This Document Contains Chapters 11 to 12 CHAPTER 11 LEADERSHIP CHAPTER OUTLINE New Manager Self-Test: What’s Your Personal Style? I. The Nature of Leadership II. Contemporary Leadership A. Level 5 Leadership B. Servant Leadership C. Authentic Leadership D. Gender Differences III. From Management to Leadership IV. Leadership Traits V. Behavioral Approaches A. Task versus People B. The Leadership Grid VI. Contingency Approaches A. The Situational Model of Leadership New Manager Self-Test: Task versus People Orientation B. Fiedler’s Contingency Theory C. Situational Substitutes for Leadership VII. Charismatic and Transformational Leadership A. Charismatic Leadership B. Transformational versus Transactional Leadership VIII. Power and Influence A. Position Power B. Personal Power C. Other Sources of Power D. Interpersonal Influence Tactics ANNOTATED LEARNING OUTCOMES After studying this chapter, students should be able to: 1. Define leadership and explain its importance for organizations. Answer: There is probably no topic more important to business success today than leadership. Leadership occurs between people, involves the use of influence, and is used to attain goals. Influence means that the relationship among people is not passive. A definition of leadership is the ability to influence people toward the attainment of goals. This definition captures the idea that leaders are involved with other people in the achievement of goals. Leadership is dynamic and involves the use of power. Power is the potential ability to influence the behavior of others. Power represents the resources with which a leader effects changes in employee behavior. 2. Describe how leadership is changing in today’s organizations, including Level 5 leadership, servant leadership, and authentic leadership. Answer: The turbulence and uncertainty of the environment in which most organizations are operating has significantly influenced leadership styles in recent years. Ethical and economic difficulties, corporate governance concerns, globalization, changes in technology, new ways of working, shifting employee expectations, and significant social transitions have contributed to a shift in how we think about and practice leadership. A key characteristic of Level 5 leaders is an almost complete lack of ego, coupled with a fierce resolve to do what is best for the organization. In contrast to the view of great leaders as larger-than-life personalities with strong egos and big ambitions, Level 5 leaders often seem shy and unpretentious. Although they accept full responsibility for mistakes, poor results, or failures, Level 5 leaders give credit for successes to other people. The concept of servant leadership, first described by Robert Greenleaf, is leadership upside down, because leaders transcend self-interest to serve others and the organization. Servant leaders operate on two levels: for the fulfillment of their subordinates’ goals and needs and for the realization of the larger purpose or mission of their organization. Servant leaders give things away—power, ideas, information, recognition, credit for accomplishments, even money. Servant leaders truly value other people. They are trustworthy and they trust others. They encourage participation, share power, enhance others’ self-worth, and unleash people’s creativity, full commitment, and natural impulse to learn and contribute. Servant leaders can bring their followers’ higher motives to the work and connect their hearts to the organizational mission and goals. Authentic leadership refers to individuals who know and understand themselves, who espouse and act consistently with higher-order ethical values, and who empower and inspire others with their openness and authenticity. • Authentic leaders pursue their purpose with passion. When leaders demonstrate a high level of passion and commitment to purpose, they inspire commitment from followers. • Authentic leaders practice solid values. People come to know what the leader stands for, which inspires trust. • Authentic leaders lead with their hearts as well as with their heads. They maintain compassion for others as well as the courage to make difficult decisions. • Authentic leaders establish connected relationships. They surround themselves with good people and work to help others grow and develop. • Authentic leaders demonstrate self-discipline. They avoid excessive or unethical risks that could harm others and the organization, and openly admit their mistakes. 3. Discuss how women’s style of leading is typically different from men’s. Answer: Some of the characteristics associated with Level 5 leaders and authentic leaders are also hallmarks of interactive leadership, which has been found to be associated with female leaders. Interactive leadership means that the leader favors a consensual and collaborative process, and influence derives from relationships rather than position power and formal authority. According to surveys, women rate higher than men on motivating others, fostering communication, producing high-quality work, and listening to others, while men and women rate about equally on strategic planning and analyzing issues. 4. Identify personal characteristics associated with effective leaders. Answer: Traits are the distinguishing personal characteristics of a leader such as intelligence, values, self-confidence, and appearance. In addition to personality traits, physical, social, and work-related characteristics have been studied; however, these traits do not stand alone. The appropriateness of a trait, or set of traits, depends on the leadership situation. The same traits do not apply to every organization. Studies have shown that optimism is the single characteristic most common to top executives. However, optimism can also lull leaders to laziness and overconfidence. Therefore, rather than just understanding their traits, the best leaders recognize and hones their strengths. Effective leadership isn’t about having the “right” traits, but rather about finding the strengths that one can best exemplify and apply as a leader. 5. Define task-oriented behavior and people-oriented behavior and explain how these categories are used to evaluate and adapt leadership style. Answer: Task-oriented behavior and people-oriented behavior are two basic categories of behavior identified as important for leadership. People-oriented behavior is the extent to which the leader is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust. Task-oriented behavior is the extent to which the leader directs subordinate work activities toward goal attainment. Leaders with this style typically give instructions, spend time planning, emphasize deadlines, and provide explicit schedules of work activities. In some cases, employees may need very little direction, but may require more personal interaction and coordination on the part of a leader to enable them to work effectively together (e.g., university faculty). These cases would call for a greater focus on people-oriented behavior. In other cases, employees may need little personal interaction, but may require a great deal of direction to function effectively (e.g., military personnel in a combat environment). These cases would call for a strong focus on task-oriented behavior. 6. Describe the situational model of leadership and its application to subordinate participation. Answer: The situational model of leadership, which originated with Hersey and Blanchard, focuses a great deal of attention on the characteristics of employees in determining appropriate leadership behavior. Subordinates vary in readiness level. People low in task readiness, because of little ability or training, or insecurity, need a different leadership style than those who are in high readiness and have good ability, skills, confidence, and willingness to work. The leader should evaluate subordinates and adopt whichever style is needed. If one or more followers are at low levels of readiness, the leader must be very specific, telling them exactly what to do, how to do it, and when. For followers high in readiness, the leader provides a general goal and authority to do the task as they see fit. 7. Discuss how leadership fits the organizational situation and how organizational characteristics can substitute for leadership behaviors. Answer: The organizational situation or variables can be so powerful that they actually substitute for, or neutralize, the need for leadership. A substitute for leadership makes the leadership style unnecessary or redundant. Highly professional subordinates who know how to do their tasks do not need a leader to initiate structure for them and tell them what to do. A neutralizer counteracts the leadership style and prevents the leader from displaying certain behaviors. If a leader has no position power, or is physically removed from subordinates, the leader’s ability to give directions to subordinates is greatly reduced. 8. Describe transformational leadership and when it should be used. Answer: Managers deal with organizational complexity; leaders initiate productive change. Transformational leaders are similar to charismatic leaders, but are distinguished by their special ability to bring about innovation and change. They have the ability to lead changes in the organization’s mission, structure, and management of human resources. They emerge to take an organization through major strategic change, such as revitalization. 9. Explain how followership is related to effective leadership. Answer: Many of the qualities that define a good leader are the same qualities as those possessed by a good follower. Effective followers, like effective leaders, are critical, independent thinkers who exhibit active behavior in their organizations. They develop equitable relationships with others and do not try to avoid risk or conflict. They are capable of self-management, discern strengths and weaknesses in themselves and others, are committed to something bigger than themselves, and work toward competency, solutions, and positive impact. 10. Identify sources of leader power and the tactics leaders use to influence others. Answer: Power is the potential ability to influence the behavior of others. Power represents the resources with which a leader effects changes in employee behavior. Within organizations there are typically five sources of power. • Legitimate power comes from a formal management position in an organization and the authority granted to it. • Reward power stems from the manager’s authority to bestow rewards on others. • Coercive power, the opposite of reward power, refers to the manager’s authority to punish or recommend punishment. • Expert power results from a leader’s special knowledge or skill. • Referent power comes from leader personality characteristics that command subordinates’ identification, respect, and admiration so that they wish to emulate the leader. Leaders use six primary tactics to influence others. • Use rational persuasion. • Help people like you. • Rely on the rule of reciprocity. • Develop allies. • Be assertive—ask for what you want. • Make use of higher authority. LECTURE OUTLINE NEW MANAGER SELF-TEST: WHAT’S YOUR PERSONAL STYLE? Ideas about effective leadership change over time. A recent view of leadership called Level 5 Leadership says that the most successful leaders have two prominent qualities: humility and will. This exercise helps students understand the levels of humility and will they possess. I. THE NATURE OF LEADERSHIP There is probably no topic more important to business success than leadership because it occurs among people, involves influence, and is used to attain goals. Influence means that the relationship among people is not passive. Influence is designed to achieve some end or goal. Leadership is defined as the ability to influence people toward the attainment of goals. Leadership is reciprocal, occurring among people. It is dynamic and involves the use of power to get things done. II. CONTEMPORARY LEADERSHIP The turbulence and uncertainty of the environment in which most corporations are operating in today’s world have had a significant influence on leadership thinking and styles. Ethical and economic difficulties, corporate governance concerns, globalization, changes in technology, new ways of working, shifting employee expectations, and significant social transitions have contributed to a shift in how we think about and practice leadership. A. Level 5 Leadership Exhibit 11.1 1. A key characteristic of Level 5 leaders is an almost complete lack of ego, coupled with a fierce resolve to do what is best for the organization. In contrast to the view of great leaders as larger-than-life personalities with strong egos and big ambitions, Level 5 leaders often seem shy and unpretentious. Humility means being unpretentious and modest rather than arrogant and prideful. Although they accept full responsibility for mistakes, poor results, or failures, Level 5 leaders give credit for successes to other people. B. Servant Leadership 1. Servant leaders operate on two levels: for the fulfillment of the subordinates’ goals and needs and for the realization of the larger purpose or mission of their organization. Servant leaders give things away—power, ideas, information, recognition, and credit for accomplishment. Servant leaders bring the follower’s higher motives to the work and connect them to the organizational mission and goals. Servant leaders often work in the nonprofit world because it offers a natural way to apply their leadership drive and skills to serve others. C. Authentic Leadership Exhibit 11.2 1. Authentic leadership refers to individuals who know and understand themselves, who espouse and act consistently with higher-order ethical values, and who empower and inspire others with their openness and authenticity. a. Authentic leaders pursue their purpose with passion. When leaders demonstrate a high level of passion and commitment to purpose, they inspire commitment from followers. b. Authentic leaders practice solid values. People come to know what the leader stands for, which inspires trust. c. Authentic leaders lead with their hearts as well as with their heads. They maintain compassion for others as well as the courage to make difficult decisions. d. Authentic leaders establish connected relationships. They surround themselves with good people and work to help others grow and develop. e. Authentic leaders demonstrate self-discipline. They avoid excessive or unethical risks that could harm others and the organization, and openly admit their mistakes. D. Gender Differences Exhibit 11.3 1. Some of the characteristics associated with Level 5 leaders and authentic leaders are also hallmarks of interactive leadership, which has been found to be associated with female leaders. Interactive leadership means that the leader favors a consensual and collaborative process, and influence derives from relationships rather than position power and formal authority. 2. According to surveys, women rate higher than men on motivating others, fostering communication, driving results, producing high-quality work, and listening to others, while men and women rate about equally on strategic planning and analyzing issues. III. FROM MANAGEMENT TO LEADERSHIP Exhibit 11.4 Management and leadership are both important to organizations. Effective managers must also be leaders because of distinctive qualities associated with each that provide different strengths for the organization. Management and leadership reflect two different sets of qualities and skills that frequently overlap within a single individual. A person may have more of one set of qualities than the other, but ideally a manager develops a balance of both manager and leader qualities. A primary distinction between management and leadership is that management promotes stability, order, and problem solving within the existing organizational structures and systems. Leadership promotes vision, creativity, and change. It means questioning the status quo so that outdated, unproductive, or socially irresponsible norms can be replaced. Leadership cannot replace management. Good management helps the organization meet current commitments, while good leadership moves the organization into the future. IV. LEADERSHIP TRAITS Exhibit 11.5 Early efforts to understand leadership focused on the leader’s personal characteristics or traits. Traits are the distinguishing personal characteristics of a leader, such as intelligence, honesty, self-confidence, and appearance. Generally, research found only a weak relationship between personal traits and leader success. Physical, social, and work-related characteristics of leaders have also been studied. The appropriateness of a trait or set of traits depends on the leadership situation. The same traits do not apply to every organization or situation. Rather than just understanding their traits, the best leaders recognize and hone their strengths. Strengths are natural talents and abilities that have been supported and reinforced with learned knowledge and skills and provide each individual with his or her best tools for accomplishment and satisfaction. Discussion Question #1: Suggest some personal traits that you believe would be useful to a business leader today. Are these traits more valuable in some situations than in others? How do you think traits differ from strengths? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ V. BEHAVIORAL APPROACHES A. Task versus People 1. The inability to define effective leadership based solely on traits led to an interest in looking at the behavior of leaders and how it might contribute to leader success. Two basic leadership behaviors that have been identified as important for leadership are task-oriented behavior and people-oriented behavior. a. Studies of leader behavior at The Ohio State University identified two major leadership behaviors called consideration and initiating structure. • Consideration is the extent to which the leader is sensitive to subordinates, respects their ideas and feelings, and establishes mutual trust. Considerate leaders are friendly, provide open communication, develop teamwork, and are oriented toward their subordinates’ welfare. • Initiating structure is the extent to which a leader is task oriented and directs subordinate activities towards goal attainment. Leaders with this style typically give instructions, spend time planning, emphasize deadlines, and provide schedules of work activities. b. Studies at the University of Michigan compared the behavior of effective and ineffective supervisors. • Employee centered leaders were the effective leaders who established high performance goals and displayed supportive behavior toward subordinates. • Job centered leaders were ineffective and less concerned with goal achievement and human needs in favor of meeting schedules, keeping costs low, and achieving efficiency. B. The Leadership Grid Exhibit 11.6 1. Researchers at the University of Texas developed the Leadership Grid®, a two dimensional model that measures concern for people and for production. Each axis on the grid is a nine-point scale, with 1 meaning low concern and 9 meaning high concern. a. Team management (9,9) is often considered the most effective style for all managers; organization members work together to accomplish task outcomes. b. Country-club management (1,9) occurs when primary emphasis is given to people rather than to work outputs. c. Authority-compliance management (9,1) occurs when efficiency in operations is the dominant orientation. d. Middle-of-the-road management (5,5) reflects a moderate concern for both people and production. e. Impoverished management (1,1) means the absence of a management philosophy; managers exert little effort toward interpersonal relationships or work accomplishment. NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ VI. CONTINGENCY APPROACHES A. The Situational Model of Leadership Exhibit 11.7 1. The situational model of leadership, which originated with Hersey and Blanchard, is a contingency approach to leadership. That is, it describes the relationship between leadership styles and specific organizational situations. The situational model links the leader’s behavioral style with the task of readiness of subordinates. 2. The focus of this model is that subordinates vary in their readiness level, which is determined by the degree of willingness and ability a subordinate demonstrates while performing a specific task. a. Willingness refers to a combination of confidence, commitment, and motivation, and a follower may be high or low on any of the three variables. b. Ability refers to the amount of knowledge, experience, and demonstrated skill a subordinate brings to the task. People low in readiness need a different leadership style than those with high readiness. People have low task readiness due to limited skills, lack of training, or insecurity. People with high readiness tend to have ability, skills, confidence, and willingness to work. 3. According to the situational model, a leader can adopt one of four leadership styles, based on relationship (concern for people) and task (concern for production) behavior. The four styles include: a. Directing style—a highly dictating style and involves giving explicit directions about how tasks should be accomplished. b. Coaching style—a leader explains decisions and gives subordinates a chance to ask questions and gain clarity and understanding about work tasks. c. Supporting style—a leader shares ideas with subordinates, gives them a chance to participate, and facilitates decision making. d. Entrusting style— a leader turns over the responsibility for decisions and their implementation to subordinates. 4. Followers may be at low, moderate, or high levels of readiness. a. Low Readiness Level. A directing style is appropriate when followers are at a low readiness level because of poor ability and skills, little experience, insecurity, or unwillingness. The leader directs followers what to do, how to do it, and when to do it. b. Moderate Readiness Level. A coaching style works best with moderate levels of readiness when subordinates are unable but willing to follow. In this case, subordinates might lack some education and experience for the job. The coaching style gives direction but includes seeking input from others and clarifying tasks. c. Moderate Readiness Level. A supporting style is effective with moderate levels of readiness when subordinates are able but lack high willingness to follow. These subordinates are somewhat insecure about their abilities, and the leader acts as a resource for advice and assistance to them. d. High Readiness Level. When followers have high levels of education, experience, and readiness to accept responsibility for their own task behavior, the entrusting style is effective. For these followers, the leader provides a general goal, delegates’ sufficient authority to do the task, and expects followers to complete the task as they see fit. NEW MANAGER SELF-TEST: TASK VERSUS PEOPLE ORIENTATION The majority of a new manager’s work is accomplished through interpersonal relationships. Many new managers aspire to a high sociability and high dominance pattern of interpersonal relationships. This exercise helps students understand their tendencies in interpersonal behavior. B. Fiedler’s Contingency Theory Exhibit 11.8 The cornerstone of Fiedler’s contingency theory is the extent to which the leader’s style is relationship oriented or task oriented. A relationship oriented leader is concerned with people. A task oriented leader is primarily motivated by task accomplishment. 1. Situation: Favorable or Unfavorable? a. The suitability of a person’s leadership style is determined by whether the situation is favorable or unfavorable. Since leadership styles are considered to be difficult to change, the basic idea is to match the leader’s style with the situation most favorable for his or her effectiveness. The favorability of a leadership situation can be analyzed in terms of three elements: the quality of relationships between leader and followers, the degree of task structure, and the extent to which the leader has formal authority over followers. • Highly favorable when the leader member relations are positives, tasks are highly structured, and the leader has formal authority over followers. • Highly unfavorable when leader-member relations are poor, tasks are highly unstructured, and the leader has little formal authority. NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 2. Matching Leader Style to the Situation a. Combining the three characteristics yields eight leadership situations. • The task-oriented leader excels in most favorable situations because everyone gets along, the task is clear, and the leader has power. The task-oriented leader also excels in most unfavorable situations because a great deal of structure and task direction is needed. • The relationship-oriented leader performs better in the four situations of intermediate favorability because human relations skills are important in achieving high group performance. b. A leader needs to know two things to use Fiedler’s contingency theory. • A leader needs to know whether he or she has a relationship- or task-oriented style. • A leader should diagnose the situation and determine whether leader-member relations, task structure, and position power are favorable or unfavorable. C. Situational Substitutes for Leadership Exhibit 11.9 1. The contingency leadership approaches considered so far have focused on the leader’s style, the subordinates’ nature, and the situation’s characteristics. The final contingency approach suggests that situational variables can be so powerful that they substitute for, or neutralize, the need for leadership. a. A substitute is a situational variable that makes a leadership style redundant or unnecessary. Highly professional subordinates do not need a leader to tell them what to do. b. A neutralizer is a situational variable that prevents a leader from displaying certain behaviors. Situational variables include characteristics of the subordinate, task, and the organization. 2. Leaders should adopt a style complementary to the organizational situation to ensure that both task needs and people needs of the work group are met. Discussion Question #10: Consider the leadership position of a senior partner in a law firm. What task, subordinate, and organizational factors might serve as substitutes for leadership in this situation? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ VII. CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP Research has found that some leadership approaches are more effective than others for bringing about change in organizations. Two types of leadership that can have a substantial impact are charismatic leadership and transformational leadership. These are best understood in comparison to transactional leadership. A. Charismatic Leadership 1. The charismatic leader has the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacrifice. 2. The impact of charismatic leaders normally come from: a. stating a lofty vision of an imagined future that employees identify with b. displaying an ability to understand and emphasize with followers c. empowering and trusting subordinates to accomplish results. 3. Charismatic leaders are often skilled in the art of visionary leadership. A vision is an attractive, ideal future that is credible yet not readily attainable. Charismatic leaders have a strong vision for the future, almost an obsession, and they can motivate others to help realize it. B. Transformational versus Transactional Leadership 1. Transformational leaders are distinguished by their special ability to bring about innovation and change. They recognize followers’ needs and concerns, help them look at old problems in new ways, and encourage them to question the status quo. 2. Transformational leaders create significant change in both followers and the organization. They have the ability to lead changes in the organization’s mission, structure, and human resource management. They focus on intangibles, such as vision, shared values, and ideas to build relationships, give larger meaning to activities, and enlist followers in change. 3. Studies show that transformational leadership has a positive impact on follower development and follower performance. Transformational leadership skills can be learned and are not ingrained personality characteristics. 4. Transactional leaders clarify subordinates’ role and task requirements, initiate structure, provide appropriate rewards, and try to be considerate and meet the social needs of subordinates. Transactional leaders excel at management functions, are hardworking, tolerant, and fair-minded. They stress the impersonal aspects of performance, such as plans, schedules, and budgets. Discussion Question #6: What is transformational leadership? Give examples of organizational situations that would call for transformational, transactional, or charismatic leadership. NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ VIII. POWER AND INFLUENCE Power is the potential ability to influence the behavior of others. Influence is the effect of a person’s actions on the attitudes, values, beliefs, or behavior of others. Power is the capacity to cause a change in a person, influence may be thought of as the degree of actual change. Power results from an interaction of leader and followers. Sometimes power comes from a person’s position in the organization, while other sources of power are based on personal characteristics. Within organizations, there are typically five sources of power: legitimate, reward, coercive, expert, and referent. A. Position Power 1. The traditional manager’s power comes from the organization. The manager’s position gives him or her power to reward or punish subordinates to influence behavior. Examples of position power include: a. Legitimate power comes from a formal management position in an organization and the authority granted to it. Subordinates accept this source of power as legitimate, which is why they comply. b. Reward power stems from the manager’s authority to bestow rewards on other people. Legitimate power and reward power are most likely to generate compliance. c. Coercive power is the opposite of reward power. Here, the manager has the authority to punish or recommend punishment, which often generates resistance. Resistance means workers tend to try to avoid carrying out instructions or will attempt to disobey them. B. Personal Power 1. Personal power often comes from internal sources, such as a person’s special knowledge or personality. Examples of personal power include: a. Expert power results from a leader’s special knowledge or skill regarding the tasks performed by followers. b. Referent power comes from leader personality characteristics that command subordinates’ identification, respect, and admiration so they wish to emulate the leader. Subordinate response will be commitment, which means subordinates will enthusiastically carry out instructions. Leaders can increase their referent power when they share power and authority with employees. A significant trend is to empower lower employees. Discussion Question #4: Suggest the sources of power that would be available to the leader of a student government organization. What sources of power may not be available? To be effective, should student leaders keep power to themselves or delegate power to other students? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ C. Other Sources of Power 1. Personal effort results in gaining power when people show initiative, work beyond what is expected of them, take on undesirable but important projects, and show interest in learning about the organization and industry. 2. People who are enmeshed in a network of relationships have greater power. 3. Information is a primary business resource, and people who have access to information and control over how and to whom it is distributed are typically powerful. D. Interpersonal Influence Tactics Exhibit 11.11 1. Leaders often use a combination of influence strategies, and people who are perceived as having greater power and influence typically are those who use a wider variety of tactics. There are seven principles for asserting influence. a. Use rational persuasion. Use facts, data, and logical argument to persuade others. b. Make people like you. People would rather say yes to someone they like than to someone they don’t like. c. Rely on the rule of reciprocity. Take advantage of the exchange of benefits and favors. d. Develop allies. Develop networks of allies—people who can help you accomplish your goals. e. Ask for what you want. Make a direct and personal request. f. Make use of higher authority. Gain the support of people at higher levels to back you up. CHAPTER 12 MOTIVATING EMPLOYEES CHAPTER OUTLINE New Manager Self-Test: Are You Engaged or Disengaged? I. The Concept of Motivation A. Individual Needs and Motivation B. Managers as Motivators II. Content Perspectives on Motivation A. The Hierarchy of Needs B. ERG Theory C. A Two-Factor Approach to Motivation D. Acquired Needs New Manager Self-Test: Need for Achievement, Affiliation, and Power III. Process Perspectives on Motivation A. Goal Setting B. Equity Theory C. Expectancy Theory IV. Reinforcement Perspective on Motivation A. Direct Reinforcement B. Social Learning Theory V. Job Design for Motivation A. Job Enrichment B. Job Characteristics Model VI. Innovative Ideas for Motivating A. Building a Thriving Workforce B. Empowering People to Meet Higher Needs C. Giving Meaning to Work through Engagement ANNOTATED LEARNING OUTCOMES After studying this chapter, students should be able to: 1. Define motivation and explain the difference between intrinsic and extrinsic rewards. Answer: Motivation refers to forces either within or external to a person that arouse enthusiasm, and persistence to pursue a certain course of action. The study of motivation concerns with what prompts people to initiate action, what influences their choice of action, and why they persist in doing it over time. To the extent that the behavior is successful, the person is rewarded in the sense that the need is satisfied. Intrinsic rewards are the satisfactions a person receives in the process of performing a particular action. Extrinsic rewards are given by another person, typically a manager, and include promotions, praise, pay increases. 2. Identify and describe content theories of motivation based on employee needs. Answer: Content theories of motivation emphasize the needs that motivate people. These needs translate into an internal drive that motivates an individual’s specific behaviors in an attempt to fulfill the needs. The organization’s reward system can be designed to meet employees’ needs and reinforce them in directing their energies and priorities toward attainment of organizational goals. Content theories of motivation based on employee needs include: Maslow’s hierarchy of needs theory, Alderfer’s ERG theory, Herzberg’s two-factor theory, and McClelland’s acquired needs theory. Maslow’s hierarchy of needs theory proposes that humans are motivated by multiple needs and these needs exist in a hierarchical order. Maslow identified five general types of motivating needs in order of ascendance—physiological needs, safety needs, belongingness needs, esteem needs, and self-actualization needs. Once a need is satisfied, it declines in importance and the next higher need is activated, which is then satisfied, and the process continues up the hierarchy. Alderfer proposed the ERG theory, which identified three categories of needs: existence needs, which are the needs for physical well-being; relatedness needs, which pertain to the need for satisfactory relationships with others; and growth needs, which focus on the development of human potential and the desire for personal growth and increased competence. Herzberg developed the two-factor theory of motivation. He suggested that the work characteristics associated with dissatisfaction were different from those pertaining to satisfaction, prompting the notion that two factors influence work motivation—hygiene factor and motivators. McClelland developed the acquired needs theory, which proposes that needs are acquired during the individual’s lifetime. People are not born with these needs but may learn them through life experiences. The three needs most frequently studied are the need for achievement, the need for affiliation, and the need for power. 3. Identify and explain process theories of motivation. Answer: Process theories of motivation explain how people select behavioral actions to meet their needs and determine whether their choices were successful. Important process theories of motivation are goal-setting theory, equity theory, and expectancy theory. Goal-setting theory, developed by Locke and Latham, proposes that managers can increase motivation and enhance performance by setting specific, challenging goals, and then helping people track their progress toward goal achievement by providing timely feedback. Equity theory focuses on individuals’ perceptions of how fairly they are treated compared with others. Expectancy theory suggests that motivation depends on individuals’ expectations about their ability to perform tasks and receive desired rewards. Expectancy theory is based on the relationship among the individual’s effort, the individual’s performance, and the desirability of outcomes associated with high performance. 4. Describe the reinforcement perspective and social learning theory and how they can be used to motivate employees. Answer: Reinforcement theory looks at the relationship between behavior and its consequences. It focuses on changing or modifying the employees’ on-the-job behavior through the appropriate use of immediate rewards and punishments. Behavior modification involves techniques by which reinforcement theory is used to modify human behavior. Reinforcement is defined as anything that causes a certain behavior to be repeated or inhibited. The four reinforcement tools are positive reinforcement, avoidance learning, punishment, and extinction. Social learning theory is related to the reinforcement perspective, but it proposes that an individual’s motivation can result not just from direct experience of rewards and punishments but also from the person’s observations of other people’s behavior. Vicarious learning, observational learning occurs when an individual sees others perform certain behaviors and get reward for them. This can be made used by managers to enhance employees’ motivation to perform desired behaviors by ensuring that the employee (i) has a chance to observe the desirable behaviors, (ii) accurately perceives the behavior, (iii) remembers the behaviors, (iv) has the necessary to skills to perform the behaviors, and (v) sees that the behaviors are rewarded by the organization. 5. Discuss major approaches to job design and how job design influences motivation. Answer: A job in an organization is a unit of work that a single employee is responsible for performing. Jobs are an important consideration for motivation because performing their components may provide rewards that meet the employees’ needs. Job design is the application of motivational theories to the structure of work for improving productivity and satisfaction. Major approaches to job design are job enrichment and job characteristic model. Simplified jobs aren’t typically effective as a motivational technique because they can be boring and routine. Thus, managers in many companies are redesigning simplified jobs into jobs that provide greater variety and satisfaction. Job rotation systematically moves employees from one job to another, thereby increasing the number of different tasks an employee performs without increasing the complexity of any one job. Job enlargement combines a series of tasks into one new, broader job. These two techniques are relevant with job enrichment. Job enrichment involves incorporating high-level motivators into the work, including responsibility, recognition, and opportunities for growth, learning, and achievement. Enriched jobs give employees more control over the resources for performing tasks making them feel a greater sense of involvement, commitment, and motivation. The job characteristic model is a model of job design that considers core job dimension, individuals’ critical psychological states, and employee growth-need strength. The more the five core characteristics—skill variety, task identity, task significance, autonomy, and feedback—can be designed into the job, the more the employees will be motivated and the higher will be the employees’ performance, quality of work, and satisfaction. These core characteristics influence the employee’s psychological state of experienced meaningfulness of work. This impact leads to the personal and work outcomes of high work motivation, high work performance, high satisfaction, and low absenteeism and turnover. People have different needs for growth and development, employee growth-need strength. The job characteristic model is especially effective when a person has a high need for growth and development, including the desire for personal challenge, achievement, and challenging work. 6. Describe how managers build a thriving workforce for a high-performing organization. Answer: A thriving workforce is one in which people are just not satisfied and productive but also engaged in creating the future—their own and that of the organization. Two components of thriving workforce are vitality and learning. Managers can promote thriving workforce by applying many of the motivational techniques, such as meeting higher-level needs, helping people get intrinsic rewards from their work, and providing regular feedback on performance and progress. Two specific approaches that can be used to build thriving workforce are empowering employees and creating an environment that promotes employee engagement. 7. Explain how empowerment heightens employee motivation. Answer: Organizations have adopted new programs that apply motivational theory to improve employees’ satisfaction and performance. The newest trend in motivation is empowerment, which is power sharing or the delegation of power and authority to subordinates in an organization. Increasing employee power heightens motivation for task accomplishment because people improve their own effectiveness, choosing how to do a task and using their creativity. Empowering employees involves giving them four elements that enable them to act more freely to accomplish their jobs: information, knowledge, power, and rewards. 8. Identify three elements of employee engagement and describe some ways that managers can create a work environment that promotes engagement. Answer: Employee engagement means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization. Three elements that create employee engagement are: a sense of meaningfulness, a sense of connection, and a sense of growth. Managers can create a work environment that promotes engagement by organizing the workplace in such a way to create these three elements, which will lead to high motivation and high organizational performance. The behavior of managers is what makes the biggest difference in employee motivation and whether employees flourish at work. The manager’s role is to organize the workplace in such a way that each person can learn, contribute, and grow. LECTURE OUTLINE NEW MANAGER SELF-TEST: ARE YOU ENGAGED OR DISENGAGED? The term employee engagement is becoming popular in the corporate world. Engagement means that people involve and express themselves in their work, going beyond the minimum effort required. Engagement typically has a positive relationship with both personal satisfaction and performance. This exercise helps students understand engagement. I. THE CONCEPT OF MOTIVATION Exhibit 12.1 Motivation refers to the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action. Employee motivation affects productivity, and part of a manager’s job is to channel motivation toward accomplishment of organizational goals. The study of motivation helps understand what prompts people to initiate action, what influences their choice of action, and why they persist in that action over time. A. Individual Needs and Motivation 1. People have needs—such as for recognition, achievement, or monetary gain—that translates into an internal tension that motivates specific behaviors with which to fulfill various needs. Needs motivate specific behavior designed to fulfill those needs. Feedback tells people whether they were successful in fulfilling their needs. If so, they feel rewarded by their success. 2. Managers who understand the motives that compel people to initiate, alter, or continue a desired behavior are more successful as motivators. 3. Exhibit 12.2 in the text illustrates four categories of motives—intrinsic and extrinsic rewards. a. Intrinsic rewards are the satisfactions a person receives in the process of performing a particular action. b. Extrinsic rewards are given by another person, typically a manager, and include promotions, praise, and pay increases. B. Managers as Motivators Exhibit 12.2 1. The importance of motivation is that it can lead to behaviors that reflect high performance and profits within organizations. Managers have to find the right combination of motivational techniques and rewards to keep workers satisfied and productive in a variety of organizational situations. Discussion Question #1: Why do you think making progress ranks as the most important factor contributing to motivation according to a recent study? How can managers provide a sense of progress for employees working on long-range projects that might not show results for months or even years? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ II. CONTENT PERSPECTIVES ON MOTIVATION Exhibit 12.3 Content theories emphasize the needs that motivate people; people have a variety of needs at any point in time. These needs translate into an internal drive that motivates specific behaviors in an attempt to satisfy the needs. To the extent that managers understand employees’ needs, they can design reward systems that meet them direct employees’ energies and priorities toward attaining organizational goals. A. The Hierarchy of Needs 1. Abraham Maslow’s hierarchy of needs theory proposes that humans are motivated by multiple needs, existing in a hierarchical order. He identified five general types of motivating needs in order of ascendance: a. Physiological needs. The most basic human physical needs including food, water, and oxygen. In the organizational setting, these needs include adequate heat, air, and base salary to ensure survival. b. Safety needs. These are the needs for a safe and secure physical and emotional environment and free from threats of violence. In an organizational workplace, safety needs are for safe jobs, fringe benefits, and job security. c. Belongingness needs. These needs are the desire to be accepted by one’s peers, have friends, be part of a group, and be loved. On the job, this translates into a desire for good relationships with co-workers, participation in a work group, and a positive relationship with supervisors. d. Esteem needs. Esteem needs relate to the desire for a positive self-image and the need to receive attention, recognition, and appreciation from others. These needs are reflected in organizations as a desire for recognition, increased responsibility, high status, and credit for contributions to the organization. e. Self-actualization needs. This is the highest need category and represents the need for self-fulfillment—developing one’s full potential, increasing one’s competence, and becoming a better person. These needs can be met in an organizational setting by providing opportunities to grow, encouraging creativity, and providing training for challenging assignments and advancement. 2. The lower-order needs take priority in that they must be satisfied before higher-order needs are activated. The needs are satisfied in sequence; once a need is satisfied, it declines in importance and the next higher need is activated. If a lower-level need ceases to be satisfied, however, it will re-emerge and take precedence over higher order needs until it is once again satisfied. NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ B. ERG Theory 1. ERG theory was developed by Clayton Alderfer and is a modification of Maslow’s theory in an effort to simplify it and respond to criticisms of its lack of empirical verification. ERG theory identified three categories of needs. a. Existence needs. These are the needs for physical well-being. b. Relatedness needs. These pertain to the need for satisfactory relationships with others. c. Growth needs. These focus on the development of human potential and the desire for personal growth and increased competence. 2. The ERG model and Maslow’s need hierarchy are similar as both are hierarchical and presume individuals move up the hierarchy one need at a time. However, the ERG model suggests reduced number of need categories and the movement up the hierarchy as more complex reflecting a frustration regression principle. This suggests that failure to meet a higher-order need may trigger regression to an already fulfilled lower-order need. For example, a worker who cannot fulfill a need for personal growth may revert to a lower-order social need and redirect his or her efforts toward making a lot of money. The ERG model suggests that individuals may move down as well as up the hierarchy depending on their ability to satisfy needs. 3. Many companies find that creating a humane work environment that allows people to achieve a balance between work and personal life is a great high-level motivator. Making work fun plays a role in creating this balance as well. Having fun at work relieves stress and enables people to feel more “whole.” C. A Two-Factor Approach to Motivation Exhibit 12.4 1. Frederick Herzberg asserted that work characteristics associated with dissatisfaction were different from those pertaining to satisfaction. This prompted the idea that two different factors influenced work motivation and an employee’s behavior at work, leading to his development of the two-factor theory. The two factors that influence motivation are hygiene factors and motivators. a. Hygiene factors relate to lower-order needs and involve the absence or presence of job dissatisfiers, such as working conditions, pay and security, company policies, supervisors, and interpersonal relationships. When hygiene factors are poor, work is dissatisfying. Good hygiene factors remove the dissatisfaction, but they do not cause satisfaction or motivation. Instead, employees are neutral toward work. b. Motivators relate to higher-order needs and include things such as achievement, recognition, responsibility, the work itself, and the opportunity for personal growth. When motivating factors are present, workers are highly motivated and satisfied. The absence of motivating factors removes satisfaction, but does not cause dissatisfaction. Instead, employees are neutral toward work. 2. The manager’s role is to provide hygiene factors to meet basic needs and use motivators to meet higher-level needs to propel employees toward achievement and satisfaction. D. Acquired Needs 1. David McClelland developed acquired needs theory, which proposes that certain types of needs are acquired or learned during an individual’s lifetime. People are not born with these needs, but may learn them through life experiences. McClelland addressed three categories of needs. a. Need for achievement: The desire to accomplish something difficult, attain a high standard of success, master complex tasks, and surpass others. b. Need for affiliation: The desire to form close personal relationships, avoid conflict, and establish warm friendships. c. Need for power: The desire to influence or control others, be responsible for others, and have authority over others. 2. McClelland studied human needs and their implications for management. People with a high need for achievement are frequently entrepreneurs. People with high need for affiliation are successful integrators, whose job is to coordinate the work of several departments in an organization. A high need for power is often associated with successful attainment of top levels in the organizational hierarchy. Discussion Question #7: A survey of teachers found that two of the most important rewards were the belief that their work was important and a feeling of accomplishment. According to Maslow’s theory, what needs do these rewards meet? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ NEW MANAGER SELF-TEST: NEED FOR ACHIEVEMENT, AFFILIATION, AND POWER David McClelland’s research found that some human needs are learned during early life experiences, and the three that he studied are personal need for achievement, affiliation, and power: Achievement means the need to excel. Affiliation means the need for harmonious relationships. Power means the need to direct and influence others. One of the three needs is typically stronger than the others in most people. This test will assess these three elements of needs. The higher one scores on a need, the stronger it is and the more it guides his or her behavior. If you can align your career to use and satisfy your stronger needs, you are more likely to be successful. III. PROCESS PERSPECTIVES ON MOTIVATION Process theories explain how employees select behaviors with which to meet their needs and determine if their choices were successful. The basic process theories are goal-setting, equity theory, and expectancy theory. A. Goal Setting Exhibit 12.5 1. Goal-setting theory proposes that specific, challenging goals increase motivation and performance when the goals are accepted by subordinates who receive feedback to indicate progress toward goal achievement. Goal-setting theory includes four key components: a. Goal specificity: The degree to which goals are concrete and unambiguous. b. Goal difficulty: The notion that hard goals are more motivating than easy ones. c. Goal acceptance: Employees must “buy into” the goals and be committed to them. d. Feedback: People get information about how well they are doing in progressing toward goal achievement. 2. Goal setting increases motivation because it enables people to focus their energies in the right direction. People know what to work toward, so they can direct their efforts toward the most important activities to accomplish the goals. Goals energize behavior because people feel compelled to develop plans and strategies that keep them focused to accomplish the objectives. 3. Recent research indicates the importance of making progress toward goals as a key to motivation. The making progress principle is the idea that the single most important factor that can boost motivation, positive emotions, and perceptions during a workday is making progress toward meaningful goals. B. Equity Theory 1. Equity theory, developed by J. Stacy Adams, focuses on individuals’ perceptions of how fairly they are treated relative to others. People evaluate equity by a ratio of inputs to outcomes. Inputs to a job include such things as education, experience, effort, and ability. Outcomes from a job include such things as pay, recognition, benefits, and promotions. 2. The input-to-output ratio may be compared with another person in the work group or to a perceived group average. If people perceive that their input-to-outcome ratio is equal to that of those to whom they compare themselves, they believe their treatment is fair and equitable. A state of equity exists whenever the ratio of one person’s outcomes to incomes equals the ratio of another person. Inequity exists when these ratios are not equal. Perceived inequity creates tensions within individuals that motivate them to bring equity into balance. 3. The most common methods for reducing a perceived inequity are: a. Change work effort: such as by decreasing the level of effort or increasing absenteeism. b. Change outcomes such as by obtaining a salary increase or other additional benefits or perks. c. Change perceptions such as, by artificially increasing the status attached to one’s job. d. Leave the job: If equity cannot be restored through any of the previous methods, people may decide to leave their jobs rather than suffer the inequity of being underpaid or overpaid expecting to find a more favorable balance of rewards. 4. The implication of equity theory for managers is that employees evaluate the perceived equity of their rewards compared to others’. An increase in salary or promotion will not motivate if it is perceived as inequitable relative to other employees. Smart managers try to keep employees’ feelings of equity in balance to keep their workforce motivated. Discussion Question #6: If an experienced executive assistant discovered that she made the same amount of money as a newly hired janitor, how do you think she would react? What inputs and outcomes might she evaluate to make this comparison? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ C. Expectancy Theory Exhibit 12.6 1. Expectancy theory, associated with the work of Victor Vroom, suggests that motivation depends on individuals’ expectations about their ability to perform tasks and receive desired rewards. It focuses on the thinking process individuals use to obtain rewards. Expectancy theory is based on the relationship among the individual’s effort, performance, and the desirability of outcomes associated with high performance. a. E P expectancy involves determining whether putting effort into a task will lead to high performance. The individual must have the ability, previous experience, and necessary resources and opportunity to perform. b. P O expectancy involves determining whether successful performance will lead to the desired outcome. It is the belief that high performance will lead to a desired reward. c. Valence is the value of outcomes, or attraction to outcomes, for the individual. If an employee does not value the outcomes available from high effort and good performance, motivation will be low. If outcomes have a high value, motivation will be higher. Expectancy theory attempts to establish that needs and rewards exist and may be different for every individual. 2. Managers’ responsibility is to help subordinates meet their needs and at the same time attain organizational goals. Managers try to find a match between a subordinate’s skills and abilities, job demands, and available rewards. Companies use expectancy theory principles by designing incentive systems that identify organizational outcomes and give everyone a chance for rewards. The trick in designing a system that fits with employees’ abilities and needs. IV. REINFORCEMENT PERSPECTIVE ON MOTIVATION Exhibit 12.7 Reinforcement theory looks at the relationship between behavior and its consequences. The focus is on changing or modifying the employees’ on-the-job behavior through the appropriate use of immediate rewards and punishments. A. Direct Reinforcement 1. Behavior modification is the technique by which reinforcement theory is used to modify behavior. The basic assumption underlying behavior modification is the law of effect, which states that behavior that is positively reinforced tends to be repeated, and behavior that is not reinforced tends not to be repeated. Reinforcement is defined as anything that causes a certain behavior to be repeated or inhibited. There are four common reinforcement tools: positive reinforcement, avoidance learning, punishment, and extinction. a. Positive reinforcement is the application of a pleasant and rewarding consequence following a desired behavior. Praise for a job well done increases the likelihood the excellent work behavior will occur again. Studies show that positive reinforcement improves performance. b. Avoidance learning is the removal of an unpleasant consequence following a desired behavior, sometimes called negative reinforcement. Employees learn to do the right thing by avoiding unpleasant situations. An example would be when a supervisor stops criticizing an employee once the incorrect behavior has stopped. c. Punishment is the application of unpleasant consequences following undesirable behavior. The use of punishment in organizations is controversial because it fails to indicate the correct behavior. Almost all managers find the need to impose punishment occasionally, from reprimands to employee suspensions or firings. d. Extinction is the withdrawal of a positive reward following undesirable behavior. Extinction involves withholding pay raises, praise, and other positive outcomes with the idea in mind that behaviors that are not positively reinforced will be less likely to occur in the future. Discussion Question #2: One small company recognizes an employee of the month, who is given a parking spot next to the president’s space near the front door. What theories would explain the positive motivation associated with this policy? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ B. SOCIAL LEARNING THEORY 1. Social learning theory is related to the reinforcement perspective, but it proposes that an individual’s motivation can result not just from direct experience of rewards and punishments, but also from the person’s thoughts and beliefs and his or her observations of other people’s behavior. 2. Vicarious learning, or observational learning, occurs when an individual sees others perform certain behaviors and get rewarded for them. This can be made used by managers to enhance employees’ motivation to perform desired behaviors by ensuring that the employee (i) has a chance to observe the desirable behaviors, (ii) accurately perceives the behavior, (iii) remembers the behaviors, (iv) has the necessary to skills to perform the behaviors, and (v) sees that the behaviors are rewarded by the organization. V. JOB DESIGN FOR MOTIVATION A job in an organization is a unit of work that a single employee is responsible for performing. Jobs are important because performance of their components may provide rewards that meet employees’ needs. Job design is the application of motivational theories to the structure of work for improving productivity and satisfaction. The following are approaches to job design. A. Job Enrichment 1. Job rotation systematically moves employees from one job to another, increasing the number of different tasks an employee performs. Job enlargement combines a series of tasks into one new, broader job. The primary trend is toward job enrichment, which incorporates high-level motivators into the work including job responsibility, recognition, and opportunities for growth, learning, and achievement. Employees have control over the resources necessary for the job, make decisions on how to do the work, experience personal growth, and set their own work pace. Job enrichment increases employees’ motivation and job satisfaction. B. Job Characteristics Model Exhibit 12.8 1. Hackman and Oldham’s research concerns work redesign, defined as altering jobs to increase both the quality of employees’ work experience and their productivity. The job characteristics model comprises core job dimensions, critical psychological states, and employee growth-need strength. a. Core Job Dimensions: The more a job contains these core characteristics, the higher the motivation, quality of performance, and satisfaction will be. A job’s motivational potential includes: • Skill variety. The number of diverse activities that compose a job and the number of skills used to perform it. • Task identity. The degree to which an employee performs a total job with a recognizable beginning and ending. • Task significance. The degree to which a job is perceived as important and having an impact on the company or customers. • Autonomy. The degree to which the worker has freedom, discretion, and self-determination in planning and carrying out tasks. • Feedback. The extent to which doing the job provides information to the employee about his/her performance. b. Critical Psychological States: This model states that core job dimensions are more rewarding when individuals experience three psychological states in response to job design. • Meaningfulness of work. The work itself is satisfying and provides intrinsic rewards. • Experienced responsibility. Autonomy influences the experience of responsibility. • Knowledge of actual results. Feedback provides information about results. Employees know how they are performing and can change work performance to increase desired outcomes. c. Personal And Work Outcomes: The impact of the five job characteristics on the psychological states of experienced meaningfulness, responsibility, and knowledge of actual results leads to the personal and work outcomes of high work motivation, high work performance, high satisfaction, and low absenteeism and turnover. d. Employee Growth Need Strength: Employee growth-need strength is the final component of the model. It means that people have different needs for growth and development. If a person wants to satisfy low-level needs, such as safety and belongingness, the job characteristics model has less effect. When a person has a high need for growth and development and the desire for personal challenge, achievement, and challenging work, the model is effective. • There are cross-cultural differences in the impact of job characteristics. Intrinsic factors such as autonomy and challenge are motivators in the U.S; however, they may contribute little to motivation and satisfaction in a country such as Nigeria, and might even lead to demotivation. The link between intrinsic characteristics and job motivation and satisfaction is weaker in economically disadvantaged countries with poor governmental social welfare systems and high power distance. VI. . INNOVATIVE IDEAS FOR MOTIVATING Exhibit 12.9 Organizations are increasingly using various types of incentive compensation as a way to motivate employees to higher levels of performance. Variable compensation and forms of “at risk” pay are key motivational tools and are becoming more common than fixed salaries at many companies. The programs can be effective if they are used appropriately and combined with motivational ideas that also provide intrinsic rewards and meet higher level needs. Many organizations give employees a voice in how pay and incentive systems are designed, which increases motivation by increasing employees’ involvement. Motivational programs that have the greatest impact typically involve much more than money. Two recent motivational trends are empowering employees and framing work to have greater meaning. A. Building a Thriving Workforce 1. A thriving workforce is one in which people are just not satisfied and productive but also engaged in creating the future—their own and that of the organization. Two components of thriving workforce are vitality and learning. Managers can promote thriving workforce by applying many of the motivational techniques, such as meeting higher-level needs, helping people get intrinsic rewards from their work, and providing regular feedback on performance and progress. Two specific approaches that can be used to build thriving workforce are empowering employees and creating an environment that promotes employee engagement. B. Empowering People to Meet Higher Needs 1. Empowerment is power sharing, the delegation of power or authority to subordinates in an organization. Increasing employee power heightens motivation for task accomplishment because people improve their own effectiveness, choosing how to do a task using their creativity. Empowering employees involves giving them four elements that enable them to act more freely to accomplish their jobs: information, knowledge, power, and rewards. a. Employees receive information about company performance. In companies where employees are fully empowered, all employees have access to all financial and operational information. b. Employees have knowledge and skills to contribute to company goals. Companies use training programs to help employees acquire the knowledge and skills they need to contribute to organizational performance. c. Employees have the power to make substantive decisions. Empowered workers have the authority to directly influence work procedures and organizational performance, often through quality circles or self-directed work teams. d. Employees are rewarded based on company performance. Organizations that empower workers often reward them based on the results shown in the company’s bottom line. 2. Empowerment can mean encouraging workers’ ideas while managers retain authority, or it can mean employees have the freedom and power to make decisions and exercise initiative. Current methods fall along a continuum from no discretion for workers to full empowerment where workers participate in formulating strategy. Discussion Question #9: How does empowerment provide the two conditions (vitality and learning) for a thriving workforce that are described in the chapter? Do you see any ways in which a manager’s empowerment efforts might contribute to demotivation among employees? Discuss. NOTES__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ C. Giving meaning to Work through Engagement Exhibit 12.10 1. Employee engagement means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization. 2. Smart managers see that having engaged, motivated employees has less to do with extrinsic rewards than with fostering an environment in which people can flourish. The behavior of managers is what makes the biggest difference in employee motivation and whether employees flourish at work. The three elements to creating employee engagement are: a sense of meaningfulness, a sense of connection, and a sense of growth. The manager’s role is to organize the workplace in such a way to create these feelings in order for employee engagement to grow, leading to high motivation and high organizational performance. a. People feel they are working toward something of importance. People experience a sense of meaningfulness when they have a chance to accomplish something that provides real value to the world. b. People feel connected to the company, to one another, and to their managers. c. People have the chance to learn, grow, and advance. To be fully engaged, people need not only to feel that they are competent to handle what is asked of them, but also that they have the chance to learn and expand their potential. Discussion Question #10: Gallup’s 2011 survey shows that highly educated workers are significantly less likely to be engaged than are those with a high school diploma or less. What might be some reasons for this lower level of engagement among less-educated employees? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Instructor Manual for Understanding Management Dorothy Marcic, Richard L. Daft 9781285421230, 9781305313347
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