Designing and Structuring Organizations for Strategic Decision Making

Instructions: Essay: Using the article “Rethinking the Work Place: Flexibility, Fairness and Enlightened Automation” (McKinsey & Company, 11/03/2017) students will write a short essay (Not more than 2 pages, single spaced, in size 12 type). Specific instructions follow below. Total Points = 150 Task Requirements: The essay should concisely detail: (a) the main points of the article; (b) link them to specific reference points in Chapters 16 (Managing Individual Behaviors) of the Text; and (c) include both potential board of director implications (Mandato, Joe, “Good Governance: Six Proven Principles) and ethical implications (See IIT, “Moral Compass” of the main points of the McKinsey article. Saving Convention: Students must use the following saving convention: Last Name, First Name_Bus301_Assign 4_Essay and have the student name of the 1st page of the paper. Format: Submit in only Word Doc. No other format will be accepted. 1.
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Let’s Get Real:
Meet the Manager
Aisha Warren
Retail Store Manager
Dots, LLC
Warren, MI
You’ll be hearing more from this real
manager throughout the chapter.
I am a retail clothing store manager for Dots, LLC. I am
responsible for leading, motivating, and coaching a
team of approximately 10 employees. I am focused on
customer service and sales results.
The relationships that I have built with customers and staff
members. I am amazed by the many follow-up visits
and phone calls I receive from past staff members and
customers. Many have expressed their gratitude for what I
have taught them about management, sales, and fashion.
page 430
Compare and
contrast early
theories of
page 431
Compare and
theories of
page 435
Discuss current
issues in
page 445
The feeling of defeat when my team and I do not meet our sales goal. Achieving
our sales goal can be difficult. The key is to motivate team members with incentives
that keep them pushing to achieve the goal.
Be a leader and not a boss. It is important to set the tone for your expectations
and lead by example. This advice has made me successful.
A Manager’s Dilemma
physical fitness and well-being of its 100 employees.”At
These are the interesting “names”
the company’s Novato, California, headquarters and
given to employees, customers, and
its Nashville, Illinois, warehouse, employees now have
retailers at gourmet tea company
access to a full-time nutritionist, on-site health screen-
Republic of Tea.1 Like many compa-
ings, and a $500 credit that can be used for gym
nies, big and small, Republic of Tea
memberships or health plans such as Weight Watch-
struggled through the economic re-
ers. With a workday walking program,employees are
cession. As the crisis intensified,“CEO
encouraged to take 10- to 15-minute walks. Some
Ron Rubin sat in his office and asked
might consider Rubin’s ideas silly, but he believes that
himself, What more can we do to
if you take care of your employees, they will take care
help our ministers?” The answer was
of your business.Although Ron Rubin has tried to make
as unexpected as the question that
Republic of Tea a better place to work for his employ-
prompted it.
ees during a challenging period, what other things
Within weeks, the company rolled
could he do?
out a program called “Healthy Ministry,
dedicated to improving the health,
What Would You Do?
Successful managers, like Ron Rubin, understand that what motivates them personally may
have little or no effect on others. Just because you’re motivated by being part of a cohesive
work team, don’t assume everyone is. Or just because you’re motivated by your job doesn’t
mean that everyone is. Effective managers who get employees to put forth maximum effort
know how and why those employees are motivated and tailor motivational practices to satisfy their needs and wants.
Define motivation.
What Is Motivation?
According to LinkedIn Corporation, a Web site that provides networking for more than
65 million professionals, “ninja” has far outpaced the growth of other trendy job titles.2
Although most individuals using that title are computer programmers—who attack writing code like a ninja, with tons of tools available to do battle—the term also has been
used to describe expertise in everything from customer service to furniture movers. For instance, in Salt Lake City, one business owner sells the services of “ninja workers” who will
do everything from hauling junk to personal security to house-sitting. And at Bonobos,
Inc., a New York City start-up that makes and sells men’s apparel online, customerservice employees are also called ninjas. Why would a job title matter to employees?
Many people, especially the young and young-at-heart, like vivid and unusual titles that
celebrate their hard work. And ninja, like other popular job titles before it (guru, evangelist, or even sandwich artist) shows employees that their efforts aren’t plain and ordinary,
but are appreciated.
Would you ever have thought that a job title might be motivating? Have you ever
thought about to how to motivate someone? It’s an important topic in management and researchers have long been interested in it.3 All managers need to be able to motivate their
employees, which first requires understanding what motivation is. Let’s begin by pointing
out what motivation is not. Why? Because many people incorrectly view motivation as a
personal trait; that is, they think some people are motivated and others aren’t. Our knowledge of motivation tells us that we can’t label people that way because individuals differ
in motivational drive and their overall motivation varies from situation to situation. For
instance, you’re probably more motivated in some classes than in others.
Motivation refers to the process by which a person’s efforts are energized, directed,
and sustained toward attaining a goal.4 This definition has three key elements: energy,
direction, and persistence.5
The energy element is a measure of intensity, drive, and vigor. A motivated person puts
forth effort and works hard. However, the quality of the effort must be considered as well
as its intensity. High levels of effort don’t necessarily lead to favorable job performance unless the effort is channeled in a direction that benefits the organization. Effort that’s directed
toward, and consistent with, organizational goals is the kind of effort we want from employees. Finally, motivation includes a persistence dimension. We want employees to persist in
putting forth effort to achieve those goals.
Motivating high levels of employee performance is an important organizational concern and managers keep looking for answers. For instance, a Gallup poll found that a large
majority of U.S. employees—some 73 percent—are not excited about their work. As the
researchers stated, “These employees have essentially ‘checked out.’ They’re sleepwalking through their workday, putting time, but not energy or passion, into their work.”6 It’s no
wonder then that both managers and academics want to understand and explain employee
Early Theories of Motivation
Motivating employees is important
because it contributes to positive team
We begin by looking at four early motivation theories: Maslow’s hierarchy of needs,
McGregor’s theories X and Y, Herzberg’s two-factor theory, and McClelland’s threeneeds theory. Although more valid explanations of motivation have been developed, these
early theories are important because they represent the foundation from which contemporary motivation theories were developed and because many practicing managers still
use them.
Compare and contrast early
theories of motivation.
Maslow’s Hierarchy of Needs Theory
Having a car to get to work is a necessity for many workers. When two crucial employees
of Vurv Technology in Jacksonville, Florida, had trouble getting to work, owner Derek
Mercer decided to buy two inexpensive used cars for the employees. He said, “I felt that they
were good employees and a valuable asset to the company.” One of the employees who got
Intel managers understand employee needs and
their impact on motivation. The company helps
satisfy the social needs of its young workforce in
Vietnam, where more than half of the population is
under the age of 25. Intel provides opportunities for
its young employees, who love American culture, to
have fun with their coworkers during work breaks as
ways to satisfy their needs for belongingness and
friendship. Recognizing that its employees are eager
to learn western ways of doing business and have a
strong drive for self-development and achievement,
Intel offers them training programs for personal
growth and career development to satisfy their
esteem and self-actualization needs.
The process by which a person’s efforts are
energized, directed, and sustained toward
attaining a goal
one of the cars said, “It wasn’t the nicest car. It wasn’t the prettiest car. But boy did my overwhelming feeling of dread go from that to enlightenment. The 80-hour weeks we worked
after that never meant anything. It was give and take. I was giving and the company was
definitely giving back.”7 Derek Mercer understands employee needs and their impact on
motivation. The first motivation theory we’re going to look at addresses employee needs.
The best-known theory of motivation is probably Abraham Maslow’s hierarchy of
needs theory.8 Maslow was a psychologist who proposed that within every person is a
hierarchy of five needs:
1. Physiological needs: A person’s needs for food, drink, shelter, sex, and other physical requirements.
2. Safety needs: A person’s needs for security and protection from physical and
emotional harm, as well as assurance that physical needs will continue to be met.
3. Social needs: A person’s needs for affection, belongingness, acceptance, and
4. Esteem needs: A person’s needs for internal esteem factors such as self-respect,
autonomy, and achievement and external esteem factors such as status, recognition,
and attention.
5. Self-actualization needs: A person’s needs for growth, achieving one’s potential,
and self-fulfillment; the drive to become what one is capable of becoming.
Maslow argued that each level in the needs hierarchy must be substantially satisfied before
the next need becomes dominant. An individual moves up the needs hierarchy from one level
to the next. (See Exhibit 16-1.) In addition, Maslow separated the five needs into higher and
lower levels. Physiological and safety needs were considered lower-order needs; social,
esteem, and self-actualization needs were considered higher-order needs. Lower-order needs
are predominantly satisfied externally while higher-order needs are satisfied internally.
How does Maslow’s theory explain motivation? Managers using Maslow’s hierarchy
to motivate employees do things to satisfy employees’ needs. But the theory also says that
once a need is substantially satisfied, an individual is no longer motivated to satisfy that
need. Therefore, to motivate someone, you need to understand what need level that person
is on in the hierarchy and focus on satisfying needs at or above that level.
Maslow’s need theory was widely recognized during the 1960s and 1970s, especially
among practicing managers, probably because it was intuitively logical and easy to understand. But Maslow provided no empirical support for his theory, and several studies that
sought to validate it could not.9
McGregor’s Theory X and Theory Y
Andy Grove, cofounder of Intel Corporation and now a senior advisor to the company, was
known for being open with his employees. However, he was also known for his tendency to yell.
Intel’s current CEO, Paul Otellini said, “When Andy was yelling at you, it wasn’t because he
didn’t care about you. He was yelling at you because he wanted you to do better.”10 Although
managers like Andy Grove want their employees to do better, that approach might not have
been the best way to motivate employees as McGregor’s Theory X and Theory Y suggest.
Maslow’s Hierarchy
of Needs
Source: Abraham H. Maslow, Robert
D. Frager, Robert D., and James Fadiman,
Motivation and Personality, 3rd Edition,
© 1987. Adapted by permission of
Pearson Education, Inc., Upper Saddle
River, NJ.
Douglas McGregor is best known for proposing two assumptions about human nature:
Theory X and Theory Y.11 Very simply, Theory X is a negative view of people that assumes
workers have little ambition, dislike work, want to avoid responsibility, and need to be
closely controlled to work effectively. Theory Y is a positive view that assumes employees
enjoy work, seek out and accept responsibility, and exercise self-direction. McGregor believed that Theory Y assumptions should guide management practice and proposed that participation in decision making, responsible and challenging jobs, and good group relations
would maximize employee motivation.
Unfortunately, no evidence confirms that either set of assumptions is valid or that being a
Theory Y manager is the only way to motivate employees. For instance, Jen-Hsun Huang,
founder of Nvidia Corporation, an innovative and successful microchip manufacturer, has been
known to use both reassuring hugs and tough love in motivating employees. But he has little tolerance for screw-ups. “In one legendary meeting, he’s said to have ripped into a project team
for its tendency to repeat mistakes. ‘Do you suck?’ he asked the stunned employees. ‘Because
if you suck, just get up and say you suck.’”12 His message, delivered in classic Theory X style,
was that if you need help, ask for it. It’s a harsh approach, but in this case, it worked.
Herzberg’s Two-Factor Theory
Frederick Herzberg’s two-factor theory (also called motivation-hygiene theory) proposes
that intrinsic factors are related to job satisfaction, while extrinsic factors are associated with
job dissatisfaction.13 Herzberg wanted to know when people felt exceptionally good (satisfied)
or bad (dissatisfied) about their jobs. (These findings are shown in Exhibit 16-2.) He concluded that the replies people gave when they felt good about their jobs were significantly
different from the replies they gave when they felt badly. Certain characteristics were consistently related to job satisfaction (factors on the left side of the exhibit), and others to job
Hygiene Factors
• Achievement
• Recognition
• Work Itself
• Responsibility
• Advancement
• Growth
• Supervision
• Company Policy
• Relationship with
• Working Conditions
• Salary
• Relationship with Peers
• Personal Life
• Relationship with
• Status
• Security
Extremely Satisfied
Herzberg’s Two Factor Theory
Source: Based on F. Herzberg,
B. Mausner, and B. B. Snyderman,
The Motivation to Work (New York:
John Wiley, 1959).
Extremely Dissatisfied
hierarchy of needs theory
esteem needs
Theory Y
Maslow’s theory that human needs—
physiological, safety, social, esteem, and selfactualization—form a sort of hierarchy
A person’s needs for internal factors such as selfrespect, autonomy, and achievement, and
external factors such as status, recognition, and
The assumption that employees are creative,
enjoy work, seek responsibility, and can exercise
physiological needs
A person’s needs for food, drink, shelter, sexual
satisfaction, and other physical needs
safety needs
A person’s needs for security and protection
from physical and emotional harm
social needs
A person’s needs for affection, belongingness,
acceptance, and friendship
self-actualization needs
A person’s need to become what he or she is
capable of becoming.
Theory X
The assumption that employees dislike work, are
lazy, avoid responsibility, and must be coerced
to perform
two-factor theory (motivation-hygiene
The motivation theory that intrinsic factors are
related to job satisfaction and motivation,
whereas extrinsic factors are associated with job
Traditional View
Contrasting Views of
Herzberg’s View
No Satisfaction
Hygiene Factors
No Dissatisfaction
dissatisfaction (factors on the right side). When people felt good about their work, they tended
to cite intrinsic factors arising from the job itself such as achievement, recognition, and responsibility. On the other hand, when they were dissatisfied, they tended to cite extrinsic factors arising from the job context such as company policy and administration, supervision, interpersonal
relationships, and working conditions.
In addition, Herzberg believed that the data suggested that the opposite of satisfaction
was not dissatisfaction, as traditionally had been believed. Removing dissatisfying characteristics from a job would not necessarily make that job more satisfying (or motivating). As
shown in Exhibit 16-3, Herzberg proposed that a dual continuum existed: The opposite of
“satisfaction” is “no satisfaction,” and the opposite of “dissatisfaction” is “no dissatisfaction.”
Again, Herzberg believed that the factors that led to job satisfaction were separate and
distinct from those that led to job dissatisfaction. Therefore, managers who sought to eliminate factors that created job dissatisfaction could keep people from being dissatisfied but
not necessarily motivate them. The extrinsic factors that create job dissatisfaction were
called hygiene factors. When these factors are adequate, people won’t be dissatisfied, but
they won’t be satisfied (or motivated) either. To motivate people, Herzberg suggested
emphasizing motivators, the intrinsic factors having to do with the job itself.
Herzberg’s theory enjoyed wide popularity from the mid-1960s to the early 1980s,
despite criticisms of his procedures and methodology. Although some critics said his theory
was too simplistic, it has influenced how we currently design jobs, especially when it comes
to job enrichment, which we’ll discuss at a later point in this chapter.
Three-Needs Theory
David McClelland and his associates proposed the three-needs theory, which says there
are three acquired (not innate) needs that are major motives in work.14 These three needs include the need for achievement (nAch), which is the drive to succeed and excel in relation to a set of standards; the need for power (nPow), which is the need to make others
behave in a way that they would not have behaved otherwise; and the need for affiliation
(nAff), which is the desire for friendly and close interpersonal relationships. Of these three
needs, the need for achievement has been researched the most.
People with a high need for achievement are striving for personal achievement rather than
for the trappings and rewards of success. They have a desire to do something better or more
efficiently than it’s been done before.15 They prefer jobs that offer personal responsibility
for finding solutions to problems, in which they can receive rapid and unambiguous feedback
on their performance in order to tell whether they’re improving, and in which they can set
moderately challenging goals. High achievers avoid what they perceive to be very easy or
very difficult tasks. Also, a high need to achieve doesn’t necessarily lead to being a good
manager, especially in large organizations. That’s because high achievers focus on their own
accomplishments, while good managers emphasize helping others accomplish their goals.16
McClelland showed that employees can be trained to stimulate their achievement need by
being in situations where they have personal responsibility, feedback, and moderate risks.17
The other two needs in this theory haven’t been researched as extensively as the need
for achievement. However, we do know that the best managers tend to be high in the need
for power and low in the need for affiliation.18
TAT Pictures
All three of these needs can be measured by using a projective test (known as the Thematic
Apperception Test or TAT) in which respondents react to a set of pictures. Each picture is
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