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Motivating and Managing

People and Groups in

Business Organizations

2007 The McGraw-Hill Companies, Inc., All RightResere!.

McGraw-Hill/Irwin

Introduction to Business

Chapter Seven

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Chapter 7

Motivating and Managing People and Groups in

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1. Understand the nature and sources of work motivation andappreciate motivation is under the voluntary control of anemployee.

2. Describe five different theories of work motivation andidentify how they work together to determine workmotivation.

3. Identify the characteristics of groups and teams anddistinguish between important types of groups and teams.

4. !plain the factors that create high"performance groups andteams.

#. Identify the sources of organi$ational conflict and understandhow bargaining and negotiation is used to resolve conflicts

between people and groups.

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

% very company strives to produce and market the kind

of goods customers want so it can generate high

revenues and profits to benefit all its stockholders

% & critical determinant of a company's ability to

motivate is its human resources

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Managing People

% (eaders try to influence and persuadeemployees to develop work behaviors and

attitudes that lead to increased efficiency and

effectiveness

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Chapter 7Motivating and Managing People and Groups in

Business Organizations

Managing People

% )he principal determinant of employees' desireand willingness to work hard and perform at a

high level is their work motivation

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Motivating

% mployee performance may be minimal* proactive

performing effectively and efficiently* or below minimumlevel

% valuate the role of leadership in the

+ontainer ,torevideo and relate to influence andcommunication

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Motivating% mployees know if they do not perform at the

minimum level they risk being punished or sanctioned

and this may motivate them to put in enough effort to

perform at the minimum level

7 9

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Motivating% (eaders need to know or understand what motivates

employees to perform at a high level and then create a

workplace that contains these motivators

7 !

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7 - !

Chapter 7Motivating and Managing People and Groups in

Business Organizations

Motivating% -aslow's hierarchy of needs state unsatisfied needs

motivate people to satisfy their needs.

7

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7 -

Chapter 7

Motivating and Managing People and Groups in

Business OrganizationsMotivating

% valuate the illustrationand e!plain the hierarchy and

relate to motivation theory

7 "

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7 - "

Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Expectancy theory% &rgues that work motivation is eual to the effort to

performance linkage and performance to valued

outcome linkage from the employee's

7 3

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Expectancy theory% )he implication for managers is they need to identify

the factors in the work situation that weaken the effort

to performance linkage and reduce motivation

7 4

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Expectancy theory

% -anagers also need to center on the need to prove toemployees there is a strong /ob performance to

outcome linkage

% &n incentive system is a good e!ample of

strengthening this linkage

7 5

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Chapter 7

Motivating and Managing People and Groups in

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% &dditional motivation theories include goal"setting

suggests the goals used to assess /ob performance need

five properties to be successful

% )hese properties are specific* challenging* and

measurable* results oriented* and specify a time frame

for completion% valuate the illustration of mployee -otivationand

relate to managing people and groups

7 6

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Motivating

% 0oal setting properties

% ,pecific

% +hallenging

% -easurable

% esults oriented

% ,pecify a time frame for completion

7 7

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Chapter 7

Motivating and Managing People and Groups in

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Management by Objectives

% -anagers can use goal"setting theory to increase

employee motivation by developing a management by

ob/ectives -5 work performance review system

% valuate the illustration of -and relate to

managing people and groups

7 - 8

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Equity Theory% 6ocuses on employee's perception of fairness of

manager's evaluation and reward of their /ob

performance

7 - 9

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Equity Theory

% )hese perceptions of fairness determine how

motivated employees will be to perform at the same or

a high level in the future and an employee's desire to

be absent from work or to search for a new /ob

7 - "!

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Equity Theory% &rgues that employees perceptions that managers are

accurately measuring their /ob performance and

distributing rewards in a fair way is a crucial factor in

determining work motivation

7 - "

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7 "

Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Equity Theory

% eveals employees' perceptions about the value of the

rewards they receive are affected by their perceptions

about the value of the rewards other is receiving aswell

% valuate the illustration of this theory"" relate tomotivating people Define fair and perception5

7 - ""

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7 ""

Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Job Enrichment

% )o encourage employees to perform at a higher level

and be more satisfied with their work* researcherssuggest manager should design /obs so that they offer

employees greater rewards or desired outcomes

% valuate 7ob nrichment 8ideos 1 9 4and relate to

motivating and managing

7 - "3

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7 "3

Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Groups

% )eams are collective and groups are linear whileemployee's interaction is minimal if any

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Groups

% )here are advantages in using groups and teams only

when managers design and manage groups correctly

% :hen groups or teams become too large problems

arise that detract from the groups performance

7 - "5

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Evaluate the role of motivation andmanagement in the Busfieldsvideo and

relate to groups in business organizations

7 - "6

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Groups% )he lack of conflict in an organi$ation suggests a lack

of creativity with too much emphasis on conformity

and the stifling of innovation and new ideas

7 - "7

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Groups% +onflict occurs inter"group and intra"group while

competing for resources and incompatible rewards

and goals and comple! task interdependencies

7 - "8

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Chapter 7

Motivating and Managing People and Groups in

Business Organizations

Groups

%;egotiation and bargaining tactics make compromise

more like likely

" emphasi$e common goals

" focus on the problem* not the people

" create opportunities for /oint gain" focus on what is fair