CHAPTER 10: Motivating Employees and Building Self-Managed Teams

  I. THE IMPORTANCE OF MOTIVATION.

 A. The key to leadership success is MOTIVATING OTHERS TO DO THEIR BEST.

 1. People are motivated by a variety of things.

 a. An INTRINSIC REWARD is the good feeling you have when you have done a good job.

 b. An EXTRINSIC REWARD is something given to you by someone else as recognition for good work and include pay increases, praise, and promotions.

 2. MOTIVATION, the drive to satisfy a need, ultimately comes from WITHIN AN INDIVIDUAL.

 3. The purpose of this chapter is to help you learn how to stimulate people and bring out that natural drive to do a good job.

 4. The most important person to motivate is YOURSELF.

 5. The job of a manager is to find each workers' commitment, encourage it, and focus it on some common goal.

 B. EARLY MANAGEMENT STUDIES (TAYLOR).

 LEARNING GOAL 1. Explain Taylor's scientific management.

 1. FREDERICK TAYLOR is known as the 'FATHER OF SCIENTIFIC MANAGEMENT.'

 a. His book The Principles of Scientific Management was published in 1911.

 b. TAYLOR'S GOAL was to INCREASE PRODUCTIVITY by studying the most efficient ways of doing things and then teaching workers these methods.

 c. The way to improve productivity was to scientifically study the most efficient way to do things then teach people those methods (SCIENTIFIC MANAGEMENT.)

 d. THREE ELEMENTS of his approach were: TIME, METHODS, and RULES OF WORK.

 e. TIME-MOTION STUDIES break down the tasks needed to do a job and measure the time needed to do each task.

 2. H. L. Gant, on of Taylor's followers, developed GANTT CHARTS by which managers plotted the work of employees a day in advance.

 3. FRANK AND LILLIAN GILBRETH used Taylor's ideas in the principle of MOTION ECONOMY-breaking down every job into a series of motions (therbligs) and then analyzing each motion to make it more efficient.

 4. SCIENTIFIC MANAGEMENT viewed people as MACHINES that needed to be properly programmed.

 a. There was little concern for the psycho logical or human aspects of work.

 b. Much emphasis in some companies is still placed on conformity to work rules rather than on creativity, flexibility, and responsiveness.

 C. THE HAWTHORNE STUDIES (MAYO.)

 LEARNING GOAL 2. Describe the Hawthorne studies and relate their significance to human-based management.

 1. The HAWTHORNE STUDIES were con ducted by Elton Mayo at the WESTERN ELECTRIC COMPANY's Hawthorne plant in Cicero, Illinois.

 a. Begun in 1927, the studies ended six years later.

 b. The PURPOSE of the studies were to DETERMINE THE BEST LIGHTING for optimum productivity.

 c. The PRODUCTIVITY of the experimental group INCREASED compared to the control group whether the lighting was bright or dim.

 2. A second series of studies were conducted to see if OTHER FACTORS contributed to increased production.

 a. PRODUCTIVITY INCREASED during each of the 13 experimental periods.

 b. When conditions were returned to their original status (before the studies were started), PRODUCTIVITY CONTINUED TO GO UP. Why?

 3. Mayo hypothesized that HUMAN or PSYCHOLOGICAL FACTORS caused the in creases:

 a. The women workers thought of them selves as a SOCIAL GROUP.

 b. The women workers were involved in the PLANNING of the experiments.

 c. The women workers enjoyed the SPECIAL ATMOSPHERE and ADDITIONAL PAY for the increased productivity.

 4. The term HAWTHORNE EFFECT refers to the tendency for people to behave differently when they know they're being studied.

 a. The Hawthorne studies' results encouraged researchers TO STUDY HUMAN MOTIVATION and the MANAGERIAL STYLES that lead to more productivity.

 b. Mayo's findings led to NEW ASSUMPTIONS ABOUT EMPLOYEES.

 c. MONEY was found to be a relatively LOW MOTIVATOR.

 II. MASLOW'S HIERARCHY OF NEEDS.

 LEARNING GOAL 3. Identify the levels of Maslow's hierarchy of needs and relate their importance to employee motivation.

 A. ABRAHAM MASLOW believed that MOTIVA TION ARISES FROM NEED.

 1. One is motivated to satisfy unmet needs.

 2. SATISFIED NEEDS NO LONGER MOTIVATE.

 B. Maslow placed needs on a HIERARCHY of importance:

 1. PHYSIOLOGICAL NEEDS: Basic survival needs including the need to drink, eat, and be sheltered from heat and cold.

 2. SAFETY NEEDS: The need to feel secure at work and at home.

 3. SOCIAL NEEDS: The need to feel loved, accepted, and part of the group.

 4. SELF-ESTEEM NEEDS: The need for recognition and acknowledgment from others, as well as self-respect and a sense of status.

 5. SELF-ACTUALIZATION NEEDS: The need to develop to your fullest potential.

 C. When one need is satisfied, another, higher-level need emerges.

 1. The SATISFIED NEED is no longer a motivator.

 2. Lower-level needs, however, can pop up at any time and take attention away from higher-level needs.

 D. APPLYING MASLOW'S THEORY.

 1. The text relates how Andrew Grove, president of Intel, uses Maslow's concepts to motivate employees in his firm.

 2. Once one understands the need level of employees, it is easier to design programs that will trigger self-motivation.

 III. MCGREGOR'S THEORY X AND THEORY Y.

 LEARNING GOAL 4. Differentiate among Theory X, Theory Y, and Theory Z.

 A. DOUGLAS MCGREGOR categories managers by THEIR ATTITUDES which lead to different managerial styles: THEORY X and THEORY Y.

 B. THEORY X.

 1. The ASSUMPTIONS of Theory X management are:

 a. The average person DISLIKES WORK and will avoid it if possible.

 b. Because of this dislike, the average per son must be FORCED, CONTROLLED, DIRECTED, OR THREATENED WITH PUNISHMENT TO BE MOTIVATED to put forth the effort to achieve the organization's goals.

 c. The average worker prefers to be directed, wishes TO AVOID RESPONSIBILITY, has relatively LITTLE AMBITION, and wants SECURITY.

 d. Primary motivators are FEAR and MONEY.

 2. The CONSEQUENCE OF SUCH ATTITUDES is a manager who is very 'busy.'

 a. Motivation is more likely to take the form of PUNISHMENT for bad work rather than REWARD for good work.

 b. Those were the assumptions behind Taylor's scientific management.

 C. THEORY Y.

 1. THEORY Y makes entirely different ASSUMPTIONS about people:

 a. Most people LIKE WORK; it is as natural as play or rest.

 b. Most people NATURALLY WORK TO WARD GOALS to which he or she is committed.

 c. The depth of a person's commitment to goals depends on the perceived REWARDS for achieving them.

 d. Under certain conditions, most people not only accept but SEEKS RESPONSIBILITY.

 e. People are capable of using a high degree of IMAGINATION, CREATIVITY, and CLEVERNESS to solve problems.

 f. In industry, the average person's INTELLECTUAL POTENTIAL IS ONLY PARTIALLY REALIZED.

 g. People are MOTIVATED BY A VARIETY OF REWARDS. Each worker is stimulated by a reward unique to that worker (time off, money, recognition, etc.)

 2. Theory Y emphasizes a relaxed managerial atmosphere in which workers are free to set objectives and be flexible.

 3. EMPOWERMENT is a key technique in meeting these objectives. To be a real motivator, empowerment requires management to:

 a. Find out what people think the problems in the organization are.

 b. Let them design the solutions.

 c. Get out of the way and let them put those solutions into action.

 4. The trend in many U.S. businesses is to ward Theory Y management.

 D. OUCHI'S THEORY Z.

 1. Another reason for a more flexible managerial style is to meet competition from foreign firms.

 2. In the 1980s WILLIAM OUCHI wrote Theory Z: How American Business Can Meet the Japanese Challenge, which highlighted how corporations in Japan are run differently from U.S. companies.

 3. Out of the Japanese system evolved a concept called THEORY Z, which contains the following items:

 a. VIRTUALLY LIFE-TIME EMPLOYMENT.

 b. COLLECTIVE DECISION-MAKING.

 c. SLOW EVALUATION AND PROMOTION.

 d. FEW LEVELS OF MANAGEMENT.

 4. Several U.S. firms attempted to adopt aspects of this style-but, because of cultural differences, Theory Z principles were never widely adopted.

 IV. HERZBERG'S MOTIVATING FACTORS.

 LEARNING GOAL 5. Distinguish between motivators and hygiene factors identified by Herzberg.

 A. THEORIES X, Y, AND Y are CONCERNED WITH MANAGEMENT STYLES.

 1. Another theorist looks at what managers can do with the job itself to motivate employees.

 2. HERZBERG is CONCERNED IS WITH THE CONTENT OF WORK rather than style of management.

 B. Frederick HERZBERG surveyed workers to find out how they RANK JOB-RELATED FACTORS. The results were:

 1. Sense of achievement.

 2. Earned recognition.

 3. Interest in the work itself.

 4. Opportunity for growth.

 5. Opportunity for advancement.

 6. Importance of responsibility.

 7. Peer and group relationships.

 8. Pay.

 9. Supervisor's fairness.

 10. Company policies and rules.

 11. Status.

 12. Job security.

 13. Supervisor's friendliness.

 14. Working conditions.

 C. Herzberg noted that the HIGHEST RANKING FACTORS DEALT WITH JOB CONTENT.

 1. He referred to these as MOTIVATORS since they gave employees a great deal of satisfaction.

 2. They include the work itself, achievement, and responsibility.

 D. The OTHER FACTORS had to do with JOB ENVIRONMENT.

 1. They could CAUSE DISSATISFACTION If them were missing but NOT NECESSARILY MOTIVATION if they increased.

 2. These so called HYGIENE FACTORS include working conditions and salary.

 E. APPLYING HERZBERG'S THEORIES TO MODERN WORKERS

 1. The text offers several current examples of Herzberg's theories in action.

 2. Further surveys support Herzberg's finding that the number one motivator is not money, but a sense of achievement and recognition.

 3. There is a good deal of similarity in Maslow's hierarchy and Herzberg's two-factor theory.

 V. JOB ENRICHMENT.

 LEARNING GOAL 6. Explain how job enrichment affects employee motivation and performance.

 A. JOB ENRICHMENT is a motivational strategy that emphasizes motivating the worker through the job itself.

 B. The FIVE CHARACTERISTICS of work believed to be IMPORTANT IN AFFECTING MOTIVATION AND PERFORMANCE are:

 1. SKILL VARIETY, the extent to which a job demands different skills of the person.

 2. TASK IDENTITY, the degree to which the job requires doing a task with a visible outcome from beginning to end.

 3. TASK SIGNIFICANCE, the degree to which the job has a substantial impact on the lives of others in the company.

 4. AUTONOMY, the degree of freedom, independence, and discretion in scheduling work and determining procedures.

 5. FEEDBACK, the amount of direct, clear in formation received about job performance.

 C. The text describes the JOB ENRICHMENT PROGRAM at SHERWIN WILLIAMS.

 D. OTHER JOB DESIGNS.

 1. JOB SIMPLIFICATION produces task efficiency by breaking down the job into simple steps, sometimes necessary with people learning new skills.

 2. JOB ENLARGEMENT combines a series of tasks into one assignment that is more challenging and motivating.

 3. JOB ROTATION makes work more interesting by moving employees from one job to another.

 VI. GOAL-SETTING THEORY AND MANAGEMENT BY OBJECTIVES.

 LEARNING GOAL 7. Identify the steps involved in implementing a management by objectives (MBO) program.

 A. GOAL-SETTING THEORY is based on setting specific, attainable goals.

 1. This will lead to high motivation and performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.

 2. Peter Drucker developed such a system in the 1960s called MANAGEMENT BY OBJECTIVES (MBO.)

 B. MANAGEMENT BY OBJECTIVES (MBO) is an example of goal-setting.

 1. Management by Objectives was developed to HELP EMPLOYEES MOTIVATE THEMSELVES.

 2. MBO is a system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among all levels of management and employees.

 3. There are six steps in the MBO process.

 4. Some critics see MBO as being out of date and inconsistent with contemporary management thought.

 C. Management by objectives is most effective in relatively stable situations.

 1. It is important to understand the difference between helping and coaching subordinates because helping tends to make subordinates weak and dependent while coaching makes them feel capable and part of the team.

 2. HELPING is working with the subordinate, even doing part of the work if necessary.

 3. COACHING means acting as a resource- teaching guiding, recommending-but not helping by doing the task.

 4. Problems can arise when management uses MBO as a strategy for FORCING managers to commit to goals that are not mutually agreed upon.

 VII. MEETING EMPLOYEE EXPECTATIONS: EXPECTANCY THEORY.

 LEARNING GOAL 8. Explain the key factors involved in expectancy theory.

 A. According to VICTOR VROOM's EXPECTANCY THEORY, employee expectations can affect an individual's motivation.

 1. The amount of effort employees exert on a specific task depends on their expectations of the outcome.

 2. Expectation varies from individual to individual.

 B. FIVE STEPS TO IMPROVE EMPLOYEE PERFORMANCE:

 1. Determine what rewards are valued by employees.

 2. Determine the employee's desired performance standard.

 3. Ensure performance standards are attain able.

 4. Guarantee rewards are tied to performance.

 5. Be certain rewards are considered adequate.

 VIII. TREATING EMPLOYEES FAIRLY: EQUITY THEORY.

 LEARNING GOAL 9. Examine the key principles of equity theory.

 A. The basic principle of EQUITY THEORY is that workers try to maintain equity between inputs and outputs compared to people in similar positions.

 B. When workers do perceive inequity, they will try to re-establish equitable exchanges.

 1. They can reduce or increase their efforts or rationalize the situation.

 2. In the workplace, inequity leads to lower productivity leads to lower productivity, reduced quality, increased absenteeism, and voluntary resignation.

 C. Equity judgements are based on perceptions, and are therefore subject to errors in perception.

 1. Organizations can try to deal with this by keeping salaries secret.

 2. However, the best remedy, in general, is clear and frequent communication.

 IX. IMPLEMENTING THE NEW CONCEPTS: MOTIVATION THROUGH COMMUNICATION.

 A. For successful management and motivation, COMMUNICATION must flow TWO WAYS among ALL members of an organization.

 1. Communication often flows only one way: from top management down.

 2. The flow upward, from workers to managers, is usually severely clogged.

 3. To create an atmosphere of 'us working together,' managers have to become active listeners.

 B. PROCEDURES for encouraging open communication include:

 1. Creating an ORGANIZATIONAL CULTURE that rewards listening; creating facilities for dialogues; and showing others that talking with superiors counts.

 2. TRAINING supervisors and managers in listening skills.

 3. REMOVING BARRIERS to open communication (separate washrooms, parking lots, etc.) and PROVIDING WAYS TO FACILI TATE COMMUNICATION (company athletic teams, picnics, etc.)

 C. OPEN COMMUNICATION AND SELF-MANAGED TEAMS.

 1. Companies that have developed highly motivated work forces usually have several things in common, including open communication and self-managed teams.

 2. The text offers several examples of communication among members of self-managed teams in such organizations as FORD MOTOR COMPANY.

 3. For companies to implement such groups, managers must RE-INVENT WORK.

 D. CHANGING ORGANIZATIONS IS NOT EASY.

 1. MANY MANAGERS WERE TRAINED UNDER A DIFFERENT SYSTEM.

 a. Many are used to telling people what to do rather than consulting them.

 b. It is difficult for such managers to change.

 2. Employees often have a difficult time changing as well, and some have trouble getting involved in participative management.

 E. A MODEL FOR THE FUTURE: EMPLOYEE EMPOWERMENT.

 1. The text tells the story of MILLER BREWING COMPANY and MARY KAY COSMETICS as an example of a company that successfully created an efficient and effective team.

 2. Understanding what motivates employees is the key to success in goods-producing companies such as MILLER BREWING COMPANY and service-based firms such as MARK KAY COSMETICS.

 3. The lessons learned from these companies include:

 a. The future growth of industry depends on a motivated, productive work force.

 b. Motivation is largely internally generated by workers themselves.

 c. The first step in any motivational program is to establish open communications.

 F. MOTIVATION IN THE FUTURE.

 1. Employees are not alike-different employees respond to different managerial and motivational styles.

 2. Tomorrow's managers will not be able to use any one formula for all employees.

 3. They will need to work with each employee as an individual and fit the motivational effort to that individual.

 4. Different cultures experience motivational approaches differently.

 5. In general, motivation will come from the job itself rather than from external punishments or rewards.

 6. Managers need to give workers what they need to do a good job-the right tools, the right information, and the right amount of cooperation.

 7. A Gallop survey found that four attitudes correlate strongly with higher profits:

 a. Workers feel they are given the opportunity to do what they do best.

 b. They believe their opinions count.

 c. They sense that their fellow workers are committed to quality.

 d. They've made a direct connection between their work and the company's mission.