Chapter Seven

Motivating and Managing

People and Groups in
Business Organizations
McGraw-Hill/Irwin
Introduction to Business

2007 The McGraw-Hill Companies, Inc., All Rights

Reserved.

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
1.
2.
3.
4.
5.

Understand the nature and sources of work motivation and

appreciate motivation is under the voluntary control of an
employee.
Describe five different theories of work motivation and
identify how they work together to determine work
motivation.
Identify the characteristics of groups and teams and
distinguish between important types of groups and teams.
Explain the factors that create high-performance groups and
teams.
Identify the sources of organizational conflict and understand
how bargaining and negotiation is used to resolve conflicts
between people and groups.

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Every company strives to produce and market the kind
of goods customers want so it can generate high
revenues and profits to benefit all its stockholders
A critical determinant of a companys ability to
motivate is its human resources

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Managing People
Leaders try to influence and persuade
employees to develop work behaviors and
attitudes that lead to increased efficiency and
effectiveness

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Managing People
The principal determinant of employees desire
and willingness to work hard and perform at a
high level is their work motivation

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Motivating
Employee performance may be minimal, proactive
performing effectively and efficiently, or below minimum
level

Evaluate the role of leadership in the

Container Store video and relate to influence and
communication

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Motivating
Employees know if they do not perform at the
minimum level they risk being punished or sanctioned
and this may motivate them to put in enough effort to
perform at the minimum level

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Motivating
Leaders need to know or understand what motivates
employees to perform at a high level and then create a
workplace that contains these motivators

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Motivating
Maslows hierarchy of needs state unsatisfied needs
motivate people to satisfy their needs.

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Motivating

Evaluate the illustration and explain the hierarchy and

relate to motivation theory

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Expectancy theory
Argues that work motivation is equal to the effort to
performance linkage and performance to valued
outcome linkage from the employees

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Expectancy theory
The implication for managers is they need to identify
the factors in the work situation that weaken the effort
to performance linkage and reduce motivation

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Expectancy theory
Managers also need to center on the need to prove to
employees there is a strong job performance to
outcome linkage
An incentive system is a good example of
strengthening this linkage

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Additional motivation theories include goal-setting
suggests the goals used to assess job performance need
five properties to be successful
These properties are specific, challenging, and
measurable, results oriented, and specify a time frame
for completion
Evaluate the illustration of Employee Motivation and
relate to managing people and groups

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Motivating
Goal setting properties
Specific
Challenging
Measurable
Results oriented
Specify a time frame for completion

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Management by Objectives
Managers can use goal-setting theory to increase
employee motivation by developing a management by
objectives (MBO) work performance review system

Evaluate the illustration of MBO and relate to

managing people and groups

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Equity Theory
Focuses on employees perception of fairness of
managers evaluation and reward of their job
performance

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Equity Theory
These perceptions of fairness determine how
motivated employees will be to perform at the same or
a high level in the future and an employees desire to
be absent from work or to search for a new job

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Equity Theory
Argues that employees perceptions that managers are
accurately measuring their job performance and
distributing rewards in a fair way is a crucial factor in
determining work motivation

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Equity Theory
Reveals employees perceptions about the value of the
rewards they receive are affected by their perceptions
about the value of the rewards other is receiving as
well
Evaluate the illustration of this theory -- relate to
motivating people (Define fair and perception)

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Job Enrichment
To encourage employees to perform at a higher level
and be more satisfied with their work, researchers
suggest manager should design jobs so that they offer
employees greater rewards or desired outcomes
Evaluate Job Enrichment Videos 1 4 and relate to
motivating and managing

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Groups
Teams are collective and groups are linear while
employees interaction is minimal if any

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Groups
There are advantages in using groups and teams only
when managers design and manage groups correctly
When groups or teams become too large problems
arise that detract from the groups performance

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Evaluate the role of motivation and

management in the Busfields video and
relate to groups in business organizations

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Groups
The lack of conflict in an organization suggests a lack
of creativity with too much emphasis on conformity
and the stifling of innovation and new ideas

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations

Groups
Conflict occurs inter-group and intra-group while
competing for resources and incompatible rewards
and goals and complex task interdependencies

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Chapter 7
Motivating and Managing People and Groups in
Business Organizations
Groups
Negotiation and bargaining tactics make compromise
more like likely
-

emphasize common goals

focus on the problem, not the people
create opportunities for joint gain
focus on what is fair