Fourth Edition

Copyright 2003 Prentice Hall, Inc.

PART 3 . . . . . . . . . . . . . . . . . . . . . . . .
Understanding People in Organizations
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8 - 2
Chapter 8
Motivating, Satisfying,
and Leading Employees
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8 - 3
A leader is best when people barely know
he exists, when his work is done they will
say: We did it ourselves.
~ Lao-Tzu, c. 600 B.C.
Leadership is the art of getting someone
else to do something you want done
because he wants to do it.
~ Dwight D. Eisenhower, 1890 - 1969
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8 - 4
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
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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?
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8 - 6
Satisfied Employees Are More
Productive and More Committed
Job Satisfaction:
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
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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
1994 1997 2000
NA
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8 - 8
Fortune Magazines
100 Best Companies to Work For
Edward Jones #1
Cisco Systems #15
Microsoft #28
Patagonia #41
Starbucks #58
Wal-Mart #94
It's not easy being good these days
at least if you're an employer.
Source: Fortune Magazine, February 4
th
, 2002
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8 - 9
Highly Motivated Employees Are
Critical to Business Success
Classical
Behavior: The Hawthorne Studies
Contemporary
Motivation:
The set of forces that cause people to behave in
certain ways
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8 - 10
The Human Resources Model
Theory X and Theory Y
Theory X
People are lazy.
People lack ambition and
dislike responsibility.
People are self-centered.
People resist change.
People are gullible and
not very bright.
Theory Y
People are energetic.
People are ambitious and
seek responsibility.
People can be selfless.
People want to contribute
to business growth and
change.
People are intelligent.
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8 - 11
Maslows Hierarchy of Needs
Self-
Actualization
Needs
Esteem Needs
Social Needs
Security Needs
Physiological Needs
General
Examples
Organizational
Examples
Self-Fulfillment Challenging Job
Self-
Actualization
Needs
Status Job Title
Esteem Needs
Friendship Friends at Work
Social Needs
Stability Pension Plan
Security Needs
Shelter Salary Physiological Needs
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Hygiene Factors
Supervisors
Working Conditions
Interpersonal Relations
Pay & Security
Company Policies &
Administration
Motivation Factors
Achievement
Recognition
The Work Itself
Responsibility
Advancement & Growth
Two Factor Theory
Dissatisfaction Satisfaction
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8 - 13
Expectancy Theory
Effort-
Performance
Issue
Performance-
Reward
Issue
Rewards-
Personal
Goals Issue
Individual
Effort
Individual
Performance
Organizational
Rewards
Personal
Goals
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8 - 14
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
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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
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Reinforcement /
Behavior Modification Theory
Positive Reinforcement
Punishment
When rewards are tied directly to
performance
When negative consequences are attached
directly to undesirable behavior
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8 - 17
Identifying
Resources
Counseling
Setting
Verifiable Goals
& Clear Plans
Meeting
Management by Objectives
Collaborative Goal-setting
Collaborative
Goal Setting &
Planning
Communicating
Organizational
Goals & Plans
Periodic
Review
Evaluation
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Participative Management
and Empowerment
Increasing job satisfaction by
encouraging participation
Team management represents
a growing trend
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8 - 19
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
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8 - 20
Work share programs
Flextime programs and
alternative workplace
strategies
Telecommuting and
virtual offices
Modified Work Schedules
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8 - 21
Sample Flextime Scheduling
Joe
Sue
Pat
6:00
A.M.
7:00
A.M.
8:00
A.M.
9:00
A.M.
10:00
A.M.
11:00
A.M.
12:00
NOON
1:00
P.M.
2:00
P.M.
3:00
P.M.
4:00
P.M.
5:00
P.M.
6:00
P.M.
Flexible
Time
Core
Time
Flexible
Time
Core
Time
Flexible
Time
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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
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8 - 23
The process of
motivating others
to work to meet
specific objectives
Managerial Leadership
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8 - 24
Challenge the process
Inspire a shared vision
Enable others to act
Model the way
Encourage the heart
Five Fundamental Leadership Practices
Source: www.theleadershipchallenge.com
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8 - 25
Leadership at General Electric
Four Es 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, Anderson Assets, Winter 2002
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8 - 26
Managerial Styles




Contingency Approach
The appropriate style in any situation is contingent
on the unique elements of that situation
Autocratic Style
Democratic Style
Free-rein Style
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8 - 27
Motivation and Leadership in the
Twenty-first Century
Motivation
Security and pay are no
longer enough
Leadership
Coach mentality
Diversity
Flexibility
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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