Chapter 10

Motivating and
Satisfying
Employees and
Teams

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 LEARNING OBJECTIVES

10-1 Explain what motivation is.

10-2 Understand some major historical perspectives on motivation.
10-3 Describe three contemporary views of motivation: equity
theory, expectancy theory, and goal-setting theory.
10-4 Explain several techniques for increasing employee
motivation.
10-5 Understand the types, development and uses of teams.

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 What Is Motivation?

 Motive – something that causes a person to act

 Motivation – the individual internal process that
energises, directs, and sustains behaviour; the
personal ‘force’ that causes you or me to behave
in a particular way
 Morale – an employee’s feelings about the job,
about superiors, and about the business itself
• High morale results mainly from the satisfaction of
needs on the job or as a result of doing the job.

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 Scientific Management

 Scientific management – the application of scientific

principles to management of work and workers
 Frederick W. Taylor
• Was interested in improving the efficiency of individual workers
o This interest led to the development of scientific management.
• Observed that workers ‘soldiered’, or worked slowly, because
they feared that they would run out of work and lose their jobs
• Developed the piece-rate system – a compensation system
under which employees are paid a certain amount for each unit
of output they produce

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FIGURE 10-1 Taylor’s Piece-Rate System

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 The Hawthorne Studies

 Conducted by Elton Mayo between 1927 and 1932 to

determine the effects of the work environment on
employee productivity
• The first set of experiments tested the effect of lighting levels on
productivity by subjecting one group of workers to varying
lighting and the second group to none.
o Productivity increased for both groups.
• The second set of experiments focused on the effectiveness of
the piece-rate system in increasing the output of groups of
workers.
o Output remained constant irrespective of the ‘standard’ rates
management set.
o Researchers concluded that human factors were
responsible for the results and, thus, they are at least as
important to motivation as pay rates.
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Maslow’s Hierarchy of Needs (slide 1 of 2)

 Need – a personal requirement

 Maslow’s hierarchy of needs – a sequence of
human needs in the order of their importance

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FIGURE 10-2 Maslow’s Hierarchy of Needs

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Maslow’s Hierarchy of Needs (slide 2 of 2)

 Physiological needs – the things we require for survival

• Usually satisfied through adequate wages
 Safety needs – the things we require for physical and emotional
security
• May be satisfied through job stability, health insurance, pension plans,
and safe working conditions
 Social needs – the human requirements for love and affection and
a sense of belonging
• Are fulfilled through the work environment and the informal organisation,
and outside of the workplace by family and friends
 Esteem needs – our need for respect, recognition and a sense of
our own accomplishment and worth
• May be satisfied through personal accomplishment and promotions
 Self-actualisation needs – the need to grow and develop and to
become all that we are capable of being
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 Herzberg’s
Motivation–Hygiene Theory
 Motivation–hygiene theory – the idea that satisfaction
and dissatisfaction are separate and distinct dimensions
 Motivation factors – job factors that increase
motivation, although their absence does not necessarily
result in dissatisfaction
• When motivation factors are present, they act as satisfiers.
 Hygiene factors – job factors that reduce dissatisfaction
when present to an acceptable degree but that do not
necessarily result in high levels of motivation
• When hygiene factors are present, they act as dissatisfiers.

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FIGURE 10-3 Herzberg’s Motivation–Hygiene Factors

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 Theory X and Theory Y (slide 1 of 2)

 Theory X – a concept of employee motivation generally

consistent with Taylor’s scientific management; assumes
that employees dislike work and will function only in a
highly controlled work environment
• Theory X is based on the following assumptions:
o People dislike work and try to avoid it.
o Because people dislike work, managers must coerce, control and
frequently threaten employees to achieve organisational goals.
o People generally must be led because they have little ambition
and will not seek responsibility; they are concerned mainly about
security.

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 Theory X and Theory Y (slide 2 of 2)

 Theory Y – a concept of employee motivation generally

consistent with the ideas of the human relations
movement; assumes responsibility and working towards
organisational goals, and by doing personal rewards are
also achieved
• Theory Y is based on the following assumptions:
o People do not naturally dislike work.
o People will work towards goals to which they are committed.
o People become committed to goals when it is clear that
accomplishing the goals will bring personal rewards.
o People often seek out and willingly accept responsibility.
o Employees have the potential to help accomplish organisational
goals.
o Organisations generally do not make full use of their human
resources.
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TABLE 10-1 Theory X and Theory Y Contrasted

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 Theory Z

 Theory Z – the belief that some middle ground

between type A and type J practices is best for
American business
 Developed by William Ouchi
 Emphasises participative decision making

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FIGURE 10-4 The Features of Theory Z

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 Reinforcement Theory (slide 1 of 2)

 Reinforcement theory – a theory of motivation

based on the premise that rewarded behaviour
is likely to be repeated, whereas punished
behaviour is less likely to recur

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 Reinforcement Theory (slide 2 of 2)

 Reinforcement – an action that follows directly

from a particular behavior
• Example: a reprimand for coming late to work
• Forms of reinforcement:
o Positive reinforcement – one that strengthens desired
behavior by providing a reward
- Example: praise from supervisors for a job well done
o Negative reinforcement – one that strengthens desired
behaviour by eliminating an undesirable task or situation
o Punishment – a consequence of undesirable behaviour
- Examples: reduced pay and termination
o Extinction – not responding to undesirable behavior with
the hope that the behaviour will eventually go ‘extinct’
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 Equity Theory (slide 1 of 2)

 Equity theory – a theory of motivation based on

the premise that people are motivated to obtain
and preserve equitable treatment for themselves
 Equity – the distribution of rewards in direct
proportion to each employee’s contribution to the
organisation

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 Equity Theory (slide 2 of 2)

 We conceive of equity in the following way:

1. We develop our own input-to-outcome ratio.
o Inputs are the time, effort, skills, education, experience, and so on
that we contribute to the organisation.
o Outcomes are the rewards we get from the organisation, such as
pay, benefits, recognition and promotions.
2. We compare this ratio to what we perceive as the input-to-
outcome ratio for some other person (or comparison other).
o If the two ratios are roughly the same, we feel that the
organisation is treating us equitably.
o If our ratio is the higher of the two, we feel under-rewarded and
may decrease our own inputs by (1) not working as hard, (2)
trying to increase our outcome by asking for a raise, (3) trying to
get the comparison other to increase some inputs, (4) leaving the
work situation, or (5) conducting a new comparison with a
different person.
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 Expectancy Theory

 Expectancy theory – a model of motivation

based on the assumption that motivation
depends on how much we want something and
on how likely we think we are to get it
 Developed by Victor Vroom
 Expectancy theory is complex because each
action we take is likely to lead to several
outcomes, some of which we want and others
we do not.

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FIGURE 10-5 Expectancy Theory

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 Goal-Setting Theory

 Goal-setting theory – a theory of motivation

suggesting that employees are motivated to
achieve goals that they and their managers
establish together
• The goal should be:
o Very specific
o Moderately challenging
o One that the employee will be committed to achieve
• Rewards should be tied directly to goal achievement.

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 Key Motivation Techniques:
Management by Objectives (slide 1 of 2)
 Management by objectives (MBO) – a motivation
technique in which managers and employees collaborate
in setting goals
 The primary purpose of MBO is to clarify the roles
employees are expected to play in reaching the
organisation’s goals.
 MBO increases employee motivation by empowering
them with an active role in goal-setting and performance
evaluation.
 Most MBO programmes consist of a series of five steps.
1. The acceptance of top management must be secured.
2. Top management and other parties must establish preliminary
goals that reflect a business’s mission and strategy.
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 Management by Objectives (slide 2 of 2)

 Most MBO programmes consist of a series of five steps.

(continued)
3. The third step consists of the following three smaller steps:
1. The manager explains to each employee that he or she has
accepted certain organisational goals and asks the individual to
think about how he or she can help to achieve these goals.
2. The manager later meets with each employee individually and,
together, they establish individual goals for the employee.
3. The manager and the employee decides what resources the
employee will need to accomplish his or her goals.
4. The manager and employees meet periodically to review each
employee’s progress.
5. At the end of the designated time period, the manager and each
employee meet again to determine which of the individual’s
goals were met and which were not, and why.
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 Job Enrichment

 Job enrichment – a motivation technique that

provides employees with more variety and
responsibility in their jobs
 Job enlargement – expanding a worker’s
assignments to include additional but similar
tasks
 Job redesign – a type of job enrichment in
which work is restructured to cultivate the
worker–job match

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 Behaviour Modification (slide 1 of 2)

 Behaviour modification – a systematic

programme of reinforcement to encourage
desirable behaviour
 Behaviour modification involves both rewards to
encourage desirable actions and punishments to
discourage undesirable actions.

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 Behaviour Modification (slide 2 of 2)

 Steps:
1. A target behaviour – the behaviour that is to be changed – is
identified and measured.
2. Managers provide positive reinforcement in the form of a reward
when employees exhibit the desired behavior.
o Example: Apple offers a Corporate Gifts and Rewards
Programme to give companies the ability to reward their staff or
very loyal customers with iPods, iPhones, iPads, Mac computers,
or iTunes gift cards.
3. The levels of the target behaviour are measured again to
determine whether the desired changes have been achieved.
o If the target behaviour has not changed significantly in the desired
direction, the reward system must be changed to one that is likely
to be more effective.

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 Flexible Scheduling Options

 Flextime – a system in which employees set

their own work hours within employer-
determined limits
 Compressed workweek – allows employees to
work a 40-hour week in four days instead of five

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 Part-Time Work and Job Sharing

 Part-time work – permanent employment in which

individuals for work less than a standard work week
 Job sharing – an arrangement whereby two people
share one full-time position
• Advantages:
o May contribute to greater job satisfaction and ease in creating
work–life balance
o Can lead people to be more productive
o Combines the security of a full-time position with the flexibility of a
part-time one
• Disadvantages:
o May mean loss of benefits for employees
o Is difficult if tasks are not easily divisible or if two people do not
work or communicate well with one another
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 Telecommuting

 Telecommuting – working at home all the time or for a

portion of the work week
 Advantages:  Disadvantages:
• For employees: • For employees:
o Increased o Feelings of isolation
productivity o Putting in longer
o Higher levels of hours
happiness and o Distractions at home
personal satisfaction
• For companies:
• For companies:
o Difficulty monitoring
o Lower real estate
productivity
and travel expenses
o Improved morale
o Flexibility to access
larger labour pools
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 Employee Empowerment
 Empowerment – making employees more involved in their jobs by
increasing their participation in decision making
 For empowerment to work effectively, managers should set
expectations, communicate standards, institute periodic evaluations
and guarantee follow-up.
 Benefits:  Obstacles:
• Increased job satisfaction • Resistance on the part of
• Improved job performance management
• Higher self-esteem • Distrust of management

• Increased organisational on the part of workers

commitment • Inadequate training of
employees
• Poor communication
between levels of the
organisation

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 Employee Ownership

 Employee ownership – a situation in which employees

own the company they work for by virtue of being
shareholders
 As a means to motivate executives and managers to feel
invested in the company, some businesses provide
share options as part of the employee compensation
package.
• An option is simply the right to buy shares of the company within
a prescribed time at a set price.
o If the company does well and its share stock price rises past the
set price, the employee can exercise the option and sell the
shares to cash in on the company’s success.

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 What Is a Team?

 Team – two or more workers operating as a

coordinated unit to accomplish a specific task or
goal

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 Types of Teams

 Problem-solving team – a team of knowledgeable

employees brought together to tackle a specific problem
 Self-managed teams – groups of employees with the
authority and skills to manage themselves
 Cross-functional team – a team of individuals with
varying specialties, expertise, and skills that are brought
together to achieve a common task
 Virtual team – a team consisting of members who are
geographically dispersed but communicate electronically

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FIGURE 10-6 Advantages and Disadvantages of Self-Managed Teams

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FIGURE 10-7 Stages of Team Development

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 Roles Within a Team

o Task-specialist role
• Played by the group member who pushes the team towards achieving
goals and objectives by concentrating fully on the assigned task
o Socioemotional role
• Played by the individual who supports and encourages the emotional
needs of the other members, placing the team members’ personal
needs above the task at hand
o Dual role
• A combination of the socioemotional and task-specialist roles
o Non-participant role
• Played by a person who does not contribute to accomplishing the task
and does not provide favourable input with respect to team members’
socioemotional needs

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 Team Cohesiveness

 To ensure cohesiveness, the ideal team size is generally 5 to 12.

• Anything larger and relationship development becomes too complicated.
• Anything smaller and the group may be excessively burdened and tasks
may not get completed.
 One of the most reliable ways to build cohesiveness within a team is
through competition with other teams.
• When two teams are competing for a single prize or recognition, they
are forced to become more goal-oriented and to put aside conflict.
 A favourable appraisal from an outsider may strengthen team
cohesiveness.
 Teams are also more successful when goals have been agreed
upon beforehand.
 Frequent interaction also builds team cohesiveness through
increasing familiarity.

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Team Conflict and How to Resolve It

 Conflict occurs when a disagreement arises between two or more

team members.
 If handled properly, conflict can improve a team.
 As long as conflict is handled in a respectful and professional
manner, it can improve the quality of work produced.
 However, if conflict turns hostile and affects the work environment,
then steps must be taken to arrive at a compromise. Compromises
can be difficult because neither party ends up getting everything
they want.
 The best solution is a middle-ground alternative in which each party
is satisfied to some degree.
 Conflict must be acknowledged before it can be dealt with or used in
a constructive manner. Ignoring it may cause it to simmer or grow,
disrupting team progress.

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 Benefits and Limitations of Teams

 Benefits:  Limitations:
• Reduces turnover and • Stressful and time-
costs consuming organisation
• Increases productivity, process
customer service and • No guarantee that the
product quality team will develop
• Leads to higher levels effectively
of job satisfaction • May experience lower
among employees productivity if there is a
• Leads to a harmonious lack of cohesiveness or
work environment too much conflict

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