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Getting the

most from
people
contents
1 Individual behaviour an overview
2 Defining motivation
3 Theories of motivation
4 Job satisfaction
5 Motivation: fromconcepts to
applications
Chapter 9 on leadership stressed the importance of focusing on the needs of followers. But how
well do we understand the needs of people at work? What motivates themand contributes to
their morale? How can we be sure, as managers, that we secure discretionary effort from
people at work? After reading and understanding the contents of the chapter, considering some
of the Case Examples and Test Your Knowledge questions, you should be able to:
Understand some key foundations to human behaviour at work.
Understand the ways in which the termmotivation is used.
Understand the nature of motives and motivation processes as influences on human behaviour.
Describe several theories of motivation.
Understand the relationship between motivation and incentives such as pay.
Recognise how some of the concepts of motivation have been applied in practice.
chapter
10
learning outcomes
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272 TEAMLEADERSHIP
1 Individual behaviour an overview
Getting the most from people means understanding factors that have an impact on
employee performance and satisfaction. This involves concepts such as motivation
and morale that are hard to define, assess and explain and are considered later in the
chapter. It is valuable to begin by looking at factors that are more easily definable and
are, to some extent, more readily available to managers. Based on a reviewby Robbins
(2007), this chapter begins by taking an overviewof some of the key individual vari-
ables that underpin behaviour as an introduction to the broader issues of employee
motivation and satisfaction and their link to performance.
1.1 Biographical characteristics
Biographical characteristics are personal characteristics such as age, gender and
marital status that are objective and can be easily obtained from personnel records.
Fromhis review, Robbins concludes that:
(a) age has no relationship to productivity;
(b) older workers and those who have been in a role for a long time are less likely to
resign;
(c) employees in long-term, stable relationships have fewer absences, lower
turnover and report higher job satisfaction than do those who are not.
The importance is that such information can and does influence managers when
distinguishing between job applicants.
Ability
Ability directly influences an employees level of performance and satisfaction
through the ability-job fit. Ability here is an individuals capability to perform the
various tasks in a job. It is a current assessment of what the employee can do and
comprises both intellectual and physical capabilities.
Intellectual capabilities are necessary to performmental activities and include reasoning,
number and verbal comprehension and memory. Jobs differ in the demands they
make on incumbents to use their intellectual abilities. Generally, the more infor-
mation-processing demands in the job, the more general intelligence and verbal
abilities will be needed for successful performance.Tests that measure specific
dimensions of intelligence have been found to be strong predictors of job perform-
ance though they can have a negative impact on different racial and ethnic groups,
with some scoring, on average, one standard deviation lower on such tests.
Physical capabilities are necessary for carrying out more standardised and less-skilled
jobs. They fall into two main categories strength and flexibility, together with
other factors such as stamina, balance and body co-ordination.
Good job performance therefore depends on appropriate ability-job fit. For
example, a beach lifeguard will need strong spatial-visualisation abilities and body
co-ordination; senior managers need verbal abilities, and so on. If the fit is poor
and the employee lacks the required abilities, they are likely to fail in the role.
biographical
characteristics
Personal characteristics
such as age, gender and
marital status that are
objective and easily
obtained frompersonnel
records.
stop and think 10.1
Age and performance
If Robbins review of the research is correct and there is no relationship between age and performance, and older
workers are less likely to resign, why are they still discriminated against in the workplace?
ability
An individuals capability to
performthe various tasks in
a job.
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1.2 Personality
Personality can be defined as the sum total of ways in which an individual reacts
and interacts with others. Rather than looking at parts of a person, personality looks
at some aggregate whole that is greater than the sumof those parts. An argument in
personality research was whether an individuals personality was the result of
heredity factors or their environment.The modern viewis that personality is an inter-
action between an individual and situational conditions that cause that individual to
vary aspects of his or her personality.
The early work on the structure of personality centred on attempts to identify and
label enduring characteristics that describe an individuals behaviour. Popular
characteristics included shy, aggressive, ambitious, and so on. Although there is
much disagreement about such labels, understanding the idea of personality traits
offers general guidelines for managers that can lead to effective job performance by
improving selection and promotion decisions. For example, individuals who are shy
or introverted and uncomfortable in social situations are unlikely to make good sales
people! According to Robbins, knowledge of aspects of an individuals personality
can avoid mismatches which, in turn, can lead to reduced turnover and higher job
satisfaction. However, he also suggests that we cannot predict which people will be
high performers in sales or research on the basis of personality alone.
1.3 Learning
Almost all behaviour is learned; as such,in order to explain and predict behaviour we
need to understand how people learn. Learning is a relatively permanent change in
behaviour that occurs as a result of experience, and this change may be good or bad
for the organisation. People may learn unfavourable behaviours for example to hold
prejudices as well as favourable ones.
The research on learning suggests that positive reinforcement is a powerful tool for
modifying behaviour. By identifying and rewarding behaviour that improves perform-
ance, the organisation increases the chance that such behaviour will be repeated.
Reinforcement is also seen as a more effective tool than punishment. Punished behav-
iour tends to be suppressed only temporarily rather than changed permanently.
Punishment may also produce unpleasant side-effects such as higher rates of turnover
and absenteeism. Managers are also likely to be seen as role models and should there-
fore set a good example to their employees in terms of punctuality, etc.
10 GETTING THE MOST FROMPEOPLE 273
stop and think 10.2
Abilityjob fit
What are likely to be the consequences if an employee has abilities that far exceed the requirements of the job?
personality
The sumtotal of ways in
which an individual reacts
and interacts with others.
personality traits
Enduring characteristics
that describe an individuals
behaviour.
learning
A relatively permanent
change in behaviour that
occurs as a result of
experience.
test your knowledge 10.1
(a) Name four key factors that underpin individual behaviour at work.
(b) What do you understand by the termpersonality?
(c) How might managers use the concept of ability to improve recruitment
decisions?
(d) What part can positive reinforcement play in supporting learning?
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274 TEAMLEADERSHIP
2 Defining motivation
2.1 What is motivation?
Perhaps the best place to start is to say what it motivation is not. Many people view
motivation as a personal trait that some have and others do not. Some managers
label employees who seem tolack motivation as lazy. Such a label assumes that the
individual is always lazy or lacking motivation. Our knowledge of motivation
suggests that this is not necessarily the case. Motivation is the result of the interaction
of the individual and the situation, and the level of motivation varies both between
and within individuals at different times.
An organisation is concerned with controlled performance, and this puts a high
premium on understanding what motivates people. Our ability to design organis-
ations that motivate their members to adequate and high levels of performance is still
poor. We do know that fear and money are not particularly good ways to motivate
people to work.
Human beings have reasons for the things they do. Behaviour is purposive. The large
number of different words we use to express purpose, such as need, want, aim
anddrive, indicates the importance of this. We behave as we do because we choose
to. We do not simply react passively to influences in our physical and social environ-
ment. We process the information picked up by our senses, impose meaning on that
information, and make decisions about what we are going to do next. Human beings
are proactive, rather than reactive. Our needs, purposes and motives are part of our
experience. We naturally think of our behaviour as related in meaningful ways to
these experienced motives. The need to make sense of our own behaviour is a
particularly strong human motive in its own right. In order to make sense of the
behaviour of others, we ascribe motives to them.To claimthat someones behaviour
is senseless, thoughtless, mindless, or without reason, is to admit our own ignorance
of their motives.
2.2 Needs
Are the goals that we pursue part of our genetic inheritance, or learned? If our
motives are innate we may be able to do little to change them, and may simply have
to tolerate the ones we do not like. But if our motives are learned, the position is quite
different. Human behaviour is clearly influenced by the biological equipment with
which we are born.We have a strong need for survival that appears to be innate.When
deprived of essentials, our needs for oxygen, water, food and shelter are overpow-
ering.These biological forces are basic determinants of the behaviour of most people
most of the time.These biological forces are called needs.
Basic needs therefore come with the body. We do not have to learn to be hungry,
cold or thirsty. Needs drive us to behave in certain ways when we do not have food,
warmth or water. In the most basic terms, an individual has needs which he or she
wishes to satisfy.The means of satisfying these needs are wants. For example, an indi-
vidual might feel the need for power, and to fulfil this need, he or she might be driven
to want money and a position of authority. Depending on the strength of the needs
and wants, individuals may take action to achieve them. If they are successful in
achieving them, they will be satisfied.This is shown in Figure 10.1.
motivation
The willingness to exert high
levels of effort toward
organisational goals,
conditioned by that efforts
ability to satisfy some
individual need.
stop and think 10.3
If we could understand and predict the ways in which individuals were motivated, we could influence themby
changing the components of that motivation process. Is that manipulation or management?
needs
Internal states that make
certain outcomes appear
attractive.
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2.3 Motives
Needs or drives do not determine everything we do.We do lots of things that do not
contribute in direct and obvious ways to physical needs or to our survival as individ-
uals. Much human behaviour, therefore, cannot be explained by pointing to innate
needs or drives.This brings us back to motivation or motives. Much of what we do
is clearly influenced by the ways of thinking and behaving typical of the society into
which we have been born. Our society or culture influences our motives through the
values, ideals, standards and modes of behaviour of other people. We seek status
because that is the appropriate and accepted thing to do in our society.We seek work
for the same reason. There is a further distinguishing feature between drives and
motives. If we have just eaten, hunger ceases to motivate our behaviour. But if we have
made friends and money, or learned something new, for example, we tend not to
regard ourselves as having had enough for the time being. We tend to try for more.
The drives lead us to avoid particular experiences. We are actively motivated to seek
certain other experiences, sensations and forms of excitement. The distinction
between needs and motives is summarised as follows:
Needs Motives
are innate are learned
have a physiological basis have a social basis
are activated by deprivation are activated by social environment
are aimed at satiation and avoidance are aimed at stimulation
3 Theories of motivation
3.1 Introduction
Handy (1993) argues that early theories of motivation are nowquestionable in terms
of their validity but they contain sufficient grains of truth to be examined and are
probably still the most widely known and used explanations for employee motiv-
ation. It is also possible to distinguish two main groups of theories content and
process theories. Content theories focus on the goals to which people aspire and
process theories focus on how we make choices about desired goals. That said, the
first theory we look at focuses more on the social process of motivating others.
10 GETTING THE MOST FROMPEOPLE 275
FIGURE 10.1 The link between needs and behaviour
Need Drives
Crystallise
as wants
Behaviour Satisfaction
motives
Learned influences on
human behaviour that lead
people to pursue particular
goals because they are
valued.
test your knowledge 10.2
(a) What is motivation?
(b) What are the consequences of human behaviour being purposive?
(c) Link needs to satisfaction.
(d) Distinguish needs frommotives.
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3.2 Herzbergs two factor theory
Frederick Herzbergs research in 1959 (cited in Robbins and Judge, 2007) asked
people what they wanted froma job.The responses suggested that the replies people
gave when they felt good about their jobs were significantly different fromthe replies
they gave when they felt bad about them. Certain characteristics seemed to be
consistently related to job satisfaction and others to job dissatisfaction.
Fromthis, Herzberg proposed that people have two separateneed systems:
(a) a need to avoid unpleasantness, which is satisfied at work by hygiene factors;
(b) a need for personal growth, which is satisfied by motivators and not by hygiene
factors.
Hygiene factors
These are essentially preventive. They minimise dissatisfaction in the same way that
sanitation minimises threats to health but they do not by themselves create satisfac-
tion. Factors that cause dissatisfaction at work are:
the quality of supervision;
working conditions;
interpersonal relations;
pay and salary; and
company policy and administration.
Hygiene factors are also called maintenance factors because they have to be continually
reviewed. Satisfaction with environmental factors does not last. In time, dissatisfac-
tion will occur. For example:
(a) Employees require pay rises that protect their income against inflation. If
successful in obtaining the increase they want, they will only be satisfied until
next years salary review.
(b) A new recruit might want to establish good personal relations with his or her
colleagues. If successful, he or she will be satisfied at first but in time may get
bored being with the same people each day.
The implication for organisations is that attention to hygiene factors is a necessary
but thankless task. Even if effective, such factors will only motivate employees to
work well for a short period.
Motivator factors
According to Herzberg, motivator factors actively create job satisfaction and motivate
an individual to superior performance and effort.These factors include:
achievement;
gaining recognition;
challenging and interesting work;
growth in the job;
being given responsibility; and
advancement.
Satisfying the motivators should, according to Herzberg, raise output and stimulate
performance. In Herzbergs own words:

Dissatisfaction arises from environmental factors satisfaction can only arise


fromthe job.

This is illustrated in Figure 10.2 overleaf.


A lack of motivators at work may therefore encourage employees to concentrate
on bad hygiene, real or imagined. Herzberg acknowledges that some individuals do
not want personal growth or at least do not see it deriving from their work. Such
individuals are described as hygiene seekers because they can only ever be satisfied
by hygiene factors.
276 TEAMLEADERSHIP
C10_ICSA_STUDY_TEXT_STRAT_OPS_MAN.QXD:ICSA 18/6/09 10:54 Page 276
i.ene needs nen sat.s:.ed e.m.nate potent.a d.ssat.s:act.on but do .tte or
notn.n to create d.rect mot.vat.on ioever tne extent to n.cn a job must be cna
en.n or creat.ve to a mot.vat.on seeer . depend on eacn .nd.v.duas ab..t
and toerance :or deaed success
ierzber suested no sat.s:act.on :rom mot.vators coud be supp.ed
:temm.n :rom n.s :undamenta d.v.s.on o: mot.vator and n.ene :actors ne
encouraes manaers to stud tne job .tse: ,tne tpe o: or done nature o: tass
eves o: respons.b..t) ratner tnan cond.t.ons o: or Cn .n tn.s a . mot.v
at.on .mprove Concentrat.n on env.ronmenta :actors . mere stave o:: job
d.ssat.s:act.on ie spec.:.ed tnree tp.ca means nereb or can be rev.sed to
.mprove mot.vat.on job enr.cnment job enarement and job rotat.on 1nese are
descr.bed .n more deta. ater .n tn.s cnapter
Cne o: tne .mp.cat.ons o: ierzbers tneor .s tnat tnere are to separate probems
:or manaers .n reat.on to tne mot.vat.on o: empoees
,a) `anaers snoud earn to recon.se tne smptoms o: poor mot.vat.on 1nese
smptoms are .e to be caused b n.ene :actors and .ncude
a n.n or .ncreas.n rate o: abour turnover
n.n absentee.sm
numerous d.sputes and r.evances
dec.n.n ua.t o: output and n.ner de:ect rates
more customer compa.nts about bad serv.ce
excess.ve ateness :or or
poor product.v.t
1ne remed :or man o: tnese smptoms .s to pa more attent.on to n.ene :actors
sucn as .mprov.n cond.t.ons at or ioever n.e tnese remed.es m.nt e.m.
nate poor mot.vat.on tne . not create comm.tment
10 GETTING THE MOST FROM PEOPLE 277
FIGURE 10.2 Herzbergs two-factor theory
Motivation factors
Achievement
Recognition
Work itself
Responsibility
Advancement & growth
Hygiene factors
Supervision
Working conditions
Interpersonal relationships
Pay & job security
Company policies
Dissatisfaction
Help remove dissatisfaction but do not
increase satisfaction or motivate...
...people expect them to be there
No dissatisfaction
No satisfaction Satisfaction
stop and think 10.4
Where do Herzbergs conclusions about money leave the types of financial incentives used by organisations?
C10_ICSA_STUDY_TEXT_STRAT_OPS_MAN.QXD:ICSA 18/6/09 14:07 Page 277
278 TEAMLEADERSHIP
(b) Managers should also concentrate on other methods of improving motivation
and employee commitment.These include:
job enrichment;
participation; and
delegation.
Criticisms of Herzbergs theory include the following:
(a) The reliability and methodology of the theory have been questioned since, when
things are going well, people tend to take the credit, but when things are not
going well, they tend to blame the environment.
(b) The theory provides an explanation of job satisfaction rather than being a theory
of motivation.
(c) Herzberg assumes that there is a relationship between satisfaction and
productivity, but his research looked only at satisfaction and not at productivity.
3.3 Maslows hierarchy of needs
It is probably safe to say that the most well-known theory of motivation is Abraham
Maslows hierarchy of needs. Maslow was an American psychologist writing in the
1950s who argued that a person has five innate needs:
Physiological needs the need for food, shelter, etc.
Safety needs freedomfromthreat, but also security, order, predictability.
Social needs for relationships, affection, sense of belonging.
Esteem needs for competence, achievement, independence, confidence and their
reflection in the perception of others, i.e. recognition, appreciation, status, respect.
Self-actualisation needs for the fulfilment of personal potential: the desire to become
more and more what one is, to become everything that one is capable of becoming.
As each of these is substantially satisfied, the next need becomes dominant.The indi-
vidual moves up the hierarchy shown in Figure 10.3.
case example 10.1
The Hawthorne Studies
An important contribution to the study of
organisational behaviour came out of the Hawthorne
studies undertaken at the Western Electric
Companys works in Illinois. These studies began in
1924 and were initially devised to examine the effect
of various illumination levels on worker productivity.
Control and experimental groups were established.
The experimental group was presented with varying
illumination intensities while the control group
worked under a constant intensity. The engineers had
expected individual output to be directly related to
the intensity of light. However, they found that as the
light level was increased in the experimental group,
the output for both groups rose. Then, to the surprise
of the engineers, as the light level was dropped in the
experimental group, productivity continued to
increase in both groups. A productivity decrease was
observed in the experimental group only when the
light intensity had reduced to that of moonlight. The
engineers concluded that light intensity was not
directly related to group productivity, but they could
not explain the behaviour they had witnessed.
A Harvard professor, Elton Mayo, joined the study as
a consultant. This began a series of experiments
covering the redesign of jobs, changes in the length
of the work day and week, introduction of rest
periods, and different wage plans.
The Hawthorne studies had a large and dramatic
impact on the direction of organisational behaviour
and management practice. Mayos conclusions were
that: behaviour and sentiments were closely related;
group inuences signicantly affected individual
behaviour; group standards established an individual
output; and money was less a factor in determining
output than were group standards, group sentiments
and security. These conclusions led to a new
emphasis on the human factor in the functioning of
organisations and the attainment of their goals.
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1ne :.rst to needs are essent.a to numan surv.va :at.s:act.on o: tne next to needs
.s essent.a :or a sense o: adeuac and pscnoo.ca neatn `aso rearded se:
actua.sat.on as tne ut.mate numan oa atnoun :e peope ever reacn .t
tnoun no need .s ever :u sat.s:.ed a substant.a sat.s:.ed need no oner mot.
vates so .: ouant tomot.vate someone ouneedtounderstandat nat eve tne are
current .n tne n.erarcn and :ocus on sat.s:.n needs on or above tnat eve
1nere .s an .ntu.t.ve appea to `asos tneor a:ter a a person .s un.e to be
concerned .tn status or recon.t.on n.e st. nunr or tn.rst ir.mar surv.va
needs tae precedence :.m.ar once nuner .s assuaed tne need :or :ood .s
un.e to be a mot.vat.n :actor `aso arued tnat tne var.ous eves o: tne needs
n.erarcn overap to some extent and an .nd.v.dua ma st. be mot.vated b needs
at a oer eve nen ne or sne acu.res needs at a n.ner eve iven so tnere .s a
enera proress.on upards as some needs are at east part.a sat.s:.ed and otners
a.n .mportance `asos tneor app.es to mot.vat.on .n enera not just or
`eeds can be sat.s:.ed b aspects o: a persons .:e outs.de or ioever s.nce or
prov.des a .ve.nood and taes up sucn a are part o: a persons .:e .t .s obv.ous
o.n to pa an .mportant part .n tne sat.s:act.on o: tnat persons needs1nat sa.d .t
.s poss.be to prescr.be some components o: eacn stae tnat m.nt represent mot.va
t.ona content .n oran.sat.ons1nese are snon to tne r.nt .tn.n i.ure 10`
1ne d.::.cut .s tnat researcn does not enera va.date tne tneor `aso
prov.ded no emp.r.ca substant.at.on and severa ater stud.es tnat sount to va.date
tne tneor :ound no support :or .t atnoun ierzber d.d :.nd tnat n.s mot.vators
correated cose to `asos n.ner order needs 1ne spec.:.c probems assoc.ated
.tn us.n `asos tneor are as :oos
10 GETTING THE MOST FROM PEOPLE 279
stop and think 10.5
Can you identify the things that you do to satisfy each of the five needs?
At what points in the hierarchy are you currently concentrating?
In what ways does society influence the ways in which you satisfy these needs?
FIGURE 10.3 Maslows hierarchy of needs
Esteem
(for prestige); status
Social
(for love, affection & acceptance)
Safety
(for security & protection against danger)
Physiologial
(for food, drink, shelter)
Self-actualisation
(to realise our potential)
Simple prescriptions
Challenging assignments
Discretion over work activities
Promotion opportunities
Encouraging creativity
Regular positive feedback
Prestige job titles
Photo in company news sheets
Promotions
Sports & social clubs
Office parties & outings
Permission for informal activities
Open communication
Private health insurance
Attractive pension provision
Safe working conditions
No redundancy policy
Good working conditions
Attractive salary
Subsidised housing
Free/subsidised catering
Motivated by lowest
level of unmet need
C10_ICSA_STUDY_TEXT_STRAT_OPS_MAN.QXD:ICSA 18/6/09 14:07 Page 279
(a) The same need may cause different behaviour in different individuals. One
person might seek to satisfy a need for esteemby winning promotion, whereas
another individual might seek esteemby leading a challenge against authority.
(b) It does not explain the willingness of individuals to forgo immediate satisfaction
of needs and accept current disadvantage in order to fulfil a long-term goal. An
example is the long studentship of the medical or legal professions.
(c) It is difficult to predict behaviour using the hierarchy; the theory is too vague.
(d) Application of the theory in work contexts presents additional difficulties. The
role of money or pay is problematic, for example, since it arguably acts as a proxy
for other rewards like status, recognition or independence.
(e) Maslows hierarchy does seem slightly more applicable to western English-
speaking cultures than elsewhere. Some further work showed the relative simi-
larity of thinking from country to country, but the relative importance of
security, social and esteemneeds often varied considerably.
3.4 McGregor: Theory X and Theory Y
Douglas McGregor proposed two distinct views of human beings: one that is largely
negative Theory X; and another that is largely positive TheoryY. After studying
the ways in which managers dealt with employees, McGregor concluded that a
managers viewof the nature of people is based on certain groupings of assumptions
and that the manager tends to mould his or her behaviour towards staff according to
these assumptions.
Theory X
Theory X propounds that the average employee is by nature indolent and works as
little as possible. He or she:
(a) lacks ambition, dislikes responsibility, prefers to be led;
(b) is inherently self-centred and indifferent to organisational needs;
(c) is by nature resistant to change; and
(d) is gullible, not very bright and the ready dupe of the charlatan and the demagogue.
The implications for management are:
(a) management is responsible for organising the elements of productive enterprise
money, materials, equipment and people in the interest of economic ends;
(b) managing is a process of directing peoples efforts, motivating them, controlling
their actions and modifying their behaviour to fit the needs of the organisation; and
(c) people must be persuaded, rewarded, punished, controlled and their activities
directed.
Theory Y
(a) People are not by nature passive or resistant to organisational needs. They have
become so as a result of experience in organisations.
(b) The motivation, potential for development, capacity to assume responsibility
and readiness to direct behaviour towards organisational goals are all present in
people. It is a responsibility of management to make it possible for people to
reorganise and develop the human characteristics for themselves.
(c) Management is responsible for organising the elements of productive enterprise
in the interest of economic ends, but managements essential task is to arrange
the conditions and methods of operation so that people can achieve their own
goals best by directing their own efforts towards organisational objectives.
What, then, are the motivational implications if McGregors analysis are accepted?
This can perhaps be best expressed using Maslows framework.Theory Xassumes that
lower-order needs dominate individuals. TheoryY assumes that higher-order needs
280 TEAMLEADERSHIP
Theory X
The assumption that
employees dislike work, are
lazy, dislike responsibility
and must be coerced to
perform.
Theory Y
The assumption that
employees like work, are
creative, seek responsibility
and can exercise self-
direction.
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do so. McGregor himself believed that TheoryY assumptions were more valid than
Theory X and proposed such ideas as participative decision-making, responsible and
challenging jobs and good group relations as approaches that would maximise an
employees job motivation.
As with Maslows work, there is little evidence to confirm that either set of
assumptions is valid or that accepting Theory Y assumptions and altering ones
actions accordingly will lead directly to more motivated workers. It is, however, a
useful tool to help analyse the attitudes of managers.
3.5 Alderfer: ERG theory
Maslowdid not present his ideas as a hard-and-fast set of rules or as scientific fact but
as a speculative model in which personalities could be discussed.This is more in tune
with views expressed later byAlderfer (1972) that people experience three different
orientations reflecting their perceived needs and wants, but that these orientations
are not organised into any predetermined hierarchy.These are:
The need to exist the desire for economic and material goals.
The need to relate to others social needs and interpersonal affiliation.
The need for personal growth the desire for self-development and self-actualisation,
and to fulfil ones potential.
Alderfer argues that there are groups of core needs existence, relatedness and
growth ERG. But other than substituting three needs for five, how does Alderfers
theory differ fromMaslows?
ERG theory does not assume that there is a rigid hierarchy where a lower need
must be substantially gratified before a person can move on. All three categories
could be operating at the same time. Alderfer also argues that frustration in
attempting to satisfy a higher level need can result in regression to a lower level need.
For example, inability to satisfy a need for social interaction might increase the desire
for more money or better working conditions.
ERG is therefore more consistent with our knowledge of individual differences
between people. Variables such as education, family background and cultural
environment can alter the importance that a group of needs hold for an individual.
3.6 McClellands theory of needs
10 GETTING THE MOST FROMPEOPLE 281
stop and think 10.6
Do you think you have a Theory X or Theory Y view of people under your supervision?
What is the management style where you work? Is the approach dominated by Theory X or Theory Y and what are
the implications?
A firmuses surveillance monitors to check that its employees are working. When the monitor is seen to be
switched off, the employees relax. The managing director says that this proves the truth of Theory X. Does it?
stop and think 10.7
You have one ball and there are five targets set up in front of you. Each one is progressively further away and,
therefore, more difficult to hit. Target A is easy. It is almost within arms reach of you. If you hit it, you get 2.
Target B is a bit further out but about 80 per cent of the people who try to hit it can. It pays 4. Target C pays 8,
and about half the people who try can hit it. Very few people can hit Target D, but the payoff is 16. Finally,
Target E pays 32, but it is almost impossible to achieve.
Which target would you try for?
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282 TEAMLEADERSHIP
If you selected C, you are likely to be a high achiever, according to McClellands
theory of needs.This was developed by David McClelland (1965) and his associates,
and focuses on three needs defined as:
Need for achievement the drive to excel, to achieve in relation to a set of standards, to
strive to succeed.
Need for power the need to make others behave in a way that they would not have
behaved otherwise.
Need for affiliation the desire for friendly and close interpersonal relationships.
Need for achievement
Some people have a compelling drive to succeed. They are striving for personal
achievement rather than the rewards of success per se.They have a desire to do some-
thing better or more efficiently than it has been done before.This drive is the achieve-
ment need. From his research, McClelland found that high achievers differentiate
themselves fromothers by their desire to do things better.They seek situations where
they can take personal responsibility for finding solutions to problems, where they
can receive rapid feedback on their performance so they can tell easily whether or not
they are improving, and where they can set moderately challenging goals. High
achievers are not gamblers; they dislike succeeding by chance. They prefer the chal-
lenge of working at a problem and accepting the personal responsibility for success
or failure rather than leaving the outcome to chance or the actions of others.
Importantly, they avoid what they perceive to be very easy or very difficult tasks.They
want to overcome obstacles, but they want to feel that their success (or failure) is due
to their own actions.This means they like tasks of intermediate difficulty.
High achievers perform best when they perceive their probability of success as
being 50/50. They dislike gambling because they get no achievement satisfaction
fromlucky success. Similarly, they dislike a high probability of success because then
there is no challenge to their skills.They like to set goals that require themto stretch
themselves a little.
The need for power
This is the desire to have impact, to be influential, and to control others.These indi-
viduals enjoy being in charge and tend to be more concerned with prestige and
gaining influence over others than with effective performance.
The need for affiliation
This is the desire to be liked and accepted by others. Individuals with a high affilia-
tion motive strive for friendship, prefer co-operative situations rather than competi-
tive ones and desire relationships involving a high degree of mutual understanding.
Relying on an extensive amount of research, McClelland asserts that some reason-
ably well-supported predictions can be made based on the relationship between
achievement need and job performance. Although less research has been done on
power and affiliation needs, there are consistent findings here, too.
Individuals with a high need to achieve prefer job situations with personal responsi-
bility, feedback and an intermediate degree of risk (Figure 10.4). The evidence consist-
ently demonstrates, for instance, that high achievers are strongly motivated by these
case example 10.2
Anne Sweeney is a high achiever. Since joining
Disney in 1996, she led the transition of the
struggling Disney Channel froma premiumcable
service to a basic network, quintupling the subscriber
base. As co-chairman of Disneys Media Networks,
Sweeney is trying to achieve a turnaround for
Disneys ABC Family channel. When she became
president of ABC television in 2004, she accepted
the challenging goal of lifting the network fromits
last-place position.
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factors and are successful in entrepreneurial activities such as running their own busi-
nesses and managing a self-contained unit within a large organisation.
A high need to achieve does not necessarily lead to being a good manager, especially in
large organisations. People with a high achievement need are interested in how well
they do personally and not in influencing others to do well. High achievement sales-
people, for example, do not necessarily make good sales managers, and a good general
manager in a large organisation does not typically have a high need to achieve.
The needs for affiliation and power tend to be closely related to managerial
success.The best managers have a high need for power but a lowneed for affiliations.
In fact, a high power motive may be a requirement for managerial effectiveness. Of
course, what the cause is and what the effect is are arguable. It has been suggested that
a high power need may occur simply as a function of a persons level in the organis-
ational hierarchy.
Employees have been successfully trained to stimulate their achievement need by
getting them to think about their accomplishments and acting this out by pursuing
situations where they have personal responsibility, receive feedback and moderate risks.
3.7 Expectancy theory
Expectancy theory states that the strength of an individuals motivation to do some-
thing will depend on the extent to which he or she believes the results of his or her
efforts contribute towards desired outcomes. People decide how much they are
going to put into their work according to:
(a) the value they place on desired outcomes, whether the value of a reward or the
avoidance of punishment.Vroomcalled this valuation valence;
(b) the strength of their expectation that behaving in a certain way will in fact bring
out the desired outcome.Vroomcalled this expectancy.
expectancy valence = force of motivation
Handy (1993) puts forward an admittedly theoretical form of expectancy model.
Handy suggested that for any individual decision, there is a conscious or unconscious
motivation calculus, which is an assessment of three factors:
(a) the individuals own set of needs;
(b) the desired results what the individual is expected to do in his or her job; and
(c) E factors.
Handy suggests that motivational theories have been too preoccupied with effort. He
notes that there seems to be a set of words (coincidentally beginning with e) that
might be more helpful. As well as effort, there is energy, excitement in achieving desired
results, enthusiasm, emotion and expenditure of time and money. The motivation decision
how strong the motivation to achieve the desired results will be depends upon the
individuals judgment about a number of things:
10 GETTING THE MOST FROM PEOPLE 283
FIGURE 10.4 Matching achievers and jobs
Moderate risk
Feedback
Personal responsibility
Achievers prefer
jobs that offer
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284 TEAM LEADERSHIP
(a) the strength of his or her needs;
(b) the expectancy that expending E will lead to a desired result; and
(c) how far the result will be instrumental in satisfying his or her needs.
For instance, a person may have a high need for power and believe that a particular
result, such as a completed task, will gain him or her promotion (expectancy). If that
promotion will in fact satisfy his need for power he or she will expend E on the task.
In terms of organisation practice, Handy suggests that several factors are necessary
for the individual to complete the calculus, and to be motivated:
1 Intended results should be made clear so that an individual can complete the calculation
and know what is expected, what will be rewarded and how much E it will take.
2 Feedback on performance good or bad is essential. Without knowledge of actual results,
there is no check that the E expenditure was justified and will be in future, not
only for performance but to build confidence.
Handys calculus helps to explain various aspects of individual behaviour at work:
Individuals are more committed to specific goals particularly those that they
have helped to set themselves. Kay, French and Myer (1964) found that, in job
appraisal, 63 per cent of specific goals for self-improvement were achieved by
their interviewees, compared to 27 per cent where no specific goals were set.
If an individual is rewarded according to performance tied to standards, for
example using a technique such as management by objectives, he or she may set
lower standards. The instrumentality part of the calculus (likelihood of success
and reward) is greater if the standard is lower, so less expense of E is indicated.
Individuals with a high need for achievement frequently set only moderately
high standards.
Inertia, withdrawal or even breakdown can occur where the possible variables in
the calculus are too many for the individual to handle. Reducing the number of
options or changing the time span over which they operate may enable the
calculus to be made again.
3.8 Equity theory
This case recognises that individuals are concerned not only with the absolute
amount of rewards for their efforts but also the relationship of this amount to what
others receive. Individuals compare their job inputs and outcomes with those of
others and then respond so as to eliminate inequities.
Ranis situation therefore illustrates the role that equity plays in motivation.
Employees make comparisons of their job inputs and outcomes relative to those of
others. Adams (1965) argues that where there is equity tension when we carry out
case example 10.3
Rani Singh graduated last year from university with a
degree in accounting. After a number of interviews,
she accepted a place with one of the UKs major
accounting rms and was assigned to its Bristol
ofce. Rani was very pleased with the offer she
received; challenging work with a prestigious rm and
an excellent opportunity to gain valuable experience.
It also offered the highest salary compared with other
accounting rms last year.
A year later, the work has proved to be everything
Rani expected of it. Her employer is extremely
pleased with her performance and she received a
500 per month increase in salary. However, Ranis
motivation has dropped in recent weeks since she
found out that her rm has just employed a new
graduate without any experience and is paying her
100 per month more than Rani now earns. Rani is
angry and is talking about looking for another job.
Why?
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this calculation, it creates the motivation to do something to correct it perhaps even
leave the organisation. There are four comparisons that an employee might make:
1 Self-inside an employees experiences in a different position inside his or her
current organisation.
2 Self-outside an employees experiences in a situation or position outside his or her
current organisation
3 Other-inside another individual or group inside the employees organisation.
4 Other-outside another individual or group outside the employees organisation.
Adams research suggests that, for most employees, motivation is influenced signifi-
cantly by relative as well as absolute rewards and this can have a significant impact on
satisfaction, as we discuss below.
A sense of what is fair and reasonable is at the heart of Adams ideas. We each seek a fair
balance between what we put into our job and what we get out of it. Adams calls
these inputs and outputs. We form perceptions of what constitutes a fair balance or
trade of inputs and outputs by comparing our own situation with other reference
points or examples in the market place. We are also influenced by colleagues, friends
and partners in establishing these benchmarks and our own responses to them in
relation to our own ratio of inputs to outputs.
If we feel that inputs are fairly and adequately rewarded by outputs (the fairness
benchmark being perceived from market norms and other comparators) then we are
happy in our work and motivated to continue inputting at the same level. If we feel
that inputs outweigh the outputs then we become demotivated.
People respond to this feeling in different ways. Generally the extent of demotiva-
tion is proportional to the perceived disparity between inputs and expected outputs.
Some people reduce effort and application and become inwardly disgruntled or
outwardly difficult, recalcitrant or even disruptive; others seek to improve the
outputs by making claims or demands for more reward, or seeking an alternative job.
3.9 Issues with motivation theory
Motivation theories are culture bound
Many of the theories presented in this chapter assume cultural characteristics that are
not universal. Many were, for example, developed in the United States by Americans
and about Americans. Maslows needs hierarchy argues that people start at the physi-
ological level and then move progressively up the hierarchy in the order described.
This hierarchy, if it has any application at all, aligns with Western culture. In countries
like Japan, Greece and Mexico, where the need to avoid uncertainty is strong, security
needs would be on top of the need hierarchy. Another motivation concept that clearly
has a Western bias is the achievement need. The view that a high achievement need
acts as an internal motivator presupposes cultural characteristics, such as a willing-
ness to accept a moderate degree of risk and a concern with performance. Such
characteristics are, for example, relatively absent in countries such as Chile and
10 GETTING THE MOST FROM PEOPLE 285
Inputs are typically: People need to feel Outputs are typically:
Effort, loyalty, hard work, commitment, that there is a fair All nancial rewards pay, salary, expenses,
skill, ability, adaptability, exibility; balance between perks, benets, pension arrangements,
tolerance, determination, heart and soul, inputs and outputs bonus and commission.
enthusiasm, trust in our boss and Intangibles recognition, reputation, praise
superiors, support of colleagues and and thanks, interest, responsibility,
subordinates, personal sacrice, etc. stimulus, travel, training, development,
sense of achievement and advancement,
promotion, etc.
FIGURE 10.5 Adams Equity Theory
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286 TEAM LEADERSHIP
Portugal. However, it cannot be assumed that there are no cross-cultural consisten-
cies. For instance, the desire for interesting work seems to apply to almost all workers
regardless of their national culture.
Ability and opportunity
It is perhaps an obvious but often overlooked fact that success in a job is helped or
hindered by the existence or absence of support resources. As we noted at the begin-
ning of this chapter, an individuals intelligence and skills, which may be summed up
under the label ability, must be considered in addition to motivation in order accu-
rately to analyse and predict employee performance. Opportunity to perform must
also be added to the equation. Even though an individual may be willing and able,
there may be obstacles constraining performance. When attempting to assess why an
employee may not be performing to his or her best levels, it is necessary to look at the
work environment to see whether it is supportive.
Money
If money is a motivator, then the whole gamut of profit and performance-related pay
makes sense. Unfortunately, as one review quoted by Handy (1993) concluded:

although it is generally agreed that money is the major mechanism for


rewarding and modifying behaviour in industry, very little is known about how it
works.

The reason should be obvious. The value of money as a motivator will depend upon
the individual calculus, the salience of the needs affected by money, the expectancy
that any E will lead to more money, and how appropriate money is as an instrument
in meeting the need.
Some important points need to be made:
1 Money is all embracing None of the well-known categorisations of needs includes
money. Money is often, however, assumed to be instrumental in satisfying each
and every one of the needs. The extent to which this is true will vary from indi-
vidual to individual and probably from culture to culture.
2 Money is the basis for comparison Money can be measured more precisely than most
other motivating agents. Therefore, money is uniquely useful as a measure of
comparison comparison with the past, comparison with other organisations,
comparisons with other people. Since money accompanies increases in status,
responsibility, success, independence or security, money is the element that is
measured and talked about. When any of the comparisons are unfavourable we are
dissatisfied; when they are favourable we put it down to luck. The absolute levels of
pay are not often an issue but the equitable level, in relation to others, is.
3 Money as reinforcement We know from research with animals that reinforcements of
some desired object, if given at regular periods, have little effect as motivators. Pay,
therefore, given in annual increments, is likely to be seen as a condition of work.
Entrepreneurs, salespeople and other executives who often see money as a moti-
vator, experience money when it is tied to particular effort.
case example 10.4
Robin and Chris both graduated from university two
years ago with degrees in education. They each took
jobs as secondary school teachers but in different
areas. Robin immediately confronted a number of
obstacles on the job: a large class, a small classroom
and inadequate supplies. Chriss situation could not
have been more different. He had fewer students and
a teaching aide for 15 hours each week, as well as a
modern, well-lit room. Perhaps not surprisingly, at
the end of their rst year, Chris had been
considerably more effective as a teacher than Robin.
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Incentives tied to piece rates often work well, for a time, but there is some evidence
that variety and control over output is as motivating as extra money. Moreover, piece
rates bring feelings of insecurity if tied to an individual, but are too spread out in
their effort if tied to a group. In spite of all the difficulties, pay is a much simpler and
ultimately less-costly way of rewarding people in some parts of the organisation than
security, status or job satisfaction. But there are clearly implications for equity, or
perceived inequity, to be considered.
There is a possible conflict between the organisations view of money and its
employees view of money.
1 Organisations regard money as a cost Profits are earned only when revenues have covered
variable and fixed costs. When revenues are low, it is probable that an organisation
will seek to minimise wages. When revenues are high, it should be able to afford
more in wages.
2 Employees regard money as income No matter how low profits are, employees will want
both job stability and a stable income. It is all right for wages to rise, but it is not so
good for wages to fall. Whilst organisations look for high profits before paying
high wages, employees look for good wages first.
This conflict might explain the frequent failure of some types of money-based incen-
tive schemes to motivate employees to work harder, as we shall see in the next section
when we look at schemes such as performance-related money which aim to link
reward to performance. One of the reasons why such schemes have had limited
success is that they have a restricted view of motivation and reward. Money can, in
fact, be a means to satisfy many of the needs in Maslows hierarchy. Herzberg
considers that money is essentially a hygiene factor, more likely to cause dissatisfac-
tion than inspire people to work harder or better, but this clearly conflicts with the
idea of performance-related money.
Furthermore, if money is a dominant motive, then you would expect difficulties in
recruiting for certain lower-paid jobs. Academic research is not particularly well
paid, but the job has other satisfactions, such as interest, status or esteem. Money is
thus only one of several intrinsic or extrinsic rewards offered by work. If money is
used to motivate, it can only do so in a wider context of the job and the other rewards.
Praise and recognition are also relevant.
The challenge for organisations is to design payment systems that can reflect indi-
vidual and team contribution. This can be approached through a combination of compe-
tence-based pay scales and team bonuses related to profit or customer satisfaction.
10 GETTING THE MOST FROM PEOPLE 287
test your knowledge 10.3
(a) What are the three main categories of motivation theories?
(b) Distinguish between Herzbergs motivators and hygiene factors?
(c) What are the key steps in Maslows hierarchy and what do they mean?
(d) What are the three needs identified by McClelland?
(e) Outline Handys view on money as a motivator.
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4 Job satisfaction
4.1 Introduction
The assumption that satisfying a need can lead to improved performance underpins
much of the discussion about motivation and has been a basic tenet among managers
for years. Colloquially, however, job satisfaction is taken to mean the individuals
feeling of happiness at work, whatever the cause.
Robbins and Judge (2007), looking at job satisfaction, describes this as both a
general attitude towards ones job and the difference between the amount of reward
a worker receives and the amount he or she believes he or she should receive. A
person with a high level of job satisfaction holds positive attitudes towards the job,
while a person who is dissatisfied with the job will hold negative attitudes towards it.
It is useful to distinguish this from morale, which is described as the mental and
emotional attitude of a person or group and concerns their confidence, hopes, etc.
This therefore appears to relate to the level of contentment felt by a group of people
rather than single individuals.
How useful are these concepts? Briner (1997) argues that:

current thinking as to how people feel about work (and at work) has been
reduced to two very narrow concepts, stress and satisfaction. The underlying
assumption is that happier workers are more productive. Hard research evidence
suggests that there is no strong link between satisfaction and performance.

Briner asserts that there is a poverty of language in discussing feelings at work and
that the common sense view is that peoples feelings and behaviour are related but
not in a simple way. Simplistic concepts like satisfaction do not in themselves
explain behaviour at work. Briner suggests a number of approaches to analysing this
issue. A persons feelings are influenced by four factors:
(a) what the person is actively trying to achieve satisfaction is more passive and reactive;
(b) the group or team context this is relevant to morale, whereas satisfaction is
more a matter for the individual;
(c) the work role; and
(d) organisational norms and culture.
288 TEAM LEADERSHIP
case example 10.5
US job satisfaction hits record lows
There is increasing evidence that job satisfaction
levels in the United States are dropping. It is hard to
know for sure why this is true, but recent evidence
provides some intriguing suggestions. This decline is
found among workers of all ages, across all income
brackets, and in all regions of the country.
What are the strongest areas of dissatisfaction? Only
one in ve employees is satised with his companys
promotions and bonus plans. Surprisingly,
satisfaction has dropped the most among those
making the highest incomes (although they still have
somewhat higher satisfaction than those with
relatively low earnings). But why are so many
unhappy at work? One reason may be that many
companies are downsizing, leaving the workers
overburdened. Downsizing also lowers the morale of
layoff survivors. Why? Because not only are the
survivors saddled with the duties of their co-workers
but they often miss their co-workers and also wonder
if they will be next.
Based on Special Consumer Survey Report: Job
Satisfaction, The Conference Board, September
2003, Executive Action Report No 68; and Allen,
Freeman and Russel (2001)
job satisfaction
A general attitude towards
ones job; the difference
between the amount of
reward workers receive and
the amount they believe they
should receive.
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There are therefore issues with the relationships between satisfaction, morale and
performance:
A person can be satisfied with a variety of aspects connected to work the job
itself, colleagues, pay and conditions, etc. These satisfactions may not all be relevant
to performance. Social needs may be satisfied at the organisations expense.
Employee satisfaction is thus a very vague concept.
The morale of a team might be high but its confidence might be misplaced. High
morale a sense of zeal or confidence may be unrealistic in the situation
prevailing at the time.
Performance is more a matter of fact, morale a matter of feeling.
There are obvious occasions when feelings about the job do affect performance.
Some people work in emotionally demanding jobs or jobs where their feelings
about the work are very obvious to customers, such as personal service industries.
Good feelings about the job can encourage behaviour from which the organis-
ation can benefit, over and above the strict requirements of a job. In looser, organic
structures, creativity in excess of the immediate needs of the job might be influ-
enced by peoples feelings about whether it will be recognised and valued.
It is possible to link low morale with behaviour such as excessive sickness or
absenteeism, but such behaviour is just as likely to be caused by poor discipline and
can be improved without affecting morale.
This begs two important questions for managers and organisations: what determines
job satisfaction and what is the effect of job satisfaction on employee performance?
4.2 What determines job satisfaction?
A review of the literature by Robbins and Judge (2007) indicates that the more
important factors contributing to job satisfaction are mentally challenging work,
equitable rewards, supportive working conditions and supportive colleagues.
Mentally challenging work
Employees tend to prefer jobs that give them opportunities to use their skills and abil-
ities and offer a variety of tasks, freedom and feedback on how well they are doing.
Jobs that have too little challenge create boredom, but too much challenge causes
frustration and stress.
Equitable rewards
Employees want pay and promotion policies and processes that are perceived as
being fair and in line with their expectations. Many people willingly accept less
money to work in a preferred location or in a less demanding job. The key to linking
pay to satisfaction is not the absolute amount one is paid; rather, it is the perception
of fairness. Similarly, employees seek fair promotion policies that provide oppor-
tunities for personal growth, more responsibility and increased status. Individuals
who perceive that promotion decisions are made in a just manner, therefore, are
likely to experience satisfaction from their jobs.
Supportive working conditions
Employees are concerned with their work environment both for personal comfort and
to help them to do a good job. Studies suggest that employees prefer surroundings that
are comfortable and safe. Additionally, most employees prefer working relatively
close to home in clean and new facilities and with adequate tools and equipment.
Supportive colleagues
For most employees, work also feeds the need for social interaction. Not surprisingly,
therefore, having supportive colleagues leads to increased job satisfaction. The behav-
iour of ones boss is also a major determinant of satisfaction. Studies generally find
that employee satisfaction is increased when the immediate supervisor is under-
10 GETTING THE MOST FROM PEOPLE 289
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290 TEAM LEADERSHIP
standing and friendly, offers praise for good performance, listens to opinions and
shows a personal interest.
The personality-job fit
Where there is a high degree of agreement between the employees personality and
the occupation, this results in a more satisfied individual.
Innate characteristics
As much as 30 per cent of an individuals satisfaction can be explained by heredity
factors. A significant portion of some peoples satisfaction is therefore genetically
determined. That is, an individuals disposition toward life (positive or negative) is
established by his or her genetic make-up. Given this evidence, it may well be that, at
least for some employees, there is little managers can do to influence employee satis-
faction. Manipulating a jobs characteristics, working conditions, rewards and the job
fit may have little effect. This suggests that managers should focus attention on
employee selection: if you want a satisfied worker, you screen out those who would
be inappropriate for a role at the recruitment stage.
4.3 The effect of job satisfaction on employee performance
Managers interest in job satisfaction tends to centre on its effect on employee
performance. A large number of studies have been designed to assess the impact of
job satisfaction on employee productivity, absenteeism and turnover.
Satisfaction and productivity
A number of reviews in the 1950s and 1960s, covering studies that sought to estab-
lish the relationship between satisfaction and productivity, could find no consistent
relationship. They sought to test the statement that a happy worker is a productive
worker. The belief in the happy worker thesis was based more on wishful thinking
than on hard evidence. The research indicated that no more than two per cent of the
variants in output could be accounted for by employee satisfaction. That said, certain
moderating variables, such as the job level, do seem to influence the level of satisfac-
tion. As we might expect, the relationship is more relevant for people in professional,
supervisory and managerial positions.
Another point of concern in the satisfaction-productivity issue is the direction of
causation. Most of the studies on the relationship could not prove cause and effect.
The most recent research provides renewed support for the original satisfaction-
performance relationship. When satisfaction and productivity data are gathered for
the organisation as a whole, organisations with more satisfied employees tend to be
more effective than organisations with less-satisfied employees. It may be that studies
at the individual level have failed to take into account all the interactions and
complexities in the work process.
Satisfaction, absenteeism and turnover
Robbins review found a consistent negative relationship between satisfaction and
absenteeism. A study at Sears Roebuck (cited in Robbins and Judge, 2007) provides
an illustration of how satisfaction directly leads to attendance, where there is a
minimum impact from other factors. Attendance levels were compared at two head-
quarters offices in Chicago and New York. The study found that on a particular day,
absenteeism rates in New York were just as high for satisfied groups of workers as for
stop and think 10.8
Do you believe that you are more productive when satisfied at work?
What assumptions do you make about the link between satisfaction and productivity?
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10 GETTING THE MOST FROM PEOPLE 291
dissatisfied groups. But in the Chicago office, where there had been very bad weather
making it very difficult for people to get to the office, workers with high satisfaction
scores had much higher attendance than did those with lower satisfaction levels.
Satisfaction is also negatively related to turnover, but the correlation is stronger than
was found for absenteeism. Again, other factors such as labour market conditions,
expectations about alternative job opportunities, and the length of service are
important constraints on a workers decision to leave his or her current job.
Peter Drucker (1968) suggested that employee satisfaction is not a useful
concept in motivation because it is too vague. His view was that employee satisfaction
comes about through encouraging employees to accept responsibility. This could be
achieved by:
1 Careful placement of people in jobs The selection or recruitment process should ensure
that the person selected sees the job as one to challenge his or her abilities.
2 High standards of performance in the job Targets should be challenging. The employee
should be encouraged to expect high standards of performance from him or
herself.
3 Providing the worker with the information he or she needs to control his or her own performance The
employee should receive regular and routine information about how well or badly
he or she is doing.
4 Opportunities for participation in decisions about matters that affect them.
5 Motivation: from concepts to application
In this section we look at how the concepts associated with motivation and satisfac-
tion that we have explored have been applied in the workplace by looking at how
work design has been influenced.
5.1 Job design and enrichment
Job design involves incorporating the tasks that the organisation needs to be done
into a job for one person. One approach to this is depicted in Hackman and et al.s
(1975) job characteristics model, shown in Figure 10.6. The job characteristics
model identifies five core characteristics as having special importance to job design.
A job that is high in these core characteristics is said to be enriched. The core job
characteristics are:
Skill variety the degree to which the job requires an employee to undertake a
variety of different activities and use different skills and talents.
Task identity the degree to which the job requires completion of a whole and
identifiable piece of work (that is, it involves doing a job from beginning to end
with a visible outcome).
Task significance the degree to which the job is important and involves a mean-
ingful contribution to the organisation or society in general.
Autonomy the degree to which the job gives the employee substantial freedom,
independence and discretion in scheduling the work and determining the
procedures used in carrying it out.
test your knowledge 10.4
(a) Differentiate satisfaction and morale.
(b) What, according to Robbins review, determines job satisfaction?
(c) What are the key points from the research findings on the effect of job
satisfaction and employee performance?
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292 TEAM LEADERSHIP
Job feedback the degree to which carrying out the work activities results in the
employee obtaining direct and clear information on how well the job has been done.
Hackman et al. state further that three critical psychological states must be realised for
people to develop intrinsic work motivation. These are:
experienced meaningfulness in the work;
experienced responsibility for the outcomes of the work; and
knowledge of actual results of the work activities.
These psychological states represent intrinsic rewards that are believed to occur and
to influence later performance and satisfaction when the core job characteristics are
present in the job design.
Building on this, job enrichment is planned, deliberate action to build greater
responsibility, breadth and challenge of work into a job. A job may be enriched by:
(a) allowing employees greater freedom to decide for themselves how the job
should be done;
(b) encouraging employees to participate in the planning decisions of their supe-
riors; and
(c) ensuring that employees receive regular feedback on performance and are able to
compare actual results with targets.
Job enrichment attempts to add further scope to a job by giving the job holder
decision-making responsibilities of a higher order.
5.2 Empowerment
Empowerment is similar to job enrichment. Originally used by US companies, it
spread to other Western countries and is used to describe a variety of ways of
involving employees in the planning and control of their work. It is taken to mean
different things depending on the context. At one level, it gives employees increased
discretion or autonomy, such as the right to decide among themselves exactly when
they start, finish and take breaks. At another level, it can describe team-based working
in which the team co-operates to make a better product or deliver a better service.
Quality circles are an example. It may also refer to team working in which the team
takes responsibility for managing itself. In rare cases it may mean input into a firms
tactics or strategy.
FIGURE 10.6 Hackman et al. job characteristics model
Critical
psychological
states
Meaningfulness
of work
Responsibility for
work outcomes
Knowledge of
results
High internal
motivation
High job
satisfaction
Skill variety
Task identity
Task significance
Autonomy
Feedback
from job
MODERATORS
Knowledge and skill
growth, need, strength
Core job
characteristics
Outcomes
job enrichment
Planned, deliberate action
to build greater
responsibility, breadth and
challenge of work into a job.
C10_ICSA_STUDY_TEXT_STRAT_OPS_MAN.QXD:ICSA 18/6/09 10:54 Page 292
Delegation
By its very nature, delegation is a central aspect in the design of jobs. By extension, no
further job enlargement or enrichment is possible unless more authority is delegated
to staff. Handy (1993) suggests that although delegation is a concept that managers
understand well enough, they are often reluctant to delegate in practice. This can be
because by delegating, a manager may perceive that he or she is losing control over
decisions and does not necessarily trust others to do the job as well. This is what
Handy calls the trustcontrol dilemma: managers want to have control over
decisions, but would like to delegate and so show their trust in the subordinates abil-
ities. The manager cannot show more trust without losing more control. The
trustcontrol dilemma is central to the concept of empowerment. After all, as the
Barings Bank case showed, empowerment can get out of hand if it means a loss of
control over vital and risky decisions.
Job enrichment and empowerment might also be limited by the following factors:
(a) The technology or working conditions. It would be difficult to introduce a
scheme of job enrichment into mass production and assembly line working
without spending a large sum of money on reorganising working conditions
and equipment.
(b) Jobs with a low level of skill may be difficult to enrich.
(c) The willingness of subordinates. An attempt by senior managers to impose job
enrichment schemes according to their own particular views about what is
appropriate is unlikely to be long lasting or productive.
(d) Empowerment may require a significant change in managerial approach and
possibly the culture of the organisation.
It would be wrong, however, to suppose that job enrichment alone will automatically
make employees more productive. As Handy states:

Even those who want their jobs enriched will expect to be rewarded with more
than job satisfaction. Job enrichment is not a cheaper way to greater productivity.
Its pay-off will come in the less visible costs of morale, climate and working
relationships.

5.3 Job enlargement and rotation


Job enlargement is frequently confused with job enrichment, though it is signifi-
cantly different. Job enlargement, as the name suggests, is the attempt to widen the
scope of a job by increasing the number of operations in which its holder is involved.
This may, for example, have the effect of lengthening the time cycle of repeated
operations. By reducing the number of repetitions of the same work, the boredom of
the job should also be reduced. Job enlargement is therefore a horizontal extension
of an individuals work, whereas job enrichment is a vertical extension.
Job enlargement is limited in its ability to improve motivation since, as Herzberg
points out, to ask a worker to complete three separate tedious, unchallenging tasks is
unlikely to motivate him more than asking him to fulfil one single tedious, unchal-
lenging task. Job enlargement might succeed in providing job enrichment, provided
10 GETTING THE MOST FROM PEOPLE 293
stop and think 10.9
What is the extent of your participation in:
decisions which directly affect you and your work?
decisions governing the long-term direction of your firm?
Do you allow your staff to participate in decisions you make regarding their work?
job enlargement
The attempt to widen the
scope of a job by increasing
the number of operations in
which its holder is involved.
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294 TEAM LEADERSHIP
that the nature of the extra tasks to be done in the enlarged job gives the employee a
greater challenge and incentive:
(a) When work is organised as a production line, with each employee responsible
for only a small part of the total work, the dullness and monotony of the
employees work will be exceptionally high. Giving an employee a task spanning
a larger part of the total production work may reduce the dullness and monotony.
(b) Enlarged jobs can provide a challenge and incentive. For example, a trusted
employee may be given added responsibilities for checking the quality of output
or training new recruits. Enlarged jobs may also be regarded as particularly desir-
able, and as stepping stones towards promotion.
Similar criticisms could be levelled at job rotation, which has a similar purpose to job
enlargement giving subordinates more varied work to do, but of a similar nature or
degree of difficulty. Job rotation might take two forms:
(a) An employee might be transferred to another job after a period of, say, two to
four years in an existing job, in order to give him or her a new interest and chal-
lenge, and to bring a fresh person to the job being vacated.
(b) Job rotation might be regarded as a form of training. Graduate trainees, for
example, might be expected to learn a little about a number of different jobs or
functions by spending six months or one year in each job before moving on.
5.4 Employee involvement programmes
Employee involvement has become a convenient term to cover a variety of tech-
niques. It includes employee participation or participative management, workplace
democracy, empowerment and employee ownership. Although each of these has
unique characteristics, they all have a common core employee involvement.
Employee involvement can be defined as a participative process that uses the entire
capacity of employees and is designed to encourage increased commitment to the
organisations success. The belief is that by involving the workers in decisions that
affect them and by increasing their autonomy and control over their work lives,
employees will be more motivated and more productive. Howerver, that does not
mean that participation and employee involvement are synonymous. Participation is
a more limited term. It is a subset of the larger framework of employee involvement.
Most employee involvement programmes include some form of employee partici-
pation, but the term participation per se is too limiting.
job rotation
Moving jobs at regular
intervals, possibly as part of
a training programme
case example 10.6
The telecommunication engineers in a small isolated
international switching centre to the north of London
felt remote from the rest of the company even though
the main HQ was not far away. The centres manager
was concerned about the effect that this was having
on productivity and knew that more exible working
practices were to be introduced in the near future.
He set up a programme of internal job rotation so that
each engineer in the centre learned to carry out the
job of at least one other colleague. Over a six-month
period he also encouraged workers to plan and make
a number of visits to people in HQ with whom they
dealt most frequently.
Productivity increased, absenteeism fell and the new
working arrangements were introduced without
difculty at this centre.
Why do you think these results were achieved?
employee involvement
A participative process that
uses the entire capacity of
employees and is designed
to encourage increased
commitment to the
organisations success.
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10 GETTING THE MOST FROM PEOPLE 295
test your knowledge 10.5
(a) What factors may limit job enrichment or empowerment?
(b) What is an autonomous work group?
(c) How does job enlargement differ from job enrichment?
(d) What might be the implications of the trust-control dilemma?
chapter summary
Motivation is the urge or drive to take action to achieve
needs. It is widely acknowledged by organisations and
managers that an organisations workforce should be
motivated. The belief is that a motivated workforce is
likely to work more efficiently and effectively. That said,
there is little empirical evidence of a correlation between a
happy workforce and a productive one.
Motivation theories tend to focus on the idea that people
have certain intrinsic needs, some of which can be
fulfilled by work. Some look at content, others processes.
Maslows hierarchy of needs is an example of the former,
whereas Herzbergs ideas on hygiene and motivation
factors focus more on job satisfaction.
This chapter concluded by looking at ways in which
managers can improve employee motivation in practice.
Techniques range from careful design of jobs (including
job enrichment, job enlargement and job rotation) to
encouraging employees to accept responsibility and
increasingly sophisticated and performance-related pay
and incentive schemes. We looked at examples of how
participation by employees in decision-making can lead
to better motivation as well as to better decisions.
There are problems with using pay-based incentives and
salary schemes as a means of motivation. People respond
to matters affecting their money and that of others in
complex ways. However, money remains a potential
motivator, in spite of Herzbergs doubts on this subject,
and this view is widely held in organisations.
Individuals vary in their needs and the satisfactions they
seek. Supervisors and managers should seek to understand
and pay attention to these needs and try to satisfy the needs
of their staff by providing satisfaction in their work.
Supervisors and managers should seek ways of
generating motivation through the way jobs are designed.
The job should:
(a) have a clear meaning and purpose related to the
objectives of the organisation;
(b) be as self-contained and integrated as possible;
(c) provide opportunities for making decisions or
participating in decisions which affect work and
targets (e.g. in deciding the methods for doing work);
(d) provide a regular feedback of information to the
employee about his or her performance; and
(e) avoid monotony and repetitiveness.
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