Motivating Employees 53CHAPTER 16 MOTIVATING EMPLOYEES CHAPTER OUTLINE What Motivates You? I. Individual Needs and Motivation II. Intrinsic and Extrinsic Rewards III. Content Perspectives on Motivation A. The Hierarchy of Needs B. ERG Theory C. A Two-Factor Approach to Motivation D. Acquired Needs New Manager Self-Test: Need for Achievement, Affiliation, and Power III. Process Perspectives on Motivation A. Goal Setting B. Equity Theory C. Expectancy Theory IV. Reinforcement Perspective on Motivation A. Direct Reinforcement B. Social Learning Theory V. Job Design for Motivation A. Job Enrichment B. Job Characteristics Model VI. Innovative Ideas for Motivating A. Empowering People to Meet Higher Needs B. Giving Meaning to Work through Engagement C. The Making Progress Principle D. Building a Thriving Workforce ANNOTATED LEARNING OBJECTIVES After studying this chapter, students should be able to: 1. Define motivation and explain the difference between intrinsic and extrinsic rewards. Motivation refers to forces either within or external to a person that arouse enthusiasm, and persistence to pursue a certain course of action. The study of motivation concerns with what prompts people to initiate action, what influences their choice of action, and why they persist in 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 54 Chapter 16 doing it over time. To the extent that the behavior is successful, the person is rewarded in the sense that the need is satisfied. Intrinsic rewards are the satisfactions a person receives in the process of performing a particular action. Extrinsic rewards are given by another person, typically a manager, and include promotions, praise, pay increases. 2. Identify and describe content theories of motivation based on employee needs. Content theories of motivation emphasize the needs that motivate people. These needs translate into an internal drive that motivates an individual’s specific behaviors in an attempt to fulfill the needs. The organization’s reward system can be designed to meet employees’ needs and reinforce them in directing their energies and priorities toward attainment of organizational goals. Content theories of motivation based on employee needs include: Maslow’s hierarchy of needs theory, Alderfer’s ERG theory, Herzberg’s two-factor theory, and McClelland’s acquired needs theory. Maslow’s hierarchy of needs theory proposes that humans are motivated by multiple needs and these needs exist in a hierarchical order. Maslow identified five general types of motivating needs in order of ascendance—physiological needs, safety needs, belongingness needs, esteem needs, and self-actualization needs. Once a need is satisfied, it declines in importance and the next higher need is activated, which is then satisfied, and the process continues up the hierarchy. Alderfer proposed the ERG theory, which identified three categories of needs: existence needs, which are the needs for physical well-being; relatedness needs, which pertain to the need for satisfactory relationships with others; and growth needs, which focus on the development of human potential and the desire for personal growth and increased competence. Herzberg developed the two-factor theory of motivation. He suggested that the work characteristics associated with dissatisfaction were different from those pertaining to satisfaction, prompting the notion that two factors influence work motivation—hygiene factor and motivators. McClelland developed the acquired needs theory, which proposes that needs are acquired during the individual’s lifetime. People are not born with these needs but may learn them through life experiences. The three needs most frequently studied are the need for achievement, the need for affiliation, and the need for power. 3. Identify and explain process theories of motivation. Process theories of motivation explain how people select behavioral actions to meet their needs and determine whether their choices were successful. Important process theories of motivation are goal-setting theory, equity theory, and expectancy theory. 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 55 Goal-setting theory, developed by Locke and Latham, proposes that managers can increase motivation and enhance performance by setting specific, challenging goals, and then helping people track their progress toward goal achievement by providing timely feedback. Equity theory focuses on individuals’ perceptions of how fairly they are treated compared with others. Expectancy theory suggests that motivation depends on individuals’ expectations about their . ability to perform tasks and receive desired rewards. Expectancy theory is based on the relationship among the individual’s effort, the individual’s performance, and the desirability of outcomes associated with high performance. 4. Describe the reinforcement perspective and social learning theory and how they can be used to motivate employees. Reinforcement theory looks at the relationship between behavior and its consequences. It focuses on changing or modifying the employees’ on-the-job behavior through the appropriate use of immediate rewards and punishments. Behavior modification involves techniques by which reinforcement theory is used to modify human behavior. Reinforcement is defined as anything that causes a certain behavior to be repeated or inhibited. The four reinforcement tools are positive reinforcement, avoidance learning, punishment, and extinction. Social learning theory is related to the reinforcement perspective, but it proposes that an individual’s motivation can result not just from direct experience of rewards and punishments but also from the person’s observations of other people’s behavior. Vicarious learning, observational learning occurs when an individual sees others perform certain behaviors and get reward for them. This can be made used by managers to enhance employees’ motivation to perform desired behaviors by ensuring that the employee (i) has a chance to observe the desirable behaviors, (ii) accurately perceives the behavior, (iii) remembers the behaviors, (iv) has the necessary to skills to perform the behaviors, and (v) sees that the behaviors are rewarded by the organization. 5. Discuss major approaches to job design and how job design influences motivation. A job in an organization is a unit of work that a single employee is responsible for performing. Jobs are an important consideration for motivation because performing their components may provide rewards that meet the employees’ needs. Job design is the application of motivational theories to the structure of work for improving productivity and satisfaction. Major approaches to job design are job enrichment and job characteristic model. Simplified jobs aren’t typically effective as a motivational technique because they can be boring and routine. Thus, managers in many companies are redesigning simplified jobs into jobs that provide greater variety and satisfaction. Job rotation systematically moves employees from one job to another, thereby increasing the number of different tasks an employee performs without increasing the complexity of any one job. Job enlargement combines a series of tasks into one new, broader job. These two techniques are relevant with job enrichment. Job enrichment 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 56 Chapter 16 involves incorporating high-level motivators into the work, including responsibility, recognition, and opportunities for growth, learning, and achievement. Enriched jobs give employees more control over the resources for performing tasks making them feel a greater sense of involvement, commitment, and motivation. The job characteristic model is a model of job design that considers core job dimension, individuals’ critical psychological states, and employee growth-need strength. The more the five core characteristics—skill variety, task identity, task significance, autonomy, and feedback—can be designed into the job, the more the employees will be motivated and the higher will be the employees’ performance, quality of work, and satisfaction. These core characteristics influence the employee’s psychological state of experienced meaningfulness of work. This impact leads to the personal and work outcomes of high work motivation, high work performance, high satisfaction, and low absenteeism and turnover. People have different needs for growth and development, employee growth-need strength. The job characteristic model is especially effective when a person has a high need for growth and development, including the desire for personal challenge, achievement, and challenging work. 6. Explain how empowerment heightens employee motivation. Organizations have adopted new programs that apply motivational theory to improve employees’ satisfaction and performance. The newest trend in motivation is empowerment, which is power sharing or the delegation of power and authority to subordinates in an organization. Increasing employee power heightens motivation for task accomplishment because people improve their own effectiveness, choosing how to do a task and using their creativity. Empowering employees involves giving them four elements that enable them to act more freely to accomplish their jobs: information, knowledge, power, and rewards. 7. Identify three elements of employee engagement and describe some ways that managers can create a work environment that promotes engagement. Employee engagement means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization. Three elements that create employee engagement are: a sense of meaningfulness, a sense of connection, and a sense of growth. Managers can create a work environment that promotes engagement by organizing the workplace in such a way to create these three elements, which will lead to high motivation and high organizational performance. The behavior of managers is what makes the biggest difference in employee motivation and whether employees flourish at work. The manager’s role is to organize the workplace in such a way that each person can learn, contribute, and grow. 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 57 8. Describe how managers give people a sense of making progress toward meaningful goals to build a thriving workforce and create a high-performing organization The making progress principle is the idea that the single most important factor that can boost motivation, positive emotions, and perceptions is making progress toward meaningful goals. People are most motivated when they experience achievement. Providing feedback on how well people are progressing and giving them a way to track their progress toward goals provides motivation. Knowing that they are making everyday progress can make a difference in how motivated people feel to pursue a course of action. LECTURE OUTLINE WHAT MOTIVATES YOU? Managers and organizations often use extrinsic motivation techniques, but intrinsic motivation is more satisfying for most people. This exercise helps students determine whether they prefer intrinsic or extrinsic rewards in their careers. I. INDIVIDUAL NEEDS AND MOTIVATION Exhibit 16.1 A. Motivation refers to the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action. Employee motivation affects productivity, and part of a manager’s job is to channel motivation toward accomplishment of organizational goals. The study of motivation helps understand what prompts people to initiate action, what influences their choice of action, and why they persist in that action over time. B. People have needs—such as for recognition, achievement, or monetary gain—that translates into an internal tension that motivates specific behaviors with which to fulfill various needs. Needs motivate specific behavior designed to fulfill those needs. Feedback tells people whether they were successful in fulfilling their needs. If so, they feel rewarded by their success II. INTRINSIC AND EXTRINSIC REWARDS Exhibit 16.2 . A. Managers who understand the motives that compel people to initiate, alter, or continue a desired behavior are more successful as motivators. B. Exhibit 16.2 in the text illustrates four categories of motives—intrinsic and extrinsic rewards. 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 58 Chapter 16 1. Intrinsic rewards are the satisfactions a person receives in the process of performing a particular action. 2. Extrinsic rewards are given by another person, typically a manager, and include promotions, praise, and pay increases. 3. The importance of motivation is that it can lead to behaviors that reflect high performance and profits within organizations. Managers have to find the right combination of motivational techniques and rewards to keep workers satisfied and productive in a variety of organizational situations. Discussion Question #1: Why do you think making progress ranks as the most important factor contributing to motivation according to a recent study? How can managers provide a sense of progress for employees working on long-range projects that might not show results for months or even years? NOTES________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ III. CONTENT PERSPECTIVES ON MOTIVATION Exhibit 16.3 Content theories emphasize the needs that motivate people; people have a variety of needs at any point in time. These needs translate into an internal drive that motivates specific behaviors in an attempt to satisfy the needs. To the extent that managers understand employees’ needs, they can design reward systems that meet them direct employees’ energies and priorities toward attaining organizational goals. A. The Hierarchy of Needs 1. Abraham Maslow’s hierarchy of needs theory proposes that humans are motivated by multiple needs, existing in a hierarchical order. He identified five general types of motivating needs in order of ascendance: a. Physiological needs. The most basic human physical needs including food, water, and oxygen. In the organizational setting, these needs include adequate heat, air, and base salary to ensure survival. b. Safety needs. These are the needs for a safe and secure physical and emotional environment and free from threats of violence. In an organizational workplace, safety needs are for safe jobs, fringe benefits, and job security. c. Belongingness needs. These needs are the desire to be accepted by one’s peers, have friends, be part of a group, and be loved. On the job, this translates into a 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 59 desire for good relationships with co-workers, participation in a work group, and a positive relationship with supervisors. d. Esteem needs. Esteem needs relate to the desire for a positive self-image and the need to receive attention, recognition, and appreciation from others. These needs are reflected in organizations as a desire for recognition, increased responsibility, high status, and credit for contributions to the organization. e. Self-actualization needs. This is the highest need category and represents the need for self-fulfillment—developing one’s full potential, increasing one’s competence, and becoming a better person. These needs can be met in an organizational setting by providing opportunities to grow, encouraging creativity, and providing training for challenging assignments and advancement. 2. The lower-order needs take priority in that they must be satisfied before higher-order needs are activated. The needs are satisfied in sequence; once a need is satisfied, it declines in importance and the next higher need is activated. If a lower-level need ceases to be satisfied, however, it will re-emerge and take precedence over higher order needs until it is once again satisfied. Discussion Question #7: A survey of teachers found that two of the most important rewards were the belief that their work was important and a feeling of accomplishment. According to Maslow’s theory, what needs do these rewards meet? NOTES________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ B. ERG Theory 1. ERG theory was developed by Clayton Alderfer and is a modification of Maslow’s theory in an effort to simplify it and respond to criticisms of its lack of empirical verification. ERG theory identified three categories of needs. a. Existence needs. These are the needs for physical well-being. b. Relatedness needs. These pertain to the need for satisfactory relationships with others. c. Growth needs. These focus on the development of human potential and the desire for personal growth and increased competence. 2. The ERG model and Maslow’s need hierarchy are similar as both are hierarchical and presume individuals move up the hierarchy one need at a time. However, the ERG model suggests reduced number of need categories and the movement up the 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 60 Chapter 16 hierarchy as more complex reflecting a frustration-regression principle. This suggests that failure to meet a higher-order need may trigger regression to an already fulfilled lower-order need. For example, a worker who cannot fulfill a need for personal growth may revert to a lower-order social need and redirect his or her efforts toward making a lot of money. The ERG model suggests that individuals may move down as well as up the hierarchy depending on their ability to satisfy needs. 3. Many companies find that creating a humane work environment that allows people to achieve a balance between work and personal life is a great high-level motivator. Making work fun plays a role in creating this balance as well. Having fun at work relieves stress and enables people to feel more “whole.” C. A Two-Factor Approach to Motivation Exhibit 16.4 1. Frederick Herzberg asserted that work characteristics associated with dissatisfaction were different from those pertaining to satisfaction. This prompted the idea that two different factors influenced work motivation and an employee’s behavior at work, leading to his development of the two-factor theory. The two factors that influence motivation are hygiene factors and motivators. a. Hygiene factors relate to lower-order needs and involve the absence or presence of job dissatisfiers, such as working conditions, pay and security, company policies, supervisors, and interpersonal relationships. When hygiene factors are poor, work is dissatisfying. Good hygiene factors remove the dissatisfaction, but they do not cause satisfaction or motivation. Instead, employees are neutral toward work. b. Motivators relate to higher-order needs and include things such as achievement, recognition, responsibility, the work itself, and the opportunity for personal growth. When motivating factors are present, workers are highly motivated and satisfied. The absence of motivating factors removes satisfaction, but does not cause dissatisfaction. Instead, employees are neutral toward work. 2. The manager’s role is to provide hygiene factors to meet basic needs and use motivators to meet higher-level needs to propel employees toward achievement and satisfaction. D. Acquired Needs 1. David McClelland developed acquired needs theory, which proposes that certain types of needs are acquired or learned during an individual’s lifetime. People are not born with these needs, but may learn them through life experiences. McClelland addressed three categories of needs. 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 61 a. Need for achievement: The desire to accomplish something difficult, attain a high standard of success, master complex tasks, and surpass others. b. Need for affiliation: The desire to form close personal relationships, avoid conflict, and establish warm friendships. c. Need for power: The desire to influence or control others, be responsible for others, and have authority over others. 2. McClelland studied human needs and their implications for management. People with a high need for achievement are frequently entrepreneurs. People with high need for affiliation are successful integrators, whose job is to coordinate the work of several departments in an organization. A high need for power is often associated with successful attainment of top levels in the organizational hierarchy. Discussion Question #8: Use Herzberg’s two-factor theory to explain why motivation seems to be high and turnover low at Mars, based on the information provided in the chapter opening example. NOTES________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ NEW MANAGER SELF-TEST: NEED FOR ACHIEVEMENT, AFFILIATION, AND POWER David McClelland’s research found that some human needs are learned during early life experiences, and the three that he studied are personal need for achievement, affiliation, and power: Achievement means the need to excel. Affiliation means the need for harmonious relationships. Power means the need to direct and influence others. One of the three needs is typically stronger than the others in most people. This test will assess these three elements of needs. The higher one scores on a need, the stronger it is and the more it guides his or her behavior. If you can align your career to use and satisfy your stronger needs, you are more likely to be successful. IV. PROCESS PERSPECTIVES ON MOTIVATION Process theories explain how employees select behaviors with which to meet their needs and determine if their choices were successful. The basic process theories are goal-setting, equity theory, and expectancy theory. A. Goal Setting Exhibit 16.5 1. Goal-setting theory proposes that specific, challenging goals increase motivation and performance when the goals are accepted by subordinates who receive feedback 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 62 Chapter 16 to indicate progress toward goal achievement. Goal-setting theory includes four key components: a. Goal specificity: The degree to which goals are concrete and unambiguous. b. Goal difficulty: The notion that hard goals are more motivating than easy ones. c. Goal acceptance: Employees must “buy into” the goals and be committed to them. d. Feedback: People get information about how well they are doing in progressing toward goal achievement. 2. Goal setting increases motivation because it enables people to focus their energies in the right direction. People know what to work toward, so they can direct their efforts toward the most important activities to accomplish the goals. Goals energize behavior because people feel compelled to develop plans and strategies that keep them focused to accomplish the objectives. 3. Recent research indicates the importance of making progress toward goals as a key to motivation. The making progress principle is the idea that the single most important factor that can boost motivation, positive emotions, and perceptions during a workday is making progress toward meaningful goals. B. Equity Theory 1. Equity theory, developed by J. Stacy Adams, focuses on individuals’ perceptions of how fairly they are treated relative to others. People evaluate equity by a ratio of inputs to outcomes. Inputs to a job include such things as education, experience, effort, and ability. Outcomes from a job include such things as pay, recognition, benefits, and promotions. 2. The input-to-output ratio may be compared with another person in the work group or to a perceived group average. If people perceive that their input-to-outcome ratio is equal to that of those to whom they compare themselves, they believe their treatment is fair and equitable. A state of equity exists whenever the ratio of one person’s outcomes to incomes equals the ratio of another person. Inequity exists when these ratios are not equal. Perceived inequity creates tensions within individuals that motivate them to bring equity into balance. 3. The most common methods for reducing a perceived inequity are: a. Change work effort: such as by decreasing the level of effort or increasing absenteeism 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 63 b. Change outcomes such as by obtaining a salary increase or other additional benefits or perks. c. Change perceptions such as, by artificially increasing the status attached to one’s job. d. Leave the job: If equity cannot be restored through any of the previous methods, people may decide to leave their jobs rather than suffer the inequity of being underpaid or overpaid expecting to find a more favorable balance of rewards. 4. The implication of equity theory for managers is that employees evaluate the perceived equity of their rewards compared to others’. An increase in salary or promotion will not motivate if it is perceived as inequitable relative to other employees. Smart managers try to keep employees’ feelings of equity in balance to keep their workforce motivated. Discussion Question #6: If an experienced executive assistant discovered that she made the same amount of money as a newly hired janitor, how do you think she would react? What inputs and outcomes might she evaluate to make this comparison? NOTES________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ C. Expectancy Theory Exhibit 16.6 1. Expectancy theory, associated with the work of Victor Vroom, suggests that motivation depends on individuals’ expectations about their ability to perform tasks and receive desired rewards. It focuses on the thinking process individuals use to obtain rewards. Expectancy theory is based on the relationship among the individual’s effort, performance, and the desirability of outcomes associated with high performance. a. E P expectancy involves determining whether putting effort into a task will lead to high performance. The individual must have the ability, previous experience, and necessary resources and opportunity to perform. b. P O expectancy involves determining whether successful performance will lead to the desired outcome. It is the belief that high performance will lead to a desired reward. c. Valence is the value of outcomes, or attraction to outcomes, for the individual. If an employee does not value the outcomes available from high effort and good performance, motivation will be low. If outcomes have a high value, motivation 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 64 Chapter 16 will be higher. Expectancy theory attempts to establish that needs and rewards exist and may be different for every individual. 2. Managers’ responsibility is to help subordinates meet their needs and at the same time attain organizational goals. Managers try to find a match between a subordinate’s skills and abilities, job demands, and available rewards. Companies use expectancy theory principles by designing incentive systems that identify organizational outcomes and give everyone a chance for rewards. The trick in designing a system that fits with employees’ abilities and needs. V. REINFORCEMENT PERSPECTIVE ON MOTIVATION Exhibit 16.7 Reinforcement theory looks at the relationship between behavior and its consequences. The focus is on changing or modifying the employees’ on-the-job behavior through the appropriate use of immediate rewards and punishments. A. Direct Reinforcement 1. Behavior modification is the technique by which reinforcement theory is used to modify behavior. The basic assumption underlying behavior modification is the law of effect, which states that behavior that is positively reinforced tends to be repeated, and behavior that is not reinforced tends not to be repeated. Reinforcement is defined as anything that causes a certain behavior to be repeated or inhibited. There are four common reinforcement tools: positive reinforcement, avoidance learning, punishment, and extinction. a. Positive reinforcement is the application of a pleasant and rewarding consequence following a desired behavior. Praise for a job well done increases the likelihood the excellent work behavior will occur again. Studies show that positive reinforcement improves performance. b. Avoidance learning is the removal of an unpleasant consequence following a desired behavior, sometimes called negative reinforcement. Employees learn to do the right thing by avoiding unpleasant situations. An example would be when a supervisor stops criticizing an employee once the incorrect behavior has stopped. c. Punishment is the application of unpleasant consequences following undesirable behavior. The use of punishment in organizations is controversial because it fails to indicate the correct behavior. Almost all managers find the need to impose punishment occasionally, from reprimands to employee suspensions or firings. d. Extinction is the withdrawal of a positive reward following undesirable behavior. Extinction involves withholding pay raises, praise, and other positive 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 65 outcomes with the idea in mind that behaviors that are not positively reinforced will be less likely to occur in the future. B. Social Learning Theory 1. Social learning theory is related to the reinforcement perspective, but it proposes that an individual’s motivation can result not just from direct experience of rewards and punishments, but also from the person’s thoughts and beliefs and his or her observations of other people’s behavior. 2. Vicarious learning, or observational learning, occurs when an individual sees others perform certain behaviors and get rewarded for them. This can be made used by managers to enhance employees’ motivation to perform desired behaviors by ensuring that the employee (i) has a chance to observe the desirable behaviors, (ii) accurately perceives the behavior, (iii) remembers the behaviors, (iv) has the necessary to skills to perform the behaviors, and (v) sees that the behaviors are rewarded by the organization. Discussion Question #3: Assume that you are a front-line manager at a call center. Try to come up with a specific motivational idea that fits in each of the four quadrants in Exhibit 16.2: Positive Extrinsic; Positive intrinsic; Negative Extrinsic; Negative Intrinsic. NOTES_______________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ VI. JOB DESIGN FOR MOTIVATION A job in an organization is a unit of work that a single employee is responsible for performing. Jobs are important because performance of their components may provide rewards that meet employees’ needs. Job design is the application of motivational theories to the structure of work for improving productivity and satisfaction. The following are approaches to job design. A. Job Enrichment 1. Job rotation systematically moves employees from one job to another, increasing the number of different tasks an employee performs. Job enlargement combines a series of tasks into one new, broader job. The primary trend is toward job enrichment, which incorporates high-level motivators into the work including job responsibility, recognition, and opportunities for growth, learning, and achievement. Employees have control over the resources necessary for the job, make decisions on how to do the work, experience personal growth, and set their own work pace. Job enrichment increases employees’ motivation and job satisfaction. 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 66 Chapter 16 Discussion Question #4: In response to security threats in today’s world, the U.S. government federalized airport security workers. Many argued that simply making screeners federal workers would not solve the root problem: bored, low-paid, and poorly trained security workers have little motivation to be vigilant. How might these employees be motivated to provide the security that travel threats now demand? . NOTES______________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ B. Job Characteristics Model Exhibit 16.8 1. Hackman and Oldham’s research concerns work redesign, defined as altering jobs to increase both the quality of employees’ work experience and their productivity. 2. The job characteristics model comprises core job dimensions, critical psychological states, and employee growth-need strength. a. Core Job Dimensions: The more a job contains these core characteristics, the higher the motivation, quality of performance, and satisfaction will be. A job’s motivational potential includes: Skill variety. The number of diverse activities that compose a job and the number of skills used to perform it. Task identity. The degree to which an employee performs a total job with a recognizable beginning and ending. Task significance. The degree to which a job is perceived as important and having an impact on the company or customers. Autonomy. The degree to which the worker has freedom, discretion, and self- determination in planning and carrying out tasks. Feedback. The extent to which doing the job provides information to the employee about his/her performance. b. Critical Psychological States: This model states that core job dimensions are more rewarding when individuals experience three psychological states in response to job design. Meaningfulness of work. The work itself is satisfying and provides intrinsic rewards 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 67 Experienced responsibility. Autonomy influences the experience of responsibility Knowledge of actual results. Feedback provides information about results. Employees know how they are performing and can change work performance to increase desired outcomes. c. Personal And Work Outcomes: The impact of the five job characteristics on the psychological states of experienced meaningfulness, responsibility, and knowledge of actual results leads to the personal and work outcomes of high work motivation, high work performance, high satisfaction, and low absenteeism and turnover. d. Employee Growth-Need Strength: Employee growth-need strength is the final component of the model. It means that people have different needs for growth and development. If a person wants to satisfy low-level needs, such as safety and belongingness, the job characteristics model has less effect. When a person has a high need for growth and development and the desire for personal challenge, achievement, and challenging work, the model is effective. There are cross-cultural differences in the impact of job characteristics. Intrinsic factors such as autonomy and challenge are motivators in the U.S; however, they may contribute little to motivation and satisfaction in a country such as Nigeria, and might even lead to demotivation. The link between intrinsic characteristics and job motivation and satisfaction is weaker in economically disadvantaged countries with poor governmental social welfare systems and high power distance. Discussion Question #5: Using Hackman and Oldham’s core job dimensions, compare and contrast the jobs of these two state employees: (1) Jared, who spends much of his time researching and debating energy policy to make recommendations that will eventually be presented to the state legislature and (2) Anise, who spends her days planting and caring for the flower gardens and grounds surrounding the state capitol building. NOTES_______________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ VII. INNOVATIVE IDEAS FOR MOTIVATING Exhibit 16.9 Incentive programs can be effective if they are used appropriately and combined with motivational ideas that also provide people with intrinsic rewards and meet higher-level needs. The most effective motivational programs typically involve much more than monitor other external rewards in order to create an environment in which people thrive. 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 68 Chapter 16 A. Empowering People to Meet Higher Needs 1. Empowerment is power sharing, the delegation of power or authority to subordinates in an organization. Increasing employee power heightens motivation for task accomplishment because people improve their own effectiveness, choosing how to do a task using their creativity. Empowering employees involves giving them four elements that enable them to act more freely to accomplish their jobs: information, knowledge, power, and rewards. a. Employees receive information about company performance. In companies where employees are fully empowered, all employees have access to all financial and operational information. b. Employees have knowledge and skills to contribute to company goals. Companies use training programs to help employees acquire the knowledge and skills they need to contribute to organizational performance. c. Employees have the power to make substantive decisions. Empowered workers have the authority to directly influence work procedures and organizational performance, often through quality circles or self-directed work teams. d. Employees are rewarded based on company performance. Organizations that empower workers often reward them based on the results shown in the company’s bottom line. 2. Empowerment can mean encouraging workers’ ideas while managers retain authority, or it can mean employees have the freedom and power to make decisions and exercise initiative. Current methods fall along a continuum from no discretion for workers to full empowerment where workers participate in formulating strategy. Discussion Question #9: How does empowerment provide the two conditions (vitality and learning) for a thriving workforce that are described in the chapter? Do you see any ways in which a manager’s empowerment efforts might contribute to demotivation among employees? Discuss. NOTES________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ B. Giving meaning to Work through Engagement Exhibit 16.10 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 69 1. Employee engagement means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization. 2. Smart managers see that having engaged, motivated employees has less to do with extrinsic rewards than with fostering an environment in which people can flourish. The behavior of managers is what makes the biggest difference in employee motivation and whether employees flourish at work. The three elements to creating employee engagement are: a sense of meaningfulness, a sense of connection, and a sense of growth. The manager’s role is to organize the workplace in such a way to create these feelings in order for employee engagement to grow, leading to high motivation and high organizational performance. a. People feel they are working toward something of importance. People experience a sense of meaningfulness when they have a chance to accomplish something that provides real value to the world. b. People feel connected to the company, to one another, and to their managers. c. People have the chance to learn, grow, and advance. To be fully engaged, people need not only to feel that they are competent to handle what is asked of them, but also that they have the chance to learn and expand their potential. Discussion Question #2: Psychologists have identified three pathways to happiness: pleasure, engagement, and meaning. Do you think that it is the manager’s responsibility to help people find these elements in their work? Discuss. NOTES______________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ C. The Making Progress Principle 1. The making progress principle is the idea that the single most important factor that can boost motivation, positive emotions, and perceptions is making progress toward meaningful goals. People are most motivated when they experience achievement. 2. Providing feedback on how well people are progressing and giving them a way to track their progress toward goals provides motivation. 3. Knowing that they are making everyday progress can make a difference in how motivated people feel to pursue a course of action. Discussion Question #10: a recent Gallup survey shows that highly educated workers are significantly less likely to be engaged than are those with a high school diploma or less. What might be some reasons for this lower level of engagement among less-educated employees? 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 70 Chapter 16 NOTES________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Answers to End-of-Chapter Discussion Questions 1. Why do you think making progress ranks as the most important factor contributing to motivation according to a recent study? How can managers provide a sense of progress for employees working on long-range projects that might not show results for months or even years? Recent research indicates the importance of making progress toward goals as a key to motivation. The making progress principle is the idea that the single most important factor that can boost motivation, positive emotions, and perceptions during a workday is making progress toward meaningful goals. Managers can provide a sense of progress for employees working on long-range projects that might not show results for months or even years. Providing feedback on how well the employees are progressing and giving them a way to track their progress toward goals can provide a renewable energy that fuels motivation. The importance of the continuous feedback aspect of goal setting and achievement should not be underestimated. Knowing that they are making everyday progress can make all the difference in how motivated they feel to continue pursuing a goal. 2. Psychologists have identified three pathways to happiness: pleasure, engagement, and meaning. Do you think that it is the manager’s responsibility to help people find these elements in their work? Discuss. The behavior of managers is what makes the biggest difference in employee motivation and whether employees flourish at work. The three elements to creating employee engagement are: a sense of meaningfulness, a sense of connection, and a sense of growth. The manager’s role is to organize the workplace in such a way to create these feelings in order for employee engagement to grow, leading to high motivation and high organizational performance. People feel they are working toward something of importance. People experience a sense of meaningfulness when they have a chance to accomplish something that provides real value to the world. People feel connected to the company, to one another, and to their managers. People have the chance to learn, grow, and advance. To be fully engaged, people need not only to feel that they are competent to handle what is asked of them, but also that 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 71 they have the chance to learn and expand their potential. 3. Assume that you are a front-line manager at a call center. Try to come up with a specific motivational idea that fits in each of the four quadrants in Exhibit 16.2: Positive Extrinsic; Positive intrinsic; Negative Extrinsic; Negative Intrinsic. Some of the specific motivational ideas students could use as a front-line manager are as follows: Positive Extrinsic: Rewards such as pay raises, bonuses, praise, etc., could be used to influence behavior that creates pleasure. Giving the employees a chance to earn a bonus and help the organization meet its growth goal. However, this approach is limited as these external rewards can lose their power as motivational tools overtime. Positive Intrinsic: Helping the subordinates enjoy their work and a get sense of accomplishment is an example of positive intrinsic method. This can be seen as the most effective method to motivate people as it taps into deep-seated employee energy commitment by helping people get intrinsic rewards from their work. Negative Extrinsic: Threats and punishments could be used as extrinsic methods to get people perform as desired. Negative Intrinsic: Tapping into self-doubts or anxieties could be used to motivate people; for example, a manager might motivate people to work hard by emphasizing the weak economy and high unemployment rate. 4. In response to security threats in today’s world, the U.S. government federalized airport security workers. Many argued that simply making screeners federal workers would not solve the root problem: bored, low-paid, and poorly trained security workers have little motivation to be vigilant. How might these employees be motivated to provide the security that travel threats now demand? Employees may be motivated through extrinsic rewards such as pay increases. Before the September 11, 2001 terrorist attack, the screeners were getting paid low wages. Motivating the screeners through higher wages would be a positive reward. These workers must also be allowed to gain some form of self-satisfaction from their jobs, perhaps through more pleasant surroundings or through a more comfortable atmosphere. Another approach might be to help these employees better understand the meaningfulness of their jobs—their performance could virtually affect the whole nation. Recognition and regular high-profile expressions of appreciation would help them gain a sense of worth as well. 5. Using Hackman and Oldham’s core job dimensions, compare and contrast the jobs of these two state employees: (1) Jared, who spends much of his time researching and debating energy policy to make recommendations that will eventually be presented to the state legislature and (2) Anise, who spends her days planting and caring for the flower gardens and grounds surrounding the state capitol building. 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 72 Chapter 16 Skill variety refers to the number of diverse activities that compose a job and the number of skills used to perform it. Jared and Anise probably have similar amounts of skill variety, although the skills one uses are vastly different from the skills the other uses. Jared’s skill variety is related to researching a variety of existing or potential energy policy positions and debating them with a variety of people. Anise’s skill variety is related to the range of tasks involved in creating and maintaining the grounds of the capitol building. Task identity refers to the degree to which an employee performs a total job with a recognizable beginning and ending. Jared may experience relatively low task identity because his research and debate may seem like they have no identifiable beginning or end. Conversely, Anise can clearly recognize the beginning and ending of planting seasons, preparing and creating the various gardens, and removing dead plants and other debris. At the same time, there may be considerably less task identity for her in maintaining the grounds. Task significance refers to the degree to which a job is perceived as important and having an impact on the company or customers. This one is a little difficult to assess. It would be easy, on the surface, to suggest that Jared’s task significance might be greater than Anise’s because he is involved in the development of energy policy for his state and Anise is simply caring for plants and grounds around the capitol building. However, it is quite possible that Anise sees her job as critical to the physical appearance of the state’s most visible government building(s), and hence has a significant impact on important visitors to the state’s highest-ranking officials. Autonomy refers to the degree to which the worker has freedom, discretion, and self-determination in planning and carrying out tasks. It seems likely that Anise has greater autonomy in her job than does Jared, particularly to the extent that she may have the freedom to plan and implement her own visions for the gardens and grounds. Jared, on the other hand, probably has relatively little autonomy in his research and debate due to the expectations and/or policy positions of his superiors. Feedback refers to the extent to which doing the job provides information to the employee about his/her performance. Because feedback is often closely tied to task identity, Anise probably experiences greater feedback in her job than does Jared in his job. She can visually see the outcomes of her efforts and can easily judge her performance from that information. Jared may or may not receive much feedback from his peers or superiors. His efforts culminate in the presentations he gives to the legislature, and he may well not know for quite some time whether his efforts have been successful. 6. If an experienced executive assistant discovered that she made the same amount of money as a newly hired janitor, how do you think she would react? What inputs and outcomes might she evaluate to make this comparison? 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 73 This comparison is based on equity theory, in which people compare the own inputs they bring to a job and the outcomes they receive from it with those of others. Chances are the executive assistant will react negatively to the comparison. The janitor is newly hired and may have less experience than the executive assistant. The executive assistant may have more education and bring greater training and ability to the job. The executive assistant may have certain outcomes unavailable to the janitor, such as a pleasant office, more satisfying work, and a more prestigious position. However, these outcomes probably will not offset an identical salary, which will create a perceived inequity. If the perceived inequity is great, the executive assistant might be expected to change her inputs by expending less effort, attempting to change outcomes by seeking a salary increase, or by perhaps even leaving the job. 7. A survey of teachers found that two of the most important rewards were the belief that their work was important and a feeling of accomplishment. According to Maslow’s theory, what needs do these rewards meet? The belief that one’s work is important and the feeling of accomplishment would meet esteem needs and self-actualization needs. Esteem needs relate to the desire for a positive self-image and the need to receive attention, recognition, and appreciation from others. These needs are reflected in organizations as a desire for recognition, increased responsibility, high status, and credit for contributions to the organization. Self-actualization needs represent the need for self-fulfillment—developing one’s full potential, increasing one’s competence, and becoming a better person. These needs can be met in an organizational setting by providing opportunities to grow, encouraging creativity, and providing training for challenging assignments and advancement. 8. Use Herzberg’s two-factor theory to explain why motivation seems to be high and turnover low at Mars, based on the information provided in the chapter opening example. The hygiene factors at Mars are good. Many employees get bonuses from 10 percent to 100 percent of their salaries if their team performs well. Employees have to punch a time clock and their pay gets docked if they are late—but the policy applies just as much to top executives as it does to the lowest-level worker. Herzberg argued that motivators included achievement, recognition, and responsibility and that these factors provide high motivation and satisfaction for workers. Many people at Mars get a mentor to learn a new skill. Executives often get mentored by younger employees who introduce them to using social media. Development doesn’t stop at the factory gates, either. People can take paid time off to volunteer for community activities such as cleaning parks, planting gardens, or assisting at medical clinics. A highly competitive program selects 80 or so people each year to spend up to six weeks working with Mars-related partners (such as growers of cocoa beans) in remote areas of other countries. What seems to be happening is 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 74 Chapter 16 that the Mars employees are responding primarily to motivators, which is why they are satisfied and remaining in jobs. Hygiene factors, when they are poor, create some level of dissatisfaction, but they never have the potential to generate excitement and commitment in a job in the same way as motivators. Thus, the presence of motivators such as vending machines dispense free candy all day long, and employees in the pet food division taking their dogs to work makes Mars a great place to work. 9. Why do you think empowerment increases motivation? Do you see any ways in which a manager’s empowerment efforts might contribute to demotivation among employees? Discuss. Managers can meet higher motivational needs by shifting power down from the top of the organization by sharing it with employees to enable them to achieve goals. Empowerment is power sharing, the delegation of power or authority to subordinates in an organization. Increasing employee power heightens motivation for task accomplishment because people improve their own effectiveness, choosing how to do a task using their creativity. Empowering employees involves giving them four elements that enable them to act more freely to accomplish their jobs: information, knowledge, power, and rewards. Empowerment can mean encouraging workers’ ideas while managers retain authority, or it can mean employees have the freedom and power to make decisions and exercise initiative. Current methods fall along a continuum from no discretion for workers to full empowerment where workers participate in formulating strategy. A manager’s empowerment efforts might also contribute to demotivation among employees as people have different needs for growth and development. People with low-level needs may not respond to such efforts or opportunity as favorably as someone with a higher need, to grow and expand their abilities, would. Research findings indicate cross-cultural differences in the impact of job characteristics. Intrinsic factors such as autonomy, challenge, achievement, and recognition can be highly motivating in countries like the United States. However, these factors may contribute little to motivation in economically disadvantaged countries such as Nigeria. A recent study also indicates that the link between intrinsic characteristics and job motivation and satisfaction is weaker in economically disadvantaged countries with poor governmental social welfare systems, as well as in countries that value high power distance. 10. A recent Gallup survey shows that highly educated workers are significantly less likely to be engaged than are those with a high school diploma or less. What might be some reasons for this lower level of engagement among highly-educated employees? Employee engagement means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 75 sense of belonging and commitment to the organization. High level of engagement employees is determined by three elements: a sense of meaningfulness, a sense of connection, and a sense of growth. Apply Your Skills: Experiential Exercise What Motivates You? This exercise allows students to assess their own needs using Maslow’s need hierarchy. The scores of executives and three levels of managers obtained by Porter in a study using this questionnaire are shown below. Sample Security Social Esteem Autonomy Self Actualization President 5.69 5.38 5.27 6.11 6.50 (n=114) Vice President 5.44 5.46 5.33 6.10 6.40 (n=611) Upper-Middle 5.20 5.31 5.27 5.89 6.34 (n=569) Lower-Middle 5.29 5.33 5.26 5.74 6.25 (n=431) Lower 5.30 5.27 5.18 5.58 6.32 (n=101) Note: 1 = lowest degree of importance; 7 = highest degree of importance. Source: K. Stewart, Instructor’s Manual to accompany Gibson, Ivancevich, and Donnelly, Organizations, Plano, TX: BPI, 1988, 36. It is interesting to note that self-actualization needs were rated by managers at all levels as most important. For all but upper-middle level managers, esteem needs were rated as least important of the five categories. The only category of needs for which there is a clear progression (increase in importance) from lower-level management to top management is autonomy. It is also probably accurate to say that managers at higher levels in the organization actually have more autonomy than managers at lower levels. Apply Your Skills: Small Group Breakout Should, Need, Like, Love Students form groups and answer the questions about four tasks provided in the exercise. Then, they rate their levels of motivation for each task, as well as the levels of mental effort required 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 76 Chapter 16 for each task. After comparing ratings with others in their groups, students look for correlations and develop conclusions from their analyses. Finally, they discuss their levels of motivation in the context of motivation theories from the chapter. Apply Your Skills: Ethical Dilemma To Renege or Not to Renege? 1. Recommend to the president that a meeting be arranged with the sales representatives entitled to a bonus and tell them that their checks were going to be delayed until the Puget’s financial picture clarified. The sales reps would be told that the company had a legal right to delay payment and that it may not be able to pay the bonuses if its financial situation continues to deteriorate. Puget should not delay or withhold the bonuses from the sales representatives who have earned them. The sales reps did what they were asked to do. The fact that Puget made mistakes in its planning or expectations is not an excuse to delay bonuses or break the promise of paying them for expected performance. 2. Recommend a meeting with the sales representatives entitled to a bonus and tell them the company’s deteriorating financial situation triggers one of the contingency clauses in their contract so that the company won’t be issuing their bonus checks. Puget will just have to deal with the negative impact on sales rep motivation. Failure to pay the bonuses to the sales representatives will result in loss of morale and a significant decline in motivation, which will only lead to further financial difficulties for Puget. Paying the bonuses is likely to cost Puget less than the losses they will suffer from a decline in sales due to reduced motivation and morale. 3. Recommend strongly to the president that Puget pay the bonuses as promised. The legal contracts and financial situation don’t matter. Be prepared to resign if the bonuses are not paid as you promised. Your word and a motivated sales team mean everything to you. This is probably the best option. If the sales representatives know you have fought hard to get them their bonuses and they still don’t get them, the sales reps will still lose motivation and morale will decline, but not as badly as it would if you didn’t fight for them to get their bonuses. You’re probably not going to have to resign anyway, and if you can get Puget to pay the bonuses, both you and the company will be that much better off. Motivation will go up, and the sales reps will work even harder to help Puget resolve its financial difficulties. Apply Your Skills: Case for Critical Analysis Lauren’s Balancing Act 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 77 1. What do you see as the advantages and disadvantages of the incentive system that DeMarco’s is using for sales associates? What impact do you think it is having on the DeMarco’s culture? Explain. The incentive system that DeMarco’s is using for sales associates was a change over from hourly pay to straight commissions. This system has both advantages and disadvantages. Advantages of the incentive system are: The pay is built through the employees’ own initiative and individualized service, prompting repeat customers. Marketing pushed the new image of elite, personalized customer service. Certain associates showed significant gains as a result of straight commissions, and both sales associates and customers responded favorably overall. Reliance on commission inspired sales associates to treat their individual departments as their own small business, becoming experts on nuances of merchandise, exploring designs and trends, finding ways to promote their expertise, and building an impressive number of loyal customers. Customer satisfaction level is apparent in numbers—not only sales numbers, but also in repeat business, customer referrals to friends, etc. Disadvantages of the incentive system are: While some associates soared, there were others who veered toward an aggressive, pushy sales style or became intimidated by coworkers and teetered, monthly, on the verge of being replaced because they weren’t making sales. The once-proud tradition of cooperation among sales staff was, in many ways, eaten away by relentless competition. Work assignments away from the sales floor were resented. There were differences in pay scales which resulted in resentment among the employees. The work culture at DeMarco’s was that of cooperation among sales staff, however, the relentless competition caused by the new incentive system is eating it away. 2. Do you think the complaints of lower-paid sales associates are legitimate? Why? How do you suggest Lauren respond to these complaints, such as the gripe that the system offers few opportunities for large commissions in some departments? The complaints of lower-paid sales associates at DeMarco’s are legitimate as the difference in the pay scales among the sales associates is significant. The new incentive system uses straight commissions as the new pay scale which would mean that the commissions that the associates earn will be based on the number and value of the sales made. This will again vary across the different departments of the store as a commission on a certain item, say $50 belt, will be nothing compared to a commission on a $2,800 designer dress. There are only 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . 78 Chapter 16 few opportunities for large commissions in some departments. This would obviously cause resentment among the employees. 3. Have the successes of sales associates such as Katherine or Damien created a situation in which loyalty to customers is stronger than loyalty to the store? For example, if a successful associate leaves DeMarco’s, might the customer leave also? Yes, the successes of sales associates such as Katherine or Damien created a situation in which loyalty to customers became stronger than loyalty to the store. Reliance on commission inspired sales associates to treat their individual departments as their own small business, becoming experts on nuances of merchandise, exploring designs and trends, finding ways to promote their expertise, and building an impressive number of loyal customers. The employees’ own initiative and individualized service prompted repeated customers. Customer satisfaction level was apparently high. So, it is possible that if a successful associate leaves DeMarco’s, the customer might also leave. On the Job Video Case Answers Mike Boyle Strength & Conditioning: Motivating Employees 1. In the video, Mike Boyle talks about establishing a work environment that motivates employees to do great work. List two or three specific ways Boyle has created this type of environment in his gyms, and explain how these actions empower the employees. Mike has established a work environment that motivates his employees in the following ways: Mike finds out what goals the employees have set for themselves and helps them to reach those goals. Mike develops his employees through seminars all over the country and staff meetings. Mike gives his employees the tools to do a good job. By empowering employees, Mike gives them four elements that enable them to act more freely to accomplish their jobs: information, knowledge, power, and rewards. At Mike Boyle’s, empowerment also means encouraging workers’ ideas and giving them the freedom and power to make decisions and exercise initiative. 3. Co-founder Bob Hanson says that education is an important part of their approach to management. How does education relate to employee motivation and job enrichment? By sending the employees to seminars all over the country and educating them at staff meetings, Mike Boyle is providing his employees with job enrichment. Job enrichment 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. . . Motivating Employees 79 means incorporating high-level motivators into the work, including responsibility, recognition, and opportunities for growth, learning, and achievement. In an enriched job, employees have control over the resources necessary for performing tasks, make decisions on how to do the work, experience personal growth, and set their own work pace. At Mike Boyle’s, job enrichment has led to motivation and job satisfaction. 3. The two trainers featured in the video seem very satisfied with their jobs. Use Maslow’s hierarchy of needs to explain why you think they feel the way they do. According to Maslow’s hierarchy of needs, the highest need is self-actualization. Mike Boyle is meeting the higher motivational needs of his employees by shifting power down from the top of the organization and sharing it with employees to enable them to achieve goals. Increasing employee power at Mike Boyle’s gym heightens motivation for task accomplishment because trainers can improve their own effectiveness and, choose how to do a task using their own creativity. Mike Boyle has also fulfilled his employees need for affiliation. The trainers want to come to work and feel satisfied on the job because of the friendships they have created. They trust and respect Mike Boyle and have a feeling of pride in working for him. 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part . , except foruse as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. .