CH 7

Part 4
Creating the
Human
Resource
Advantage
2016 by McGraw-Hill Education. This is proprietary material solely for

authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded,
distributed, or posted on a website, in whole or part.
9-2
CHAPTER 9
Motivating the Workforce
CHAPTER 10
Managing Human Resources
APPENDIX C
Personal Career Plan
2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned,
duplicated, forwarded, distributed, or posted on a website, in whole or part.
9-3
Learning Objectives
LO 9-1 Define human relations and determine why its study is
important.
LO 9-2
Summarize early studies that laid the groundwork for

understanding employee motivation.
LO 9-3
Compare and contrast the human-relations theories of

Abraham Maslow and Frederick Herzberg.
LO 9-4
Investigate various theories of motivation, including

Theories X, Y, and Z; equity theory; and expectancy
theory.
LO 9-5
Describe some of the strategies that managers use to

motivate employees.
LO 9-6
Critique a businesss program for motivating its sales

force.
9-4
Nature of Human Relations
9-5
Motivation
Many companies
offer onsite day care
as a benefit for
employees who
have children
Company benefits
such as these tend
to increase
employee
satisfaction and
motivation
9-6
Motivating the Workforce

Human relations is concerned with the needs of
employees, their goals and how they try to achieve
them, and the impact of those needs and goals on
job performance
Motivating employees to stay engaged is a key
responsibility of management
Engagement involves emotional involvement and

commitment
Being engaged results in carrying out the

expectations and obligations of employment
9-7
David Lee Roths Methods of Motivation

Motivating employees to stay engaged is a key
responsibility of management
To test if his onsite production managers were fully
engaged in their jobs:
Former Van Halen frontman David Lee Roth placed a

line in the bands rider asking for a bowl of M&Ms with
the brown ones removed
Meant to test local stage production crews attention to

detail
Their shows were highly technical

David Lee Roth would demand a complete recheck of
everything if he found brown M&Ms in the bowl
9-8
The Motivation Process
9-9
Morale
One prominent aspect of human
relations
Even small symbols of
recognition, such as an
Employee of the Month parking
space, can serve as strong
motivators for employees
9-10
High Morale and Low Morale
9-11
Rewards
9-12
Morale Boosters
Respect
Positive organizational culture
Appreciation
Adequate compensation
Promotions
A pleasant work environment
Involvement
How to Retain Good Employees
9-13
Costcos Happy Employees

Costco Wholesale, the second largest retailer in America,
knows how to retain happy employees
Pays an average annual rate of $20.89/hour plus overtime
Was even able to give raises when the economic

recession hit
Has not had any major labor disputes in its more than 30
years of existence
Gives 5 weeks of vacation/year

Matches 401(k) contributions
~90% of employees are covered by company-sponsored
health insurance
9-14
How to Motivate Employees

Many companies offer a diverse array of benefits
designed to improve the quality of employees lives and
increase their morale and satisfaction.
9-15
Historical Perspectives on Employee Motivation
9-16
Classical Theory of Motivation

To improve productivity managers should:
Break down each job into its component tasks

(specialization)
Determine the best way to perform each task

Specify the output to be achieved by a worker
performing the task
Incentives motivate employees to be more

productive
Link workers pay directly to their output
9-17
The Hawthorne Studies
9-18
Hawthorne Discoveries
From 1924-1932 researchers studied a group of
workers at the Hawthorne Works Plant of the Western
Electric Company and measured their productivity
under various physical conditions
Questioned about their behavior, employees
expressed satisfaction because:
Their co-workers in the experiments were friendly
Their supervisors had asked for their help and
cooperation in the study
Responded to attention received not the changing
physical work conditions
Social and psychological factors affect productivity and

morale
9-19
Hawthorne Outcomes
Hawthorne experiments revealed that human factors do

influence workers behavior
Managers who understand the needs, beliefs, and

expectations greatest success in motivating employees
Some companies
let people bring
their pets to work
as an added
incentive to make
the workplace
seem more
friendly
9-20
Job Aspects Important to Employee Satisfaction
Aside from
salary, which
one of the
following
aspects of
your job is
most tied to
your
satisfaction?
9-21
Theories of Employee Motivation
9-22
Maslows Hierarchy of Needs
9-23
Maslows Hierarchy of Needs (cont.)
9-24
Herzbergs Two-Factor Theory
9-25
Herzbergs Hygiene and
Motivational Factors
Salary and security make it possible for employees

to satisfy physiological and security needs identified
by Maslow
Herzbergs motivational factors and Maslows
esteem and self-actualization needs are similar
9-26
Customer-Centric Processes
Hotels are adopting more customer-centric processes
in order to better their experiences
Doubletree (franchise owned by Hilton Hotels &

Resorts)
Created CARE committee for each of its locations

Committee composed of employees from all departments
Can ensure maximum operational performance and
customer satisfaction
Marriott International
Employees leave personal noted for guests
Their loyalty program is above comparison
9-27
McGregors Theory X
The average person naturally dislikes work and will avoid it

when possible
Most workers must be coerced, controlled, directed, or
threatened with punishment to get them to work toward the
achievement of organizational objectives
The average worker prefers to be directed and to avoid
responsibility, has relatively little ambition, and wants security
Theory X style of management focuses on physiological and
security needs and virtually ignores the higher needs discussed
by Maslow
9-28
McGregors Theory Y
Theory Y managers:
Maintain less control and supervision
Do not use fear as the primary motivator
Are more democratic in decision making
Allowing subordinates to participate in process
9-29
McGregors Theory Y Assumptions

Theory Y assumes:
The expenditure of physical and mental effort in work is as
natural as play or rest
People will exercise self-direction and self-control to achieve
objectives to which they are committed
People will commit to objectives when they realize that the
achievements of those goals will bring them personal
reward
The average person will accept and seek responsibility
Imagination, ingenuity, and creativity can help solve
organizational problems, but most organizations do not
make adequate use of these characteristics in their
employees
Organizations today do not make full use of workers
intellectual
potential
duplicated,
forwarded, distributed, or posted on a website, in whole or part.
9-30
Theory Z
Incorporates many elements associated with the

Japanese approach to management (trust and
intimacy) but Japanese ideas have been adapted for
use in the U.S.
Results in employees feeling organizational ownership
Research has found that such feelings of ownership

may produce positive attitudinal and behavioral effects
for employees
9-31
Comparison of American, Japanese, and Theory Z

Management Styles
9-32
Variations on Theory Z
Theory Z has been adapted and modified for use in
a number of U.S. companies
Quality circles (quality-assurance teams) Are small,

usually having 5-8 members who discuss ways to
reduce waste, eliminate problems, and improve quality,
communication, and work satisfaction
Often modified and operate under names such as:

participative management, employee involvement, or
self-directed work teams
They strive to give employees more control over their

jobs while making them more responsible for the
outcome of their efforts
9-33
Equity Theory
Equity is a subjective notion

Equity theory might explain why many consumers
are upset about CEO compensation
Corporations have now begun to tie CEO
compensation with company performance
Feelings of inequity may underlie some unethical or

illegal behavior in business
9-34
Personal Input-Output Ratio

Each worker regularly develops a personal input-output
ratio by taking stock of his/her contribution (inputs) to the
organization in:
Time, effort, skills, and experience
And Assessing the rewards (outputs) offered by the

organization in:
Pay, benefits, recognition, and promotions
Worker compares his/her ratio to the input-output ratio of

some other person
A comparison other who may be a co-worker, friend in

another organization, or average of several people
If 2 ratios are close, the individual will feel that he/she is

being treated equitably
9-35
Expectancy Theory
A person who wants something and has reason to be

optimistic will be strongly motivated
If you do not believe you are likely to get what you
want, you may not be motivated to try to get it, even
though you really want it
9-36
What Motivation Depends On

Your motivation depends
not only on how much
you want something, but
also on how likely you
are to get it
1. You really want a promotion
2. Taken night classes to improve skills
3. Made a large, significant sale
4. Feel confident you are qualified to handle new position
5. Therefore, you are motivated to try to get promotion
9-37
Positive Reinforcement
When employees are recognized for a job well done, they are
more likely to put forth the same amount of effort or more in their
future tasks
Positive reinforcement is so effective because it clearly and

immediately defines the kind of behaviors that are appreciated
by employers
This tactic works especially well with employees who naturally

take pride in their work and are inherently motivated to do well
However, it still has positive results among the less naturally

motivated employees
Positive reinforcement also empowers employees through selfconfidence making them more adaptable and open to change
9-38
Behavior Modification
Behavior that is rewarded will tend to be repeated

Behavior that is punished will tend to be eliminated
The two strategies may not be equally effective
Punishing unacceptable behavior may provide quick

results but may lead to employee dissatisfaction and
increased turnover
In general, rewarding appropriate behavior is a more

effective way to modify behavior
9-39
Job Rotation, Job Enlargement, and

Job Enrichment
9-40
Flexible Scheduling Strategies

Many managers have turned to flexible scheduling
strategies
Due to poor morale and high absenteeism as well as
a diverse workforce with changing needs
9-41
Flextime, Showing Core and Flexible Hours

Flextime provides many
benefits, including
improved ability to recruit
and retain workers who
wish to balance work and
home life
More flexible schedules are
associated with healthier
lifestyle choices such as
increased physical activity
and healthier sleep habits
9-42
Job Sharing
Allowing full-time
workers to work part
time for a certain period
of time
Allowing workers to
work from home either
full or part time
9-43
SAS Family
Several of the companies listed on Fortunes Best Companies
to Work For list receive this recognition for how well they treat
their employees. Good treatment of employees leads to higher
motivation levels and overall company productivity
SAS, a business analytics company, made the number two spot

on Fortunes list in 2014
They effectively motivate their employees with extensive
benefits that go beyond the traditional set of benefits
companies usually offer
SAS values their employees families by offering full family
health care coverage, adoption services and educational
training
They also value the employees well-being by offering fitness
and recreational facilities and programs
To see other of examples of companies that effectively
motivate their employees, see the following link:
9-44
Importance of Motivational Strategies

Fosters employee loyalty
Boosts productivity
Influences many areas such as pay, promotion, job
design, training opportunities,
and reporting relationships
Employees are motivated
by the nature of the
relationships they have with
their supervisors, by the
nature of their jobs, and by
characteristics of the
organization
Businesses have come up with

different ways to motivate
employees, including rewards to
show the companys appreciation
9-45
Economic Environment and Motivation

The economic environment can change an
employees motivation:
In a recession economy, morale can drop because
of the need to cut jobs
Firm may have to work harder to keep good

employees and to motivate all employees to work to
overcome obstacles
In good economic times, employees may be more

demanding and be on the lookout for better
opportunities
New rewards or incentives may help motivate workers
9-46
Companies with Excellent

Motivational Strategies
9-47
Solve the Dilemma

Motivating to Win
Eagle Pharmaceutical has long been recognized for its
innovative techniques for motivating its salesforce
Features the salesperson who has been most
successful in previous quarter in company newsletter
Touchdown
Receive football jersey
Plaque
$1000 worth of Eagles stock
Superbowl Club for employees who reach/exceed their

sales goals
Heisman Award trip to Caribbean to top 20 salespeople
9-48
Solve the Dilemma

Motivating to Win (cont.)
9-49
Discussion
? Why do managers need to understand the

needs of their employees?
? Contrast the assumptions of theory X and

theory Y. Why has theory Y replaced X in
management today?
? Name and describe some flexible
scheduling strategies. How can flexible

schedules help motivate workers?
? Identify and describe the job-design

strategies.

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Part 4

2016 by McGraw-Hill Education. This is proprietary material solely for

Motivating the Workforce

Managing Human Resources

Personal Career Plan

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Summarize early studies that laid the groundwork for

Compare and contrast the human-relations theories of

Investigate various theories of motivation, including

Describe some of the strategies that managers use to

Critique a businesss program for motivating its sales

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Nature of Human Relations

duplicated, forwarded, distributed, or posted on a website, in whole or part.

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Motivating the Workforce

Engagement involves emotional involvement and

Being engaged results in carrying out the

duplicated, forwarded, distributed, or posted on a website, in whole or part.

David Lee Roths Methods of Motivation

Former Van Halen frontman David Lee Roth placed a

Meant to test local stage production crews attention to

Their shows were highly technical

duplicated, forwarded, distributed, or posted on a website, in whole or part.

The Motivation Process

duplicated, forwarded, distributed, or posted on a website, in whole or part.

One prominent aspect of human

duplicated, forwarded, distributed, or posted on a website, in whole or part.

High Morale and Low Morale

duplicated, forwarded, distributed, or posted on a website, in whole or part.

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Positive organizational culture

A pleasant work environment

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Costcos Happy Employees

Pays an average annual rate of $20.89/hour plus overtime

Was even able to give raises when the economic

Gives 5 weeks of vacation/year

duplicated, forwarded, distributed, or posted on a website, in whole or part.

How to Motivate Employees

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Historical Perspectives on Employee Motivation

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Classical Theory of Motivation

Break down each job into its component tasks

Determine the best way to perform each task

Incentives motivate employees to be more

Link workers pay directly to their output

duplicated, forwarded, distributed, or posted on a website, in whole or part.

The Hawthorne Studies

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Social and psychological factors affect productivity and

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Hawthorne experiments revealed that human factors do

Managers who understand the needs, beliefs, and

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Job Aspects Important to Employee Satisfaction

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Theories of Employee Motivation

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Maslows Hierarchy of Needs

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Maslows Hierarchy of Needs (cont.)