentives in Marblehead, Massachusetts, may have just found that edge. Family values play an important role in today's work world and is connected to high job performance. Yet he feels that many organizations overlooked the opportunities their family-oriented programs could offer. Gaeta felt that most organizational incentive programs fail to reach the spouses. He believes that companies should spend money promoting the incentive program to spouses, then the spouse could become a second boss, "pushing the other spouse" to reach a goal. Artil Vazirani, a sales manager knows exactly what Gaeta is saying. Insurance agents are rewarded with "Bruce Bucks" for exceeding their sales goals--one Bruce Buck for every dollar of commission earned. The Bruce Bucks are then used in an annual auction to bid for merchandise at the company's annual end of summer picnic. With spouses and children rooting them on, agents bid for sporting goods, electronics, camping equipment, and other items that are important to them with the incentive dollars they've earned. Questions 1. What's your reaction to this incentive plan at Bruce Wilcox Insurance? Explain your position. Answer Students' responses will vary. With their limited family experience, other than as a child/employee, you may need to offer a parent/employee perspective. 2. Do you believe that such incentives as the one described at Bruce Wilcox Insurance can be successfully used at other companies? Why or why not? Do special conditions have to exist for such a system to work? Explain. Answer Students' opinions will vary. 3. What issues do you see in this case for (a) the Wilcox sales people; (b) their spouses and family members; (c) Artil Vazirani; and (d) Richard Gaeta. Answer The companies are getting involved in family life, possibly creating strife between the spouse and the spouse with the incentive. While positively it will better inform the families as to what the working spouse is doing, it may also diminish the working spouses self-esteem and respect in the family if he/she continually does not win the incentive. 4. What ethical issues, if any, do you believe surface in this case? Answer See number 3 above.

DEVELOPING YOUR INVESTIGATIVE SKILLS: Using the Internet

Visit www.prenhall.com/robbins for updated Internet exercises.

ENHANCING YOUR WRITING SKILLS: Communicating Effectively

(For ideas regarding the use of these exercises in your course, please refer to the Teaching Tips in the Preface of this Manual.) 1. Develop a 2-3 page response to the following questions What motivates me? What are the rewards that an employer can provide me that will make me give the extra effort? How realistic is it that I will find such an organization? 2. Randomly contract 25 fellow students on your campus. Ask them to identify the top three things they want from an employer. Keep a log of these responses. Provide a 2-3 page write about your findings. What did your "sample respondents" indicate they wanted most? Given your responses, which of the motivation theories discussed in this chapter appear to be best supported? Explain your reasoning.

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3. Go to http://www.chartcourse.com and visit the website titled "free articles." Review two articles in particular. First is titled "Build Work Force Using Pride," and the second is "How To Attract, Keep and Motivate Your Workforce." Summarize the key concepts of these articles, and relate the premises of both to motivating minimum wage and technical service workers.

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