Because learning changes everything.

Chapter 9

Motivating the
Workforce

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 Learning Objectives
9-1 Explain why the study of human relations is important.
9-2 Summarize early studies that laid the groundwork for
understanding employee motivation.
9-3 Compare and contrast the human relations theories of
Abraham Maslow and Frederick Herzberg.
9-4 Investigate various theories of motivation, including Theories
X, Y, and Z; equity theory; expectancy theory; and goal-setting
theory.
9-5 Describe some of the strategies that managers use to motivate
employees.
9-6 Critique a business’s program for motivating its salesforce.

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 Nature of Human Relations 1

Human relations—The study of the behavior of individuals

and groups in organizational settings.
• Involves motivating employees to achieve organizational
objectives efficiently and effectively.

Motivation—Inner drive that directs a person’s behavior

toward a goal.
• A goal is the satisfaction of some need.
• A need is the difference between an actual state and a desired
state.

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 Motivation

Motivation is important both in business and outside of it. For instance,

coaches motivate athletes before major games to increase their chances
they will play their best.

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 Figure 9.1 The Motivation Process

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 POLLING QUESTION 1

One objective of _____ involves motivating employees to

achieve organizational goals efficiently and effectively.
A. Need satisfaction.
B. Human relations.
C. Employee morale.
D. Motivational theory.

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 Nature of Human Relations 2

Morale—An employee’s attitude toward their job, employer,

and colleagues.
High morale leads to:
• High levels of productivity.
• High returns to stakeholders.
• Employee loyalty.

Low morale leads to:

• High rates of absenteeism.
• High rates of employee turnover.

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 Nature of Human Relations 3

Both intrinsic and extrinsic rewards contribute to motivation.

Intrinsic rewards.
• Personal satisfaction and enjoyment you feel from attaining a
goal.

Extrinsic rewards.
• Benefits and/or recognition you receive from someone else.

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 Table 9.1 How to Retain Good Employees

1. Offer ongoing training opportunities.

2. Create a positive organizational culture.
3. Support free-flowing communication.
4. Blend compensation, benefits, and recognition.
5. Encourage referrals and don’t overlook internal
recruiting.
6. Coach employees, provide feedback, and offer
mentoring programs.
7. Provide growth opportunities.
8. Support work/life balance and minimize stress.
9. Foster trust, respect, and confidence in high-level
management.
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 POLLING QUESTION 2

You have been asked to help increase employee retention at

Smiles Dentistry. Where do you think you should focus all
your efforts?
A. Training and mentorship.
B. Compensation, benefits, and recognition.
C. Work/life balance.
D. Interactions with senior leadership.

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 Historical Perspectives on Employee
Motivation 1

Classical Theory of Motivation.

Theory suggesting that money is the sole motivator for workers.
Time and motion studies.
• Frederick W. Taylor, Frank and Lillian Gilbreth.
• Analyzed how workers performed tasks to improve productivity.
• Led to the application of scientific principles to management.

Taylor’s ideas still in practice today.

• Financial incentives for productivity.

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 Historical Perspectives on Employee
Motivation 2

The Hawthorne Studies.

Early 20th century at the Hawthorne Works Plant.
Elton Mayo.
• Postulated that physical conditions in the workplace stimulate
productivity.
• Productivity increased regardless of physical conditions (the
Hawthorne effect).
• Findings showed that social and psychological factors could affect
productivity and morale.

Marked the beginning of concern for human relations in the

workplace.

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 Theories of Employee Motivation 1

Maslow’s hierarchy.
• Psychologist Abraham
Maslow.
• A theory that arranges the
five basic needs of people—
physiological, security,
social, esteem, and self-
actualization—into the
order in which people strive
to satisfy them.

Source: Adapted from Abraham H. Maslow, “A

Theory of Human Motivation,” Psychology
Review 50 (1943), pp. 370–396. American
Psychology Association.

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 Theories of Employee Motivation 2

Herzberg’s Two-Factor Theory.

Hygiene factors.
• Relate to the work setting and not to the content of the work.
• Do not necessarily motivate people to excel, but their absence may
dissatisfy workers.

Motivational factors.
• Relate to the content of the work itself.
• Absence may not result in dissatisfaction, but presence is likely to
motivate.

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 Table 9.2 Herzberg’s Hygiene and
Motivational Factors
Hygiene Factors Motivational Factors
Company policies Achievement
Supervision Recognition
Working conditions Work itself
Relationships with peers, supervisors, Responsibility
and subordinates
Salary Advancement
Security Personal growth

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 Motivation Factors at Google

Google’s employee-friendly offices feature elements like basketball

courts, pinball machines, and photo booths to foster creativity and make
work more enjoyable.

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 Theories of Employee Motivation 3

McGregor’s Theory X and Y.

• Theory X is a traditional view of management.

1. The average person naturally dislikes work and will avoid it when
possible.
2. Most workers must be coerced, controlled, directed, or threatened
with punishment to get them to work toward achieving organizational
objectives.
3. The average worker prefers to be directed, avoids responsibility, has
little ambition, and wants security.

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 Theories of Employee Motivation 4

McGregor’s Theory X and Y.

• Theory Y.

1. The expenditure of physical and mental effort in work is as natural as

play or rest.
2. People will exercise self-direction and self-control to achieve
objectives to which they are committed.
3. People will commit to objectives when they realize that the
achievement of those goals will bring them personal reward.
4. The average person will accept and seek responsibility.
5. Imagination, ingenuity, and creativity can help solve organizational
problems, but most organizations do not make adequate use of these
characteristics in their employees.
6. Organizations today do not make full use of workers’ intellectual
potential.
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 Theories of Employee Motivation 5

Theory Z.
• Management philosophy that stresses employee participation in
all aspects of company decision making.
• First described by William Ouchi.
• Incorporates elements of the Japanese approach to
management; trust and intimacy.
• Managers and workers share responsibilities.
• Participative management style.
• Long-term, often lifelong employment.

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 Table 9.3 Comparisons of Theories X, Y,
and Z
Factor Theory X Theory Y Theory Z
Countries that China United States Japan
use this style
Philosophy Tight control Assume workers will seek Employee
over workers out responsibility and participation in all
satisfy social needs aspects of company
decision making
Job Considerable Less control and Trust and intimacy
description specialization supervision; address with workers sharing
higher levels of Maslow’s responsibilities
hierarchy
Control Tight control Commitment to objectives Relaxed but required
with self-direction expectations
Worker Limited Democratic Commitment to
welfare concern worker’s total lives
Responsibility Managerial Collaborative Participative
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 Theories of Employee Motivation 6

Equity Theory.
• How much people are willing to contribute to an organization
depends on their assessment of the fairness, or equity, of the
rewards they will receive in exchange.
• Equity is a subjective notion.
• May explain why many consumers are upset about CEO
compensation.
• Feelings of inequity may lead to unethical behaviour.

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 Theories of Employee Motivation 7

Expectancy Theory.
• Motivation depends not only on how much a person wants
something, but also on the person’s perception of how likely
they are to get it.

Goal-Setting Theory.
• Refers to the impact that setting goals has on performance.
• Management by objectives (MBO).

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 POLLING QUESTION 3

Meta offers employees work areas where they can gather,

share ideas, relax, play games, and unwind. According to
McGregor, this style of management is most likely following
the _____ theory of motivation.
A. W.
B. X.
C. Y.
D. Z.

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 Strategies for Motivating Employees 1

Behavior Modification.
Involves changing behavior and encouraging appropriate actions
by relating the consequences of behavior to the behavior itself.
Reinforcement theory.
• Behavior that is rewarded will tend to be repeated.
• Behavior that is punished will tend to be eliminated.
• Two strategies may not be equally effective.
• Generally, rewarding appropriate behavior is more effective.

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 Strategies for Motivating Employees 2

Job Design.
• Managers can use job design strategies to improve employee
motivation.
• Job rotation.
• Job enlargement.
• Job enrichment.

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 Table 9.4 Benefits of Job Rotation

1. Being exposed to different business areas.

2. Nurturing employees.
3. Supporting ongoing learning and improvement.
4. Preparing for more senior roles.
5. Accelerating professional development.
6. Building new hard and soft skills.
7. Boosting overall productivity.
8. Enhancing recruiting and retention efforts.

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 Strategies for Motivating Employees 3

Job Design.
Flexible scheduling strategies.
• Flextime.
• Compressed workweek.
• Job sharing.
• Allowing full-time workers to work part-time for a certain time period.
• Allowing workers to work at home either full- or part-time.

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 Figure 9.3 Flextime, Showing Core and
Flexible Hours

Access the text alternative for these images.

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 Working Remotely

Working remotely is becoming increasingly common. Telecommuting, job

sharing, and flextime can be beneficial for employees who cannot work
normal work hours.

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 POLLING QUESTION 4

Isa, a recent college graduate, is hired by Lean Street

Consulting and given several options for a work schedule.
Each one requires her to work a minimum of 40 hours per
week. In your opinion, which should she choose?
A. Flexible hours.
B. Work remotely.
C. Compressed workweek.
D. Traditional 9:00 to 5:00.

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 Strategies for Motivating Employees 4

Importance of Motivational Strategies.

Fosters employee loyalty.
Boosts productivity.
Influences pay, promotion, job design, training opportunities, and
reporting relationships.
Employees are motivated by the nature of:
• The relationship they have with supervisors.
• Their jobs.
• The characteristics of the organization.

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 Motivational Strategies

Businesses have come up with different ways to motivate employees,

including rewards such as trophies and plaques to show the company’s
appreciation.

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 Table 9.5 Companies with Excellent
Motivational Strategies 1

Company Motivational Strategies

3M Gives employees 15 percent of their time to pursue
own projects
Google Perks include a massage every other week, free
gourmet lunches, tuition reimbursement, a volleyball
court, and time to work on own projects

Whole Foods Employees receive 20–30 percent discounts on

company products, the opportunity to gain stock
options, and the ability to make major decisions in
small teams
Patagonia Provides areas for yoga and aerobics, in-house
child care services, organic food in its café, and
opportunities to go surfing during the day
The Container Store Provides more than 260 hours of employee training
and hosts “We Love Our Employees” Day

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 Table 9.5 Companies with Excellent
Motivational Strategies 2

Company Motivational Strategies

Southwest Gives employees permission to interact with passengers as
Airlines they see fit, provides free or discounted flights, and hosts the
“Adopt-a-Pilot” program to connect pilots with students across
the nation
Nike Offers tuition assistance, product discounts, onsite fitness
centers, and the ability for employees to give insights on how
to improve the firm
Apple Creates a fast-paced, innovative work environment where
employees are encouraged to debate ideas
Hilton Offers friends and family travel discounts, promotes lifelong
Hotels & learning with its leadership development framework, and
Resorts celebrates achievements through an employee recognition
program
Zappos Creates a fun, zany work environment for employees and
empowers them to take as much time as needed to answer
customer concerns
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