Understanding business 10th chapter 10 motivating employees

Chapter 10

Motivating 
Employees

McGraw-Hill/Irwin

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.


Chapter Ten

LEARNING GOALS

1. Explain Taylor’s theory of scientific management.
2. Describe the Hawthorne studies and their 
significance to management.
3. Identify the levels of Maslow’s hierarchy of needs 
and apply them to employee motivation.
4. Distinguish between the motivators and hygiene 
factors identified by Herzberg.
5. Differentiate among Theory X, Theory Y, and 
Theory Z. 
10-2


Chapter Ten

LEARNING GOALS

6. Explain the key principles of goal­setting, 

expectancy, reinforcement, and equity theories.
7. Show how managers put motivation theories into 
action through such strategies as job enrichment, 
open communication, and job recognition.
8. Show how managers personalize motivation 
strategies to appeal to employees across the globe 
and across generations.

10-3


Profile

ANDREW CHERNG
Panda Express

• Cherng considers the wellness of 
his staff as an important key to 
the company’s success.
• Managers are urged to eat a 
healthy diet, exercise regularly, 
and attend company motivational 
seminars that often include hugs!
• He hopes to have 2,300 
American stores in operation 
by 2015.
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Chapter Ten

NAME that COMPANY

The employees of this company are told exactly 
how to do their jobs – and we do mean exactly. 
For instance they are instructed to carry their 
keys on their ring finger with the teeth up. If 
they are considered too slow, a supervisor will 
shadow them with a stopwatch and clipboard 
and prod them along.
Name that company!
10-5


The Value of 
Motivation

INTRINSIC REWARDS

• Intrinsic Rewards – 
– Personal satisfaction you feel when you perform well and 
complete goals: 
- Pride in your performance
- Sense of achievement
– Something given as a recognition of good work.
- Pay Raises
- Promotions
- Awards

10-6

The Value of 
Motivation

FRINGE BENEFITS 
Best Perks Offered to Employees

Type of Benefit

Company

Pay Scale Ranked

Free food, a bowling alley, and bocce courts.

Google

2

12 paid holidays and a winter recess between Christmas and
New Year's Day.

Boeing

16

Johnson & Johnson
Co.

18

Cisco Systems

29

Campbell’s

52

General Mills

76

Immediate eligibility for 401(k) contribution, and company will
match, and has own fitness centers for employees, spouses, and
dependents.

Hershey’s

89

New hires receive gift basket sent to their homes, and they holds
bowling nights and softball games.

J.J. Smucker Co.

103

Have access to concierge service, who does personal chores for

them.
Primary healthcare, physical therapy and acupuncture.
100% healthcare coverage, free flu shots, healthy cooking
lessons and subsidized costs on healthy meal options. Also, onsite kindergarten and after-school programs, and lactation room
for nursing mothers.
3 weeks paid vacation upon hire and increases yearly, and can
work from any location within the office, known as the FUSE
program.

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Frederick Taylor: 
The Father of 
Scientific 
Management
LG1

TAYLOR’S SCIENTIFIC 
MANAGEMENT

• Scientific Management ­­ Studying workers to find 
the most efficient ways of doing things and then 
teaching people those techniques. 

• Three Key Elements to Increase Productivity 
1. Time
2. Methods of Work
3. Rules of Work

10-8


Frederick Taylor: 
The Father of 
Scientific 
Management
LG1

TAYLOR’S FOUR KEY 
PRINCIPLES

1. Study how a job is performed.
• Gather time & motion information.
• Check different methods.

2. Codify the best method into rules.
3. Choose workers whose skill(s) match the rule.
4. Establish a fair level of performance and pay.

10-9


Frederick Taylor: 
The Father of 
Scientific 
Management

TIME­MOTION STUDIES

LG1

• Time­Motion Studies ­­ Studies of which tasks 

must be performed to complete a job and the time 
needed to do each task.

• Led to the development of the Principle of 
Motion Economy ­­ Every job can be broken down 
into a series of elementary motions; developed by 
Frank and Lillian Gilbreth.

• Led to the development of Lean Six Sigma – Toyota 
 ­­ Reduction of waste and defects of 3.4 per million.
10-10


Frederick Taylor: 
The Father of 
Scientific 
Management
LG1

ARE YOU STRESSED?
Warnings of Employee Stress

• Negative attitudes about work
• Drops in productivity
• Chronic lateness

• Absenteeism
• Careless with details
• Unable to work with others
• Withdrawal from co­workers
• Easily upset or angered
10-11


Frederick Taylor: 
The Father of 
Scientific 
Management

TAYLOR and UPS 

LG1

• UPS drivers work under strict rules and work 
requirements.
• How to get out of their 
trucks: 
- Right foot first

• How fast to walk: 
- 3 ft per second

• How to hold their keys:
- Teeth up, third finger 

10-12

Elton Mayo and 
the Hawthorne 
Studies
LG2

HAWTHORNE STUDIES: 
PURPOSE AND RESULTS

• Researchers studied worker efficiency under 
different levels of light.
• Productivity increased regardless of light 
condition.
• Researchers decided it was 
a human or psychological 
factor at play.
• Hawthorne Effect ­­ People 

act differently when they know 
they are being studied.
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Motivation and 
Maslow’s 
Hierarchy of 
Needs
LG3

MASLOW’S 
THEORY of MOTIVATION

• Hierarchy of Needs ­­ Theory of motivation 
based on unmet human needs from basic 
physiological needs to safety, social and 
esteem needs to self­actualization needs.
• Needs that have already been met do not 
motivate.
• If a need is filled, another higher­level need 
emerges.
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Motivation and 
Maslow’s 
Hierarchy of 
Needs
LG3

MASLOW’S 
HIERARCHY of NEEDS

10-15


Herzberg’s 
Motivating 
Factors
LG4

HERZBERG’S 
MOTIVATING FACTORS

• Herzberg’s research centered on two questions:
- What factors controlled by managers are most 
effective in increasing worker motivation?
- How do workers rank job­related factors in order 
of importance related to motivation?

10-16


Herzberg’s 
Motivating 
Factors

JOB CONTENT

LG4

Herzberg found job content 
factors were most important to 
workers.  Workers’ like to feel 
they contribute to the company.
•Motivators ­­ Job factors that 
cause employees to be 
productive and that give them 
satisfaction.

10-17


Herzberg’s 
Motivating 
Factors

JOB ENVIRONMENT

LG4

Job environment factors maintained satisfaction, 
but did not motivate employees.
• Hygiene Factors ­­ Job 

factors that can cause 
dissatisfaction if missing but 
do not necessarily motivate 
employees if increased.

10-18


Herzberg’s 
Motivating 
Factors
LG4

HERZBERG’S MOTIVATORS 
and HYGIENE FACTORS

Motivators

Achievement

Hygiene Factors
Company Policy and 
Administration
Supervision

Recognition
Responsibility
Growth and 
Advancement

Working Conditions
Interpersonal Relations
Salary, Status and Job 
Security

Work Itself

10-19


Herzberg’s 
Motivating 
Factors
LG4

COMPARISON of the THEORIES 

of MASLOW and HERZBERG

10-20


Herzberg’s 
Motivating 
Factors
LG4

REIGNITE EMPLOYEES’ DRIVE 
Simple Ways to Reinvigorate Work Life

1. Don’t work alone all the 
time; partners or teams 
make work more efficient 
and fun.
2. Redecorate your space to 
get away from the same­
old, same­old.
3. Don’t complain; think of 
things to celebrate.
Photo Courtesy of: Nels Highberg
Source: Fast Company, March 2010.  

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Progress 
Assessment 

PROGRESS ASSESSMENT

• What are the similarities and differences between 
Taylor’s time­motion studies and Mayo’s 
Hawthorne studies?
• How did Mayo’s findings influence scientific 
management?
• Draw a diagram of Maslow’s hierarchy of needs. 
Label and describe the parts.
• Explain the distinction between what Herzberg 
called motivators and hygiene factors.
10-22


McGregor’s 
Theory X and 
Theory Y

THEORY X and THEORY Y

LG5

• Douglas McGregor proposed managers had two 
different sets of assumptions concerning workers.
• Their attitudes about motivating workers were 
tied to these assumptions.
• McGregor called them Theory X and Theory Y.

10-23

McGregor’s 
Theory X and 
Theory Y
LG5

ASSUMPTIONS of 
THEORY X MANAGERS

• Workers dislike work and seek to 
avoid it.
• Workers must be forced or 
threatened with punishment to get 
them to perform.
• Workers prefer to be directed and 
avoid responsibility.
• Primary motivators are fear and 
money. 
10-24


McGregor’s 
Theory X and 
Theory Y
LG5

ASSUMPTIONS of 
THEORY Y MANAGERS

• People like work, it is a part of life.
• Workers seek goals to which they are committed.
• Commitment to goals depends on perceived 
rewards.
• People can use creativity to solve problems.
• Intellectual capacity is only partially realized.
• People are motivated by a variety of rewards. 
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