Bovee/Thill, Business in Action 8/e, Global Edition Instructor’s Manual

Chapter 10
EMPLOYEE MOTIVATION

Chapter Overview

This chapter covers the important topic of employee motivation. It first defines
motivation and introduces several classical motivation theories. It then identifies and
discusses more current motivation theories and models such as expectancy theory,
goal-setting theory, job characteristics model, and reinforcement theory. Lastly, it
lists five managerial strategies that are crucial to maintaining a motivated workforce.

Chapter Outline

I. What Motivates Employees to Peak Performance?

A. Motivation is the combination of forces that drive individuals to take certain
actions and avoid others
B. Workplace motivation can be assessed by measuring four indicators:
1. Engagement – an employee’s rational and emotional commitment to his
or her work
2. Satisfaction – how happy employees are with work and how they are
treated
3. Commitment – the degree to which employees support the company and
its mission
4. Rootedness – the likelihood that employees will stay or leave
C. Motivation stems from four fundamental needs:
1. The drive to acquire both physical and psychological goods
2. The drive to bond with others and feel a part of something larger
3. The drive to comprehend – learning, growing, meeting challenges
4. The drive to defend people, ideas, and organizations they hold dear
D. Classical theories of motivation include:
1. Taylor’s scientific management – an approach designed to improve
employees’ efficiency by scientifically studying their work
2. The Hawthorne studies – research that suggested that understanding an
employee’s performance is affected by his/her emotional and cultural
makeup both on and off the job
a. The studies also brought to light the Hawthorne effect, wherein the
behavior of workers changes when they are being observed
3. Maslow’s Hierarchy of Needs – the theory that behavior is determined
by needs, which are arranged in Maslow’s hierarchy, with basic needs
at the bottom and more advanced needs toward the top
4. Theory X and Theory Y – managers approach motivation in two
radically different ways:
a. Theory X managers assume that employees are irresponsible,
unambitious, and dislike work and managers must use force, control,
or threats to motivate them
b. Theory Y managers assume that employees like to work and can be
motivated by working for goals, and seek out responsibility

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5. Herzberg’s two-factor theory – a model that divides motivational

forces into satisfiers (motivators) and dissatisfiers (hygiene factors)
6. McClelland’s three-needs theory – a model of motivation that
highlights individuals’ needs for power, affiliation, and achievement

II. Explaining Employee Choices

A. More contemporary theories of motivation attempt to explain the choices that
employees make
1. Expectancy theory – the theory that the effort employees put into their
work depends on expectations about their own ability to perform,
expectations about likely rewards, and the attractiveness of those rewards
2. Equity theory – the theory that employees base their level of satisfaction
on the ratio of their inputs to the job and the outputs or rewards they
receive from it

III. Motivating with Challenging Goals

A. Goal-setting theory is a motivational theory suggesting that setting goals
can be an effective way to motivate employees
B. For goals to function as effective motivators, they need to meet several
criteria:
1. Goals must be specific
2. Goals must be difficult enough to inspire performance
3. Clear “ownership” of goals
4. Timely feedback
5. Individuals’ belief in their ability to meet goals
6. Cultural support for individual achievement and independence
C. Management by objectives (MBO) is a motivational approach in which
managers and employees work together to structure personal goals and
objectives for every individual, department, and project to mesh with the
organization’s goals
1. MBO involves four steps: setting goals, planning action, implementing
the plans, and reviewing performance
D. Goal setting theory has several weaknesses, including:
1. Establishing overly narrow or overly challenging goals
2. Establishing inappropriate time horizons for goal completion
3. Unintentional performance limitations
4. Missed learning opportunities
5. Unhealthy internal competition
6. Decreased intrinsic motivation

IV. Redesigning Jobs to Stimulate Performance

A. The job characteristics model suggests that five core dimensions influence
three critical psychological states that determine motivation, performance,
and other outcomes
1. The core job dimensions include:
a. Skill variety – the range of skills needed to accomplish the job
b. Task identity – the degree to which an employee has responsibility
for completing an entire task
c. Task significance – the employee’s perception of the impact the job
has on others in the organization
d. Autonomy – the degree of independence in carrying out the tasks

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e. Feedback – timely information about the employee’s performance

2. These core job dimensions contribute to three critical psychological
states:
a. Experienced meaningfulness of the work
b. Experienced responsibility for results
c. Knowledge of actual results
B. Three popular approaches to improve job satisfaction include:
1. Job enrichment – making jobs more challenging and interesting by
expanding the range of skills required
2. Job enlargement – a horizontal expansion of the job in which more tasks
are added
3. Cross-training or job rotation – training workers to perform multiple
jobs and rotating them through these jobs in order to combat boredom or
burnout

V. Reinforcing High-Performance Behavior

A. Reinforcement theory is a motivational approach based on the idea that
managers can motivate employees by influencing their behaviors with
positive and negative reinforcement
B. Positive reinforcement offers pleasant consequences (rewards) for particular
actions and behaviors
1. This increases the likelihood that behaviors will be repeated
2. Many companies use incentives – monetary payments or other rewards
of value used for positive reinforcement
C. Negative reinforcement encourages the repetition of a behavior (desirable
or not) through the reduction, removal, or absence of an unpleasant outcome
1. This is different from punishment, which refers to actions used to
diminish the repetition of unwanted behaviors by adding unpleasant
outcomes

VI. Motivational Strategies

A. Provide timely and frequent feedback – feedback is the mechanism that
shapes employee behavior, and it provides information needed to assess
performance and make needed improvements
B. Personalize motivational efforts
1. Establish systems and policies that are fair and automatic
2. Be as flexible as possible while still being fair
3. Get to know employees as individuals in order to understand what is
important to them
C. Use gamification, the application of game principles, such as scorekeeping,
to various business processes
D. Adapt to circumstances and special needs
E. Address workplace negativity
F. Serve as an inspiring leader and avoid micromanaging – overseeing every
small detail of employees’ work and refusing to give them freedom or
autonomy
G. Self-motivation

Learning Catalytics is a "bring your own device" student engagement, assessment,

and classroom intelligence system. It allows instructors to engage students in class

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with real-time diagnostics. Students can use any modern, web-enabled device
(smartphone, tablet, or laptop) to access it. For more information on using Learning
Catalytics in your course, contact your Pearson Representative.

Classroom Activities

In-Class Activity: What Motivates You in the Workplace?

Goal: Ask students to name various factors that motivate them at work and vote on
such factors to determine which are considered the most important by the whole
class. Help students understand that different individuals are likely motivated by
different factors and that money is not necessarily the most important motivator for
many individuals.

Time Limit: 10 minutes

Details:
1. Ask the class to name various factors that motivate them the most in the
workplace. Possible factors may include: high salary, generous benefits, a
good relationship with co-workers, available training opportunities, a sense
of constant learning and growing on the job, etc. If not enough students have
work experience, ask them instead what motivates them the most in school.
2. On the blackboard, list the various factors that were named by students in
Step One. Have students vote on which factors are the most popular for the
class as a whole. Make it clear to students that each is allowed to vote once
only. Tally up the votes for each factor.
3. Let students know that recent research has indicated monetary factors such as
“high salary and benefits” are known as “dis-satisfiers,” which means
workers won’t be happy if they are not paid well. However, “money” is not a
“satisfier,” (i.e., a motivating factor that ultimately influences an employee’s
decision to stay with a firm). Research has indicated that the top “satisfiers”
include good relationships with co-workers, available training opportunities,
and a sense of constant learning and growing on the job.

End-of-Chapter

Behind the Scenes

Motivating Individuals by Personalizing Careers at Deloitte

Critical Thinking Questions

10-1 How might Deloitte’s lattice approach help motivate employees and
improve job satisfaction and performance?
Deloitte’s lattice approach might help motivate employees by allowing
employees more flexibility at work, which is not possible with the ladder
approach. With the lattice approach, employees get to define where they’ve

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been, where they are, and where they would like to go next career-wise based
on the four variables, namely pace, workload, location/schedule and role. It is a
more holistic approach that focuses on the individual’s own career goals and
offers employees the options to keep their work and personal life in sync. (LO:
10.6; AACSB: Reflective thinking)

10-2 How can managers determine whether a Deloitte employee is working at a

decelerated pace in the career customization model or simply isn’t
working very hard?
Managers can determine whether a Deloitte employee is working properly by
looking at whether an employee has accomplished his/her work-related goals
and reached a certain performance standard at work. In particular, managers
can use specific goals and performance criteria that are pre-determined and
mutually agreed-upon with the employee, as well as proper performance
measurement tools. (LO: 10.3; AACSB: Reflective thinking)

10-3 What are the potential disadvantages, from the company’s point of view,
of giving employees this much flexibility?
From the company’s point of view, a main potential disadvantage of giving
employees this much flexibility is putting the employee’s personal goals above
the company’s strategic and operational goals, and potentially hurting the
company’s profitability in the process. Another potential disadvantage is
alienating employees who are more committed to the ladder model—they may
feel less motivated. (LO: 10.6; AACSB: Reflective thinking)

Learn More Online

Visit the Corporate Lattice/Mass Career Customization website at
www.latticemcc.com, which offers more information about the Deloitte lattice
model. Read “Mass Career Customization at a Glance” and then try the “Interactive
Career Exercise,” where you can chart your own career (real or imaginary). You can
also download two minibooks, The Corporate Lattice and Mass Career
Customization. Does the lattice model sound appealing to you?
Students’ responses will vary depending on personal opinions. (LO: 10.6; AACSB:
Reflective thinking)

Test Your Knowledge

Questions for Review

10-4 What is motivation?
Motivation is the combination of forces that moves individuals to take certain
actions and avoid others in pursuit of individual objectives. Motivation is a
complex psychological subject, and researchers have proposed a variety of
theories to help explain why humans are driven to behave they do. (LO: 10.1)

10-5 What is scientific management?

Scientific management is a management approach designed to improve
employees’ efficiency by scientifically studying their work. (LO: 10.2)

10-6 What is management by objectives?

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Management by objectives (MBO) is a motivational approach in which

managers and employees work together to structure personal goals and
objectives for every individual, department, and project to mesh with the
organizational goals. (LO: 10.3)

10-7 Research suggests that motivation stems from four fundamental drives.
Describe them.
The four fundamental drives influencing motivation are – the drive to acquire
both physical and psychological goods such as prestige; the drive to bond and
create friendships; the drive to comprehend and, therefore, learn; and finally,
the drive to defend. (LO: 10.4)

10-8 Explain the Hawthorne effect.

The Hawthorne Effect is a supposed effect of organizational research, in which
employees change their behavior because they are being studied and given
special treatment; the validity of the effect is uncertain, and the Hawthorne
studies from which this stems were richer and more influential than this simple
outcome would suggest. (LO: 10.5)

Questions for Analysis

10-9 Compare any two of the classical motivation theories. Are there any
similarities?
Students could choose to compare any of the classical theories of motivation
described in this text. Any similarities that they identify will likely be around
common themes included in each of the models. (LO: 10.2; AACSB:
Reflective thinking)

10-10 How might a deadline that is too easy to meet cause someone to work
more slowly than he or she might otherwise work?
According to the goal-setting theory, carefully designed goals can motivate
employees to higher performance. On the other hand, goals that are too easy
to achieve (e.g., a deadline that is too easy to meet) will not motivate an
employee to a higher performance. In fact, it may cause the employee to
perform worse (e.g., work more slowly) than she might otherwise. (LO: 10.3;
AACSB: Analytical thinking)

10-11 What effect will job enhancement likely have on someone with low
growth needs? Why?
Visit MyBizLab for suggested answers. (LO: 10.4; AACSB: Analytical
thinking)

10-12 Why do managers often find it difficult to motivate employees who

remain after downsizing? Explain your answer in terms of one or more
motivational theories discussed in the chapter.
Responses will vary based upon which motivational theories students select.
But the general point that will likely be raised is that many of the employees
left behind might feel a sense of inequity in being asked to shoulder the work
of those who left, especially without getting paid more for the extra effort.
(LO: 10.2; AACSB: Analytical thinking)

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10-13 Ethical Considerations. Motivational strategies that reward employees for

meeting specific performance targets can encourage them to work hard—
sometimes too hard. Overwork can contribute to mental and physical
health problems as well as interfere with other aspects of employees’
lives. As a manager, how do you determine how much work is too much
for your employees?
Students’ answers will vary, but the following are points of consideration.
According to goal-setting theory, setting goals that are too challenging may
demotivate an employee, and lead to risky behavior, belligerent negotiating
tactics, and ethical lapses as employees cut corners to reach targets. A
manager may want to conduct a job analysis to determine the appropriate
amount of work for an employee. (LO: 10.3; AACSB: Ethical understanding
and reasoning)

Questions for Application

10-14 You manage the customer service department for an online clothing
retailer. Customers tend to call or email with the same types of
complaints and problems, day after day, and your employees are getting
bored and listless. Some are starting to miss more days of work than
usual, and several have quit recently. A few customers have called you
directly to complain about poor treatment from your staff. Use the job
characteristics model to identify several ways you could improve
motivation, job satisfaction, and performance.
Visit MyBizLab for suggested answers. (LO: 10.4; AACSB: Application of
knowledge)

10-15 How do you motivate yourself when faced with school assignments or
projects that are difficult or tedious? Do you ever try to relate these tasks
to your overall career goals? Are you more motivated by doing your
personal best or by outperforming other students?
Visit MyBizLab for suggested answers. (LO: 10.1; AACSB: Application of
knowledge)

10-16 Imagine yourself in one of the jobs you would like to land after
graduation. Thinking about the importance of personalizing motivational
tactics whenever possible, identify several steps your manager could take
to make sure you stay motivated. Would these steps be fair to other
employees as well?
Students’ answers will vary depending on the jobs chosen. (LO: 10.6;
AACSB: Application of knowledge)

10-17 Concept Integration. Chapter 7 discussed several styles of leadership,

including autocratic, democratic, and laissez-faire. How do each of these
styles relate to Theory X and Theory Y assumptions about workers?
Theory X assumes that employees are irresponsible and unambitious, and
dislike work, and that managers must use force, control, or threats to motivate
them. Theory X is more consistent with the autocratic style of leadership,
which includes leaders who do not involve others in decision making.

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Theory Y assumes that employees enjoy meaningful work, are naturally

committed to certain goals, are capable of creativity, and seek out
responsibility under the right conditions. Theory Y is more consistent with
democratic leaders, who delegate authority and involve employees in decision
making, as well as with laissez-faire leaders, who leave most instances of
decision making up to employees, particularly concerning day-to-day matters.
(LO: 10.1; AACSB: Application of knowledge)

Expand Your Knowledge

Discovering Career Opportunities

Working in a job role where you feel valued and motivated can make a huge
difference in terms of satisfaction and productivity. What motivates one person
may be very different from what motivates another. Make a list outlining the
things you think motivates you at work. Explain each item on the list and then
try to look for a job advertisement that meets as many of your motivators as
possible. Would you be interested in this role? Why? Use examples.
Answers to the question are highly subjective given the nature of the topic and,
therefore, will vary for each student. Some common motivating factors may be
flexibility, money, or qualifications and training. (LO: 10.1; AACSB: Reflective
thinking)

Improving Your Tech Insights: Blogging and Microblogging

Blogging and microblogging (of which Twitter is the best-known example) have
revolutionized business communication in recent years. Far more than just another
communication medium, blogging and microblogging help change the relationship
between companies and their stakeholders by transforming communication from the
formal mindset of “we talk, you listen” to an informal and interactive conversational
mindset.

Identify a company in which one or more managers are regular bloggers or Twitter
users. In a brief email message to your instructor, explain how the company uses
blogging to build relationships with customers and potential customers,
employees and potential employees, and other stakeholder groups.
Students’ email messages will vary depending on the choice of company. (LO: 10.1;
AACSB: Information technology)

Practice Your Skills

Sharpening Your Communication Skills

For this task, you need to think carefully about what motivates you to attend
your college or university and complete your course. In a blog post, explain
what motivates you and how your motivations link to some of the theories
discussed in this chapter. Use examples to illustrate your ideas.
Responses to this task are highly subjective given the nature of the topic and,
therefore, will vary for each student. However, each blog post should include at least
one link to a theory or model that they student can relate to. (LO: 10.2-10.5; AACSB:
Written and oral communication)

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Building Your Team Skills

With your teammates, explore the careers sections of the websites of six
companies in different industries. Look for descriptions of the work
environment, incentive plans, career paths, and other information about how
the company develops, motivates, and supports its employees. After you’ve
compiled notes about each company, vote on the most appealing company to
work for. Next, review the notes for this company and identify all the theories of
motivation described in this chapter that the company appears to be using,
based on the information on its website.
Students’ answers will vary depending on the companies they have researched. (LO:
10.1-10.6; AACSB: Analytical thinking)

Developing Your Research Skills

Various periodicals and websites feature “best companies to work for” lists. Locate
one of these lists and find a company that does a great job of attracting and
motivating high performers. Learn as much as you can about the company’s
management philosophies. Which of the motivation theories does the company
appear to be using? Summarize your findings in a brief email message to your
instructor.
Students’ emails will vary depending on the specific company chosen. (LO: 10.1-
10.6; AACSB: Analytical thinking)

MyBizLab Assisted-Graded Assignments

10-18 If a manager does nothing in response to a particular type of employee
behavior that the company wants to encourage, is this an instance of
reinforcement? Why or why not?
Visit MyBizLab for suggested answers. (LO: 10.2; AACSB: Information
technology)

10-19 Do you have an ethical responsibility to motivate yourself at work, no

matter the circumstances? Why or why not
Visit MyBizLab for suggested answers. (LO: 10.1; AACSB: Ethical
understanding and reasoning)

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CHECKPOINTS

LEARNING OBJECTIVE 10.1: Define motivation, and identify the classical

motivation theories.

Critical thinking:
(1) How could a manager tap into the drive to defend as a way to help rally
employees?
The manager can use the drive to defend to motivate employees to fight for what is
right and rally employees around the company’s mission or goals.

(2) Could Herzberg’s hygiene factors help explain the significant problem of
employee theft and embezzlement? Why or why not?
Yes, because hygiene factors are mostly extrinsic and include working conditions and
company policies, etc. In this case, the company may not have a company policy that
is strong enough to deter behaviors such as theft and embezzlement.

It’s your business:

(1) If you are a typical college student who doesn’t have much financial security at
the moment but you’re simultaneously trying to fulfill higher-order needs such as
social interaction and self-actualization through education, would it make more
sense, according to Maslow, to drop out of college and work seven days a week so
you could help ensure that your physiological and safety needs are met?
Students’ responses will vary depending on personal opinions.

(2) Do you think today’s college students more closely match the descriptions of
Theory X employees or Theory Y employees? What evidence can you provide to
support your conclusion?
Students’ responses will vary depending on personal opinions.

LEARNING OBJECTIVE 10.2: Explain why many consider expectancy theory

to be the best current explanation of employee motivation.

Critical thinking:
(1) What steps could managers take to alleviate the self-doubt employees often feel
when they join a company or move into a new position?
A manager can ensure that the employees have the skills they need to perform the
jobs, that tasks are clearly defined, and that company policies and processes are
functional. They can also provide encouragement and role models for the employees.

(2) If you were a human resources manager in a large corporation, how might you
respond to employees who complain that the CEO makes two or three hundred times
more than they make?
Students’ responses will vary depending on personal opinions.

It’s your business:

(1) Have you ever given less than your best effort in a college course because you
didn’t believe you were capable of excelling in the course?
Students’ responses will vary depending on personal experiences.

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(2) Was the outcome satisfying? Would you handle a similar situation the same way
in the future?
Students’ responses will vary depending on personal experiences or opinions.

LEARNING OBJECTIVE 10.3: Identify the strengths and weaknesses of goal-

setting theory.

Critical thinking:
(1) Why is collaboration between employee and manager essential to goal setting in
MBO?
Jointly setting clear and challenging but achievable goals can encourage employees
to reach higher levels of performance.

(2) How can overly narrow goals and overly challenging goals contribute to ethical
lapses?
Overly narrow goals and overly challenging goals will encourage employees to either
miss vital aspects of the bigger picture or lead to risky behaviors, both of which
contribute to ethical lapses.

It’s your business:

(1) Do goals motivate you? Why or why not?
Students’ responses will vary depending on personal opinions.

(2) Does the motivation depend on whether the goals are your own or imposed by
someone else?
Students’ responses will vary depending on personal opinions.

LEARNING OBJECTIVE 10.4: Describe the job characteristics model, and

explain how it helps predict motivation and performance.

Critical thinking:
(1) Can the job characteristics model be used to motivate employees in such positions
as janitors or security guards in a factory? How?
Yes, employees such as janitors or security guards can be motivated in this case by
emphasizing the important job characteristics such as task significance, autonomy,
and feedback.

(2) Is modifying the five core job dimensions likely to motivate employees who have
low growth needs? Why or why not?
Probably not, since employees with low growth needs have little intrinsic need to
grow and can be among the most difficult to motivate, no matter what steps managers
take.

It’s your business:

(1) Has the requirement of working in teams ever lowered your motivation or
satisfaction on a school project? If so, how does the job characteristics model explain
this?
Students’ responses will vary depending on personal experiences or opinions.

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(2) How does taking elective courses improve your experience of meaningfulness in
your college “work?”
Students’ responses will vary depending on personal opinions.

LEARNING OBJECTIVE 10.5: Define reinforcement theory, and differentiate

between positive and negative reinforcement.

Critical thinking:
(1) Is demoting an employee for failing to finish a project an attempt at negative
reinforcement or punishment? Why?
It is punishment. While punishment decreases the likelihood that a particular
behavior will be repeated, negative reinforcement increases the likelihood that a
behavior will be repeated because an unpleasant outcome is avoided when that
behavior is exhibited.

(2) In what ways is reinforcement theory similar to goal-setting theory?

Students’ answers may vary depending on personal opinions, but a point to consider
is that both have the intention of motivating employees to a higher performance
either through setting goals or through behavior modification.

It’s your business:

(1) How does your instructor in this course use positive reinforcement to motivate
students to higher levels of performance?
Students’ responses will vary depending on personal experiences.

(2) If you study diligently to avoid being embarrassed when a professor calls on you
in class, is this positive or negative reinforcement in action? Why?
It should be negative reinforcement in action since a positive behavior is repeated
because an unpleasant outcome is avoided.

LEARNING OBJECTIVE 10.6: List five managerial strategies that are vital to
maintaining a motivated workforce.

Critical thinking:
(1) Referring to the job characteristics model, how does micromanaging destroy
motivation?
The job characteristics model states that “autonomy” is one of the five key job
characteristics that help motivate an employee. Micromanaging refuses to give an
employee the freedom or autonomy to perform her job and therefore destroys
motivation.

(2) Annual performance reviews are common in many companies; how might this
tactic fail to motivate employees?
It may fail to motivate employees because giving feedback once a year is not timely
or frequent enough.

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It’s your business:

(1) If you are motivated more by the love of learning than the promised rewards of a
grade, how can you motivate yourself when grades play a key role in your success as
others perceive it?
Students’ responses will vary depending on personal opinions.

(2) At work or in academic situations, how do you prevent someone else’s negative
attitude and behavior from dragging down your own performance?
Students’ responses will vary depending on personal experiences.

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