Mana Exam 3 study guide
Mana Exam 3 study guide 3335
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Exam 3 Review- Management Managing Human Resources Motivation Leadership Guest Speaker Lecture Chapter 11-Managing Human Resource Systems 11-1 Employment Legislation Human resource management (HRM), or the process of finding, developing, and keeping the right people to form a qualified work force, is one of the most difficult and important of all management tasks Exhibit 11.1 The Human Resource Management Process 11-1a Federal Employment Laws The general effect of this body of law, which is still evolving through court decisions, is that employers may not discriminate in employment decisions on the basis of sex, age, religion, color, national origin, race, disability, or genetic history. Title VII of the 1964 Civil Rights Act says that it is legal to hire and employ someone on the basis of sex, religion, or national origin when there is a bona fide occupational qualification (BFOQ) that is “reasonably necessary to the normal operation of that particular business.” bona fide occupational qualification (BFOQ)-an exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are “reasonably necessary to the normal operation of that particular business.” BFOQs are strictly monitored by the Equal Employment Opportunity Commission Exhibit 11.2 Summary of Major Federal Employment Laws Genetic http://www.eeoc.gov/laws/types/genetic.cfm Prohibits discrimination on the Information basis of genetic information. Nondiscrimination Act of 2008 Equal Pay Act of http://www.eeoc.gov/laws/statutes/epa.cfm Prohibits unequal pay for males 1963 and females doing substantially similar work. Title VII of the http://www.eeoc.gov/laws/statutes/titlevii.cf Prohibits employment m discrimination on the basis of Civil Rights Act of 1964 race, color, religion, gender, or national origin. Age http://www.eeoc.gov/laws/statutes/adea.cfm Prohibits discrimination in Discrimination in employment decisions against Employment Act of persons age forty and older. 1967 Pregnancy http://www.eeoc.gov/laws/statutes/pregnanc Prohibits discrimination in Discrimination Act y.cfm employment against pregnant of 1978 women. Americans with http://www.eeoc.gov/laws/statutes/ada.cfm Prohibits discrimination on the Disabilities Act of basis of physical or mental 1990 disabilities. Civil Rights Act http://www.eeoc.gov/laws/statutes/cra- Strengthened the provisions of of 1991 1991.cfm the Civil Rights Act of 1964 by providing for jury trials and punitive damages. Family and http://www.dol.gov/whd/fmla/index.htm Permits workers to take up to Medical Leave Act twelve weeks of unpaid leave for of 1993 pregnancy and/or birth of a new child, adoption or foster care of a new child, illness of an immediate family member, or personal medical leave. Uniformed http://www.dol.gov/compliance/laws/comp- Prohibits discrimination against Services userra.htm those serving in the armed forces Employment and reserve, the National Guard, or other uniformed services; Reemployment Rights Act of 1994 guarantees that civilian employers will hold and then restore civilian jobs and benefits for those who have completed uniformed service. the laws presented in Exhibit 11.2, there are two other important sets of federal laws: labor laws and laws and regulations governing safety standards. -Labor laws regulate the interaction between management and labor unions that represent groups of employees. These laws guarantee employees the right to form and join unions of their own choosing. For more information about labor laws, see the National Labor Relations Board at http://www.nlrb.gov. The Occupational Safety and Health Act (OSHA) requires that employers provide employees with a workplace that is “free from recognized hazards that are causing or are likely to cause death or serious physical harm.” This law is administered by the Occupational Safety and Health Administration (which, like the act, is referred to as OSHA). OSHA sets safety and health standards for employers and conducts inspections to determine whether those standards are being met. 11-1b Adverse Impact and Employment Discrimination -Disparate treatment, which is intentional discrimination, occurs when people, despite being qualified, are intentionally not given the same hiring, promotion, or membership opportunities as other employees because of their race, color, age, sex, ethnic group, national origin, or religious beliefs. -Legally, a key element of discrimination lawsuits is establishing motive, meaning that the employer intended to discriminate. If no motive can be established, then a claim of disparate treatment may actually be a case of adverse impact. -Adverse impact, which is unintentional discrimination, occurs when members of a particular race, sex, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained (or any other employment decision) at substantially lower rates than others. -The courts and federal agencies use the four-fifths (or 80 percent) rule to determine if adverse impact has occurred -four-fifths (or 80 percent) rule a rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact. A violation of this rule occurs when the selection rate for a protected group is less than 80 percent, or four-fifths, of the selection rate for a nonprotected group 11-1c Sexual Harassment According to the EEOC, sexual harassment is a form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs. -From a legal perspective, there are two kinds of sexual harassment, quid pro quo and hostile work environment. Quid pro quo sexual harassment occurs when employment outcomes, such as hiring, promotion, or simply keeping one’s job, depend on whether an individual submits to being sexually harassed. -example, in a quid pro quo sexual harassment lawsuit against First Student, a company that provides school bus transportation, four females alleged that a supervisor made explicit comments about their bodies and what he wanted to do to them. He was also alleged to have touched a female worker’s breasts, exposed himself, and then rubbed himself against her. When his sexual advances were refused, he punished the women by cutting their work hours, while promising longer hours to the other women if they would do what he asked. This made it a quid pro quo case by linking sexual acts to economic outcomes. A hostile work environment occurs when unwelcome and demeaning sexually related behavior creates an intimidating, hostile, and offensive work environment. In contrast to quid pro quo cases, a hostile work environment may not result in economic injury. However, it can lead to psychological injury when the work environment becomes stressful. -ex. A federal court jury found Mercy General Hospital in Sacramento, California, guilty of creating a sexually hostile work environment for Ani Chopourian, a cardiac surgery physician assistant. Chopourian was awarded $125 million in punitive damages, $3.5 million for lost wages and benefits, and $39 million for mental anguish. Chopourian was frequently subjected to touching and sex talk in the operating room. She says, “One harasser told me one day, ‘You’ll give in to me.’ I’d look at him [and say], ‘I’ll never give in to you.’ I’d look at my supervisor and say, ‘Do something.’ They’d just laugh.”Footnote She was fired after filing 18 complaints in two years. Mercy General is appealing the decision. What should companies do to make sure that sexual harassment laws are followed and not violated? 1. First, respond immediately when sexual harassment is reported. A quick response encourages victims of sexual harassment to report problems to management rather than to lawyers or the EEOC. Furthermore, a quick and fair investigation may serve as a deterrent to future harassment. 2. Then take the time to write a clear, understandable sexual harassment policy that is strongly worded, gives specific examples of what constitutes sexual harassment, spells outs sanctions and punishments, and is widely publicized within the company. This lets potential harassers and victims know what will not be tolerated and how the firm will deal with harassment should it occur. 3. establish clear reporting procedures that indicate how, where, and to whom incidents of sexual harassment can be reported. The best procedures ensure that a complaint will receive a quick response, that impartial parties will handle the complaint, and that the privacy of the accused and accuser will be protected. 4. Finally, managers should also be aware that most states and many cities or local governments have their own employment-related laws and enforcement agencies. So compliance with federal law is often not enough. In fact, organizations can be in full compliance with federal law and at the same time be in violation of state or local sexual harassment laws. 11-2 Recruiting Recruiting is the process of developing a pool of qualified job applicants. 11-2a Job Analysis and Recruiting Job analysis is a “purposeful, systematic process for collecting information on the important work-related aspects of a job. A job analysis typically collects four kinds of information: Work activities such as what workers do and how, when, and why they do it. The tools and equipment used to do the job. The context in which the job is performed, such as the actual working conditions or schedule. The personnel requirements for performing the job, meaning the knowledge, skills, and abilities needed to do a job well. Job analysis information can be collected by having job incumbents and/or supervisors complete questionnaires about their jobs, by direct observation, by interviews, or by filming employees as they perform their jobs. A job description is a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job. Job specifications, which are often included as a separate section of a job description, are a summary of the qualifications needed to successfully perform the job. Exhibit 11.3 Job Description for a Firefighter for the City of Portland, Oregon Yes, as a Firefighter you will fight fire and provide emergency medical services to your community. But it doesn’t end there: your firefighting career offers you the opportunity to expand your skills to include Hazardous Materials Response, Specialty Response Teams (dive, rope rescue, confined space, etc.), Paramedic Care, Public Education and Information, Fire Investigation, and Fire Code Enforcement. Teamwork Professional Firefighters work as a team at emergency scenes. The work day also includes training, fire station and equipment maintenance, fire prevention activities, and public education. As a Firefighter, you must be in excellent physical condition to meet the demands of the job; this means you must work quickly, handling heavy equipment for long periods of time while wearing special protective gear in hot and hazardous environments. If you can meet the challenge of strenuous work and like the idea of helping people, consider applying for the position of Firefighter. Work Schedule Portland Fire & Rescue Firefighters work a 24-on/48-off shift. This means that Firefighters report to work at 8:00 a.m. the day of their shift and continue working until 8:00 a.m. the following morning. Our Firefighters then have the following two days (48 hours) off. Firefighters are required to work shifts on holidays and weekends. Portland Fire & Rescue also has 40-hour-a-week firefighters who work in Training, Inspections/Investigations, Public Education, Logistics, and Emergency Management. These positions are usually filled after a Firefighter has met the minimum requirements for these positions. Exhibit 11.3 shows a job description for a firefighter for the city of Portland, Oregon. 11-2b Internal Recruiting Internal recruiting is the process of developing a pool of qualified job applicants from people who already work in the company. Internal recruiting, sometimes called “promotion from within,” improves employee commitment, morale, and motivation. Job posting and career paths are two methods of internal recruiting. -Job posting is a procedure for advertising job openings within the company to existing employees Job posting helps organizations discover hidden talent, allows employees to take responsibility for career planning, and makes it easier for companies to retain talented workers who are dissatisfied in their current jobs and would otherwise leave the company. -A career path is a planned sequence of jobs through which employees may advance within an organization. Career paths help employees focus on long-term goals and development while also helping companies increase employee retention. 11-2c External Recruiting External recruiting is the process of developing a pool of qualified job applicants from outside the company. -methods include advertising (newspapers, magazines, direct mail, radio, or television), employee referrals (asking current employees to recommend possible job applicants), walk-ins (people who apply on their own), outside organizations (universities, technical/trade schools, professional societies), employment services (state or private employment agencies, temporary help agencies, and professional search firms), special events (career conferences or job fairs), and Internet job sites. 11-3 Selection Once the recruitment process has produced a pool of qualified applicants, the selection process is used to determine which applicants have the best chance of performing well on the job. selection is the process of gathering information about job applicants to decide who should be offered a job Validation is the process of determining how well a selection test or procedure predicts future job performance. The better or more accurate the prediction of future job performance, the more valid a test is said to be. 11-3a Application Forms and Résumés human resource information system (HRIS) a computerized system for gathering, analyzing, storing, and disseminating information related to the HRM process. Exhibit 11.4 Don’t Ask! Topics to Avoid in an Interview 1. Children. Don’t ask applicants if they have children, plan to have them, or have or need child care. Questions about children can unintentionally single out women. 2. Age. Because of the Age Discrimination in Employment Act, employers cannot ask job applicants their age during the hiring process. Since most people graduate high school at the age of eighteen, even asking for high school graduation dates could violate the law. 3. Disabilities. Don’t ask if applicants have physical or mental disabilities. According to the Americans with Disabilities Act, disabilities (and reasonable accommodations for them) cannot be discussed until a job offer has been made. 4. Physical characteristics. Don’t ask for information about height, weight, or other physical characteristics. Questions about weight could be construed as leading to discrimination toward overweight people, and studies show that they are less likely to be hired in general. 5. Name. Yes, you can ask an applicant’s name, but you cannot ask a female applicant for her maiden name because it indicates marital status. Asking for a maiden name could also lead to charges that the organization was trying to establish a candidate’s ethnic background. 6. Citizenship. Asking applicants about citizenship could lead to claims of discrimination on the basis of national origin. However, according to the Immigration Reform and Control Act, companies may ask applicants if they have a legal right to work in the United States. 7. Lawsuits. Applicants may not be asked if they have ever filed a lawsuit against an employer. Federal and state laws prevent this to protect whistleblowers from retaliation by future employers. 8. Arrest records. Applicants cannot be asked about their arrest records. Arrests don’t have legal standing. However, applicants can be asked whether they have been convicted of a crime. 9. Smoking. Applicants cannot be asked if they smoke. Smokers might be able to claim that they weren’t hired because of fears of higher absenteeism and medical costs. However, they can be asked if they are aware of company policies that restrict smoking at work. 10 AIDS/HIV. Applicants can’t be asked about AIDS, HIV, or . any other medical condition, including genetics. Questions of this nature would violate the Americans with Disabilities Act, as well as federal and state civil rights laws. 11 Religion. Applicants can’t be asked about religious beliefs. . Questions of this nature would violate federal and state civil rights laws. 12 Genetic information. Employers should avoid asking . about genetic test results or family medical history. This would violate the Genetic Information Nondiscrimination Act, or GINA, which was designed to help encourage people to get more genetic screening done without the fear of employers or insurers using that information to deny employment or coverage. 11-3b References and Background Checks employment references sources such as previous employers or coworkers who can provide job-related information about job candidates Background checks are used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants. - Background checks are conducted by contacting “educational institutions, prior employers, court records, police and governmental agencies, and other informational sources, either by telephone, mail, remote computer access, or through in-person investigations.” 11-3c Selection Tests Specific ability tests measure the extent to which an applicant possesses the particular kind of ability needed to do a job well. aptitude tests tests that measure the extent to which an applicant possesses the particularrkind of ability needed to do a job well Exhibit 11.5 Clerical Test Items Similar to Those Found on the Minnesota Clerical Test Cognitive ability tests measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude. Biographical data, or biodata, are extensive surveys that ask applicants questions about their personal backgrounds and life experiences. The basic idea behind biodata is that past behavior (personal background and life experience) is the best predictor of future behavior. Work sample tests, also called performance tests, require applicants to perform tasks that are actually done on the job. Assessment centers use a series of job-specific simulations that are graded by multiple trained observers to determine applicants’ ability to perform managerial work. Exhibit 11.6 In-Basket for an Assessment Center for Store Managers Exhibit 11.6 shows an item that could be used in an assessment center for evaluating applicants for a job as a store manager. In a leaderless group discussion, another common assessment center exercise, a group of six applicants is given approximately two hours to solve a problem, but no one is put in charge (hence the name leaderless group discussion). 11-3d Interviews In interviews, company representatives ask job applicants job-related questions to determine whether they are qualified for the job In unstructured interviews, interviewers are free to ask applicants anything they want, and studies show that they do. structured interviews, standardized interview questions are prepared ahead of time so that all applicants are asked the same job-related questions -ensures that interviewers ask only for important, job-related information. -Not only are the accuracy, usefulness, and validity of the interview improved, but the chances that interviewers will ask questions about topics that violate employment laws ate reduced. Semistructured interviews lie between structured and unstructured interviews. -A major part of the semi structured interview (perhaps as much as 80 percent) is based on structured questions, but some time is set aside for unstructured interviewing to allow the interviewer to probe into ambiguous or missing information uncovered during the structured portion of the interview. Exhibit 11.7 Guidelines for Conducting Effective Structured Interviews Exhibit 11.7 provides a set of guidelines for conducting effective structured employment interviews. 11-4 Training Training means providing opportunities for employees to develop the job- specific skills, experience, and knowledge they need to do their jobs or improve their performance. 11-4a Determining Training Needs Needs assessment is the process of identifying and prioritizing the learning needs of employees. 11-4b Training Methods Exhibit 11.8 Training Objectives and Methods Training Objective Training Methods Training Objective Training Methods Impart Information and Knowledge Films and videos. Films and videos present information, illustrate problems and solutions, and effectively hold trainees’ attention. Training Objective Training Methods Training Objective Training Methods Lectures. Trainees listen to instructors’ oral presentations. Planned readings. Trainees read about concepts or ideas before attending training. Develop Analytical and Case studies. Cases are analyzed and discussed in small Problem-Solving Skills groups. The cases present a specific problem or decision, and trainees develop methods for solving the problem or making the decision. Coaching and mentoring. Coaching and mentoring of trainees by managers involves informal advice, suggestions, and guidance. This method is helpful for reinforcing other kinds of training and for trainees who benefit from support and personal encouragement. Group discussions. Small groups of trainees actively discuss specific topics. The instructor may perform the role of discussion leader. Practice, Learn, or Change On-the-job training. New employees are assigned to Job Behaviors experienced employees. The trainee learns by watching the experienced employee perform the job and eventually by working alongside the experienced employee. Gradually, the trainee is left on his or her own to perform the job. Role-playing. Trainees assume job-related roles and practice new behaviors by acting out what they would do in job-related situations. Simulations and games. Experiential exercises place trainees in realistic job-related situations and give them the opportunity to experience a job-related condition in a relatively low-cost setting. The trainee benefits from hands-on experience before actually performing the job, where mistakes may be more costly. Vestibule training. Procedures and equipment similar to those used in the actual job are set up in a special area called a “vestibule.” The trainee is then taught how to perform the job at his or her own pace without disrupting the actual flow of work, making costly mistakes, or exposing the trainee and others to dangerous conditions. Impart Information and Computer-based learning. Interactive videos, software, CD- Knowledge; Develop ROMs, personal computers, teleconferencing, and the Internet Analytical and Problem- may be combined to present multimedia-based training. Solving Skills; and Practice, Learn, or Change Job Behaviors Exhibit 11.8 lists a number of training methods you could use: films and videos, lectures, planned readings, case studies, coaching and mentoring, group discussions, on-the-job training, role-playing, simulations and games, vestibule training, and computer-based learning. 11-4c Evaluating Training Training can be evaluated in four ways: on reactions (how satisfied trainees were with the program), on learning (how much employees improved their knowledge or skills), on behavior (how much employees actually changed their on-the-job behavior because of training), or on results (how much training improved job performance, such as increased sales or quality, or decreased costs). 11-5 Performance Appraisal Performance appraisal is the process of assessing how well employees are doing their jobs. Performance appraisals are used for four broad purposes: making administrative decisions (e.g., pay increase, promotion, retention), providing feedback for employee development (e.g., performance, developing career plans), evaluating human resource programs (e.g., validating selection systems), and for documentation purposes (e.g., documenting performance ratings and decisions based on those ratings) 11-5a Accurately Measuring Job Performance Objective performance measures are measures of performance that are easily and directly counted or quantified. Subjective performance measures require that someone judge or assess a worker’s performance. Exhibit 11.9 Subjective Performance Appraisal Scales The most common kind of subjective performance measure is the graphic rating scale (GRS) shown in Exhibit 11.9. Exhibit 11.9 shows a BOS for two important job dimensions for a retail salesperson: customer service and money handling. A popular alternative to graphic rating scales is the behavior observation scale (BOS). -BOSs requires raters to rate the frequency with which workers perform specific behaviors representative of the job dimensions that are critical to successful job performance. The second approach to improving the measurement of workers’ job performance is rater training. 11-5b Sharing Performance Feedback 360-degree feedback a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves. Exhibit 11.10 What to Discuss in a Performance Appraisal Feedback Session 11-6 Compensation and Employee Separation Compensation includes both the financial and the nonfinancial rewards that organizations give employees in exchange for their work. Employee separation is a broad term covering the loss of an employee for any reason. - Involuntary separation occurs when employers terminate or lay off employees. -Voluntary separation occurs when employees quit or retire. 11-6a Compensation Decisions There are three basic kinds of compensation decisions: pay level, pay variability, and pay structure. - Pay-level decisions are decisions about whether to pay workers at a level that is below, above, or at current market wages. -Pay-variability decisions concern the extent to which employees’ pay varies with individual and organizational performance. -Pay-structure decisions are concerned with internal pay distributions, meaning the extent to which people in the company receive very different levels of pay. Piecework a compensation system in which employees are paid a set rate for each item they produce Commission a compensation system in which employees earn a percentage of each sale they make profit sharing a compensation system in which a company pays a percentage of its profits to employees in addition to their regular compensation Employee stock ownership plans (ESOPs) compensate employees by awarding them shares of the company stock in addition to their regular compensation Stock options give employees the right to purchase shares of stock at a set price. 11-6b Terminating Employees Wrongful discharge is a legal doctrine that requires employers to have a job- related reason to terminate employees. 11-6c Downsizing Downsizing is the planned elimination of jobs in a company How to Conduct Layoffs 1. Provide clear reasons and explanations for the layoffs. 2. To avoid laying off employees with critical or irreplaceable skills, knowledge, and expertise, get input from human resources, the legal department, and several levels of management. 3. Train managers in how to tell employees that they are being laid off (i.e., stay calm; make the meeting short; explain why but don’t be personal; and provide information about immediate concerns such as benefits, finding a new job, and collecting personal goods). 4. Give employees the bad news early in the day, and try to avoid laying off employees before holidays. 5. Provide outplacement services and counseling to help laid-off employees find new jobs. 6. Communicate with employees who have not been laid off to explain how the company and their jobs will change. One of the best ways to do this is to use outplacement services that provide employment counseling for employees faced with downsizing. 11-6d Retirement Early retirement incentive programs (ERIPs) offer financial benefits to employees to encourage them to retire early. phased retirement, in which employees transition to retirement by working reduced hours over a period of time before completely retiring. 11-6e Employee Turnover Employee turnover is the loss of employees who voluntarily choose to leave the company. Functional turnover is the loss of poor-performing employees who choose to leave the organization. dysfunctional turnover, the loss of high performers who choose to leave, is a costly loss to the organization. Chapter 13 Motivation 13-1 Basics of Motivation Motivation is the set of forces that initiates, directs, and makes people persist in their efforts over time to accomplish a goal. Managers often confuse motivation and performance, but job performance is a multiplicative function of motivation times ability times situational constraints. Needs are the physical or psychological requirements that must be met to ensure survival and well-being. Different motivational theories (Maslow’s Hierarchy of Needs, Alderfer’s ERG Theory, and McClelland’s Learned Needs Theory) specify a number of different needs. However, studies show that there are only two general kinds of needs: lower-order needs and higher-order needs. Both extrinsic and intrinsic rewards motivate people. 13-1a Effort and Performance Motivation is the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal. Initiation of effort is concerned with the choices that people make about how much effort to put forth in their jobs. Direction of effort is concerned with the choices that people make in deciding where to put forth effort in their jobs. Persistence of effort is concerned with the choices that people make about how long they will put forth effort in their jobs before reducing or eliminating those efforts. 13-1a Effort and Performance in industrial psychology, job performance is frequently represented by this equation: Job Performance=Motivation x Ability x Situational constraints In this formula, job performance is how well someone performs the requirements of the job. Motivation, as defined above, is effort, the degree to which someone works hard to do the job well. Ability is the degree to which workers possess the knowledge, skills, and talent needed to do a job well. And situational constraints are factors beyond the control of individual employees, such as tools, policies, and resources that have an effect on job performance. Exhibit 13.1 A Basic Model of Work Motivation and Performance Exhibit 13.1 shows a basic model of work motivation and performance, displaying this process. The first thing to notice about Exhibit 13.1 is that this is a basic model of work motivation and performance. 13-1b Need Satisfaction Needs are the physical or psychological requirements that must be met to ensure survival and well-being. Exhibit 13.2 A Basic Model of Work Motivation and Performance As shown on the left side of Exhibit 13.2, a person’s unmet need creates an uncomfortable, internal state of tension that must be resolved. When this occurs, people become satisfied, as shown on the right side of Exhibit 13.2 Maslow’s Hierarchy of Needs suggests that people are motivated by physiological (food and water), safety (physical and economic), belongingness (friendship, love, social interaction), esteem (achievement and recognition), and self-actualization (realizing your full potential) needs. Alderfer’s ERG Theory collapses Maslow’s five needs into three: existence (safety and physiological needs), relatedness (belongingness), and growth (esteem and self-actualization). McClelland’s Learned Needs Theory suggests that people are motivated by the need for affiliation (to be liked and accepted), the need for achievement (to accomplish challenging goals), or the need for power (to influence others). According to Maslow, needs are arranged in a hierarchy from low (physiological) to high (self-actualization). Within this hierarchy, people are motivated by their lowest unsatisfied need. As each need is met, they work their way up the hierarchy from physiological to self-actualization needs. By contrast, Alderfer says that people can be motivated by more than one need at a time. Furthermore, he suggests that people are just as likely to move down the needs hierarchy as up, particularly when they are unable to achieve satisfaction at the next higher need level. McClelland argues that the degree to which particular needs motivate varies tremendously from person to person, with some people being motivated primarily by achievement and others by power or affiliation. Moreover, McClelland says that needs are learned, not innate. For instance, studies show that children whose parents own a small business or hold a managerial position are much more likely to have a high need for achievement 13-1c Extrinsic and Intrinsic Rewards Exhibit 13.3 Adding Rewards to the Model Extrinsic rewards are tangible and visible to others and are given to employees contingent on the performance of specific tasks or behaviors. -External agents (managers, for example) determine and control the distribution, frequency, and amount of extrinsic rewards, such as pay, company stock, benefits, and promotions. Intrinsic rewards are the natural rewards associated with performing a task or activity for its own sake. 13-1d Motivating with the Basics The first step is to start by asking people what their needs are. Next, satisfy lower-order needs first. Third, managers should expect people’s needs to change. Finally, as needs change and lower-order needs are satisfied, create opportunities for employees to satisfy higher-order needs. 13-2 Equity Theory Equity theory says that people will be motivated at work when they perceive that they are being treated fairly. The basic components of equity theory are inputs, outcomes, and referents. After an internal comparison in which employees compare their outcomes to their inputs, they then make an external comparison in which they compare their O/I ratio with the O/I ratio of a referent, a person who works in a similar job or is otherwise similar. When their O/I ratio is equal to the referent’s O/I ratio, employees perceive that they are being treated fairly. But, when their O/I ratio is lower than or higher than their referent’s O/I ratio, they perceive that they have been treated inequitably or unfairly. There are two kinds of inequity: underreward and overreward. Underreward, which occurs when a referent’s O/I ratio is higher than the employee’s O/I ratio, leads to anger or frustration. Overreward, which occurs when a referent’s O/I ratio is lower than the employee’s O/I ratio, can lead to guilt but only when the level of overreward is extreme. 13-2a Components of Equity Theory The basic components of equity theory are inputs, outcomes, and referents. Inputs are the contributions employees make to the organization -They include education and training, intelligence, experience, effort, number of hours worked, and ability. Outcomes are what employees receive in exchange for their contributions to the organization -They include pay, fringe benefits, status symbols, and job titles and assignments. And, since perceptions of equity depend on comparisons, referents are other people with whom people compare themselves to determine if they have been treated fairly. - The referent can be a single person (comparing yourself with a coworker), a generalized other (comparing yourself with “students in general,” for example), or even yourself over time (“I was better off last year than I am this year”). According to equity theory, employees compare their outcomes (the rewards they receive from the organization) with their inputs (their contributions to the organization). This comparison of outcomes with inputs is called the outcome/input (O/I) ratio. After an internal comparison in which they compare their outcomes with their inputs, employees then make an external comparison in which they compare their O/I ratio with the O/I ratio of a referent. Underreward occurs when a referent’s O/I ratio is better than your O/I ratio. -In other words, you are getting fewer outcomes relative to your inputs than the referent you compare yourself with is getting. overreward occurs when a referent’s O/I ratio is worse than your O/I ratio. -In this case, you are getting more outcomes relative to your inputs than your referent is. 13-2b How People React to Perceived Inequity Exhibit 13.4 Adding Equity Theory to the Model Exhibit 13.4 shows that perceived inequity affects satisfaction. In the case of underreward, this usually translates into frustration or anger; with overreward, the reaction is guilt. 13-2c Motivating with Equity Theory Finally, managers should make sure decision-making processes are fair. Equity theory focuses on distributive justice, the perceived degree to which outcomes and rewards are fairly distributed or allocated. Procedural justice, the perceived fairness of the procedures used to make reward allocation decisions, is just as important. - Procedural justice matters because even when employees are unhappy with their outcomes (that is, low pay), they’re much less likely to be unhappy with company management if they believe that the procedures used to allocate outcomes were fair. -ex. employees who are laid off tend to be hostile toward their employer when they perceive that the procedures leading to the layoffs were unfair. 13-3 Expectancy Theory Expectancy theory says that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards. Expectancy theory holds that three factors affect the conscious choices people make about their motivation: valence, expectancy, and instrumentality. Expectancy theory holds that all three factors must be high for people to be highly motivated. If any one of these factors declines, overall motivation will decline, too. 13-3a Components of Expectancy Theory Valence is simply the attractiveness or desirability of various rewards or outcomes. Expectancy is the perceived relationship between effort and performance. Instrumentality is the perceived relationship between performance and rewards. -When instrumentality is strong, employees believe that improved performance will lead to better and more rewards, so they choose to work harder. -When instrumentality is weak, employees don’t believe that better performance will result in more or better rewards, so they choose not to work as hard. Expectancy theory holds that for people to be highly motivated, all three variables—valence, expectancy, and instrumentality—must be high. Thus, expectancy theory can be represented by the following simple equation: Motivation=Valence x Expectancy x Instrumentality -If any one of these variables (valence, expectancy, or instrumentality) declines, overall motivation will decline, too. Exhibit 13.5 Adding Expectancy Theory to the Model Exhibit 13.5 incorporates the expectancy theory variables into our motivation model. 13-3b Motivating with Expectancy Theory What practical steps can managers take to use expectancy theory to motivate employees? -First, they can systematically gather information to find out what employees want from their jobs -Second, managers can take specific steps to link rewards to individual performance in a way that is clear and understandable to employees. -Finally, managers should empower employees to make decisions if management really wants them to believe that their hard work and effort will lead to good performance. 13-4 Reinforcement Theory Reinforcement theory says that behavior is a function of its consequences, that behaviors followed by positive consequences (i.e., reinforced) will occur more frequently, and that behaviors either followed by negative consequences or not followed by positive consequences will occur less frequently. reinforcement is the process of changing behavior by changing the consequences that follow behavior. Reinforcement contingencies are the cause-and-effect relationships between the performance of specific behaviors and specific consequences. -For example, if you get docked an hour’s pay for being late to work, then a reinforcement contingency exists between a behavior (being late to work) and a consequence (losing an hour’s pay). A schedule of reinforcement is the set of rules regarding reinforcement contingencies such as which behaviors will be reinforced, which consequences will follow those behaviors, and the schedule by which those consequences will be delivered. Reinforcement theory says that behavior is a function of its consequences. Reinforcement has two parts: reinforcement contingencies and schedules of reinforcement. The four kinds of reinforcement contingencies are positive reinforcement and negative reinforcement, which strengthen behavior, and punishment and extinction, which weaken behavior. There are two kinds of reinforcement schedules, continuous and intermittent; intermittent schedules, in turn, can be divided into fixed and variable interval schedules and fixed and variable ratio schedules. Exhibit 13.6 Adding Reinforcement Theory to the Model Exhibit 13.6 incorporates reinforcement contingencies and reinforcement schedules into our motivation model. 13-4a Components of Reinforcement Theory As just described, reinforcement contingencies are the cause-and- effect relationships between the performance of specific behaviors and specific consequences. There are four kinds of reinforcement contingencies: positive reinforcement, negative reinforcement, punishment, and extinction. Positive reinforcement strengthens behavior (i.e., increases its frequency) by following behaviors with desirable consequences. Negative reinforcement strengthens behavior by withholding an unpleasant consequence when employees perform a specific behavior. Punishment weakens behavior (i.e., decreases its frequency) by following behaviors with undesirable consequences. Extinction is a reinforcement strategy in which a positive consequence is no longer allowed to follow a previously reinforced behavior. 13-4b Schedules for Delivering Reinforcement As mentioned earlier, a schedule of reinforcement is the set of rules regarding reinforcement contingencies, such as which behaviors will be reinforced, which consequences will follow those behaviors, and the schedule by which those consequences will be delivered. There are two categories of reinforcement schedules: continuous and intermittent. With continuous reinforcement schedules, a consequence follows every instance of a behavior. -For example, employees working on a piece-rate pay system earn money (consequence) for every part they manufacture (behavior). The more they produce, the more they earn. -By contrast, with intermittent reinforcement schedules, consequences are delivered after a specified or average time has elapsed or after a specified or average number of behaviors has occurred. Exhibit 13.7 Intermittent Reinforcement Schedules Variable Fixed INTERVAL Consequences follow Consequences follow behavior after different times, (TIME) behavior after a fixedsome shorter and some longer, that vary around a has elapsed. specific average time. RATIO Consequences follow a Consequences follow a different number of behaviors, (BEHAVIOR) specific number of sometimes more and sometimes less, that vary around behaviors. a specified average number of behaviors. With fixed interval reinforcement schedules, consequences follow a behavior only after a fixed time has elapsed. - For example, most people receive their paychecks on a fixed interval schedule (e.g., once or twice per month). As long as they work (behavior) during a specified pay period (interval), they get a paycheck (consequence). With variable interval reinforcement schedules, consequences follow a behavior after different times, some shorter and some longer, that vary around a specified average time. With fixed ratio reinforcement schedules, consequences are delivered following a specific number of behaviors. -For example, car salesperson might receive a $1,000 bonus after every ten sales. Therefore, a salesperson with only nine sales would not receive the bonus until he or she finally sold a tenth car. With variable ratio reinforcement schedules, consequences are delivered following a different number of behaviors, sometimes more and sometimes less, that vary around a specified average number of behaviors. 13-4c Motivating with Reinforcement Theory University of Nebraska business professor Fred Luthans, who has been studying the effects of reinforcement theory in organizations for more than a quarter of a century, says that there are five steps to motivating workers with reinforcement theory: identify, measure, analyze, intervene, and evaluate critical performance-related behaviors. Identify means singling out critical, observable, performance- related behaviors. These are the behaviors that are most important to successful job performance. -In addition, they must also be easily observed so that they can be accurately measured Measure means determining the baseline frequencies of these behaviors. -In other words, find out how often workers perform them. Analyze means studying the causes and consequences of these behaviors. -Analyzing the causes helps managers create the conditions that produce these critical behaviors, and analyzing the consequences helps them determine if these behaviors produce the results that they want Intervene means changing the organization by using positive and negative reinforcement to increase the frequency of these critical behaviors. Evaluate means assessing the extent to which the intervention actually changed workers’ behavior. -This is done by comparing behavior after the intervention to the original baseline of behavior before the intervention. In addition to these five steps, managers should remember three other key things when motivating with reinforcement theory. First, Don’t reinforce the wrong behaviors. - One of the most common mistakes is accidentally reinforcing the wrong behaviors. -A danger of using punishment is that it can produce a backlash against managers and companies. But, if administered properly, punishment can weaken the frequency of undesirable behaviors without creating a backlash. -Managers should clearly explain what the appropriate behavior is and why the employee is being punished. Employees typically respond well when punishment is administered this way. Managers should also correctly administer punishment at the appropriate time. -Many managers believe that punishment can change workers’ behavior and help them improve their job performance - Finally, managers should choose the simplest and most effective schedule of reinforcement. -When choosing a schedule of reinforcement, managers need to balance effectiveness against simplicity. -In fact, the more complex the schedule of reinforcement, the more likely it is to be misunderstood and resisted by managers and employees. In short, choose the simplest, most effective schedule of reinforcement. Since continuous reinforcement, fixed ratio, and variable ratio schedules are about equally effective, continuous reinforcement schedules may be the best choice in many instances by virtue of their simplicity. 13-5 Goal-Setting Theory The basic model of motivation with which we began this chapter showed that individuals feel tension after becoming aware of an unfulfilled need. A goal is a target, objective, or result that someone tries to accomplish. A goal is a target, objective, or result that someone tries to accomplish. Goal-setting theory says that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement. The basic components of goal-setting theory are goal specificity, goal difficulty, goal acceptance, and performance feedback. Goal specificity is the extent to which goals are detailed, exact, and unambiguous. Goal difficulty is the extent to which a goal is hard or challenging to accomplish. Goal acceptance is the extent to which people consciously understand and agree to goals. Performance feedback is information about the quality or quantity of past performance and indicates whether progress is being made toward the accomplishment of a goal. Goal-setting theory says that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement. 13-5a Components of Goal-Setting Theory Goal specificity is the extent to which goals are detailed, exact, and unambiguous. - Specific goals, such as “I’m going to have a 3.0 average this semester,” are more motivating than general goals, such as “I’m going to get better grades this semester.” Goal difficulty is the extent to which a goal is hard or challenging to accomplish. -Difficult goals, such as “I’m going to have a 3.5 average and make the dean’s list this semester,” are more motivating than easy goals, such as “I’m going to have a 2.0 average this semester.” Goal acceptance, which is similar to the idea of goal commitment discussed in Chapter 5, is the extent to which people consciously understand and agree to goals. -Accepted goals, such as “I really want to get a 3.5 average this semester to show my parents how much I’ve improved,” are more motivating than unaccepted goals, such as “My parents really want me to get a 3.5 average this semester, but there’s so much more I’d rather do on campus than study!” Performance feedback is information about the quality or quantity of past performance and indicates whether progress is being made toward the accomplishment of a goal. Exhibit 13.8 Adding Goal-Setting Theory to the Model Exhibit 13.8 incorporates goals into the motivation model by showing how goals directly affect tension, effort, and the extent to which employees are energized to take action. 13-5b Motivating with Goal-Setting Theory What practical steps can managers take to use goal-setting theory to motivate employees? Managers can do three things, beginning with assign specific, challenging goals. One of the simplest, most effective ways to motivate workers is to give them specific, challenging goals. Second, managers should make sure workers truly accept organizational goals. -Specific, challenging goals won’t motivate workers unless they really accept, understand, and agree to the organization’s goals. For this to occur, people must see the goals as fair and reasonable. Employees must also trust management and believe that managers are using goals to clarify what is expected from them rather than to exploit or threaten them. -Participative goal setting, in which managers and employees generate goals together, can help increase trust and understanding and thus acceptance of goals. Furthermore, providing workers with training can help increase goal acceptance, particularly when workers don’t believe they are capable of reaching the organization’s goals. Finally, managers should provide frequent, specific, performance- related feedback. -Once employees have accepted specific, challenging goals, they should receive frequent performance-related feedback so that they can track their progress toward goal completion. Feedback leads to stronger motivation and effort in three ways. -Receiving specific feedback about the quality of their performance can encourage employees who don’t have specific, challenging goals to set goals to improve their performance. -And feedback lets people know whether they need to increase their efforts or change strategies in order to accomplish their goals. 13-6 Motivating with the Integrated Model Motivating Managers should … with The Basics Ask people what their needs are. Satisfy lower-order needs first. Expect people’s needs to change. Motivating Managers should … with As needs change and lower-order needs are satisfied, satisfy higher-order needs by looking for ways to allow employees to experience intrinsic rewards. Equity Theory Look for and correct major inequities. Reduce employees’ inputs. Make sure decision-making processes are fair. Expectancy Systematically gather information to find out what Theory employees want from their jobs. Take specific steps to link rewards to individual performance in a way that is clear and understandable to employees. Empower employees to make decisions if management really wants them to believe that their hard work and efforts will lead to good performance. Reinforcement Identify, measure, analyze, intervene, and evaluate Theory critical performance-related behaviors. Don’t reinforce the wrong behaviors. Correctly administer punishment at the appropriate time. Choose the simplest and most effective schedules of reinforcement. Goal-Setting Assign specific, challenging goals. Theory Make sure workers truly accept organizational goals. Provide frequent, specific, performance-related feedback. Chapter 14 Leadership 14-1 Leaders versus Managers Management is getting work done through others; leadership is the process of influencing others to achieve group or organizational goals. Leaders are different from managers. The primary difference is that leaders are concerned with doing the right thing, while managers are concerned with doing things right. Organizations need both managers and leaders. But, in general, companies are overmanaged and underled. The most common view of leaders is that they are “in charge.” Whether you construct buildings, create and innovate to bring new products to markets, or simply help a company gain competitive advantage and thereby increase profits, leadership is the process of influencing others to achieve group or organizational goals. Another difference is that managers have a relatively short-term perspective, while leaders take a long-term view. -Managers are concerned with control and limiting the choices of others, while leaders are more concerned with expanding people’s choices and options. -Managers also solve problems so that others can do their work, while leaders inspire and motivate others to find their own solutions. Finally, managers are also more concerned with means, how to get things done, while leaders are more concerned with ends, what gets done. Although leaders are different from managers, organizations need them both. Managers are critical to getting out the day-to-day work, and leaders are critical to inspiring employees and setting the organization’s long-term direction. The key issue for any organization is the extent to which it is properly led and properly managed. 14-2 Who Leaders Are and What Leaders Do 14-2a Leadership Traits Trait theory says that effective leaders possess traits or characteristics that differentiate them from nonleaders. Those traits are drive, the desire to lead, honesty/integrity, self-confidence, emotional stability, cognitive ability, and knowledge of the business. These traits alone aren’t enough for successful leadership; leaders who have many or all of them must also behave in ways that encourage people to achieve group or organizational goals. Two key leader behaviors are initiating structure, which improves subordinate performance, and consideration, which improves subordinate satisfaction. There is no ideal combination of these behaviors. The best leadership style depends on the situation. Trait theory is one way to describe who leaders are. Trait theory says that effective leaders possess a similar set of traits or characteristics. - For example, trait theory holds that leaders are taller and more confident and have greater physical stamina (i.e., higher energy levels) than nonleaders. In fact, studies show we perceive those in authority as being taller than they actually are, and that taller people see themselves as more qualified to lead. - also known as the “great person” theory because early versions of the theory stated that leaders are born, not made. In other words, you either have the right stuff to be a leader, or you don’t. And if you don’t, there is no way to get it. Traits are relatively stable characteristics such as abilities, psychological motives, or consistent patterns of behavior. Leaders are different from nonleaders in the following traits: drive, the desire to lead, honesty/integrity, self-confidence, emotional stability, cognitive ability, and knowledge of the business. Drive refers to high levels of effort and is characterized by achievement, motivation, initiative, energy, and tenacity. -In terms of achievement and ambition, leaders always try to make improvements or achieve success in what they’re doing. - Because of their initiative, they have strong desires to promote change or solve problems. Leaders typically have more energy—they have to, given the long hours they put in and followers’ expectations that they be positive and upbeat. -Leaders must have physical, mental, and emotional vitality. Leaders are also more tenacious than nonleaders and are better at overcoming obstacles and problems that would deter most of us. Successful leaders also have a stronger desire to lead. - They want to be in charge and think about ways to influence or convince others about what should or shouldn’t be done. Honesty/integrity is also important to leaders. - Honesty, being truthful with others, is a cornerstone of leadership. Without it, leaders won’t be trusted. -When leaders are honest, subordinates are willing to overlook other flaws. For example, one follower said this about the leadership qualities of his manager: “I don’t like a lot of the things he does, but he’s basically honest. He’s a genuine article, and you’ll forgive a lot of things because of that. That goes a long way in how much I trust him.” Integrity is the extent to which leaders do what they say they will do. -Leaders may be honest and have good intentions, but if they don’t consistently deliver on what they promise, they won’t be trusted. Self-confidence, or believing in one’s abilities, also distinguishes leaders from nonleaders. - Self-confident leaders are more decisive and assertive and are more likely to gain others’ confidence. Moreover, self-confident leaders will admit mistakes because they view them as learning opportunities rather than as refutations of their leadership capabilities. Leaders also have emotional stability. -Even when things go wrong, they remain even-tempered and consistent in their outlook and in the way they treat others. -Leaders who can’t control their emotions, who anger quickly or attack and blame others for mistakes, are unlikely to be trusted. Leaders are also smart—they typically have strong cognitive abilities. - means that leaders have the capacity to analyze lar
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