Chapter 9
Motivating,
Satisfying, and
Leading Employees
PowerPoint Presentation by Charlie Cook
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All rights reserved.
Key Topics
• Psychological contracts in the workplace
• Job satisfaction and employee morale
• Theories of employee motivation
• Job satisfaction and employee motivation
• Managerial styles of leadership
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9–2
Psychological Contract: A Set of
Employment Expectations
• Contributions:
 What does each employee expect to contribute to
the organization?
• Inducements:
 What will the organization provide to each
employee in return?
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9–3
Satisfied Employees Are More
Productive and More Committed
• Low Turnover:
 A low percentage of
employees leave each year
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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:
9–4
Raising Morale Is a High Priority When
Unemployment Is Low
0% 10% 20% 30% 40% 50% 60%
Alternative Work Arrangements
Arrangements
Long-term Care Insurance
Insurance
Group Financial Planning
Planning
Group Auto Insurance
Insurance
Group Home Owners Insurance
Insurance
NA
1994
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1997
2000
9–5
Highly Motivated Employees Are
Critical to Business Success
• Motivation
 The set of forces that cause people to behave in certain
ways
• Classical Theory
 People are motivated only by money
 Taylor’s “scientific management” approach
• Behavior Theory:
The Hawthorne Studies
 Workers like special attention and increase their
productivity
• Contemporary Motivational Theories
 Human resources model, Maslow’s hierarchy of needs, 2
factor theory, expectancy theory model, equity theory
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9–6
The Human Resources Model:
Theory X and Theory Y (McGregor)
• Theory X
• Theory Y
 People are lazy.
 People are energetic.
 People lack ambition and
dislike responsibility.
 People are ambitious and
seek responsibility.
 People are self-centered.
 People can be selfless.
 People resist change.
 People want to contribute
to business growth and
change.
 People are gullible and
not very bright.
 People are intelligent.
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Table 9–1
9–7
Maslow’s Hierarchy of Needs
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Figure 9–1
9–8
Two-Factor
Theory of
Motivation
(Herzberg)
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Figure 9–2
9–9
Expectancy Theory Model
People will work towards rewards that they want, and
ones that they think they can obtain.
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Figure 9–3
9–10
Equity Theory
• 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.
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9–11
Equity Theory:
Possible
Assessments
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Figure 9–4
9–12
Strategies for Enhancing Job
Satisfaction and Morale
• Reinforcement/behavior modification
• Management by objectives
• Participative management
and empowerment
• Job enrichment and
job redesign
• Modified work schedules
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9–13
Reinforcement/Behavior Modification
Theory
Punishment
When negative consequences are
attached directly to undesirable
behavior.
Positive Reinforcement
When rewards are tied directly to
performance.
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9–14
Management by Objectives (MBO):
Collaborative Goal-setting
Collaborative
Goal Setting
and Planning
Communicating
Organizational
Goals and Plans
Periodic
Review
Evaluation
Meeting
Setting
Verifiable Goals
and Clear Plans
Counseling
Identifying
Resources
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Figure 9–5
9–15
Participative Management and
Empowerment
• Increasing job satisfaction by
encouraging participation
• Team management
represents a
growing trend.
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9–16
Job Enrichment and Job Redesign
• 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
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9–17
Modified Work Schedules
• Work share programs: 2
part time people adjust schedules to fill a
full time job.
• Flextime programs and
alternative workplace
strategies: allows workers to
adjust their work schedules on a daily or
weekly basis. There is core time and
flexible time.
• Telecommuting and
virtual offices: a type of
flextime.
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9–18
Sample Flextime Scheduling
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Figure 9–6
9–19
Evaluating Modified Schedules and
Alternative Workplaces
• Advantages
 More satisfied, committed
employees
 Less congestion
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• Disadvantages
 Challenging to coordinate
and manage
 Poor fit for some workers
9–20
Managerial Leadership
The process of
motivating others
to work to meet
specific objectives
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9–21
Managerial Styles:
patterns of behavior used in dealing with subordinates
Autocratic Style
Makes all decisions, gives orders
Democratic Style
Gets input from subordinates, manager makes final decision
Free-rein Style
Manager just gives advice, subordinates makes final decision
Contingency Approach
The appropriate style in any situation is contingent
on the unique elements of that situation
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9–22
Motivation and Leadership in the 21st
Century
• Motivation
 Security and pay are no
longer enough
• Leadership
 “Coach” mentality
 Diversity
 Flexibility
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9–23
Chapter Review
• 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
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9–24