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CHAPTER 10 - MOTIVATING AND REWARDING EMPLOYEES
LEARNING OUTCOMES
After reading this chapter students should be able to:
Describe the motivation process.
Define needs.
Explain the hierarchy of needs theory.
Differentiate Theory X from Theory Y.
Explain the motivational implications of the motivation-hygiene theory.
Describe the motivational implications of equity theory.
Explain the key relationships in expectancy theory.
Describe how managers can design individual jobs to maximize employee performance.
Describe the effect of work force diversity on motivational practices.
Describe how entrepreneurs motivate their employees.
Opening Vignette
SUMMARY
Are happy workers productive workers or are productive workers happy? Since 1995, US workers’ productivity has increased by more than 33 percent. Since 1979, US worker productivity has increased by more than 67 percent (one of the fastest productivity periods in US history.) Thus, US organizations should have happy, excited, and motivated workers---which is not the case. Salary and benefits may be at the heart of this issue.
Since 1995, worker salaries have increased by 11 percent. While an increase in salary is generally preferred by workers, at the same time the number of workers on the payroll has decreased sharply (due to downsizing and outsourcing). Employees who keep their jobs are often doing the work that once took two or three employees to handle. Go back a bit further and one will see that the overall employee salary increase is slightly less---only an 8.9 percent increase since 1979. Factor in demographics like gender, education, and race, and the percentage increases differ widely. For example, women who now comprise about half of the workforce have seen their salaries increase only 7.4 percent since 1979. For all groups, salary increases have been relatively non-existent since 2001.
Employee benefits are shrinking, too. Over the past five years, organizations offer
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