Lecture 11 Motivating and Rewarding Employees

Motivation

The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal.

Key elements of motivation

Energy, Direction, Persistence.

Maslow’s Hierarchy of Needs Theory

A theory proposing that people must satisfy lower-order needs before addressing higher-order needs.

McGregor’s Theory X and Theory Y

Theory X assumes employees dislike work and must be coerced, while Theory Y assumes employees are creative and enjoy work.

Herzberg’s Two-Factor Theory

A theory separating factors leading to job satisfaction (intrinsic) from those leading to job dissatisfaction (extrinsic).

McClelland’s Three-Needs Theory

Need for achievement (nAch)
Need for power(nPow)
Need for affiliation (nAff)

Contemporary Theories of Motivation

Goal Setting Theory

Job Design

Equity Theory

Expectancy Theory

Goal Setting Theory

The proposition that specific and difficult goals lead to higher performance when accepted.

Job Design

The way tasks are combined to create complete jobs, impacting employee motivation.

Job characteristics model (JCM)

A framework for analyzing and designing jobs that identifies five primary core job dimensions, their interrelationships, and their impact on outcomes.

Five core job dimensions

Skill variety

Task identity

Task significance

Autonomy

Feedback

Job enrichment

The vertical expansion of a job by adding planning and evaluation responsibilities.

Equity Theory

The theory that individuals assess their job's input-to-outcome ratio in relation to others.

Referent

The persons, systems, or selves against which individuals compare themselves to assess equity.

Equity theory two types of justice

Distributive justice
Procedural justice

Expectancy Theory

The theory that individuals act based on expected outcomes and the attractiveness of those outcomes.

Current Issues in Motivating Employees

Motivating in tough economic circumstances

Managing cross-cultural challenges

Motivating unique groups of workers

Designing appropriate reward programs

Motivating in Tough Economic Circumstances

In an uncertain economy, managers have to be creative in keeping their employees’ efforts energized, directed, and sustained toward achieving goals.

Managing Cross-cultural Challenges

Managers cannot assume that motivational programs that work in one geographic location are going to work in others.

Unique Groups of Workers

Diverse employees
Professionals
Contingent workers

Designing Appropriate Rewards Programs

Open-book management

Employee recognition programs

Pay-for-performance programs

Open-book management

A motivational approach involving sharing an organization’s financial statements with all employees.

Employee recognition programs

Programs that provide personal attention and appreciation for a job well done.

Pay-for-performance programs

Variable compensation plans that pay employees based on performance measures.