Principles of Supervision MGT 2220 Chapter Eleven Motivating Employees This may sound soft and mushy, but happy people are better for business. They are more creative and productive, they build environments where success is more likely, and you have a much better chance of keeping your best players. -Shelly Lazarus, CEO, Oglivy & Mather Worldwide Motivation= Giving people incentives that cause them to act in a certain way. How Does Motivation Work? If all people were motivated by money, then why do they not put in the effort, arrive late, fail to service customers, or get involved in decisions? Some are motivated by flexible hours. Some are motivated by recognition. Some are motivated by rewards. If it were simple, we would not have employee’s issues. Content Theories – Specific Motivators Maslow’s Hierarchy of Needs 1. Physiological needs are required for survival: food, water, and shelter. 2. Security is feeling we are safe from harm. Could include health insurance as well as living in a safe neighborhood. 3. Social Needs. The desire for love, friendship, and companionship. 4. Self Esteem and the respect of others through acceptance and praise. 5. Self Actualization needs describe the desire to live up to your full potential. People tend to rely on their jobs to meet most of their physiological and security needs through paychecks and benefits. Volunteerism through workplace programs addresses self esteem issues. This theory requires the supervisor must be aware of the current needs of particular employees. “Family Friendly Policies” include flextime and job sharing. Some employees feel these policies only address the needs of certain employees and not all. McClelland’s Achievement – Power – Affiliation Theory 1. The need for achievement. Do something better than it was done before. 2. The need for power. The desire to control, influences, or be responsible for other people. 3. The need for affiliation. The desire to maintain close and friendly personal relationships.McClelland Continued A person’s early life experience may cause one of these needs to be particularly strong. The strength of the needs influences the motivation of the person. It assumes that different people have different patterns of needs. Herzberg’s Two Factor Theory Hygiene Factors include salary and relationships. Motivating Factors are the opportunities offered by the job. A combination of these factors usually creates a good work environment. Process Theories – Process of Motivation Vroom’s Expectancy – Valence Theory 1. Valence. The value a person places on the outcome of the particular behavior. 2. Expectency. The perceived probability that the behavior will lead to the outcome. Strength of the motivation is based on the perceived value. It is based on the employee’s perception of rewards and whether they are obtainable. Skinner’s Reinforcement Theory 1. Reinforcement. A desired consequence or the ending of a negative consequence, either of which is given in response to a desirable behavior. 2. Punishment. An unpleasant consequence given in response to undesirable behavior. 3. Behavior Modification. The use of reinforcement theory to motivate people to behave in a certain way. For long term results, reinforcement is more effective than punishment. Repeated punishment can lead to an unhappy consequence called “learned helplessness”. This theory states that employee’s in this situation will be unable to succeed at work. Give employees a desirable goal and the resources to achieve the goal. Motivation Theories & the Law When designing a rewards program avoid discrimination, employers must distribute benefits fairly. Rewards are usually not under a Supervisor’s control. You must follow the law and company policies. Some Laws require the Supervisor to take a role. Example, Family & Medical Leave Act of 1993. Must maintain benefits and pay while adjusting the schedule to accommodate this law. Leaves and medical leave require other employee’s to make up the work difference. This may be a motivation challenge.Money as a Motivator Do not assume that all employees want from the job is money. Most people do work to earn enough to get by. Being treated with dignity is very important. Earning levels are seen as a signal of one’s value to the organization. When Money Motivates – Pay Plan Structure can be a Motivator Money motivates when it meets the employee’s needs. To be a motivator the employee must believe they are able to achieve the financial rewards the organization offers. Financial Incentives. Payments for meeting objectives. Employees must understand the pay plans and offer of a financial incentive. Piecework System. Payment according to the quantity produced. Production Bonus System. Basic wage plus a bonus for each unit produced. Commissions. Payment linked to the amount of sales completed. Payments for Suggestions. Payments for successful cost cutting or quality improvement ideas that are adopted. Group Incentive Plans. A financial incentive plan that rewards a team of workers for meeting or exceeding an objective. Profit Sharing Plan. A group incentive plan which the company sets aside a share of its profits and divides it among employees. Gainsharing. A group incentive plan, in which the organization encourages employees to participate in making suggestions and decisions, then rewards the group with a share of the improved earnings. Secrecy of Wage & Salary Information. In our society money is considered a private issue. People do not like to talk about what they earn. In the private sector employees generally do not know what others earn but the supervisor knows what employee’s make. In the public sector earnings are public information. Does Secrecy help or hurt the usefulness of money as a motivator?  It would not help releasing information if it would embarrass an employee.  Most employees over estimate what others earn.  Over estimation can lead to dissatisfaction.  For a pay schedule to be considered fair, the organization must tell employees what they can hope to earn.  A potential balance would be to publish salary ranges for a particular job.  Ranges will allow for the organization to to show employees what they could possibly earn.How Supervisors Can Motivate Making Work Interesting 1. Job