CHAPTER 10 MINI SIM ON HUMAN RESOURCE MANAGEMENT QUESTIONS

**McClelland's Three Needs**

Three-needs theory David McClelland's model of motivation that highlights the needs for power, affiliation , and achievement

Managing a Diverse Workforce **companies most successful managing & motivating employees great care understand diversity of their workforces & establish programs & policies that embrace diversity take full advantage of diversity's benefits**

Dimensions of workforce diversity •Age •Gender •Race and ethnicity •Religion •Ability •Diversity initiatives • Managing the Employment Life Cycle Hiring employees Terminating employees Replacing retiring employees one example Merck identifies 19 separate dimensions in its discussions of workforce diversity including **race, age, military experience, parental status, marital status, thinking style** - past few decades innovative companies changed way approach workforce diversity seeing it legal matter to **strategic opportunity** to connect w/customers take advantage of broadest possible pool of talent. **competitive advantage** diverse workforce broader spectrum viewpoints, ideas, helps companies understand & identify w/ diverse markets enables companies to benefit from wider range employee talents **more diverse teams tend to be more innovative long term than more-homogeneous teams** - **managerial challenges** - wide range skills, traditions, backgrounds, outlooks, attitudes toward work - **all of which affect employee behavior on the job** - **supervisors challenge** of communicating w/ diverse employees motivating them, ,fostering cooperation & harmony - **teams challenge** - working together closely, companies challenged to coexist peacefully w/ business partners & w/ community as a whole **most important diversity issues today - age, gender, race ethnicity, religion, ability**

Mentoring Moment: Theory X and Theory Y According to behavioral scientist Douglas McGregor, your management style is strongly influenced by your beliefs and assumptions about what motivates your subordinates. He classified these beliefs into two sets of assumptions that he labeled Theory X and Theory Y. Managers who subscribe to Theory X tend to believe that people are naturally lazy, lack ambition, and must be either punished or rewarded to be made productive. At the other end of the spectrum, managers who subscribe to Theory Y tend to believe that people are naturally energetic, growth-oriented, and self-motivated. Consider the managers' behaviors below. Do they represent Theory X or Theory Y managers? Drag the behaviors into the correct category. When you have categorized all the behaviors, click Submit. Theory Y Alexis has an open door policy and encourages employees to voice their concerns and make suggestions. Theory X George posts detailed work instructions at each station on the assembly line. Theory Y Jackson asks his staff to help interview a candidate that has applied for a job. Theory X Caitlin often looks over your shoulder at your computer screen to make sure you're working.

Great job! George and Caitlin would be characterized as Theory X managers, whereas Alexis and Jackson are Theory Y managers.

Learning Objective 1: Identify four contemporary staffing challenges, and explain the process of planning for a company's staffing needs.

SUMMARY: Four challenges that every HR department wrestles with are aligning the workforce with changing job requirements, fostering employee loyalty, monitoring workloads and avoiding employee burnout, and managing work-life balance. The process of planning for a company's staffing needs includes evaluating job requirements to develop job descriptions and job specifications and then forecasting the supply of and demand for various types of talent to ensure that the company has the right people in the right positions.

**Age Diversity**

US culture **youth** associated w/ **strength, energy possibilities, freedom** **age** associated w/ **declining powers - loss of respect, authority** **older workers offer broader experiences, the benefits of important business relationships nurtured over yrs. high degrees of "practical intelligence," the ability to solve complex, poorly defined problems** Cultures that value age & seniority longevity earns respect and increasing power & freedom i.e. **Asian societies oldest employees hold most powerful jobs, most impressive titles, greatest degrees of freedom and decision-making authority** if younger employee disagrees w/ senior executive discussion NEVER in public **saving face** avoiding public embarrassment STRONG- instead if senior person erroneous other employees find quiet private way to communicate whatever information they feel is necessary. **cultural values associated w/various life stages **multiple generation w/in a culture another dimension of diversity**

Decision Point: Selecting the Candidate The hiring deadline is fast approaching, and you need to act quickly to fill the position before the end of the fiscal year. What should you do? Select an option from the choices below and click Submit. You know which candidate you want to hire. Make the decision unilaterally and call the candidate with a job offer. Present your top two candidates to your boss and ask her which candidate she wants you to hire. Contact the others who interviewed the candidates and ask for their feedback

You chose to get feedback. This was the best choice. Although it's true that the sales representative would be reporting directly to you, you should take advantage of the feedback from the other people who interviewed the candidates -- the HR Manager, your boss, and the other sales representatives. After getting their input, make your decision and then take the time to check the candidate's references before making a job offer.

**job specification**

a statement describing the kind of person who would be best for a given job - including the skills, education, and previous experience that the job requires

**Diversity - Gender**

**Equal Pay Act of 1963 mandated equal pay for comparable work** **Civil Rights Act of 1964 made it illegal employers practice sexism or discrimination on basis of gender** **Equal Employment Opportunity Commission (EEOC) fields 25,000 to 30,000 complaints a yr. regarding gender discrimination. **significant issue - access to opportunities** **women hold half managerial positions ratio shrinks higher up** corps make up S&P 500 stock market index, **fewer 5% women CEOs** **glass ceiling** lack of opportunities to advance into top ranks ***gender pay gap** complicated issue difference men/women earn **women earn avg. 75-80% of what men do** not necessarily blatant case of discrimination - how much of 20-25% gap result of discriminatory practices employers or choices by individual employees or subtle social forces i.e. careers in engineering & computer science lucrative choices men - women choose teaching **men dominate 10 most lucrative careers - women dominate 10 least lucrative careers** **men earn more than women i.e. nursing & teaching women outnumber men** **avg. men work more hours per week, take less time off raise kids, more likely negotiate pay raises** **US Dept Labor analysis adjusting individual choices avg. pay gap 5-7%**

Decision Point: Selecting the Right Candidates to Interview Unfortunately, your efforts to identify a qualified internal candidate didn't pan out. You asked your current sales representatives if they could recommend someone, and you posted the job on Monster.com. Resumes soon began pouring in. You've narrowed your choices down to the six resumes shown. You really don't want to spend too much time interviewing, so you've decided to bring in your top three choices for an interview. Based on the six resumes shown, whom should you interview? (Choose three resumes.) Click on a resume icon to review it, then click on a check box to make your selection.

When asked which 3 of the 6 candidates you would choose to interview, you chose two strong candidates, but one of your choices was weaker. When reviewing resumes, it's important to ask yourself a few questions: 1. Does the candidate have the necessary experience or credentials to perform the job? 2. Does the candidate have the educational background necessary? 3. Are there any unexplained gaps in the candidate's employment history? 4. Are there grammatical and spelling errors on the resume? 3,4,6 two strong, one weak 2,3,4 two strong, one weak 1,3,4 one strong, two weak When asked which 3 of the 6 candidates you would choose to interview, you chose one strong candidate, but two of your choices were weaker. When reviewing resumes, it's important to ask yourself a few questions: 1. Does the candidate have the necessary experience or credentials to perform the job? 2. Does the candidate have the educational background necessary? 3. Are there any unexplained gaps in the candidate's employment history? 4. Are there grammatical and spelling errors on the resume? When asked which 3 of the 6 candidates you would choose to interview, you selected the three strongest candidates. Great job! 2.3.6

Decision Point: Legal Interview Questions Before the interview, you were briefed by the HR Manager to be careful not to ask any questions that might violate any employment-related laws. Which of the following questions should you AVOID asking during an interview? Review the questions and then click on the check boxes to make your selections. When you are done, click Submit. Question 1: You have an unusual accent. What's your native tongue? Question 2: I love that cross necklace you're wearing. What church do you belong to? Question 3: What is your date of birth? Question 4: Are you able and willing to travel as needed for the job? Question 5: I notice that you're walking with a cane. Are you okay? Question 6: Can you demonstrate how you would perform the following job functions?

When asked which questions you would avoid asking in an interview, you selected some of the correct questions. Title VII of the Civil Rights Act forbids discrimination against members of protected classes based on factors such as race, color, gender, religious beliefs, or national origin, so you should avoid questions that inquire about these characteristics. The Age Discrimination in Employment Act prohibits discrimination against persons 40 years or older, so you should avoid questions that would inquire about the candidate's age. Finally, the Americans with Disabilities Act forbids discrimination on the basis of disabilities, so you should avoid asking questions about a candidate's health or disabilities.

Decision Point: The Interview: Scenario You're intrigued with this candidate's answer to the first question, so you decide to probe a little deeper. Because the successful candidate must be able to not only initiate and follow through on a sales call, but also effectively handle dissatisfied customers, you decide to ask about the candidate's ability to handle disgruntled customers. You pose the following scenario: "Assume that you have a sales appointment with a client to sell health supplements. However, you discover that the client had purchased the company's line of steam inhalers only last month and already faced issues with them. During the meeting, the client tells you, 'Although my shop needs a new stock of health supplements, I'm reluctant to buy any other products from your company. The three batches of inhalers I bought last month were all faulty. I emailed the customer service department, but I still haven't received a response.' How would you handle such a situation?" Which candidate appears to have the strongest response to this question? Select an option from the choices below and click Submit. Candidate BI'd first focus on resolving the client's complaint by looking into the matter and having the faulty inhalers replaced. After a week, I'd give him a call to check if the replacements were satisfactory, and then I'd approach him again for a sale on health supplements. Candidate AI'd try to know more about the defect in the batch of inhalers that he purchased before I tried to make a sale.

You chose Candidate B. This was the best choice because it indicates that the candidate can effectively handle dissatisfied customers and also meet the company's sales targets.

Decision Point: The Interview: Scenario You're intrigued with this candidate's answer to the first question, so you decide to probe a little deeper. Because the successful candidate must be able to not only initiate and follow through on a sales call, but also effectively handle dissatisfied customers, you decide to ask about the candidate's ability to handle disgruntled customers. You pose the following scenario: "Assume that you have a sales appointment with a client to sell our new line of vitamins. However, when you show up at the meeting, the client informs you that he had purchased a batch of health supplements the month before, and when he received the shipment, he discovered that they were already expired. He tells you, 'Although I'd like to carry a new line of vitamins, I'm reluctant to buy other products from your company after that fiasco with the out-of-date supplements. I know mistakes happen, but it took three calls to customer service, and I still haven't received a replacement batch.' How would you handle such a situation?" Which candidate appears to have the strongest response to this question? Select an option from the choices below and click Submit. Candidate AI'd try to know more about why he was shipped out-of-date supplements before I tried to make a sale of vitamins. Candidate BI'd first apologize on behalf of the company and immediately contact customer service to make sure he gets a replacement batch by priority shipping. Then I'd follow up with him in a few days to see if the replacement batch was satisfactory and ask him for another appointment to consider looking at our new line of vitamins.

You chose Candidate B. This was the best choice because it indicates that the candidate can effectively handle dissatisfied customers and also meet the company's sales targets.

Decision Point: The Interview: Most Satisfied Together with the HR Manager of QueStar, you arrange interviews with the three candidates you have selected. They will interview not only with you (as their immediate supervisor), but also with your boss (the Director of Sales), the HR Manager, and a couple of the current sales representatives. Because you know that structured interviews are more effective than free-wheeling interviews at predicting job success and eliminating interviewer biases, you have prepared a list of questions that you plan to ask each candidate. Your first question is open-ended and is intended to tell you about their training and work habits. You ask each candidate, "When are you the most satisfied in your job?" Which candidate appears to have the strongest response to this question? Select an option from the choices below and click Submit. Candidate B I'm a people person, so I'm the happiest -- and the most satisfied -- when I'm interacting with customers, helping them solve problems, and making sure that they have a positive customer experience. Candidate C I was most satisfied when I did well and my boss praised me. Candidate A I'm really goal-oriented, so when I meet my sales quota, that's when I'm the most satisfied.

You chose Candidate B. This was the best choice because it indicates that the candidate is focused on meeting customers' needs and solving their problems. These are the hallmarks of an effective salesperson.

Decision Point: The Interview: Work Habits Together with the HR Manager of QueStar, you arrange interviews with the three candidates you have selected. They will interview not only with you (as their immediate supervisor), but also with your boss (the Director of Sales), the HR Manager, and a couple of the current sales representatives. Because you know that structured interviews are more effective than unstructured interviews at predicting job success and eliminating interviewer biases, you have prepared a list of questions that you plan to ask each candidate. Your first question is open-ended and is intended to tell you about their training and work habits. You ask each candidate, "Tell me about a product you sold that had weak market potential. How did you overcome this problem?" Which candidate appears to have the strongest response to this question? Select an option from the choices below and click Submit. Candidate B I once sold a new roofing product that no one in my area had heard of. I did research to determine the advantages it had over the competition to build market demand. Then I determined which businesses I would approach first, hoping to get a big client early so they could be a model of success for others. After each sales call, I would follow up with a phone call. Candidate C I've had that happen a couple times. I'm really great with people though and can always make a sale happen. And one time when I was demonstrating a software product, I really had to scramble when it wasn't working with the latest version of the operating system out there. But I always find a way to pull it off. Candidate A Hmm. That's a good question. Umm, I guess it was when I worked for my last company. They had me selling office equipment that didn't perform very well. I had to work really hard to convince people that they were good products.

You chose Candidate B. This was the best choice. She has demonstrated that she knows how to foster sales, create a sales plan, execute it, and follow up on a sales call.

Decision Point: Shandra's Management Style You decide to spend some time visiting the store and talking with both the manager and the employees to get a feel for what the problems may be. Your first meeting is with Shandra, the manager. Over lunch, you ask her to be candid with you about the reasons for the poor sales performance at her store. Shandra is very direct: "I didn't hire most of the sales associates in this store," she says, "and if we weren't already short-staffed, I'd fire some of them. Most of them don't have any energy or enthusiasm about their jobs. They're just here to collect a paycheck. They're not professional in their appearance or the way they treat customers. Either they don't understand the commission plan here or they don't care about it. The only time I see anybody working around here is when I'm walking the floor. Otherwise, they're on their smartphones. It's no wonder sales are down -- the sales associates are too busy texting their friends or updating their Facebook profiles to help customers." In terms of Douglas McGregor's theory of motivation, how would you best describe Shandra's management style? Select an option from the choices below and click Submit. Theory Y Theory Z Theory X

You chose Theory X. That was the best choice. According to behavioral scientist Douglas McGregor, managers who subscribe to Theory X tend to believe that people are naturally lazy and uncooperative and must be either punished or rewarded to be made productive. That appears to be Shandra's style.

Decision Point: Hilde's Situation Your next meeting is with Hilde, a sales associate in the footwear department. She, too, seems to be indifferent to her job, but her reasons appear to be quite different. "Have you looked at our commission plan?" she asks. "It's so convoluted that I don't think any of us understand it. Some goods have higher commission rates and some have lower commission rates. Oh, and we get a lower rate until we hit one target and then it's a higher rate, but then there are also quarterly targets and who knows what else. None of us can figure it out. Maybe if you made the commission plan simpler, we'd try to sell more. Instead, I just come in here and do my job and sell whatever because I've never been able to figure out what I've earned until I see my paycheck." In terms of expectancy theory, what appears to be the reason for Hilde's lack of motivation? Select an option from the choices below and click Submit. Effort-to-performance issue Rewards-to-personal goals issue Performance-to-reward issue

You chose effort-to-performance issue. That was an incorrect choice. The effort-to-performance issue (sometimes called expectancy) suggests that in order for a person to be motivated to expend effort, she or he must expect that those efforts will translate into better performance. For example, a student with high expectancy believes that if he studies hard for the next test, he'll ace it. A student with low expectancy believes that, no matter how hard he studies, he'll do poorly because he freezes up on tests. LO 10.2 Explain why many consider expectancy theory to be the best current explanation of employee motivation. pp. 231-232 You chose performance-to-reward issue. That was the best choice. The performance-to-reward issue (sometimes called instrumentality) suggests that good performance should result in desired rewards. For example, an employee with high instrumentality believes that if she sells more cars, she'll be promoted to sales manager. An employee with low instrumentality believes that it doesn't matter how many cars she sells; she'll never get the promotion. In Hilde's situation, it appears she doesn't know what she has to sell in order to earn more commission.

Decision Point: Chad and Jarrett's Situation You're more confused than ever after meeting with the sales associates because it seems that their lack of motivation is based on completely different factors. You hope that, by meeting with Chad and Jarrett, two sales associates in menswear, you'll get a better handle on the situation. Chad is the first to chime in. "You want to know why morale is low here? I honestly don't know what they want from me; how's that for a start? I've never had a performance review, and I've been here for two years. No one tells me what I should be doing to improve my performance, so --" Jarrett interrupts with a laugh. "Be fair. Shandra may not tell you what you should do to improve, but she sure is quick to tell you what you're doing wrong." Chad nods. "Yeah, you're right, and we're always doing something wrong. If you greet the customer too quickly, you're being too pushy. If you don't greet the customer quickly enough, you're slacking. If you don't try to push more merchandise on the customer, you're not working hard enough, even if you think the customer is getting ticked off. It seems like no matter what we do, she criticizes, so why bother trying?" In terms of expectancy theory, what appears to be the reason for Chad and Jarrett's lack of motivation? Select an option from the choices below and click Submit. Effort-to-performance issue Rewards-to-personal goals issue Performance-to-reward issue

You chose performance-to-reward issue. That was an incorrect choice. The performance-to-reward issue (sometimes called instrumentality) suggests that, in order for a person to be motivated, they must believe that good performance will result in desired rewards. For example, an employee with high instrumentality believes that if she sells more cars, she'll be promoted to sales manager. An employee with low instrumentality believes that it doesn't matter how many cars she sells; she'll never get the promotion. This isn't the case with Chad and Jarrett; they don't know what Shandra considers "good performance." LO 10.2 Explain why many consider expectancy theory to be the best current explanation of employee motivation. pp. 231-232 You chose effort-to-performance issue. That was the best choice. The effort-to-performance issue (sometimes called expectancy) suggests that, in order for a person to be motivated to expend effort, she or he must expect that those efforts will translate into better performance. Chad and Jarrett have no idea what Shandra expects in terms of "good performance," so they don't put forth effort to achieve it.

Decision Point: Victoria's Situation You ask to meet privately with the sales associates. Your first meeting is with Victoria, who works in the women's accessories department. She seems to have a lackadaisical attitude about her job. "I love fashion, so when I first started here, I thought this was absolutely the job for me," she says. "I don't want to sound like I'm bragging, but I know how to put together just the right accessories for an outfit. Last month, I sold more than anyone else in this department. Then I found out that sales associates who have more seniority make a higher commission rate, so they're actually making as much as I am for selling less. That doesn't seem fair at all." In terms of equity theory, what appears to be the reason for Victoria's lack of motivation? Select an option from the choices below and click Submit. Victoria believes that she is receiving fewer outputs relative to her inputs compared to her peers. Victoria 's job lacks motivating factors such as achievement, recognition, advancement, and growth. Victoria does not value the organizational rewards being offered, so she is unwilling to put forth the effort to perform in her job. Victoria believes that she is receiving fewer inputs relative to her outputs compared to her peers.

You chose that she is receiving fewer outputs relative to her inputs. That was the best choice. According to equity theory, inputs are what people contribute to their jobs in terms of time, effort, education, and experience. Outputs are what they receive in return, such as salary, benefits, recognition, and security. Victoria perceives that she is receiving fewer outputs (i.e., commission) relative to her inputs (her effort) compared to her peers.

Decision Point: Addressing Chad and Jarrett's Situation You turn to the situation described by Chad and Jarrett: that they don't know what's expected of them. Using expectancy theory, how would you address the situation and hopefully improve their motivation? Select an option from the choices below and click Submit. To ensure that sales associates know what "good performance" is, establish a performance review system in which each sales associate's performance is reviewed regularly and specific performance standards are established, making sure that employees understand the relationship between their effort and attainment of those standards. To ensure that sales associates know what "good performance" is, establish a sales goal system, making sure to determine whether the goals would create any perception of unfairness among sales associates with different experience levels. The problem doesn't exist with Chad and Jarrett. The problem is with Shandra. Meet with her privately and tell her that, unless the situation improves within the next 90 days, "changes will be made."

You chose to create a performance review system. That was the best choice. According to expectancy theory, people choose behaviors and effort levels after considering whether these will improve their performance and lead to desired rewards. If you want employees to be motivated to expend effort, they have to know that those efforts will translate into desired performance.

Decision Point: Addressing Anita's Situation Anita admits that she perceives herself as being inequitably treated compared to her less-experienced peers. Using equity theory, how would you best address the motivation issue described by Anita? Select an option from the choices below and click Submit. Explain to Anita that the commission plan is intended to reward effort, not longevity or seniority, and it would be unfair to more junior sales associates to pay them a lower rate of commission for selling the same products. Adjust the commission plan so that the commission rate is adjusted annually according to seniority; sales associates with more seniority will earn a higher rate of commission vs. more junior sales associates. Eliminate the perception of unfairness by leaving the commission plan as it is but raising the sales associates' base salary according to their seniority.

You chose to leave the commission as-is, but raise the base salary based on seniority. That was the best choice. Making the commission plan the same for all sales associates should make more junior sales associates feel that there is an equitable ratio of effort to reward, and adjusting the base salary according to seniority may be a "happy medium" for everyone concerned. (Wrong)Explain to Anita that the commission plan is intended to reward effort, not longevity or seniority, and it would be unfair to more junior sales associates to pay them a lower rate of commission for selling the same products.

Decision Point: Recruiting the Right Candidate Now that you've ironed out the details of the job description with Human Resources, you're ready to begin the recruiting process. What should be your first step in recruiting qualified candidates for this position? Select an option from the choices below and click Submit. Post the position on an Internet job board like Monster.com. Take out a Help Wanted ad in a national newspaper. Post the position on the company's intranet to determine if there are qualified, interested internal candidates. Send an email to the current sales representatives in your region and ask if they know of anyone who would be interested and qualified for the position.

You chose to post on the intranet. This was the best choice. Internal recruiting means considering present employees as candidates for openings. Promoting from within has a number of benefits. First, it can help build morale within the organization, because employees see that there is room for growth within the company. Second, current employees are already familiar with the company's goals, processes, and ways of doing things, so hiring from within can reduce training time. Third, current employees already have a proven track record within the organization. Finally, hiring from within saves money. Advertising on job boards or placing ads in newspapers -- as well as other recruiting methods like using employment agencies or executive search firms -- can be expensive.

Decision Point: Addressing Hilde's Situation Using expectancy theory, how would you best address the problem described by Hilde? Select an option from the choices below and click Submit. Use a system of collaborative goal setting involving store managers and sales associates to set sales goals, regularly evaluate progress toward those goals, and give rewards for performance. Evaluate the commission plan and compare it with plans of similar retailers in Swazzi's market. If the commission rates are lower, raise the commission rate to at least match the competition. Evaluate the commission plan to determine whether there is a clear link between the performance you are expecting of the sales associates and the commission they will earn. If not, revise the plan. Address the sales associates in team meetings and let them know that there will be consequences for continued lack of effort.

You chose to use a system of collaborative goal setting. That was an incorrect choice. This action would be more consistent with using management by objectives (MBO), a system of collaborative goal setting that involves managers and subordinates in setting goals and evaluating progress. LO 10.2 Explain why many consider expectancy theory to be the best current explanation of employee motivation. pp. 231-232 You chose evaluate whether there's a clear link between performance and commission. That was the best choice. According to expectancy theory, people choose behaviors and effort levels after considering whether these will improve their performance and lead to desired rewards. The key is to make desired rewards available to employees and convince them that their effort and performance will lead to those rewards.

Decision Point: Addressing Victoria's Situation It appears to you that Victoria perceives herself as being inequitably treated compared to some of her peers. Using equity theory, how would you best address the motivation issue described by Victoria? Select an option from the choices below and click Submit. Explain to Victoria that the commission plan is intended to reward longevity and seniority, and it would be unfair to more senior associates to earn the same amount of money as those who have been with the company for a shorter period of time. Eliminate the perception of unfairness by putting all associates on the same commission plan but raise base salaries according to the employee's tenure with the company. Put all sales associates on the same commission plan regardless of tenure and make no adjustment to base salaries based on the employee's tenure with the company

You chose to use the same commission plan for everyone, but change the base salary based on tenure. That was the best choice. Making the commission plan the same for all sales associates would make more junior sales associates feel that there is a more equitable ratio of contribution to return, and adjusting the base salary according to seniority may be a "happy medium" for everyone concerned.

What drives people to choose certain actions and avoid others?

contemporary research suggests motivation stems from 4 fundamental drives: **drive to acquire** - not only physical i.e. food/clothing but also enjoyable experiences "psychological goods" prestige, drive is relative - individuals want to know how compared to others around them **drive to bond** humans social - need ot feel part of something larger **vital aspect of motivation** helps when inspires employees to contribute common goals, harmful when pits groups employees against one another in **us-vs.-them** mentality **drive to comprehend** learning, growing, meeting tough challenges, making sense of things = satisfying outcomes based on drive to understand world around us **drive to defend** instinct to protect, sense of justice, lead to vigorously defending people, ideas, organizations hold dear - beneficial when motivates people to fight for what's right -harmful when motivates people to resist change **Harvard Nitin Nohria & colleagues helped identify/explain 4 drives** - **satisfying ALL FOUR essential to being motivated**

The Hawthorne Studies and **The Hawthorne Effect**

The Hawthorne effect * A supposed effect of organizational research, in which employees change their behavior because they are being studied and given special treatment * Validity of the effect is uncertain, and the Hawthorne studies were richer and more influential than this simple outcome would suggest

**pay for performance**

an incentive program that rewards employees for meeting specific, individual goals

**employee retention**

efforts to keep current employees

**commissions**

employee compensation based on a percentage of sales made

20. Which of the following defines the percentage of employees in an organization that leave every​ year? A. Worker buyouts B. Turnover rate Your answer is correct. C. Termination D. Contingent employees E. Employee burnout

turnover rate

Motivating with Challenging Goals (contd)

**Goals should be specific enough to give employees clarity and focus ** Goals should be difficult enough to inspire energetic and committed effort ** There should be clear **ownership** of goals so that accountability can be established ** Individuals' should have belief in their ability to meet their goals

9. Which of the following is a motivational tool consisting of managers and employees working together to establish and accomplish goals for every individual and department that would benefit the company as a​ whole? A. Job enlargement B. Job enrichment C. Management by objectives Your answer is correct. D. Micromanaging E. Expectancy theory

Management by objectives

**worker buyouts**

distribution of financial incentives to employees who voluntarily depart; usually undertaken in order to reduce the payroll

job enrichment

making jobs more challenging and interesting by expanding the range of skills required

**diversity**

often framed in terms of ethnic background, broader more useful definition includes "all the characteristics and experiences that define each of us as individuals"

cross training

training workers to perform multiple jobs and rotating them through these various jobs to combat boredom or burnout

Explaining Employee Choices

•Expectancy theory •Equity theory

18. Which of the following refers to an official report summarizing the tasks involved in a job and the situations in which the employee will​ work? A. Job specification B. Job description Your answer is correct. C. Succession planning D. Workforce analytics E. ​360-degree review

Job description

Approaches to Modifying Core Job Dimensions

Job characteristics model identifies the generic aspects of a job that can be adjusted to improve motivation, BUT up to individual companies/depts to **identify** and **make the specific changes** relevant to **each**job in the organization.

**profit sharing**

the distribution of a portion of the company's profits to employees

**work-life balance**

efforts to help employees balance the competing demands of their personal and professional lives.

Theory Y

a managerial assumption that employees enjoy meaningful work , are naturally committed to certain goals, are capable of creativity, and seek out responsibility under the right conditions.

23. In​ general, most employees receive the majority of their compensation in the form of​ _____. A. Incentives B. bonus C. ​401(k) D. benefits E. wages or salaries Your answer is correct.

wages or salaries

Evaluating Employees

**Performance appraisals** - periodic evaluations of employees' work according to specific criteria **Electronic performance monitoring (EPM) - real-time, computer-based evaluation of employee performance **360-degree review** - a multidimensional review in which a person is given feedback from subordinates, peers, superiors, and possibly outside stakeholders such as customers and business partners

**turnover rate**

the percentage of the workforce that leaves every year

**engagement**

an employee's rational and emotional commitment to his or her work

motivation is

the combination of forces that move individuals to take certain actions and avoid other actions

**sexism**

discrimination on the basis of gender

**gain sharing**

tying rewards to profits or cost savings achieved by meeting specific goals

Alternative Work Arrangements

Flextime Telecommuting Job sharing

Motivating with Challenging Goals **Goal-setting theory**

Goal-setting theory A motivational theory suggesting that setting goals can be an effective way to motivate employees

**bonus**

a cash payment, in addition to regular wage or salary, that serves as a reward for achievement

**motivation**

the combination of forces that move individuals to take certain actions and avoid other actions

Motivational Strategies

** Providing **timely** and **frequent** feedback ** Personalizing motivational efforts ** **Adapting** to circumstances and special needs ** Tackling workplace problems before they have a chance to **destroy** morale ** Being inspirational leaders

10.2 Explaining Employee Choices

**Expectancy Theory best current explanation of employee motivation**

**Approaches to Modifying Core Job Dimensions**

**Job enrichment** making jobs more challenging and interesting by expanding the range of skills required **Cross-training** training workers to perform multiple jobs and rotating them through these various jobs to combat boredom or burnout.

Managing the Employment Life Cycle

**Recruiting** the process of attracting appropriate applicants for an organization's jobs.

Stock Option

**Stock options** * a contract that allows the holder to purchase or sell a certain number of shares of a particular stock at a given price by a certain date

Forecasting Supply and Demand

**Turnover rate** the percentage of the workforce that leaves every year **Employee retention** efforts to keep current employees **Succession planning** workforce planning efforts that identify possible replacements for specific employees usually senior executives **Contingent employees** non-permanent employees, including temporary workers, independent contractors, and full-time employees hired on a probationary basis

Employee Benefits and Services

**employee benefits**- elements of compensation other than wages, salaries, & incentives** may be offered as preset package - employee gets insurance, paid holidays, pension plan, other benefits set up by company or flexible plans AKA **cafeteria plans** (similar to choosing items in cafeteria) **benefits most commonly provided by employers are insurance, retirement benefits, employee stock-ownership plans, stock options, and family benefits**

**Explaining Employee Choices** **Equity Theory**

Equity theory The idea 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

**mandatory retirement**

required dismissal of an employee who reaches a certain age

**incentives**

monetary payments and other rewards of value used for positive reinforcement

5 Managerial Strategies Vital to Maintaining Motivated Workforce

1. Providing Timely and Frequent Feedback (essential) from perspective of reinforcement theory - feedback is mechanism shapes employee behavior - w/o it **closes the loop** - gives employees info need to assess own performance/make improvement if necessary - serves emotional purpose reassuring employees someone is paying attention - is constructive criticism - lets employees know what they do is important enough to be done correctly 2. Making It Personal - motivation is a deeply personal phenomenon - rewards/feedback stimulate one employee to higher achievement - no effect second employee - demotivate third employee - customize career paths - personalize motivation/rewards - need for fairness/demands on manager's time place practical limits on degree motivational efforts individualized - **establish systems & policies equitable/automatic possible** - explain why fair to employees - **build in flexibility when possible** i.e. cash equivalent paid time off if prefer money - **get to know employees as individuals to know what's important to them** 3. **Gamifying for Healthy Competition** - applying game principles to various business processes - **about applying motivational power of scorekeeping, competition, other game-playing mechanics to existing business activities** - gamifying processes from sales to customer service to employee recruiting, training, health, fitness - encouraging participation in/contribution to social networks/other communities example of gamification motivate employees other stakeholders - can earn points, badges, other rewards for anrs. 4. **Adapting to Circumstances and Special Needs** - dynamics of motivation vary person also situation - slow economy/rising unemployment = stressors need considered from motivational perspective - employers less to spend on (salary) factors help spur motivation (bonuses) satisfaction/motivation danger of slipping - employees fewer options new jobs if unhappy - **BIG EXCEPTIONS** company top performers find new jobs -managers required work xtra hard keep top performers happy and motivated - threat of layoffs motivate some, demoralize others - some work harder - others question point if economy wipe out jobs anyway - **tough economic times huge motivational burden on managers BUT those who treat employees w/honesty/compassion stand best change retaining best people keeping them motivated** 5. **Addressing Workplace Negativity**- no workplace immune to problems/conflicts **negativity is emotional "virus" infect entire organization**- workplace managers must addresses problems/conflicts **quickly** before multiply/erode employee morale **jumping quickly double positive impact: solves problem & demonstrates to everyone managers care about emotional health of workforce** 6. **being an inspiring leader**good employees come to work already motivated what makes them good employees **job as manager make sure don't **demotivate** them - 1/3 US workers said supervisors' habits of **micromanaging** overseeing every small detail of employees' work & refusing to give them freedom or autonomy were destroying their initiative **managers w/low emotional intelligence can create toxic work environments that demotivate even most driven employees** essential for managers to understand effect their behaviors & attitudes have on employees **motivation has to originate from w/in each employee**

Developing and Evaluating Employees

Appraising employee performance •360 review Training and developing employees •Orientation •Skills inventory Promoting and reassigning employees • Administering Employee Compensation Salaries and wages Incentive programs •Bonus •Commission •Profit sharing •Pay for performance •Knowledge-based pay

**performance appraisals**

periodic evaluations of employees' work according to specific criteria

**self-efficacy**

belief in your ability to complete a task

Classical Theories of Motivation

contributions to current understanding of motivation & influence managerial practice

**salary**

fixed cash compensation for work, usually by a yearly amount; independent of the number of hours worked

**Cafeteria Plans**

flexible benefit programs that let employees personalize their benefits packages

9. The first step in the hiring phase is​ ________. A. conducting background checks and​ pre-employment tests B. interviewing prospective candidates C. screening candidates D. selecting a small number of qualified candidates Your answer is correct. E. selecting the best candidate for each position

selecting a small number of qualified candidates

**orientation programs**

sessions or procedures for acclimating new employees to the organization

Training and Developing Employees

training usually begins w/ **orientation programs** designed to ease new hire's transition into the company and impart vital knowledge about organization and its rules, procedures, expectations. effective orientation programs helps employees: - become more productive less time - help eliminate confusion and mistakes - **can significantly increase employee retention rates** **Many HR depts maintain skills inventory** identifies both current skill levels of all the employees and the skills the company needs in order to succeed.

2. Which of the following is payment based on a level of sales within a given time​ frame? A. Profit sharing B. Gain sharing C. Pay for performance D. Commissions Your answer is correct. E. ​Knowledge-based pay

commissions

**employee benefits**

compensation other than wages, salaries, and incentive programs

**Types of Reinforcement**

**Positive Reinforcement** encouraging desired behaviors by offering pleasant consequences for completing or repeating those behaviors. **Negative Reinforcement** encouraging the repetition of a particular behavior (desirable or not) by removing unpleasant consequences for the behavior

**Reinforcing High-Performance Behavior**

**Reinforcement theory** a motivational approach based on the idea that managers can motivate employees by influencing their behaviors with positive and negative reinforcement

4. Which of the following suggests that managers can motivate employees by affecting their actions through restructuring of their​ behavior? A. ​Two-factor theory B. ​Goal-setting theory C. Equity theory D. Reinforcement theory Your answer is correct. E. Expectancy theory

Reinforcement Theory

Theory X

a managerial assumption that employees are irresponsible, are unambitious and dislike work and that managers must use force, control, or threats to motivate them

**360-degree review**

a multidimensional review in which a person is given feedback from subordinates, peers, superiors, and possibly outside stakeholders such as customers and business partners

25. As a​ manager, Jason regularly works with his employees to set both personal goals and departmental​ goals, which would benefit not only the individual but the entire company. Jason is utilizing which of the following​ techniques? A. Management by objectives Your answer is correct. B. ​Self-efficacy C. Micromanaging D. Job enrichment E. Job enlargement

management by objectives

Other Employee Benefits

some mandated by govt regulation some offered voluntarily to attract/support employees **paid vacations & sick leave** **family & medical leave** ** Family Medical Leave Act (FMLA) of 1993 requires employers w/ 50+ workers to provide up to 12 weeks unpaid leave per yr childbirth, adoption, or care of oneself, child, spouse or parent w/serious illness **Child-care assistance** discounted rates or on-site day care **elder-care assistance** **Tuition loans and reimbursement** US companies contribute billions yr continuing education for employees **employee assistance programs (EAP)** one of most cost-effective benefits employers can establish - offers private and confidential counseling to employees who need help w/ issues related to substance abuse, domestic violence, finances, stress, family issues other personal problems

**recruiting**

the process of attracting appropriate applicants for an organization's jobs **employment life cycle starts with recruiting** process of attracting suitable candidates for an organization's jobs. - often judged by combo criteria known as **quality of hire** which measures how closely incoming employees meet the company's needs use variety resources - - internal searches - advertising - union hiring halls - college campuses - career offices - trade shows - headhunters (outside agencies that specialize in finding and placing employees) - social network technologies **Step 1 assemble candidate pool** **Step 2 screen candidates** **Step 3 interview candidates** **Step 4 compare candidates** **Step 5 investigate candidates** **Step 6 make an offer** Major Employment Legislation

**Critical Psychological States**

**Experienced meaningfulness of the work** a measure of how much employees care about the jobs they are doing **Experienced responsibility for results** the sense each employee has that his or her efforts contribute to the outcome. **Knowledge of actual results*** employees' awareness of the real-life results of their efforts

Planning for a Company's Staffing Needs

- delicate balancing act - hire too few - can't keep pace w/competition or satisfy customers - hire too many - raise fixed costs above level that revenues can sustain - to avoid either HR man. evaluate requirements jobs forecast supply/demand types of talent

Personalizing Motivation

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

**Theory Y**is

A managerial assumption that employees enjoy meaningful work, are naturally committed to certain goals, are capable of creativity, and seek out responsibility under the right conditions.

Four Indicators of Motivation

Engaged: * energy * enthusiasm * effort Satisfied * experience * treatment Committed * to company * to mission Rooted * intention to stay

Learning Objective 4: Describe the job characteristics model, and explain how it helps predict motivation and performance.

SUMMARY: The job characteristics model identifies five core job dimensions (skill variety, task identity, task significance, autonomy, and feedback) that create three critical psychological states (experienced meaningfulness of the work, experienced responsibility for results, and knowledge of actual results). Achieving these three states leads to improvements in motivation, job satisfaction, performance, absenteeism, and turnover.

**Job Characteristics Model**

Skill Variety----->>Task Identify---->>Task Significance --->>Autonomy---->>Feedback---->>Skill Variety.....

**employee stock-ownership plan (ESOP)**

a program that enables employees to become partial owners of a company

**Hawthorne effect**

behavior of Western Electric workers changed b/c observed/given special treatment as research subjects became widely assumed fields of research management to medicine - original research never reached this conclusion obscure defined so many ways **real and lasting contribution of studies was open eyes about benefits of understanding human behavior in organizational settings**

Human Resources Management (HR)

encompasses all the tasks involved in attracting, developing, and supporting an organization's staff, as well as maintaining a safe working environment that meets legal requirements and ethical expections.

**negative reinforcement**

encouraging the repetition of a particular behavior (desirable or not) by removing unpleasant consequences for the behavior

10. Which of the following is a tool to increase employee motivation and is based on the idea that establishing achievable objectives is a successful way to increase employee​ performance? A. ​Two-factor theory B. ​Goal-setting theory Your answer is correct. C. Reinforcement theory D. Expectancy theory E. Equity theory

goal-setting theory

8. Which of the following refers to an official report summarizing the tasks involved in a job and the situations in which the employee will​ work? A. Job specification B. ​360-degree review C. Succession planning D. Workforce analytics E. Job description

job description

Administering Employee Compensation

pay & benefits vital interest to all employees consume time & attention HR depts for many companies **payroll single biggest expense** **cost of benefits - healthcare

**diversity initiatives**

programs and policies that help companies support diverse workforces and markets **embracing diversity in richest sense good business** **diversity initiatives** include steps contracting w/more suppliers owned by women and minorities, targeting more diverse customer base, supporting needs/interests of diverse workforce. can use as competitive advantage women & minorities significant presence in small-business marketplace

10. The employment life cycle begins with​ ________. A. rightsizing B. recruiting Your answer is correct. C. ​at-will employment D. outplacement E. orientation

recruiting

8. Which theory argues that the effort employees put forth depends on three​ aspects: their beliefs about their own performance​ potential, their beliefs regarding the rewards that the firm will give in response to that​ performance, and the appeal of those rewards relative to their personal​ goals? A. ​Goal-setting theory B. Equity theory C. Expectancy theory Your answer is correct. D. Theory X E. Job enrichment

Expectancy Theory

engagement is

an employee's rational and emotional commitment to his or her work

**quality of work life (QWL)**

an overall environment that results from job and work conditions

Redesigning Jobs to Stimulate Performance -

**Job Characteristics Model** A model suggesting that five core job dimensions influence three critical psychological states that determine motivation, performance, and other outcomes

**glass ceiling**

an invisible barrier attributable to subtle discrimination that keeps women and minorities out of the top positions in business

**Religion diversity**

one of most personal aspects of life - potential for controversy in workplace employees feel should be able to express their beliefs in workplace not forced to "check their faith at the door" when come to work companies want avoid situations openly expressed religious differences cause friction between employees or distract them from responsibilities religion in workplace complex & contentious issues more every yr measured by **significant rise in number of religious discrimination lawsuits** beyond accommodating individual beliefs reasonable degree, required by US law, companies need to resolve situations that pit one group against another

17. Which of the following allows up to 12 weeks of unpaid leave per year for​ childbirth, adoption, or care for oneself or family member with a serious​ illness? A. ESOP B. Family Medical Leave Act​ (FMLA) of 1993 Your answer is correct. C. Employee Assistance Program Act D. Cafeteria plans E. Patient Protection and Affordable Care Act​ (ACA)

Family Medical Leave Act​ (FMLA) of 1993

**Explaining Employee Choices** **Expectancy Theory** **Considered by some experts to offer the best available explanation of employee motivation, connects an employee's efforts to the outcome he/she expects from those efforts**

The quality of the effort an employee puts forth depends on. 1. expectations of **individual performance*** 2. and expectations of **organizational rewards** 3. and the attractiveness of those rewards relative to ** individual goals** Individual Organizational Individual performance------>> rewards------->> goals

Ch. 11 Human Resource Management

This chapter explores the many steps companies take to build productive workforces, including solving staffing challenges, addressing workforce diversity, managing the employment life cycle, developing employees, and providing compensation and benefits.

22. A​ defined-contribution retirement plan wherein employers often match the amount employees invest is known as​ ________. A. ESOP B. stock options C. a​ 401(k) plan Your answer is correct. D. a cafeteria plan E. an employee assistance program​ (EAP)

a 401 (k) plan

Hawthorne effect

a supposed effect of organizational research, in which employees change their behavior because they are being studied and given special treatment

The Recruiting Process

**Step 1: Assemble candidate pool** * recruiters select a small number of qualified candidates from all the internal and external applicants * many organizations now use computer-based applicant tracking systems to manage the hiring process **Step 2:** Screen Candidates * recruiters then screen candidates, typically through phone interviews, online tests, or on-campus interviews. * interviews at this stage are usually fairly structured, with applicants asked the same questions so that recruiters can easily compare responses. **Step 3:** Interview Candidates * candidates who make it through screening are invited to visit the company for another round of interviews. * this stage usually involves several interviews with a mix of colleagues, HR specialists, and managers. **Step 4:** Compare Candidates * the interview team compares notes and assesses the remaining candidates * team members sometimes lobby for or against individual candidates based on what they've seen and heard during interviews. **Step 5:** Investigate Candidates * recruiters talk to references, conduct background checks, scan social media postings, and in many cases subject applicants to preemployment tests. * given the financial and legal risks associated with bad hiring decisions, smart employers research candidates carefully and thoroughly. **Step 6:** Make an offer * with all this information in hand, the hiring manager selects the most suitable person for the job and makes a job offer

**Employee assistance program (EAP)**

a company-sponsored counseling or referral plan for employees with personal problems

Risks and Limitations of Goal-Setting Theory are

* Overly **narrow goals** * Overly **Challenging goals** * **Inappropriate time horizons** * **Unintentional performance **limitations** * **Missed learning opportunities** * **Unhealthy **internal competition** * **Decreased intrinsic motivation**

Other Employee Benefits

* paid vacations and sick leave * family and medical leave * child-care assistance * elder-care assistance * tuition loans and reimbursements * employee assistance programs

**Theory X is**

** A managerial assumption that employees are irresponsible, are unambitious, and dislike work and that managers must use force, control, or threats to motivate them.

**Maslow's Hierarchy of Needs Chart**

Maslow's hierarchy ** a model in which human needs are arranged in order of their priority, with the most basic needs at the bottom and the more advanced needs toward the top

Learning Objective 5: Define reinforcement theory, and differentiate between positive and negative reinforcement.

SUMMARY: Reinforcement theory suggests that managers can motivate employees by systematically encouraging actions that are beneficial to the company. Positive and negative reinforcement both tend to increase the specific behavior in question, but positive reinforcement does so by providing pleasant consequences for engaging in the behavior, whereas negative reinforcement does so by removing unpleasant consequences. The term negative reinforcement is sometimes used in casual speech when people are really talking about punishment, which is discouraging a particular behavior by offering unpleasant consequences for it.

**stock options**

a contract that allows the holder to purchase or sell a certain number of shares of a particular stock at a given price by a certain date

**401 (k) Plan**

a defined contribution retirement plan in which employers often match the amount employees invest

**skills inventory**

a list of the skills a company needs from its workforce along with the specific skills that individual employees currently possess.

scientific management

a management approach designed to improve employees' efficiency by scientifically studying their work

**Retirement Plans**

company-sponsored programs for providing retirees with income

3. Where does motivation​ originate? (MISSED) A. Managers Your answer is not correct. B. The employee This is the correct answer. C. ​Co-workers D. Customers E. Ethical beliefs

employees Managers can foster motivation​ (and they can certainly diminish it through clumsy​ leadership), but the motivation has to originate from within each employee.

**positive reinforcement**

encouraging desired behaviors by offering pleasant consequences for completing or repeating those behaviors

7. ___________ involves exerting extreme amount of supervision over​ employees, monitoring each aspect of a​ worker's tasks, and giving only minimal autonomy. A. Micromanaging Your answer is correct. B. ​Cross-training C. Gamification D. Expectancy theory E. Job enrichment

micromanaging

**compensation**

money, benefits, and services paid to employees for their work combination of direct payments such as wages or salary and indirect payments through employee benefits one of HR most **significant responsibilities**

4. Which of the following defines the percentage of employees in an organization that leave every​ year? A. Worker buyouts B. Turnover rate C. Termination D. Employee burnout

turnover rate

**Replacing Retiring Employees**

two challenges regarding retiring employees faced by companies: companies short-handed - persuade older employees delay retirement companies too many employees - induce employees ahead of retirement **early retirement** using financial incentive known as **worker buyouts** **mandatory retirement** required dismissal of an employee who reaches a certain age **worker buyouts** distributions of financial incentives to employees who voluntarily depart usually undertaken in order to reduce the payroll **in past mandatory retirement policies forced people to quit working as soon as certain age - Age Discrimination in Employment Act now allows mandatory retirement based on age alone unless employer demonstrate valid qualification for "normal operation of the particular business"**

Redesigning Jobs to Stimulate Performance

•The job characteristics model -Core dimensions •Skill variety •Task identity •Task significance •Autonomy •Feedback -Critical psychological states •Experienced meaningfulness of the work •Experienced responsibility for the results •Knowledge of actual results •Approaches to modifying core job dimensions -Job enrichment -Job enlargement -Cross training

**Positive reinforcement** **of all three possibilities, positive reinforcement ONLY one that injects positive energy into situation**

- encouraging desired behaviors by offering pleasant consequences for completing or repeating those behaviors - offers pleasant consequences for particular actions or behaviors, increasing likelihood that behaviors will be repeated. - can also have a multiplier effect which employees who receive positive reinforcement for one type of behavior are motivated to perform well in other areas process known as **chaining**

10.1 What Motivates Employees to Peak Performance?

Define motivation and identify the classical motivation theories

Explaining Employee Choices **Expectancy theory**

Expectancy theory The idea that the effort employees put into their work depends on expectations about their work depends on expectations about their own ability to perform, expectations about likely rewards, and the attractiveness of those rewards a motivational approach based on the idea that managers can motivate employees by influencing their behaviors with positive and negative reinforcement.

Steps in Human Resources Planning

From business plan Evaluating job requirements: Perform Job Write Job Write Job Analysis ------->> Description---==>>Specifications-----> Forecasting --->>Estimate -------->>> Estimate-->>To hiring process demand for supply of employees employees employees

Managing the Employment Life Cycle 3 phases involved managing the employment life cycle

HR managers oversee employment-related activities - recruiting - hiring - termination - retirement

5. Lou is a manager at a local manufacturing company. According to​ Lou's employees, he is very controlling and often threatens employees with job termination or punishment to get them to work. Lou believes these extreme measures are the only way to motivate employees to do their jobs properly. Which of the following reflects​ Lou's management​ style? A. Management by objectives B. Theory X C. Theory Y D. Expectancy theory E. Equity theory

Theory X

Decision Point: Pre-Employment Testing In addition to interviewing, you've decided to have the candidates take a pre-employment test. Which of the following pre-employment tests would be most useful in predicting the candidate's job success? Select an option from the choices below and click Submit. Ask the candidates to perform a job skill test: Hand the candidate a pen or a pencil from your desk and ask him or her to "sell" it to you. Ask the candidates to take a general intelligence (IQ) test. Ask the candidates to take a personality test based on the "Big Five" personality dimensions.

You chose the job skill test. This was the best choice, and it's commonly used in sales interviews. The interviewer can get a quick assessment of the candidate's confidence and sales style, and that is directly related to the candidate's job success.

**Reinforcement Theory**

a motivational approach based on the idea that managers can motivate employees by influencing their behaviors with positive and negative reinforcements suggests that managers can motivate employees by shaping their actions through behavior modification. using reinforcement theory, managers try to systematically encourage those actions beneficial to company valuable motivational tool but has broad application whenever managers want to shape employee behavior

4 indicators that measure motivation in workplace setting

engagement satisfaction commitment rootedness **engagement** reflects the degree of energy, enthusiasm, effort each employee brings to his or her work** "just not into it" - energy - enthusiasm - effort **satisfaction indicates how happy employees are with the experience of work and the way they are treated** - experience - treatment **commitment suggests the degree to which employees support the company and its mission** - to company - to mission **rootedness (or its oposite, the intention to quit) predicts the likelihood that employees will stay or leave their jobs** - intention to stay **a person who is engaged, satisfied, and committed and who has no intention of quitting can be safely said to be motivated** 4 indicators identify who is motivated but not explain why

**knowledge-based pay**

pay tied to an employee's acquisition of knowledge or skills; also called competency-based pay or skill-based pay

Administering Employee Compensation

**Compensation** - money, benefits, and services paid to employees for their work **Salary** - fixed cash compensation for work, usually by a yearly amount; independent of the number of hours worked **Wages** - cash payment based on the number of hours an employee has worked or the number of units an employee has produced

Evaluating Job Requirements

**Job Description** a statement of the tasks involved in a given job and the conditions under which the holder of a job will work **Job Specification** a statement describing the kind of person who would be best for a given job - including the skills, education, and previous experience that the job requires

Training and Developing Employees

**Orientation programs** -sessions or procedures for acclimating new employees to the organization **Skills Inventory** - a list of the skills a company needs from its workforce, along with the specific skills that the individual employees currently possess

**Four Fundamental Needs**

**The drive to acquire** **The drive to bond** **The drive to comprehend** **The drive to defend**

Replacing Retiring Emokitees

**Worker Buyouts*** - distributions of financial incentives to employees who voluntarily depart; usually undertaken in order to reduce the payroll **Mandatory Retirement** - required dismissal of an employee who reaches a certain age

Risks and limitations of goal setting theory

-Overly narrow goals -Overly challenging goals -Inappropriate time horizons -Unintentional performance limitations -Missed learning opportunities -Unhealthy internal competition -Decreased intrinsic motivation

Classical theories of motivation

-Taylor's Scientific Management -Hawthorne studies and the Hawthorne Effect -Maslow's Hierarchy of Needs -Theory X and Theory Y -Herzberg's Two Factors -McClelland's Three Needs

**Reinforcement and Punishment**

**Positive Reinforcement**---------->>Outcome Behavior ** +** Pleasant consequences are Behavior more experienced likely to be repeated **Negative Reinforcement**--------->>Outcome Behavior ** + ** Unpleasant consequences Behavior more are avoided, minimized, or likely to be repeated removed **Punishment**------------------------>>Outcome Behavior **-** Unpleasant consequences Behavior less likely are experienced to be repeated

Keeping Pace with Today's Workforce

Contemporary Staffing Challenges •Aligning the workforce •Fostering employee loyalty •Monitoring workloads and avoiding employee burnout •Managing work-life balance • Planning for a company's staffing needs (workforce analytics) •Evaluating job requirements -Job description •Forecasting supply and demand -Turnover rate -Succession planning -Employee retention - Alternative work arrangements •Flextime •Telecommuting •Job sharing

Learning Objective 2: Discuss the challenges and advantages of a diverse workforce, and identify five major dimensions of workforce diversity.

SUMMARY: Differences in everything from religion to ethnic heritage to military experience enrich the workplace and give employers a competitive advantage by offering better insights into a diverse marketplace. A diverse workforce brings with it a wide range of skills, traditions, backgrounds, experiences, outlooks, and attitudes toward work—all of which can affect employee behaviors, relationships, and communication habits. Five major dimensions of workforce diversity addressed in this chapter are age, gender, race, religion, and ability.

19. David is the HR manager at Garden Pipes International. For filling the vacancies created by recent retirements in the finance​ department, David has developed a formal statement summarizing the tasks involved in the job and the conditions under which the new hires will work. The statement David developed is​ _________. A. A job specification B. workforce analytics C. a​ 360-degree review D. A job description Your answer is correct. E. succession planning

a job description

**job description**

a statement of the tasks involved in a given job and the conditions under which the holder of a job will work

Redesigning Jobs to Stimulate Performance

along w/ setting challenging goals, companies exploring ways to redesign the work itself to improve employee satisfaction and motivation

gamification

applying game principles such as scorekeeping to various business processes

**workforce analytics**

computer-based statistical approach to analyzing and planning for workforce needs

13. The Fair Labor Standards Act and its amendments established particular guidelines that employers must follow in relation to​ ________. A. the right of the employees to form unions B. providing income for qualified unemployed persons C. prohibiting employers from hiring illegal immigrants D. minimum wage and overtime pay Your answer is correct. E. offering health insurance coverage for employees

minimum wage and overtime pay

Challenges and rewards employee motivation

no one size fits all such as ladder no single theory or model can explain every motivational situation forces that affect motivation vary widely person to person & situation to situation yet some managers and researchers continue to "rely on obsolete and discredited theories"

**electronic performance monitoring (EPM)**

real-time, computer-based evaluation of employee performance

21. Joe is always interested in taking on new challenges and does not work for money or status but because he genuinely feels that his work is worthwhile and satisfying in itself. According to​ Maslow's hierarchy, Joe is operating at which need​ level? A. Esteem B. Safety C. ​Self-actualization Your answer is correct. D. Physiological E. Social

self-actualization

Contemporary Staffing Challenges

** Aligning the workforce ** **Fostering** employee loyalty ** Monitoring workloads and avoiding employee burnout ** Managing **work-life** balance **Work-life Balance**: efforts to help employees balance the competing demands of their personal and professional lives **Quality of work life (QWL)** an overall environment that results from job and work conditions

Incentive Programs

**Bonus** - a cash payment in addition to regular wage or salary, that serves as a reward for achievement **Commissions** - employee compensation based on a percentage of sales made **Profit sharing** - the distribution of a portion of the company's profits to employees **Gain sharing** - tying rewards to profits or cost savings achieved by meeting specific goals **Pay for performance** - an incentive program that rewards employees for meeting specific, individual goals **Knowledge-based pay** - pay tied to an employee's acquisition of knowledge or skills - also called **competency-based pay** or **skill-based pay**

**Herzberg's Two Factors**

Herzberg's two-factory theory **a model that divides motivational forces into satisfiers ("motivators") and dissatisfiers ("hygiene factors")

7. Which of the following involves horizontal expansion within a company giving employees more tasks in order to decrease boredom and increase​ knowledge? A. Reinforcement B. Job enrichment C. Gamification D. Job enlargement Your answer is correct. E. Job rotation

Job enlargement

TEST 4 1. Lou is a manager at a local manufacturing company. According to​ Lou's employees, he is very controlling and often threatens employees with job termination or punishment to get them to work. Lou believes these extreme measures are the only way to motivate employees to do their jobs properly. Which of the following reflects​ Lou's management​ style? A. Equity theory B. Theory X Your answer is correct. C. Expectancy theory D. Theory Y E. Management by objectives

Theory X

3. According to​ Maslow's theory of​ hierarchy, the category prior to​ self-actualization is​ _____. A. safety needs B. social needs C. food and clothing needs D. esteem needs E. physiological needs

esteem needs

**Diversity - Ability**

people whose hearing, vision, cognitive ability, or physical ability to operate equipment is impaired - can be at significant disadvantage in workplace **success starts w/respect for individuals & sensitivity to differences** Employers can invest in variety of **assistive technologies** that help people w/disabilities perform activities otherwise difficult or impossible. i.e. devices help communicate orally, visually, interact w/ computers and other equipment - greater mobility designers can emphasize **web accessibility** make websites more accessible whose vision is limited **assistive technologies create vital link for employees with disabilities providing opportunities pursue greater range career paths, giving employers access to broader base talent**

16. Which of the following is the practice of offering agreeable consequences for particular actions or​ behaviors? A. Behavior modification B. Reinforcement C. Positive reinforcement Your answer is correct. D. Chaining E. Incentives

positive reinforcement

**Race and Ethnicity**

same concerns as gender somewhat - **equal pay for equal work, access to promotional opportunities, and ways to break through glass ceiling** **ration men - women workforce stable yr to yr ethnic composition of US long-term trend greater diversity** **race - br **ethnicity broader concept than race, incorporating BOTH genetic background of race & cultural issues - language & national origin - neither race or ethnicity absolute or precise b/c millions have mixed racial heritage ethnicity not have fixed boundaries clearly distinguish groups** **minority - term often used to designate any race or ethnic segment other than white Americans of European descent - negative term but makes less sense yr after yr** **Caucasian Americans make up less than half population in cities/counties in 2-3 decades will make up less than half of US population** **EEOC receives more complaints about racial discrimination than about gender discrimination - disparity exists along racial lines** view in context of individual decisions/opportunities for advancement

Risks and Limitations of Goal-Setting Theory

** overly narrow goals** - people can miss or intentionally ignore vital aspects of bigger picture - sales people meet quotas tempted to offer huge discounts/extend credit to customers who can't make payments **overly challenging goals** - lofty goals inspire great performance, can lead to risky behavior, belligerent negotiating tactics, ethical lapses as employees cut corners to reach targets **inappropriate time horizons** - too much emphasis on short-term performance degrade long-term performance. ex: unhealthy focus that publicly traded company can place on quarterly performance in order to meet stock market's expectations. Distorted focus lead to decisions downsizing/cutting back research might help bottom line short term but ultimately limit company's ability compete & grow **unintentional performance limitations** goals can limit performance potential when employees reach targets/then stop trying even though could go beyond level if reach goal not signal acceptable to stop there ** missed learning opportunities** employees so focused on meeting deadlines/other goals, overlook opportunities to learn, improve own skills, fix process problems adapt to changes in business environment - all can benefit company more than meeting original goal **unhealthy internal competition** goals can pit groups w/in company against each other, beneficial if competition healthy harmful if not - healthy competitions among sales regions great motivator BUT if several regions refuse cooperate to help land big national client? **decreased intrinsic motivation** relying too heavily on exterior goals & their extrinsic rewards eventually dull intrinsic motivation to do well for sake of work itself - one of most powerful and sustainable motivators

Terminating Employees

**Termination** the process of getting rid of an employee by firing him permanently laying off employees b/c of cutbacks or firing employees for poor performance or other reasons **Layoffs** termination of employees for economic or business reasons unrelated to employee performance **rightsizing** is a euphemism used to suggest that an organization is making changes in the workforce to match its business needs more precisely. Usually involves **downsizing** the workforce, companies sometimes add workers in some areas while eliminating jobs in others help ease pain of layoffs, companies provide laid-off employees w/ job-hunting assistance **outplacement**services - resume-writing courses, career counseling, office space, secretarial help offered to execs, blue-collar employees when trimming workforces during recession, managers need to take care not discriminate segment - **older workers vulnerable group higher salaries more expensive benefits target for cost cutting** **age discrimination complaints related to layoffs all-time high recent yrs** terminating employment by firing complex subject w/ many legal ramifications **line between layoff and firing BLURRY** **at-will employment**(every state supports except Montana) meaning companies free to fire anyone choose **state laws vary, but cannot discriminate in firing, whistle-blowing, filing worker's compensation claim, or testifying against employer in harassment or discrimination lawsuits** if employee believes principles violated, can file **wrongful discharge**lawsuit against employer employers must abide by terms of employment contract some employers offer written assurances will terminate employees only **For cause** includes actions committing crimes or violating company policy

Evaluating Job Requirements

- process of **job analysis** employers try identify nature & demands of each position w/in firm & optimal employee profile fill each position. - once job analysis completed HR develops **job description** (a formal statement summarizing the tasks involved in the job and the conditions under which employee will work) - staff in most cases will develop **job specification** which identifies type of personnel a job requires including the skills, education, experience, and personal attributes that candidates need to possess.

Management by Objectives Outline

1. **Setting goals** * Top managers work with middle managers then middle managers work with first-line managers to develop goals for their respective work groups. At the same, managers and employees at all levels collaborate with their supervisors to set individual goals for performance. 2. **Planning action** ** Managers determine exactly how their individual and group goals will be accomplished. To ensure that goals are reached on time, a schedule is prepared for the action plan. 3. **Implementing plans** ** Managers and employees implement their plans in their own way, which allows them to control their own performance. Their expertise gets channeled for the benefit of the organization, and they have more opportunities to develop their professional skills. 4. **Reviewing performance** ** Managers periodically review the performance of the people they supervise and evaluate how well the plans are achieving group and individual goals. Obstacles and strategies for overcoming them are identified. Old goals may be modified or new goals established. Achievement is recognized and rewarded.

Applying What You've Learned

1. Define motivation and identify classical motivation theories 2. Explain why many consider expectancy theory to be the best current explanation of employee motivation 3. Identify the strengths and weaknesses of goal-setting theory. 4. Describe the job characteristics model, and explain how it helps predict motivation and performance 5. Define reinforcement theory, and differentiate between positive and negative reinforcement. 6. List five managerial strategies that are vital to maintaining a motivated workforce.

Applying What You've Learned

1. Identify four contemporary staffing challenges, and explain the process of planning for a company's staffing needs 2. Discuss the challenges and advantages of a diverse workforce, and identify five major dimensions of workforce diversity 3. Describe the three phases involved in managing the employment life cycle. 4. Explain the steps used to develop and evaluate employees 5. Describe the major elements of employee compensation 6. Identify the most significant categories of employee benefits and services

Theory X and Theory Y

1960s psychologist Douglas McGregor proposed 2 radically different sets assumptions unerlie most management thinking **Theory X and Theory Y** Theory X oriented managers believe that employees dislike work and can be motivated only by the fear of losing their jobs or by extrinsic rewards - those given by other people such as money and promotions Theory Y oriented managers believe that employees like to work and can be motivated by working for goals that promote creativity or for causes they believe in. Theory Y oriented managers seek to motivate employees through intrinsic rewards employees essentially give to themselves As w/ Maslow's hierarchy, Theory X and Theory Y have permanent place in management vocabulary but lack empirical evidence distinction of intrinsic and extrinsic rewards remains valid/essential aspect of many theories of motivation

**Generations in the Workplace**

Common Label Range in Birth Years Some Workplace Implications **Radio Generation 1925-1945** - people in this group are beyond what was once considered the traditional retirement age of 65 but many want or need to continue working **Baby Boomers 1946-1964** - this large segment of the workforce, which now occupies many mid-and upper-level managerial positions got its name from the population boom in the years before World War II. The older members of this generation are now past traditional retirement age, but many will continue to work - meaning that younger workers waiting for some of these management spots to open up might have to wait a while longer. **Generation X 1965-1980** - This relatively smaller "MTV generation" is responsible for many of the innovations that have shaped today's communication and business habits but sometimes feels caught between the large mass of Baby Boomers ahead of them and the younger Generation Y employees behind them in the workforce. As Generation X takes the reins of corporate leadership, it is overseeing in a vastly different business landscape, one in which virtual and networked organizations replace much of the hierarchy inherited from the Baby Boomers. **Generation Y 1981 - 1995** - Often known as **millennials,**this generation has been noted for its technology-centric approach to communication, impatience with corporate hierarchy, and the desire for a meaningful and personalized work experience. Many in this generation are now managers with power to reshape organizational cultures. New research suggests, however, that millennials aren't dramatically different from their predecessors and generally value the same rewards and express the same career concerns. **Generation Z 1996- ** Generation Z, also known as *(AKA ) **Generation I (for Internet)** or the **Net Generation** is the first full generation to be born after the World Wide Web was invented. With a global, socially aware outlook shaped by lifelong networking and media usage, this diverse group appears to be highly entrepreneurial and interested in new ways of approaching business.

Herzberg's Two-Factory Theory

Highly Satisfied Area of Motivators influence satisfaction level of satisfaction **Motivators:** achievement recognition responsibility work itself personal growth Neither satisfied nor dissatisfied---------------------------------------------- ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Area of Hygiene factors dissatisfaction influence level of dissatisfaction **Hygiene factors** Working conditions Pay and security Company policies Supervisors Interpersonal relationships

Employee Benefits and Services

Insurance Retirement benefits •Pension plans •401K plans •ESOP Stock options Other employee benefits •Paid vacation and sick leave •Family and medical leave •Child-care assistance •Elder-care assistance •Tuition loans and reimbursements •Employee assistance programs •

6. ________ is a motivational approach involving the idea that employees will find their jobs more stimulating and exciting if they are given more​ responsibilities, specifically managerial responsibilities. (MISSED) A. ​Cross-training B. Job enrichment This is the correct answer. C. Job enlargement D. ​Goal-setting theory Your answer is not correct. E. Gamification

Job enrichment

14. Which of the following techniques is utilized in explaining behaviors in consideration of basic human needs and the specific sequence in which those needs are​ attained? A. ​Goal-setting theory B. Theory Y C. Reinforcement theory D. Expectancy theory E. ​Maslow's hierarchy

Maslow's hierarchy

Learning Objective 2: Explain why many consider expectancy theory to be the best current explanation of employee motivation.

SUMMARY: Expectancy theory suggests that the effort employees put into their work depends on expectations about their own ability to perform, expectations about the rewards the organization will give in response to that performance, and the attractiveness of those rewards relative to their individual goals. This theory is thought to be a good model because it considers the links between effort and outcome. For instance, if employees think a link is "broken," such as having doubts that their efforts will yield acceptable performance or worries that they will perform well but no one will notice, they're likely to put less effort into their work.

Learning Objective 5: Describe the major elements of employee compensation.

SUMMARY: For most employees, the bulk of their compensation comes in the form of a salary, if they receive a fixed amount per year, or wages, if they are paid by the unit of time or unit of output. In addition to their base salary or wages, some employees are eligible for a variety of incentive programs, including bonuses, commissions, profit sharing, and gain sharing. In some cases, employers offer pay-for-performance plans that have a lower base salary but allow employees to earn more by hitting specific performance goals. Some companies are also exploring knowledge-based pay, which rewards employees for acquiring information or developing skills related to their jobs.

Maslow's Hierarchy of Needs

a model in which human needs are arranged in a hierarchy with the most basic needs at the bottom and the more advanced needs toward the top 1943 psychologist Abraham Maslow hypothesized that behavior determined by variety of needs - he organized into categories arranged in a hierarchy most basic needs at bottom more advanced needs near top * physiological needs** - All requirements for basic survival - food, clothing, shelter, etc. * basic needs must be satisfied before person consider higher-level needs such as safety needs, social needs (need to give/receive love/feel sense of belonging) esteem needs (need for sense self-worth/integrity **self-actualization** top - need to become everything one can be **most difficult to fulfill or identify**leadership role - not just b/c want to make money or impress others but feel work is worthwhile, satisfying

Promoting and Reassigning Employees

companies prefer look w/in organization fill job vacancies promote-from-w/in policy allows company benefit from training/experience of own workers rewards employees work hard/demonstrated ability handle more challenging tasks morale better when promote w/in b/c employees see possibility of advancement **pitfall promoting w/in person may be given job beyond his competence** - promoting is mistake, company loses employee risks demoralizing others reduce risk through careful promotion policies & providing support and training to help newly promoted employees perform well

Forecasting Supply and Demand

forecast demand for numbers/types employees needed various times - HR man. weigh: 1. **forecasted sales revenues** 2. **expected **turnover rate** (the percentage of the workforce that leaves every year) 3. **current workforce's skill level**relative to company's future needs 4. **impending strategic decisions** 5. **changes in technology or other business factors** that could affect the number & type of workers needed 6. **company's current & projected financial status every company has number of employees/managers considered so critical to company ongoing operations HR managers work w/ top execs identify potential replacements in event of loss of them **process known as **succession planning** **replacement chart**identifies key employees - lists potential replacements - w/ some idea future workforce demands HR staff tries to estimate **supply** of available employees - to ensure steady supply of experienced employees for new opportunities/maintain existing operations successful companies focus heavily on **employee retention** - if existing employees can't tapped for new positions, HR looks outside either permanent or **contingent employees** (fulfill responsibilities of regular employees but on temp basis) - **1/3 US workers** are contingent either contractors & freelancers -**signs portion continue to grow**

**Incentives**

monetary payments and other rewards of value used for positive reinforcement many companies use either monetary payments or other rewards of value as positive reinforcement to motivate employees to achieve specific performance targets. like praise, public recognition, incentive programs become important during economic slowdowns, when many employers can't afford to give big salary increases and companies aren't growing fast enough to create opportunities for career advancement **can encourage bad behavior** i.e employee gets compliment after taking credit for someone else's work positive feedback might encourage him or her to act unethically again next opportunity arises

Equity Theory

the idea that employees base their level of satisfaction on the ration of their inputs to the job to the outputs or rewards they receive from it state of **inequity** doing same job as peer, learn he makes more money perceive this to remedy perception of inequity, might ask for raise, not work as hard, try to change perceptions of efforts or outcomes, quit or find new job any of these potential bring perceived input-to-output back into balance areas of equity issues: complaints gender pay fairness, executive compensation, unionizing efforts, employee belief unfair share corporate profits or asked to share more than fair share hardships research led to thinking about broader concept of **organizational justice** or perceptions of fairness in workplace perceptions relate to outcomes, processes used to generate those outcomes, way employees are treated during the process no reasonable employee expects to make as much as CEO as long as process seems fair (both employee & CEO pay related to performance example) most employees satisfied, disparity won't affect motivation - perceptions of fairness have as much impact on overall employee satisfaction as satisfaction w/ pay itself

**What Is Motivation?**

**motivation is the combination of forces that move individuals to take certain actions and avoid other actions** **satisfying all four is essential to being motivated** **-Engagement -The drive to acquire -The drive to bond -The drive to comprehend -The drive to defend**

Taylor's Scientific Management

Frederick W. Taylor machinist engineer from Philadelphia - studied employee efficiency/motivation late 19th 20th centuries **credited w/ developing scientific management** approach sought to improve employee efficiency through scientific study of work. - popularized financial incentives for good performance - revolutionized business - direct influence on rise of US as global industrial power in first half 20th century money significant motivator for workers under scientific management didn't consider other elements i.e. opportunities for personal satisfaction - can't explain why successful exec take huge pay cut to serve in govt or nonprofit organization

Decision Point: Anita's Situation Your first employee meeting is with Anita, who works in the cosmetics department. She is one of the more senior employees at Swazzi. "As you can tell, I'm a little bit older than most of the other sales associates around here," she says with a grin, "and I've been here for quite a few years. I've seen a lot of changes at Swazzi over the years, but I think this change with the new commission plan stinks! It used to be that, the longer you were here, the higher the commission you'd earn. Now they've changed it so that we all get the same rate. I know more about our product lines than anyone else here, but someone who gets hired two weeks ago and doesn't know the difference between moisturizer and toner gets paid the same amount that I do. How is that fair? Doesn't experience count for anything?" In terms of equity theory, what appears to be the reason for Anita's lack of motivation? Select an option from the choices below and click Submit. Anita's job lacks motivating factors such as achievement, recognition, advancement, and growth. Anita believes that she is receiving fewer inputs relative to her outputs compared to her peers. Anita does not value the organizational rewards being offered, so she is unwilling to put forth the effort to perform in her job. Anita believes that she is contributing more inputs than her peers but not receiving more outputs

You chose that she is contributing more inputs but not receiving more outputs. That was the best choice. According to equity theory, inputs are what people contribute to their jobs in terms of time, effort, education, and experience. Outputs are what they receive in return, such as salary, benefits, recognition, and security. Anita perceives that she contributes more inputs (in terms of her experience and product knowledge) but receives the same outputs (i.e., commission) as her peers. You chose that she does not value the organizational rewards. That was an incorrect choice. This better describes expectancy theory, which asserts that people are motivated to work towards rewards that they want and that they believe they have a reasonable chance of obtaining Adams' Equity Theory calls for a fair balance to be struck between an employee's inputs (hard work, skill level, acceptance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition, and so on).

**succession planning**

workforce planning efforts that identify possible replacements for specific employees, usually senior executives

Motivating with Challenging Goals

•Goal setting theory - SMART goals -Goals must be specific -Goals must be measurable -Goals must be assignable (ownership) -Goals must be relevant - Goals must be time-based (due dates)

**contingent employees**

nonpermanent employees, including temporary workers, independent contractors, and full-time employees hired on a probationary basis.

Learning Objective 6: List five managerial strategies that are vital to maintaining a motivated workforce.

SUMMARY: No matter which motivational theories a company chooses to implement in its management policies and reward systems, managers can motivate employees more effectively by (1) providing timely and frequent feedback, (2) personalizing motivational efforts as much as possible while still being fair to all employees, (3) adapting motivational tactics to circumstances and special needs, (4) addressing workplace negativity before it has a chance to destroy morale, and (5) being inspirational leaders.

Managing a Diverse Workforce

**Diversity** * all the characteristics and experiences that define each of us as individuals * includes race, age, military experience, parental status, marital status, and thinking style **Sexism** * discrimination on the basis of gender **Glass ceiling** * an invisible barrier that can be attributed to subtle discrimination keeping women and minorities out of the top positions in business **Diversity initiatives** * programs and policies that help companies support diverse workforces and markets

Employee Benefits and Services

**Employee benefits** * compensation other than wages, salaries, and incentive programs **Cafeteria plans** * flexible benefit programs that let employees personalize their benefits packages

3 Approaches to Job Enrichment, Job Enlargement, Cross-Training

**Job enrichment** - (**expands vertically**) strategy behind **job enrichment** is to make jobs more challenging & interesting by expanding the range of skills required. * expanding upward * giving employees some responsibilities previously held by managers i.e. previously asked to prepare presentations for manager now asked to present too * needs to be approached carefully * some employees respond well, others increased responsibility more stressful than inspirational **Job enlargement** - **more horizontal expansion** - * adds tasks not more challenging * if gives workers more to do won't motivate but **demotivate** * if jobs enlarged to increase worker knowledge expansion improve job satisfaction **Cross-training** - job enrichment & job enlargement expand **scope of individual job** **cross-training or job rotation** trains workers to **perform multiple jobs** **rotating** through various jobs to combat boredom or burnout * valuable in lean manufacturing b/c lets companies keep staffs small as possible. assign people where needed to handle fluctuations in workflow * tight economy, cross-training helps companies address task needs w/o adding new staff

**Classical Theories of Motivation:** **Scientific Management** **Hawthorne Studies and the "Hawthorne Effect"** **Maslow's Hierarchy of Needs** **Theory X** **Theory Y** **Herzberg's Two Factors** **McClelland's Three Theory**

**Scientific management**- a management approach designed to improve employees' efficiency by scientifically studying their work **Frederick W. Taylor** machinist/engineer Philadelphia studied employee efficiency and motivation in late 19th & 20th century

Learning Objective 1: Define motivation, and identify the classical motivation theories.

SUMMARY: Motivation is the combination of forces that prompt individuals to take certain actions and avoid others in pursuit of individual objectives. Research suggests that four drives underlie all motivation: the drive to acquire tangible and intangible rewards, the drive to bond with others, the drive to comprehend, and the drive to defend. The classical motivation theories and research that helped shape today's thinking include Taylor's scientific management, the Hawthorne studies, Maslow's hierarchy of needs, McGregor's Theory X and Theory Y, Herzberg's two factors, and McClelland's three needs.

Decision Point: Updating the Job Description You meet with the Manager of Human Resources, who suggests that the two of you first update the job description. Keeping in mind the profile of the position, which of the following would you list as work experiences required for the job? Select an option from the choices below and click Submit. 3+ years in marketing and promotion 3+ years' experience selling medical products 3+ years' experience in the health sector

You chose 3+ years' experience selling medical products. This was the best choice, because the position that needs to be filled is that of a sales representative for medical products, and work experience in sales in that field is an essential requirement to perform the job effectively.

Retirement Benefits

**Retirement Plans** * Company-sponsored programs for providing retirees with income **401 (k) plan** * a defined-contribution retirement plan in which employers often match the amount employees invest **Employee stock-ownership plan (ESOP)** * a program that enables employees to become partial owners of a company

McClelland's Three Needs

David McClennand's model of motivation that highlights the needs for power, affiliation, and achievement highlights the **need for power** (having and demonstrating - control over others) **need for affiliation** (being accepted by others and having opportunities for social interaction) and the **need for achievement** (attaining personally meaningful goals) **A LOT** of research validating McClelland's ideas and to explain particular outcomes in the workplace. i.e. those w/ high need for achievement tend to make successful entrepreneurs, but this focus on personal achievement can actually get in the way of managerial effectiveness, which relies on the ability to influence others toward shared goals. Conversely, managers who are most successful in a conventional organizational structure tend to have a higher need for power and relatively little need for affiliation. Less concerned w/achieving personal goals, or being well liked than are w/ building up influence needed to get things done through other people. **BIGGEST DRAWBACK** helps explain motivation in various contexts BUT approach limited practicality terms identifying needs and crafting motivational programs harness in beneficial directions **3 needs** subconscious, according to MCClelland, trained experts required to help identify them in each individual

12. Which of the following is defined as dismissing employees for poor job​ performance? A. Contingent employees B. Turnover rate C. Employee burnout D. Termination Your answer is correct. E. Worker buyouts

termination

Learning Objective 4: Explain the steps used to develop and evaluate employees.

SUMMARY: The effort to develop and evaluate employees includes providing performance appraisals, managing training and development programs, and promoting and reassigning employees. Managers use performance appraisals to give employees feedback and develop plans to improve performance shortcomings. In a 360-degree review, an employee is evaluated by subordinates (if applicable), peers, and superiors. Training and development efforts begin with orientation for new hires and continue throughout a person's career in many cases. When employees have reached sufficient skill levels to take on new challenges, they may be considered for promotion into positions of more responsibility.

5. ABC Electronics is a successful computer manufacturing company. ABC has a predetermined set of criteria for how every job should be done and what the production level should be. Which of the following should ABC use to objectively evaluate employees according to these​ criteria? A. Workforce analytics B. Job description C. Job specification D. Skills inventories E. Performance appraisals

performance appraisals

Incentive Programs

companies provide managers & employees w/ **incentives** to encourage **productivity, innovation, and commitment to work** - usually cash payments linked to specific goals for individual, group or company wide performance **success often depends on how closely incentives linked to actions w/in employee's control **bonus** for salaries/wage-earning employees - payment in addition to the regular wage or salary **commissions** form of compensation pays employees in sales positions based on level of sales make w/in given time frame **profit sharing** rewarding employees for staying w/ company encouraged to work harder - system employees receive a portion of company's profits **gain sharing** (similar to profit sharing) -ties rewards to profits for cost savings achieved by meeting specific goals such as quality and productivity improvement **pay for performance** (variation gain sharing) requires employees to accept a lower base pay but rewards them w/ bonuses, commissions, or stock options if they reach agreed-on goals - success depends on complemented effective feedback systems let employees know how performing throughout year **knowledge-based pay or competency-based pay or skill-based pay** tied to employees' knowledge and abilities rather than to job = more than half US companies use some variation of this incentive

Reinforcing High-Performance Behavior

challenging goals and creative job designs can motivate employees to higher levels of performance, managers need to make sure performance is sustained employees in workplace tend to repeat behaviors that create positive outcomes for themselves, avoid or abandon behaviors bring negative outcomes

24. Under the Fair Labor Standards​ Act, full-time employees are not eligible for overtime if they are​ __________. A. nonexempt B. exempt Your answer is correct. C. paid for knowledge D. paid for performance E. commissioned

exempt

11. Which of the following is a reward of value used as positive reinforcement to motivate employees to achieve specific performance​ targets? A. Chaining B. Reinforcement C. Behavior modification D. Punishment E. Incentive

incentive

15. The employment life cycle begins with​ ________. A. recruiting Your answer is correct. B. ​at-will employment C. outplacement D. orientation E. rightsizing

recruiting

4 contemporary staffing challenges

**Contemporary Staffing Challenges**: 1. **aligning the workforce** - **matching right jobs at right time** - **external**: changes in market needs, moves by competition, advances in technology new regulations affect ideal size/composition of workforce. - **internal**: shifts in strategy, technological changes, growing or declining product sales force managers realign workforces 2. **fostering employee loyalty** - most companies can't guarantee long-term employment, but want employees commit to company - w/ increasing # temp emp./ind. contractors challenge grow 3. **monitoring workloads & avoiding employee burnout** - companies try to beat competitors & keep workforce costs to min. managers be on guard for **employee burnout** -state of physical & emotional exhaustion can result from constant exposure to stress over long period of time. - **downsides of nonstop electronic connectivity** many employees struggle to separate work life from personal life create feeling work never ends 4. **managing work-life balance** - concern over workloads one of factors behind interest in **work-life balance** - idea employees, managers, and entrepreneurs need to balance competing demands of professional & personal lives. - many companies trying make easier for employees juggle responsibilities w/ on-site day-care, flex work schedules, other options to improve **quality of work life (QWL)** i.e. Zappos make workplace enjoyable as possible to minimize stress/relieve monotony of repetitive business tasks.

Herzberg's Two Factors Theory

a model that divides motivational forces into satisfiers ("motivators") and dissatisfiers ("hygiene factors") 1960s Frederick Herzburg/Assoc. explored aspects of jobs that make employees feel satisfied or dissatisfied found 2 different sets of factors associated w/ dissatisfying and satisfying work experiences **hygiene factors** associated w/ dissatisfying experiences - are mostly extrinsic and include working conditions, company policies, pay, and job security **motivators** are associated w/ satisfying experiences - tend to be intrinsic - include achievement, recognition, responsibility, other personally rewarding factors Herzberg's model - managers need to remove dissatisfying elements AND add satisfying elements - **doing one or the other is not enough** 2 factory theory seems logical/helps explain motivation puzzle - criticized b/c methodology used in research & inability of subsequent research to validate model - strong causal link between customer satisfaction and profitability, far less clear whether satisfied employees automatically lead to satisfied customers

**Job Characteristics Model**

a model suggesting that five core job dimensions influence three critical psychological states that determine motivation, performance, and other outcomes. proposed by Richard Hackman and Greg Oldman proven to be reliable way to predict effects of **5 core job dimensions** on employee motivation and other positive outcomes 1. ** skill variety** —the range of skills and talents needed to accomplish the responsibilities associated with the job. The broader the range of skills required, the more meaningful the work is likely to be to the employee. 2. **Task identity** —the degree to which the employee has responsibility for completing an entire task. Greater task identity contributes to the sense of meaning in work. 3. **Task significance** —the employee's perception of the impact the job has on the lives of other people. 4. **Autonomy**—the degree of independence the employee has in carrying out the job. 5. **Feedback**—timely information that tells employees how well they're doing in their jobs. **3 Critical Psychological States** 1. **Experienced meaningfulness of the work**—a measure of how much employees care about the jobs they are doing. 2. **Experienced responsibility for results**—the sense each employee has that his or her efforts contribute to the outcome. 3. **Knowledge of actual results**—employees' awareness of the real-life results of their efforts. As psychological states increase in intensity, lead to improvements in motivation, performance job satisfaction, absenteeism (amount of time employees miss work), and turnover (the rate at which employees leave their jobs) **if employees believe their work is meaningful, believe their individual efforts are responsible at least in large part for the outcome of that work, and can see evidence of the results of their efforts, they are likely to be more motivated than would be otherwise** reverse is also true employees believe work is meaningless, don't much responsibility for outcome, or who never get to see results of their efforts aren't likely to motivated or satisfied. * final aspect job characteristics research - how various types employees respond to change in core job dimensions - employees w/ strong **growth needs** - they feel strong need to increase self-esteem and self-actualization, respond more dramatically to improvements in job dimensions - improvements in critical psychological states lead to greater increases in their motivation and other positive outcomes employees who feel little intrinsic need to grow can be among most difficult to motivate, no matter what steps managers take i.e. as more companies rely on temp workers to control costs or acquire skills needed for specific projects, managers need to think carefully about ways they supervise permanent vs. temp employees - temp workers may need assigned discrete tasks have enough task identify/autonomy to provide sense of ownership & control - managers need to make sure they don't take permanent employees for granted & fail give them adequate feedback about their efforts

Human Resources (HR) Management

the specialized function of planning how to obtain employees, oversee their training, evaluate them, and compensate them

2. Human Resources helps managers align employee skill sets with the requirements of each position in which of the following​ ways? A. Offering ESOP B. Developing worker buyouts C. Rightsizing D. Appraising employee performance E. Matching employee benefits through cafeteria plans

appraising employee performance

6. Which of the following techniques is utilized in explaining behaviors in consideration of basic human needs and the specific sequence in which those needs are​ attained? A. ​Goal-setting theory B. Expectancy theory C. Reinforcement theory D. ​Maslow's hierarchy Your answer is correct. E. Theory Y

Maslow's hierarchy

1. Under the Fair Labor Standards​ Act, full-time employees are not eligible for overtime if they are​ __________. A. nonexempt B. commissioned C. exempt D. paid for performance E. paid for knowledge

exempt

motivation

one of most important challenges every manager faces no matter how skillful employees are, how supportive work environment is, w/o motivation to excel, won't perform at high level what motivates one person may even demotivate another some of forces motivate behavior stem from deep w/in subconscious mind, means you're driven by forces don't understand or identify **motivation is the combination of forces that drive individuals to take certain actions and avoid others in pursuit of individual objectives** **drive and actions are key to understanding motivation**

Alternative Work Arrangements

**flextime** - scheduling system allows employees to choose their own hours, w/in certain limits. **telecommuting** - working from home or another location using electronic communications to stay in touch w/ colleagues, suppliers, customers - helps employees balance professional & personal commitments b/c spend less time in transit home & work **saves energy, traffic, mass transit overload** not every exec believes its workable HP & Yahoo curbed telecommuting to foster collaboration but Yahoo monitor workers closely **Job sharing** lets two employees share single full-time job - split salary & benefits, for people want part-time hours situations normally for full-time employees. **most challenging** situations employees want limit work time or leave workforce entirely period of time raise children, attend school, volunteer, pursue other interests - programs Deloitte's mass career customization give employees more freedom in designing own career paths

**sexual harassment**

**unwelcome sexual advance, request for sexual favors, or other verbal or physical conduct of a sexual nature within the workplace**. **defined as either an obvious request for sexual favors with an implicit reward or punishment related to work, or more subtle creation of a sexist environment in which employees made to feel uncomfortable by lewd jokes, remarks, or gestures** majority experienced by women, men too

Motivational Strategies

•Providing timely and frequent feedback •Making it personal •Gamifying for healthy competition •Adapting to circumstances and special needs •Addressing workplace negativity •Being an inspiring leader •Motivating yourself

Reinforcing High-Performance Behavior

•Types of reinforcement -Positive •Incentives -Negative •Unintended consequences of reinforcement

Developing and Evaluating Employees Appraising Employee Performance

**performance appraisals or performance reviews*** objectively evaluate employees according to set criteria **ultimate goal of performance appraisals is not to judge employees but guide them in improving their performance** **worst outcome in annual review is negative surprise i.e. employee been working toward different goals than manager expects or been underperforming throughout year but didn't receive feedback or improvement coaching** to avoid negative surprises managers should meet w/employees - to agree on clear goals for upcoming yr - provide regular feedback & coaching - annual review more of confirmation of past year's performance and planning session for next yr **ultimate in multidimensional reviews is 360-degree review in which person given feedback from subordinates (if employee has supervisory responsibility), peers, superiors, possibly customers or outside business partners - uncovers weaknesses employees and direct managers unaware of & contributions/achievements overlooked in normal reviews** in addition to formal periodic evaluations, companies evaluate workers performance continuously using **electronic performance monitoring (EPM) or computer activity monitoring** - customer service/telephone sales representatives evaluated by number of calls complete per hr. EPM generate controversy elevating stress levels raising concerns about invasion of privacy **used as development tool rather than disciplinary tool helps employees accept practice

Retirement Benefits

**retirement plans** designed to provide continuing income after employee retires **defined-benefit plans** companies specify how much pay employees on retirement **defined-contribution plans** companies specify how much put into retirement fund (i.e.match employee contributions) w/o guaranteeing specific payout levels during retirement **BOTH technically pension plans** but most people referring to traditional defined-benefit plans which are less common that yrs past **defined- contribution plans** - similar to savings plans - provide future benefit based on annual employer contributions, voluntary employee matching contributions, & accumulated investment earnings. **Types of defined contribution plans** ** 401 (k) plan** most common ** employee stock-ownership plan (ESOP)** more than 10 million US employees now enrolled - company places some of all of its stock in trust w/ each eligible employee entitled to certain portion (most ESOPs are in closely held corporations whose stock not available ** Most companies report ESOPs help boost employee productivity b/c workers perceive direct correlation between efforts and value of company stock price**

Stock Options

**stock option plan - method for tying employee compensation to company performance** - grant employees right to purchase a set number of shares of employer stock specific price called **grant** or **exercise price** during certain time period options **Vest** over number of years - employees can purchase prorated portion of shares every year until vesting period is over then can purchase all shares entitled to **stock option from employers pov are provide means of compensation not require cash outlay & means motivating employees work hard make sure stock price increases** waned recently change in accounting rules forced companies account for value for outstanding option in annual financial reports - before investors/regulators argued companies hiding true costs of options reporting inflated earnings controversy exec comp = 1. recipient's pov no real risk 2. lack risk exposure lead to riskier decision making **CEO compensated primarily through stock option tend make poorer decisions regarding acquisitions and companies more likely experience accounting irregularities**

The Hawthorne Studies and the **Hawthorne Effect**

1924-1932 series pioneering studies employee motivation/productivity Hawthorne Works of the Western Electric Company Chicago **example of how management ideas can get oversimplified/misunderstood over course of time** Began as experiment in scientific management - testing the effect of various levels of electric lighting on worker productivity researchers varied lighting level one group (experimental group) kept same lighting for second (control group) both groups engaged tedious/exacting task wrapping wire to make telephone coils assumed lighting played key role eye strain factors influencing productivity didn't expect to see productivity increase in **BOTH** groups - lighting level increased experimental group productivity increased both groups even when lighting lowered for experimental group **NO CORRELATION** level of lighting & level of productivity observed productivity increased in control group though no change to environment eventually concluded group norms affected individual performance more than any other factor and to understand employee performance need to understand employee's total emotional & cultural makeup on & off job Hawthorne studies launched entire field of industrial psychology enlighten practice management

Major Employment Legislation

Labor and Unionization: Legislation: **National Labor Relations Act AKA the Wagner Act** * establishes the right of employees to form, join, and assist unions and the right to strike; prohibits employers from interfering in union activities **Labor-Management Relations Act, AKA Taft-Hartley Act** * expands union member rights; gives employers free speech rights to oppose unions; restricts union's strike options; gives the president the authority to impose injunctions against strikes **Labor-Management Reporting and Disclosure Act, AKA Landrum-Griffin Act** * gives union members the right to nominate and vote for union leadership candidates; combats financial fraud within unions **State right-to-work laws** - give individual employees the right to choose not to join a union **Fair Labor Standards Act** * establishes minimum wage and overtime pay for nonexempt workers; sets strict guidelines for child labor **Immigration Reform and Control Act** * prohibits employers from hiring illegal immigrants ** Workplace safety** **State worker's compensation acts** * require employers (in most states) to carry either private or govt sponsored insurance that provides income to injured workers **Occupational Health and Safety Act** * empowers the Occupational Safety and Health Administration (OSHA) to establish, monitor, and enforce standards for workplace safety **Compensation and Benefits** **Employee Retirement Income Security Act** * governs the establishment and operation of private pension programs **Consolidated Omnibus Budget Reconciliation Act (usually known by the acronym COBRA)** * requires employers to let employees or their beneficiaries buy continued health insurance coverage after employment ends **Federal Unemployment Tax Act & similar state laws** * requires employers to fund programs that provide income for qualified unemployed persons **Social Security Act** provides a level of retirement, disability, and medical coverage for employees and their dependents; jointly funded by employers and employees ** Lilly Ledbetter Fair Pay Act** amends and modifies several pieces of earlier legislation to make it easier for employees to file lawsuits over pay and benefit discrimination **Patient Protection and Affordable Care Act** requires companies with more than 50 full-time employees to offer health insurance coverage for employees

Management by Objectives (MBO) **one of key elements of MBO is the collaborative goal-setting process** **manager & employee define employee's goals, responsibilities achieving goals, means of evaluating individual/group performance so employee's activities directly linked to achieving organization's long-term goals**

Management by objectives *MBO) 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.

Learning Objective 6: Identify the most significant categories of employee benefits and services.

SUMMARY: The major types of employee benefits are insurance and retirement benefits. Companies may help employees with the cost of many types of insurance, including life, health, dental, vision, disability, and long-term care. Retirement programs fall into two basic categories: defined-benefit programs, which promise a specific amount per month after retirement, and defined-contribution programs, in which the company contributes a certain amount per month or year to an investment account but doesn't guarantee payment levels after retirement. Other important benefits are paid vacations and sick leave, family and medical leave, child- and elder-care assistance, tuition reimbursements or loans, and employee assistance programs that deal with personal matters such as substance abuse or domestic violence.

Learning Objective 3: Describe the three phases involved in managing the employment life cycle.

SUMMARY: The three phases of managing the employment life cycle are hiring, termination, and retirement. The hiring phase typically involves six steps: selecting a small number of qualified candidates from all of the applications received, screening those candidates to identify the most attractive prospects, interviewing those prospects in depth to learn more about them and their potential to contribute to the company, evaluating and comparing interview results, conducting background checks and preemployment tests, and then selecting the best candidate for each position and making job offers. Termination can involve firing employees for poor performance or other reasons or laying off employees for financial reasons. Retirement offers a variety of challenges depending on the industry and the company's situation; overstaffed companies may induce some employees to retire early through buyouts, whereas others that face talent shortages may try to induce retirement-age employees to delay retirement.

Learning Objective 3: Identify the strengths and weaknesses of goal-setting theory.

Summary: Setting challenging goals has proven to be a dependable way to inspire employees to high levels of performance; goal setting is the foundation of a popular management system known as management by objectives (MBO). In addition to being widely used, goal-setting theory is strongly supported by experimental research. The weaknesses of goal setting generally lie in ways that the pursuit of goals can distort behavior. Potential problems include overly narrow or overly challenging goals, inappropriate time horizons, unintentional performance limitations, missed learning opportunities, unhealthy internal competition, and decreased intrinsic motivation.

management by objectives (MBO)

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 goal-setting theory implemented through technique MBO - companywide process that empowers employees and involves them in goal setting & decision making. 4 Steps: 1.** Setting goals** Top managers work w/ middle managers, then middle managers work w/ first-line managers to develop goals for their respective work groups. At same time,, managers and employees at all levels collaborate w/ their supervisors to set individual goals for performance 2. **Planning actions to meet those goals** Managers determine exactly how their individual and group goals will be accomplished. To ensure that goals are reached on time, a schedule is prepared for the action plan. 3. **Implementing the plans** Managers and employees implement their plans in their own way, which allows them to control their own performance. Their expertise gets channeled for the benefit of the organization, and they have more opportunities to develop their professional skills. 4. **Reviewing performance** Managers periodically review the performance of the people they supervise and evaluate how well the plans are achieving group and individual goals. Obstacles and strategies for overcoming them are identified. Old goals may be modified or new goals established. Achievement is recognized and rewarded. **One of key elements of MBO is the collaborative goal-setting process** Together manager & employee define employee's goals, responsibilities for achieving those goals, and means of evaluating individual and group performance so employee's activities are directly linked to achieving the organization's long-term goals. Jointly setting clear/challenging but achievable goals encourage employees reach higher levels of performance, although performance alone no guarantee of higher performance. employees all levels involved all 4 steps- they learn more about company objectives feel they're important part of companywide team - understand how their ind. job functions contribute to organization's long-term success

goal-setting theory

a motivational theory suggesting that setting goals can be an effective way to motivate employees the idea that carefully designed goals can motivate employees to higher performance, one of most important contemporary theories of motivation - widely used & strongly supported by experimental research - some researchers assert that benefits of goal setting been overstated & risks understated partly b/c research studies fail to measure the full consequences of goal-driven behaviors For goals to function as effective motivators meet criteria: - Goals that are specific enough to give employees clarity and focus - Goals that are difficult enough to inspire energetic and committed effort - Clear "ownership" of goals so that accountability can be established - Timely feedback that lets people know if they're progressing toward their goals and, if not, how to change course - Individuals' belief in their ability to meet their goals - Cultural support for the individual achievement and independence needed to reach the goals ** today's companies face challenges increasing global competition & slow economy - goal setting play more important role next step in understanding motivation after expectancy & equity theories insight into why employees make choices they do is explore specific leadership strategies that motivate employees

Types of Reinforcement

can be positive or negative - usually equated with praise for desirable behavior and criticism or punishment for undesirable behavior different/specific meanings in psychological terminology both positive & negative reinforcement encourage behaviors to be repeated = difference is in how do it

**wages**

cash payment based on the number of hours an employee has worked or the number of units an employee has produced

**Negative reinforcement** **encourages particular behavior to be repeated through reduction, removal, absence of unpleasant outcome** **FEAR powerful motivator BUT adds stress & anxiety eventually lead to burnout & attrition as employees decide don't want to deal w/ constant pressure** **punishment effective way to discourage BUT NOT PERMANENT can create serious morale problems**

encouraging the repetition of a particular behavior (desirable or not) by removing unpleasant consequences for the behavior also encourages particular behavior to be repeated, but does so through reduction, removal, absence of unpleasant outcome i.e.received complaints about publicly humiliating your employees after taking over as dept manager but complaints dwindle over time, people gave up accepted your poor behavior, their silence encourage you to continue being a bully people misinterpret **negative reinforcement** when actually talking abut **punishment** which refers to actions used to diminish the repetition of unwanted behaviors by adding unpleasant outcomes of 3 possibilities positive reinforcement only one injects positive energy into situation. fear can be powerful motivator, also adds stress and anxiety eventually lead to burnout and attrition as employees decide don't want to deal w/ constant pressure punishment effective way to discourage behaviors, not always permanent, create serious morale problems

**Insurance**

life, health, dental, vision, disability, long-term care insurance **no other issue illustrates challenging economics of business today better than health-care costs in general and health insurance in particular** **medical costs rising faster than inflation** **particularly acute for small businesses w/o purchasing power of lg corps** **US spends enough to provide adequate health care for all , but healthcare sector plagued by waste, inefficiency, imbalance** **per capita, US spends more on health care than any other country but quality of care in US lower than many countries** **Affordable Care Act (ACA) of 2010, Obamacare**, sought tackle issue in US Healthcare, uninsured ACA requires companies w/ 50 or more workers provide health insurance benefits for employees & people who don't get insurance through work buy individual policies = millions now have insurance but ACA resulted in **higher premiums** for millions who had been buying own insurance

Salaries and Wages

most employees receive bulk of compensation form of **Salary** fixed amount per year or **Wages** if paid by unit of time (hourly, daily, weekly) **Fair Labor Standards Act 1938** sets specific guidelines employers must follow when administering salaries and wages, including setting minimum wage and paying overtime for time worked beyond 40 hours week **most professional & managerial employees considered exempt from these regulations** - their employers don't have to pay them for overtime **Distinction between exempt employees & nonexempt** based on job responsibilities and pay level - **salaried employees exempt** w/ many exceptions companies need to manage compensation allows earn profit, create appealing goods/services, & compete w/ other companies for same employees **firm could attract most needed talent paying huge salaries but not be profitable or keep salaries low to hold down costs, but couldn't attract talent to be competitive might not generate enough revenue** **compensation is dictated by prevailing conditions in job market & value each employee brings to the organization** variables: * geography (locations higher living expenses higher salaries) * industry * company size (larger companies pay more) **few jobs have except sales immediate & measurable impact on revenue makes difficult say how much employees worth** **people expect to get paid what believe they are worth** **(see equity theory** **CEO 1950s made 20 x more avg workers, today CEO major corps makes 200-300 x more than avg worker** Are they worth 10 or 15 x more valuable than CEOs of yrs past?

**Expectancy Theory**

the idea 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. * considered by some experts offer best available explanation of employee motivation - connects employee's efforts to outcome he/she expects from efforts - focuses less on specific forces that motivate employees - more on process they follow to seek satisfaction in their jobs Effort employees put forth depends: 1. their expectations regarding the level of performance they will be able to achieve 2. their beliefs regarding the rewards that the organization will give in response to that performance 3. the attractiveness of those rewards relative to their individual goals Employee perspective: 1. if you don't believe the amount of effort you're willing or able to apply to a task will result in an acceptable level of performance, a natural response will be to say why bother? uncertainty from various sources - doubts skills, confusion about task, belief "the system" is broken = no matter how hard try, can't succeed **self-efficacy** belief in your ability to complete a task it can be increased by gaining experience, mimicking successful role models getting encouragement from others, sometimes "psyching yourself up" as manager challenges are ensure employees **have skills/confidence need** ** tasks clearly defined*** **company policies & processes functional** 2. whether organization will recognize & reward your performance -knowing done great work own reward for some employees not enough - as manager challenges include est. reward systems/expectations to minimize employee uncertainty/taking time from daily chaos to acknowledge efforts employees make 3.. confident in your performance/organization's response third concern whether promised reward something you value - offered raise,but what you want it your boss to acknowledge how important your contributions have been to company? Manager - align rewards w/ employee priorities ongoing challenge