Business Essentials, Eleventh Canadian Edition, Chapter 9

Chapter 9 Motivating, Satisfying, and Leading Employees ADM 1300 Introduction to Management Bruce Millar C-I-M--, F-C-S-I-, ficb, MBA, C-P-A--, C-M-A é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T.

[Audio] Learning Objectives for this Chapter After studying this chapter, you should be able to – 1. Identify and discuss the basic forms of behaviour that employees exhibit in organizations. 2. Describe the nature and importance of individual differences among employees. 3. Explain the meaning and importance of psychological contracts and the person job fit in the workplace. 4. Identify and summarize the most important models of employee motivation. 5. Describe the strategies used by organizations to improve job satisfaction and employee motivation. é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 6. Define leadership and distinguish it from management. 7. Summarize the approaches to leadership that developed during the twentieth century. 8. Describe the most recent ideas about effective leadership. 2.

[Audio] What will you gain from this chapter? Through the chapter’s learning objectives, you should be better able to – Understand your own feelings toward your work (school) from the perspective of an employee (student), Understand the feelings of others towards their work from the perspective of being in a management role, Understand how you can more effectively function in a leadership role, and Understand how your manager should strive to motivate you through their leadership style é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 3.

[Audio] Forms of Employee Behaviour (LO 9.1) This chapter examines both the causes and effects of employee behaviours and work motivation. Economic systems use various factors of production, with labour being a key one – Employee behaviour – is the pattern of actions by employees that directly and indirectly influences an organizations effectiveness – Performance behaviours – are those directly involved in performing a job Organizational citizenship – refers to employees that “go the extra mile” for the organization Counterproductive behaviours – are simply actions (absenteeism, turnover) that hurt organizational performance é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 4.

[Audio] Individual Differences Between Employees (LO 9.2) Individual differences are physical, psychological and emotional attributes – Personality is the set of psychological attributes that distinguish one person from another Agreeableness – do you get along with others? Conscientiousness – are you focused or unorganized? Emotionally stable – do you have a positive or negative outlook? Is the glass half full or half empty? É C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T Extraversion – are you comfortable with establishing relationships? Opposite of an introvert. Openness – are you open to new ideas/perspectives or closed? 5.

[Audio] Individual Differences Between Employees (LO 9.2) Emotional Intelligence (E-Q---) – Refers to the extent to which people possess social skills, are selfaware, manage their emotions, motivate themselves, and express empathy for others Other personality traits – Locus of control – the extent to which people believe that their behaviour has a real effect on what happens to them (internally or externally focused) Self efficacy – a person’s belief about their capabilities to do certain things Authoritarianism – the extent to which a person believes that power and status differences are appropriate within social systems Machiavellianism – refers to the behaviour that is designed to gain power and control Self esteem – is the extent to which a person believes that they are a É C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T worthwhile and deserving individual Risk propensity – is the degree to which a person is willing to take chances and make risky decisions (entrepreneurs?) 6.

[Audio] Individual Differences Between Employees (LO 9.2) Attitudes at work are made up of three components – Cognition – is the knowledge a person has about someone or something Influenced by perceptions of reality (real or removed from reality) Cognitive dissonance – occurs when two sets of perceptions are contradictory or when people behave in ways that are inconsistent with their attitudes Affect – is a person’s feelings towards someone or something Intentions – guide a person’s behaviours Job satisfaction – reflects how people view their jobs – morale is positive or negative É C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T Organizational (job) commitment – reflects how people identify with their organization and its overall mission (why do we do what we do?) 7.

[Audio] Matching People with Jobs (LO 9.3) Two methods for facilitating a good match between people and jobs are – Psychological contracts – A set of expectations held by an employee over what they will be doing (contributing) and what the organization (management) will provide to attract new and retain existing employees (inducements) – think compensation (CH 8) É C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T Person Job fit – refers to how well a job may fit with a person’s attitude towards a particular job (do you really enjoy what you are doing?) 8.

[Audio] Motivation in the Workplace (LO 9.4) Motivation is what causes people to behave in certain ways – Extrinsic motivation – receiving positive feedback from colleagues and/or your boss Intrinsic motivation – doing work because it is fun and meaningful Classical theory of motivation – “The Principles of Scientific Management” (1911), by Fred Taylor Based on the premise that people are motivated soley by money – pay more then more will be produced Hawthorne effect – focused on how good “human relations” helped in motivating employees (a nice modern classroom is better than an old “dungeon” type) é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 9.

[Audio] Motivation in the Workplace (LO 9.4) Behavioural theories cont… Theory 10 and Theory Y – People who subscribe to theory 10 tend to believe that people are naturally lazy and uncooperative and must be either punished or rewarded to be made productive Those who subscribe to theory Y tend to believe that people are naturally energetic , self motivated, and interested in being productive é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 10.

[Audio] Motivation in the Workplace (LO 9.4) Maslow’s hierarchy of human needs – People have different needs that they attempt/need to satisfy in their work Needs are separated in a hierarchy of importance, with food, water, shelter, and sleep representing the most fundamental needs of people é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 11.

[Audio] Motivation in the Workplace (LO 9.4) Two factor Theory – suggests that job satisfaction and dissatisfaction depend on two separate factors – Motivation factors – such as recognition, responsibility, advancement, and achievement Hygiene factors – such as working conditions, quality of people in management roles, interpersonal relations, pay and job security é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 12.

[Audio] Motivation in the Workplace (LO 9.4) The Acquired Needs theory – of the three needs, one typically dominates a given person’s need structure – Achievement – people have a strong desire to accomplish a goal or task as effectively as possible, and tend to take personal responsibility for getting things done Affiliation – people want reassurance and approval from others and are genuinely concerned with others’ feelings (empathy) Need for power – people need to control their environment (financial, material, information (information is power!), and human resources (Machiavellianism) é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 13.

[Audio] Motivation in the Workplace (LO 9.4) Contemporary Motivation Theories – Expectancy theory – suggests that people are motivated to work towards rewards they want and that they believe they have a reasonable expectation of obtaining A reward that seems out of reach likely will not be motivating Also helps to explain why some people may not work as hard as they should when their salaries are based purely on seniority É C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T Equity theory – suggests that people’s motivation levels are influenced by their perception of how they are treated compared to others People compare what they contribute (education, experience) to what they receive (compensation) May create feelings of equity or inequity 14.

[Audio] Strategies for Enhancing Motivation (LO 9.5) Strategies that are often used by organizations to improve job satisfaction and motivation include – Reinforcement/Behaviour Modification – The first step in the process is to define specific behaviours people in management roles want others to exhibit The second step is to “shape” employee's behaviour by using reinforcement Reinforcement means applying (or withholding) positive (or negative) consequences to motivate employees to act accordingly The strategy includes four options – (1) positive reinforcement, (2) punishment, (3) omission, and (4) negative reinforcement People generally prefer positive reinforcement as it contributes to good employer employee relationships É C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T Regression to the mean – the principle that, from one performance measure to the next, the change in performance will be toward the overall average level of performance 15.

[Audio] Strategies for Enhancing Motivation (LO 9.5) Goal Setting Theory – is based on showing that S-M-A-R-T (specific, measurable, achievable, results oriented, and time framed) goals increase motivation and performance – Can lead to a “singular” focus if there is a financial incentive attached to achieving the performance objective Management by objectives involves both managers and their employees collaborating on the setting of goals and evaluation criteria Participative Management and Empowerment – Involves giving employees more authority (control) and responsibility so that they feel they are a real part of the company’s success. Empowerment is viewed as a critical issue in building a motivated and successful work environment. É C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T Team Management – where employees, potentially from different departments, are put into teams to work on new initiatives or to solve problems. Teams work better when successful completion requires input from several people to accomplish tasks that an individual could not do alone. 16.

[Audio] Strategies for Enhancing Motivation (LO 9.5) Job Enrichment and Design – Job enrichment means adding one or more motivating factors to a job It is accomplished by job design, which involves – combining tasks to increase job variety, forming natural workgroups, which can help employees get an overview of their jobs and see their importance in the total structure, and establishing client relationships which increases the variability of a job and provides greater feelings of control over their jobs Modified Work Schedules – Flextime – allows people to pick their working hours Compressed workweeks – where employees work fewer days in the week but longer hours on the days they are in the office Telecommuting – allows people to do some or all of their work away from their É C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T office (from home via zoom/MS teams) Workshare programs – allow two or more people to share one full time job position (allows for part time employees) There are pros and cons with each of these 17.

[Audio] Leadership and Motivation (LO 9.6) Leadership – refers to the processes and behaviours by people in management roles to motivate, inspire, and influence subordinates to work towards a common objective – A person can be a manager, a leader, or both Management in conjunction with leadership can help achieve orderly change Leadership in conjunction with management can keep the organization properly aligned with its environment Leadership is fundamentally about people Both managers and leaders play a key role in setting the moral climate of the organization and in determining the role of ethics in its culture “tone from the top” Leadership and Power – power is the ability to affect the behaviour of others Legitimate power – is granted through a formal organizational hierarchy and is synonymous with authority é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T Reward power – is the power to give or withhold rewards (such as bonuses) Coercive power – is the power to force another person to comply by means of psychological, emotional, or physical threat Expert power – comes from information or knowledge Referent power – is based on identification, imitation, loyalty or charisma 18.

[Audio] Approaches to Leadership (LO 9.7) The three general approaches to leadership are – 1. The Trait Approach – is based on the idea that leaders had unique traits that distinguished them from other people, such as intelligence, drive, motivation, honesty, integrity and self confidence 2. The Behavioural Approach – is based on the idea that the behaviours of effective leaders differed from the behaviours of less effective leaders, with two basic forms – Task oriented – focusing on how tasks should be done Employee oriented – focusing on the satisfaction, motivation and well being of employees The research also identified three main leadership styles – Autocratic – where the person issues orders and expects obedience Democratic – where the person asks for input from others before making decisions but still makes the final decision é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T Free rein – where the person serves as an advisor to others 19.

[Audio] Approaches to Leadership (LO 9.7) 3. The Situational Approach – assumes that the appropriate leadership behaviour varies from one situation to the next – This approach attempts to identify contingencies (such as a person’s characteristics, the people they lead/manage, and the situation) that can influence outcomes é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 20.

[Audio] Recent Trends in Leadership (LO 9.8) The following are new ideas about leadership that have recently come into vogue – Transformational Leadership – is the set of abilities that allows a leader (person) to recognize the need for change, to create a vision to guide that change, and to execute the change Transactional leadership – simply involves routine activities that are necessary during periods of stability Charismatic Leadership – where the influence is based on a person’s charisma é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 21.

[Audio] Recent Trends in Leadership (LO 9.8) Leaders as Coaches – Today, many organizations are attempting to become less hierarchical (except for government) People in leadership roles take on more of a coaching role, instead of the more traditional roles of overseers In a business context, a coaching perspective calls for leaders to – Help select team members Provide overall direction Help train and develop the team and the skills of its member Help get the team the information and resources it needs Help resolve conflict among team members Gender and Leadership – Do women and men lead differently? Be mindful of personal biases and broad generalizations é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 22.

[Audio] Recent Trends in Leadership (LO 9.8) Cross Cultural Leadership – Today, culture plays an increasing role in some organizations as their workforces become more culturally diverse Strategic Leadership – A person’s (leader’s) ability to understand the complexities of both the organization and the environment in which it operates, and to lead change in the organization to enhance its competitiveness. Ethical Leadership – People in leadership roles should [always] maintain high ethical standards in their own conduct Stronger governance practices supports strong ethical management Virtual Leadership – é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T In today’s global world, leaders and employees may work in different locations, particularly if they work for a multinational firm Remote work is also challenging traditional roles and forcing people to use new virtual leadership capabilities 23.

[Audio] Quick Review Questions In which motivational theory does the employee subconsciously ask themself: “Can I do what is required?” and “Do I want the reward?” A goal setting B equity C Maslow’s hierarchy of needs D expectancy é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 24.

[Audio] Quick Review Questions Which motivational theory focuses on inputs and outputs and the relative ratio between employees? A expectancy theory B Hawthorne’s theory C equity theory D two factor theory é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 25.

[Audio] Quick Review Questions What is a technique for maximizing the quality of production, where employees are grouped into small teams that define, analyze, and solve quality or other process related problems within their area? A quality circle B telecommuting review C job enrichment panel D job redesign review é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 26.

[Audio] Quick Review Questions Your manager has agreed to allow you to work an additional two hours per day from Monday to Thursday and then take every Friday off. What would your modified work schedule be? A flextime B compressed workweek C job sharing D self directed scheduling é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 27.

[Audio] Quick Review Questions At Humber Lumber and Building Centres, department heads usually make decisions after meeting with employees and seeking their ideas and suggestions. What style of leadership are the department heads at Humber Lumber using? A autocratic B diplomatic C democratic D free rein é C O L E D E G E S T I O N T E L F E R S C H O O L O F M A N A G E M E N T 28.