2nd Edition

PART 2 . . . . . . . . . . . . . . . . . . . . . . . .

Understanding People in Organizations

Motivating, Satisfying, and

Leading Employees

A leader is best when people barely know

he exists, when his work is done they will
say: We did it ourselves.
~ Lao-Tzu, c. 600 B.C.

Leadership is the art of getting someone

else to do something you want done
because he wants to do it.
~ Dwight D. Eisenhower, 1890 - 1969

Psychological contracts in the

workplace
Job satisfaction and employee morale
Theories of employee motivation
Job satisfaction and employee
motivation
Managerial styles of leadership

Contributions:
What does each employee expect to
contribute to the organization?

Inducements:
What will the organization provide to each
employee in return?

Low Turnover:
A low percentage of
employees leave each year

MORALE

An overall positive employee

attitude toward the
workplace

TURNOVER

High Morale:

MORALE

Degree of enjoyment
employees derive from doing
their jobs

TURNOVER

Job Satisfaction:

NA

It's not easy being good these days

at least if you're an employer.

Edward Jones
Cisco Systems
Microsoft
Patagonia
Starbucks
Wal-Mart

#1
#15
#28
#41
#58
#94

Source: Fortune Magazine, February 4th, 2002

Motivation:
The set of forces that cause people to behave in
certain ways

Classical
Behavior: The Hawthorne Studies
Contemporary

Theory X

People are lazy.

People lack ambition
and dislike
responsibility.
People are selfcentered.
People resist
change.
People are gullible
and not very bright.

Theory Y

People are energetic.

People are ambitious
and seek
responsibility.
People can be
selfless.
People want to
contribute to
business growth and
change.
People are
intelligent.

General
Examples
Self-Fulfillment

SelfSelfActualization
Actualization
Needs
Needs

Status

Esteem Needs
Esteem
Needs

Friendship

Social Needs
Needs
Social

Stability

Security Needs
Security
Needs

Shelter

Physiological Needs
Physiological
Needs

Organizational
Examples
Challenging Job
Job Title
Friends at Work
Pension Plan
Salary

Hygiene Factors

Motivation Factors

Supervisors

Achievement

Working Conditions

Recognition

Interpersonal Relations

The Work Itself

Pay & Security

Responsibility

Company Policies &

Administration

Advancement & Growth

Dissatisfaction

Satisfaction

Individual
Effort

Individual
Performance

EffortPerformance
Issue

Organizational
Rewards

PerformanceReward
Issue

Personal
Goals
RewardsPersonal
Goals Issue

Employees evaluate their treatment

relative to the treatment of others
Inputs: Employee contributions to their jobs
Outputs: What employees receive in return

The perceived ratio of contribution to

return determines perceived equity

Reinforcement/behavior
modification

Management by
objectives

Participative
management and
empowerment

Job enrichment and job

redesign

Modified work schedules

Punishment
Punishment
When negative consequences are attached
directly to undesirable behavior

Positive
Positive Reinforcement
Reinforcement
When rewards are tied directly to
performance

Collaborative
Goal Setting &
Planning

Communicating
Organizational
Goals & Plans
Meeting
Setting
Verifiable Goals
& Clear Plans
Counseling
Identifying
Resources

Periodic
Review

Evaluation

Increasing job satisfaction by

encouraging participation

Team management
represents a growing trend

Job Enrichment: Adding one or more

motivating factors to job activities
Job Redesign: Designing a better fit
between workers and their jobs
Combining tasks
Forming natural work groups
Establishing client relationships

Work share
programs

Flextime programs
and alternative
workplace strategies

Telecommuting and
virtual offices

6:00 7:00 8:00 9:00 10:00 11:00 12:00 1:00

A.M.

A.M.

A.M.

Flexible
Time
Joe

Sue

Pat

A.M.

A.M.

Core
Time

A.M.

NOON

Flexible
Time

P.M.

2:00 3:00 4:00

P.M.

Core
Time

P.M.

P.M.

5:00 6:00
P.M.

Flexible
Time

P.M.

Advantages

Disadvantages

More satisfied,
committed
employees

Challenging to
coordinate and
manage

Less congestion

Poor fit for some

workers

The process of
motivating others
to work to meet
specific objectives

Challenge the
process
Inspire a shared
vision
Enable others to act
Model the way
Encourage the heart

A high energy level

The ability to energize others around

common goals

The edge to make tough decisions

The ability to consistently execute and

deliver on promises

Source: Jack Welch Tells It Straight from the Gut, Anderson Assets, Winter 2002

Autocratic Style
Democratic Style
Free-rein Style
Contingency
Contingency Approach
Approach

The
The appropriate
appropriate style
style in
in any
any situation
situation is
is contingent
contingent
on
on the
the unique
unique elements
elements of
of that
that situation
situation

Motivation
Security and pay are
no longer enough

Leadership

Coach mentality
Diversity

Flexibility

Describe psychological contracts

Discuss the importance of job
satisfaction and employee morale
Summarize the most important
theories of employee motivation
Describe strategies to improve job
satisfaction and employee motivation
Discuss different managerial styles