Chapter 9

Motivating,
Satisfying, and
Leading Employees

PowerPoint Presentation by Charlie Cook

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All rights reserved.
 Key Topics
• Psychological contracts in the workplace
• Job satisfaction and employee morale
• Theories of employee motivation
• Job satisfaction and employee motivation
• Managerial styles of leadership

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 Psychological Contract: A Set of
Employment Expectations
• Contributions:
 What does each employee expect to contribute to
the organization?
• Inducements:
 What will the organization provide to each
employee in return?

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 Satisfied Employees Are More
Productive and More Committed
• Job Satisfaction:
 Degree of enjoyment
employees derive from doing

TURNOVER
MORALE
their jobs
• High Morale:
 An overall positive employee
attitude toward the workplace

TURNOVER
• Low Turnover:

MORALE
 A low percentage of
employees leave each year

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 Raising Morale Is a High Priority When
Unemployment Is Low
0% 10% 20% 30% 40% 50% 60%

Alternative W ork Arrangements

Long-term Care Insurance

Group Financial Planning

Group Auto Insurance

Group Home Owners Insurance

NA
1994 1997 2000
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 Highly Motivated Employees Are
Critical to Business Success
• Motivation
 The set of forces that cause people to behave in
certain ways
• Classical
• Behavior:
The Hawthorne Studies
• Contemporary

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 The Human Resources Model:
Theory X and Theory Y (McGregor)
• Theory X • Theory Y
 People are lazy.  People are energetic.
 People lack ambition and  People are ambitious and
dislike responsibility. seek responsibility.
 People are self-centered.  People can be selfless.
 People resist change.  People want to contribute
to business growth and
 People are gullible and
change.
not very bright.
 People are intelligent.

Table 9–1
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 Equity Theory
• Employees evaluate their treatment relative to
the treatment of others
 Inputs: Employee contributions to their jobs
 Outputs: What employees receive in return
• The perceived ratio of contribution to return
determines perceived equity.

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 Strategies for Enhancing Job
Satisfaction and Morale
• Reinforcement/behavior modification
• Management by objectives
• Participative management
and empowerment
• Job enrichment and
job redesign
• Modified work schedules

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 Reinforcement/Behavior Modification
Theory

Punishment
When negative consequences are
attached directly to undesirable
behavior.

Positive Reinforcement
When rewards are tied directly to
performance.
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 Management by Objectives (MBO):
Collaborative Goal-setting

Collaborative Communicating
Periodic
Goal Setting Organizational Evaluation
Review
and Planning Goals and Plans

Meeting
Setting
Verifiable Goals
and Clear Plans
Counseling
Identifying
Resources

Figure 9–5
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 Participative Management and
Empowerment
• Increasing job satisfaction by
encouraging participation
• Team management
represents a
growing trend.

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 Job Enrichment and Job Redesign
• Job Enrichment:
 Adding one or more motivating factors to job
activities
• Job Redesign:
 Designing a better fit between workers and their
jobs
 Combining tasks
 Forming natural work groups
 Establishing client relationships

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 Modified Work Schedules
• Work share programs
• Flextime programs and
alternative workplace
strategies
• Telecommuting and
virtual offices

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 Evaluating Modified Schedules and
Alternative Workplaces
• Advantages • Disadvantages
 More satisfied, committed  Challenging to coordinate
employees and manage
 Less congestion  Poor fit for some workers

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 Managerial Leadership

The process of
motivating others
to work to meet
specific objectives

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 Managerial Styles

Autocratic Style
Democratic Style
Free-rein Style

Contingency Approach
The appropriate style in any situation is contingent
on the unique elements of that situation

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 Motivation and Leadership in the 21st
Century
• Motivation
 Security and pay are no
longer enough
• Leadership
 “Coach” mentality
 Diversity
 Flexibility

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 Chapter Review
• Describe psychological contracts
• Discuss the importance of job satisfaction
and employee morale
• Summarize the most important theories of
employee motivation
• Describe strategies to improve job
satisfaction and employee motivation
• Discuss different managerial styles

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