Business Finance
MGMT2041 SUNYBuffalo Motivational Factors For The Employees

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Hi, I uploaded 2 files for you. Please read first chapter 10 before your response. You need to response of three discussion and also, I showed the example discussion and response for you. Please let me know if you have any questions.

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Chapter 10: Managing Employee Motivation and Performance: Reading Chapter Introduction Learning Outcomes After studying this chapter, you should be able to: 1. Characterize the nature of motivation, including its importance and basic historical perspectives. 2. Identify and describe the major content perspectives on motivation. 3. Identify and describe the major process perspectives on motivation. 4. Describe reinforcement perspectives on motivation. 5. Identify and describe popular motivational strategies. 6. Describe the role of organizational reward systems in motivation. Management in Action Motivating the Whole Person “If I put our mission in simple terms, it would be, No. 1, to change the way the world eats and, No. 2, to create a workplace based on love and respect.” —Whole Foods co-CEO Walter Robb Whole Foods is often recognized as a great place to work. Employees such as this one are motivated by Whole Foods’ competitive pay and benefits, although some criticism has been directed at the firm’s healthcare plan. Jim West/Alamy Whole Foods Market (WFM) started out in 1980 as 1 store with 19 employees in Austin, Texas. Today, with 350 stores and 54,000 employees in North America and Great Britain, it’s the leading natural and organic foods supermarket (and ninth-largest food and drug chain in the United States). Along the way, it’s also gained a considerable reputation as a socially responsible company and a good place to work. WFM’s motto is “Whole Foods, Whole People, Whole Planet,” and its guiding “core value,” according to co-CEO Walter Robb, is “customers first, then team members, balanced with what’s good for other stakeholders…. If I put our mission in simple terms,” Robb continues, “it would be, No. 1, to change the way the world eats and, No. 2, to create a workplace based on love and respect.” WFM made Fortune magazine’s very first list of the “100 Best Companies to Work For” in 1998 and is one of 13 organizations to have made it every year since. Citations have acknowledged the company’s growth (which means more jobs), salary-cap limits (the top earner gets no more than 19 times the average full-time salary), and generous health plan. The structure of the company’s current health-care program, which revolves around high deductibles and so-called health savings accounts (HSAs), was first proposed in 2003. Under such a plan, an employee (a “team member,” in WFM parlance) pays a deductible before his or her expenses are covered. Meanwhile, the employer funds a special account (an HSA) for each employee, who can spend the money to cover health-related expenditures. The previous WFM plan had covered 100 percent of all expenses, and when some employees complained about the proposed change, the company decided to put it to a vote. Nearly 90 percent of the workforce went to the polls, with 77 percent voting for the new plan. In 2006, employees voted to retain the plan, which now carries a deductible of around $1,300; HSAs may go as high as $1,800 (and accrue for future use). The company pays 100 percent of the premiums for eligible employees (about 89 percent of the workforce). High-deductible plans save money for the employer (the higher the deductible, the lower the premium), and more important—at least according to founder and co-CEO John Mackey—they also make employees more responsible consumers. When the first $1,300 of their medical expenses comes out of their own pockets (or their own HSAs), he argues, people “start asking how much things cost. Or they get a bill and say, ‘Wow, that’s expensive.’ They begin to ask questions. They may not want to go to the emergency room if they wake up with a hangnail in the middle of the night. They may schedule an appointment now.” Mackey believes that “the individual is the best judge of what’s right for the individual,” and he’s so convinced of the value of plans like the one offered by his company that in August 2009 he wrote an op-ed in the Wall Street Journal in which he recommended “The Whole Foods Alternative to ObamaCare.” Health care, he wrote, “is a service that we all need, but just like food and shelter, it is best provided through voluntary and mutually beneficial market exchanges.” Going a step further, Mackey argued against an “intrinsic right to health care,” and on this point he stirred up a reaction among his customers that ran the gamut from surprise to boycotting. “I’m boycotting [Whole Foods],” said one customer who’d been shopping WFM several times a week, “because all Americans need health care. While Mackey is worried about health-care and stimulus spending, he doesn’t seem too worried about expensive wars and tax breaks for the wealthy and big businesses such as his own that contribute to the [national] deficit.” Consumer advocates and HR specialists also attacked Mackey’s proposals and policies. “High-deductible plans for low-wage workers,” says Judy Dugan, research director of Consumer Watchdog, “are the next best thing to being uninsured: The up-front costs are so high that workers have to weigh getting health care against paying the rent (to the detriment of their health).” A former WFM executive points out, for example, that the firm’s plan entails “astronomical deductibles and co-pays.” As for the HSA, it has to cover all co-pays and all expenses not covered by the plan (such as mental health care). “There’s way more going on here than ‘health insurance,’” concludes the anonymous former exec. “… [The] system has massive hidden charges that routinely threaten and undermine the financial stability and, ultimately, [the] well-being of the employees.” Responding to the backlash against Mackey’s WSJ piece, the WFM Customer Communications Team hastened to point out that “our team members vote on our plan … to make sure they continue to have a voice in our benefits.” Mackey’s intent, said the press release, “was to express his personal opinions—not those of Whole Foods Market team members or our company as a whole.” The release also offered an apology for having “offended some of our customers,” but for many onetime WFM loyalists, the apology was too little too late. “I will no longer be shopping at Whole Foods,” announced one New Jersey shopper, explaining that “a CEO should take care that if he speaks about politics, his beliefs reflect at least the majority of his clients.” In fact, WFM had become, in the words of one reporter, “the granola set’s chain of choice,” and much of its customer base consists of people whose opinions on such issues as health-care reform are quite different from Mackey’s. His WSJ article, declared a contributor to the company’s online forum, was “an absolute slap in the face to the millions of progressive-minded consumers that have made [Whole Foods] what it is today.” The potential repercussions weren’t lost on the WFM board. In late August, following the appearance of the WSJ op-ed piece, shareholder activists called for Mackey’s removal. The CEO, they charged, had “attempted to capitalize on the brand reputation of Whole Foods to champion his personal political views but has instead deeply offended a key segment of Whole Foods consumer base.” The company’s stock had also slipped 30 percent over the previous five-year period. The board eventually compromised by convincing Mackey to step down as chairman of the board. Obviously, managers can’t always motivate people to perform in ways that are in the best interests of the organization. But managers are responsible for encouraging high performance from their employees, so it’s always worthwhile trying to figure out what makes employees more (or less) productive. Whether it’s pay, benefits, or job security, the issue almost invariably comes down to motivation, which is the subject of this chapter. We first examine the nature of employee motivation and then explore the major perspectives on motivation. Newly emerging approaches are then discussed. We conclude with a description of rewards and their role in motivation. The Nature of Motivation Motivation is the set of forces that cause people to behave in certain ways. On any given day, an employee may choose to work as hard as possible at a job, work just hard enough to avoid a reprimand, or do as little as possible. The goal for the manager is to maximize the likelihood of the first behavior and minimize the likelihood of the last. This goal becomes all the more important when we understand how important motivation is in the workplace. Individual performance is generally determined by three things: motivation (the desire to do the job), ability (the capability to do the job), and the work environment (the resources needed to do the job). If an employee lacks ability, the manager can provide training or replace the worker. If there is a resource problem, the manager can correct it. But, if motivation is the problem, the task for the manager is more challenging. Individual behavior is a complex phenomenon, and the manager may be hard pressed to figure out the precise nature of the problem and how to solve it. Thus, motivation is important because of its significance as a determinant of performance and because of its intangible character. The motivation framework in Figure 10.1 is a good starting point for understanding how motivated behavior occurs. The motivation process begins with a need deficiency. Figure 10.1The Motivation Framework The motivation process progresses through a series of discrete steps. Content, process, and reinforcement perspectives on motivation address different parts of this process. © Cengage Learning For example, when a worker feels that she is underpaid, she experiences a need for more income. In response, the worker searches for ways to satisfy the need, such as working harder to try to earn a raise or seeking a new job. Next, she chooses an option to pursue. After carrying out the chosen option— working harder and putting in more hours for a reasonable period of time, for example—she then evaluates her success. If her hard work resulted in a pay raise, she probably feels good about things and will continue to work hard. But, if no raise has been provided, she is likely to try another option. Content Perspectives on Motivation Content perspectives on motivation deal with the first part of the motivation process—needs and need deficiencies. More specifically, content perspectives address the question “What factors in the workplace motivate people?” Labor leaders often argue that workers can be motivated by more pay, shorter working hours, and improved working conditions. Meanwhile, some experts suggest that motivation can be more effectively enhanced by providing employees with more autonomy and greater responsibility. Both of these views represent content views of motivation. The former asserts that motivation is a function of pay, working hours, and working conditions; the latter suggests that autonomy and responsibility are the causes of motivation. Two widely known content perspectives on motivation are the needs hierarchy and the two-factor theory. 10-2aThe Needs Hierarchy Approach The needs hierarchy approach has been advanced by many theorists. Needs hierarchies assume that people have different needs that can be arranged in a hierarchy of importance. The best known is Maslow’s hierarchy of needs. Abraham Maslow, a human relationist, argued that people are motivated to satisfy five need levels. Maslow’s hierarchy of needs is shown in Figure 10.2. At the bottom of the hierarchy are the physiological needs—things such as food, sex, and air, which represent basic issues of survival and biological function. In organizations, survival needs are generally satisfied by adequate wages and the work environment itself, which provides restrooms, adequate lighting, comfortable temperatures, and ventilation. Figure 10.2Maslow’s Hierarchy of Needs Maslow’s hierarchy suggests that human needs can be classified into five categories and that these categories can be arranged in a hierarchy of importance. A manager should understand that an employee may not be satisfied with only a salary and benefits; he or she may also need challenging job opportunities to experience self-growth and satisfaction. Source: Adapted from Abraham H. Maslow, “A Theory of Human Motivation,” Psychology Review, 1943, Vol. 50, pp. 370–396. Next are the security needs for a secure physical and emotional environment. Examples include the desire for housing and clothing and the need to be free from worry about money and job security. These needs can be satisfied in the workplace by assured job continuity (no layoffs), an effective grievance system (to protect against arbitrary supervisory actions), and an adequate insurance and retirement benefit package (for security against illness and provision of income in later life). Even today, however, depressed industries and economic decline can put people out of work and restore the primacy of security needs. Belongingness needs relate to social processes. They include the need for love and companionship and the need to be accepted by one’s peers. These needs are satisfied for most people by family and community relationships outside work and by friendships on the job. A manager can help satisfy these needs by allowing social interaction and by making employees feel like part of a team or work group. Esteem needs actually comprise two different sets of needs: the need for a positive self-image and self-respect and the need for recognition and respect from others. A manager can help address these needs by providing a variety of extrinsic symbols of accomplishment, such as job titles, nice offices, and similar rewards as appropriate. At a more intrinsic level, the manager can provide challenging job assignments and opportunities for the employee to feel a sense of accomplishment. At the top of the hierarchy are the self-actualization needs. These involve realizing one’s potential for continued growth and individual development. The self-actualization needs are perhaps the most difficult for a manager to address. In fact, it can be argued that these needs must be met entirely from within the individual. But a manager can help by promoting a culture wherein self-actualization is possible. For instance, a manager could give employees a chance to participate in making decisions about their work and the opportunity to learn new things. Maslow suggests that the five need categories constitute a hierarchy. An individual is motivated first and foremost to satisfy physiological needs. As long as they remain unsatisfied, the individual is motivated to fulfill only them. When satisfaction of physiological needs is achieved, they cease to act as primary motivational factors, and the individual moves “up” the hierarchy and becomes concerned with security needs. This process continues until the individual reaches the selfactualization level. Maslow’s concept of the needs hierarchy has a certain intuitive logic and has been accepted by many managers. But research has revealed certain shortcomings and defects in the theory. Some research has found that five levels of need are not always present and that the order of the levels is not always the same, as postulated by Maslow. In addition, people from different cultures are likely to have different need categories and hierarchies. 10-2bThe Two-Factor Theory Another popular content perspective is the two-factor theory of motivation. Frederick Herzberg developed his theory by interviewing a group of accountants and engineers. He asked them to recall occasions when they had been satisfied and motivated and occasions when they had been dissatisfied and unmotivated. Surprisingly, he found that different sets of factors were associated with satisfaction and with dissatisfaction—that is, a person might identify “low pay” as causing dissatisfaction but would not necessarily mention “high pay” as a cause of satisfaction. Instead, different factors—such as recognition or accomplishment—were cited as causing satisfaction and motivation. This finding led Herzberg to conclude that the traditional view of job satisfaction was incomplete. That view assumed that satisfaction and dissatisfaction are at opposite ends of a single continuum. People might be satisfied, dissatisfied, or somewhere in between. But Herzberg’s interviews had identified two different dimensions altogether: one ranging from satisfaction to no satisfaction and the other ranging from dissatisfaction to no dissatisfaction. This perspective, along with several examples of factors that affect each continuum, is shown in Figure 10.3. Note that the factors influencing the satisfaction continuum—called motivation factors—are related specifically to the work content. The factors presumed to cause dissatisfaction—called hygiene factors—are related to the work environment. Figure 10.3The Two-Factor Theory of Motivation The two-factor theory suggests that job satisfaction has two dimensions. A manager who tries to motivate an employee using only hygiene factors, such as pay and good working conditions, will likely not succeed. To motivate employees and produce a high level of satisfaction, managers must also offer factors such as responsibility and the opportunity for advancement (motivation factors). © Cengage Learning Based on these findings, Herzberg argued that there are two stages in the process of motivating employees. First, managers must ensure that the hygiene factors are not deficient. Pay and security must be appropriate, working conditions must be safe, technical supervision must be acceptable, and so on. By providing hygiene factors at an appropriate level, managers do not stimulate motivation but merely ensure that employees are “not dissatisfied.” Employees whom managers attempt to “satisfy” through hygiene factors alone will usually do just enough to get by. Thus, managers should proceed to stage 2— giving employees the opportunity to experience motivation factors such as achievement and recognition. The result is predicted to be a high level of satisfaction and motivation. Herzberg also went a step further than most other theorists and described exactly how to use the two-factor theory in the workplace. Specifically, he recommended job enrichment, as discussed in Chapter 6. He argued that jobs should be redesigned to provide higher levels of the motivation factors. Although widely accepted by many managers, Herzberg’s twofactor theory is not without its critics. One criticism is that the findings in Herzberg’s initial interviews are subject to different explanations. Another charge is that his sample was not representative of the general population and that subsequent research often failed to uphold the theory . At the present time, Herzberg’s theory is not held in high esteem by researchers in the field. The theory has had a major impact on managers, however, and has played a key role in increasing their awareness of motivation and its importance in the workplace. 10-2cIndividual Human Needs In addition to these theories, research has focused on specific individual human needs that are important in organizations. The three most important individual needs, sometimes referred to as manifest needs, are achievement, affiliation, and power. The need for achievement, the best known of the three, is the desire to accomplish a goal or task more effectively than in the past. People with a high need for achievement have a desire to assume personal responsibility, a tendency to set moderately difficult goals, a desire for specific and immediate feedback, and a preoccupation with their task. Davi ...
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Hi, I uploaded 2 files for you. Please read first chapter 10 before your response. You need to
response of three discussion and also, I showed the example discussion and response for you.
Please let me know if you have any questions.
This is the topic what we discussed for this week:
For this week's discussion board question will relate to Chapter 10 - "Managing Employee
Motivation and Performance." Before you begin answering this week's questions, I encourage
you to watch the video featuring the late Jim Valvano's March 3, 1993 speech at ESPN's very
first Espy Awards event. Valvano, widely acclaimed as a highly successful men's national
championship basketball coach and motivational speaker, died from bone cancer less than two
months after giving this speech.
"Jimmy's 1993 ESPY Speech" YouTube video courtesy of The V Foundation for Cancer
In answering this week's questions I want to ensure that you make reference to one or more of
the more of the motivational theories discussed in this chapter. If you don't, you will receive no
credit for this discussion question. I am not looking for just an experience, but an
"understanding" of that experience. With this in mind, here are the questions that I'm looking
forward to your insights:
1. What motivational strategies have you used when trying to increase the performance of
others? Were you successful?
2. What motivation strategies work best for YOU in order to for YOU to increase your
performance? Please cite at least one example.

Again, be sure to correlate your personal/professional experiences with the concepts discussed in
our textbook.

Example Discussion:
One of the motivational strategies that I like to use to try to increase the performance of others is
positive reinforcement. Positive reinforcement “…is a reward or a positive outcome after a
desired behavior is performed” (Pg. 304). When I was taking psychology back in high school, we
had numerous group projects. In order for me to keep my group motivated, I would tell them
how good they were doing while we worked. I noticed that if I told them that, it always improved
their mood and they started to enjoy what they were doing even more. This relates to Maslow’s
hierarchy of needs because esteem needs, ...

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