BUS 203
Business & Human Resources
As Taught by Prof. Tim Richardson School of Marketing and e-Business, Faculty of Business
Section 4
Chpt 16

The Importance of Employee Motivation

Performance =

  • motivation
  • ability
  • environment
. So if Performance is composed of
  • motivation
  • ability
  • environment
you can increase an employee's ability with training
you can spend money to improve the environment
the hardest thing to do is increase motivation - which is why we have a whole chapter on motivation in this text for the course
      "Motivation is important because of its significance as a determinant of performance and because of its intangible character" 
      page 441 text
Chpt 16

Is it possible to really be effective at motivating people?

If so, how do you do it?

. Prof. Richardson has some previous experience with "motivating" people and an explanation of this can be found at

Interest leads to Want
Want equals How
How creates Action. 

To successfully motivate someone, you first have  to clearly identify specifically what they want. If they don't know what they want, you can help them by providing information on the choices / opportunities available, which they might not know

Although most people are motivated to some degree, the question is not simple. The challenge lies in assisting them to take the motivation through a series of steps that lead to action which leads to the accomplishment of what they wanted. 

Essentially the equation begins with Interest leading to the identification of a specific want. Once you specifically know what you Want, then comes the step of figuring out How you will take action. Once you have some  idea of the Action you will take, then the Motivation seems realistic since it is no longer just an idea, but in fact an achievable objective  which has a consequence.
WTGR 1997

Chpt 16


Chpt 16

Historical Perspectives on Motivation

Taylor page 441

  • incentive pay system

  • "assumed that economic gain was everyone's primary motivation"
  • "He believed that management knew more about the jobs being performed than the workers"
  • Taylor's perspective influenced by the heritage of the Industrial Revolution
  • assumed people didn't like their jobs and that they only did it for the money

  • (which may have been true in the factors of Northern England in the late 1800's)
Mayo page 442
  • assumed that employees want to feel useful
  • employees have strong social needs
  • social needs more important than money in motivating employees
  • recommended that you allow employees to make suggestions and participate even if that results in no action
Herzberg page 445
  • different sets of factors associated with satisfaction and dissatisfaction
  • satisfaction and dissatisfaction are not necessarily at opposite ends !!
  • (page 447 - "Herzberg's theory is not held in high esteem by researchers in the field")
  • Herzberg explained online 
Maslow page 443
  • Maslow's "hierarchy of needs"
  • based on people wanting to satisfy the basic needs, and when those are satisfied, they will look to satisfy 
ERG Theory page 445
  • collapses the need for hierarchy by Maslow into three levels
    • Existence
    • Relatedness
    • Growth
  • if a need remains unsatisfied, the individual becomes frustrated and regresses to a lower level Read this web page to understand all the steps
  • Physiological needs. Biological necessities such as food, water, and oxygen. These needs are the strongest because a person would die if they were not met.
  • Safety needs. People feel unsafe during emergencies or times of disorder like rioting. Children more commonly have this need met when they feel afraid.
  • Love and belonging needs. The need to escape loneliness  and alienation, to give and receive love, and a sense of belonging.
  • Esteem needs. The need to feel valuable; to have self-respect and the respect of others. If a person does not fulfil these needs, they feel inferior, weak, helpless, and worthless.
  • Self-actualization needs. Maslow taught that a very small group of people reach a level called self-actualization, where all of their needs are met. Maslow described self-actualization as a person's  finding their "calling." He said, "a musician must make music, an artist must paint, and a poet must write." 
. The reason why we look at the historical perspectives on Motivation is that in some cases, companies today in 2001 still use some of these methods because the senior management have outdated perspectives.
WTGR 1997
Chpt 16

Individual Human Needs
  • Need for Achievement
  • Need for Affiliation
  • Need for Power

text page  447

Chpt 16

Expectancy Theory  text page  448

"... motivation depends on 
how much we want something
and how likely we think we are to get it" "Expectancy Theory" is discussed in many business courses.

Here is an online powerpoint that covers the main points

The ppt was created by Dr. Harold Riemer at the University of Regina


Chpt 16

Equity Theory  text page  452

"... people are motivated to seek social equity in the rewards they receive for performance

translation !

people want to get paid fairly for working for the same amount as others who have the same level of experience and skill.

Chpt 16

Reinforcement Perspectives on Motivation  text page  453 - 454

"... behaviour that results in rewarding consequences is likely to be repeated".

  • Positive Reinforcement
  • Avoidance
  • Punishment
  • Extinction
  • Fixed-Interval Schedule
  • Variable-Interval Schedule
  • Fixed-Ratio Schedule
  • Variable-Ratio Schedule
Chpt 16

Emerging Perspectives on Motivation  text page  454
The Japanese Approach

"... bringing managers and workers together as partners"

  • works with Japanese people
  • difficult to do outside of a Japanese cultural environment
  • emphasis on the relationship between workers and bosses "we're all in this together"
The Japanese concept of motivation of corporate personnel revolves around four principles
1. family is the firm
2. Nenko - lifetime employment
3. Nemawashi / Ringi-sho
4. Profit sharing
"Company employees (and their representatives, the unions) have a strong interest in the survival and growth of their company, and agree in principle with the managers on such matters as distribution of profits, levels of output, and employment." 
Chpt 16

Using Reward Systems to Motivate Performance text page  457

Reward System:
"the formal and informal mechanisms by which employee performance is defined, evaluated and rewarded"

Designing Effective Reward Systems text page  458

  • must meet the needs for basics
  • competitively comparable
  • distribution within the organization must be fair (who gets what)
  • variable - recognize different people have different needs
Chpt 16

Empowerment  text page  457 "

Empowerment is mentioned briefly in the text on the bottom of page 457 - but it deserves to have more discussion.

. Empowerment is a very important thing which Managers in the "New Economy" recognize is key to motivating people in a highly competitive workplace environment.

"In today's organisations, increasing attention is being given to employee empowerment. Empowerment is the process of giving people more scope or 'power' to exercise control over, and take responsibility for, their work. The responsibility for decision-making is pushed down the hierarchy so that those who do the task make the decisions about the task."


"Empowerment exists in an  organisation when lower level employees feel that they are expected to exercise initiative in good faith on  behalf of the mission even if it goes outside the bounds of their normal responsibilities; and if their initiative  should lead to a mistake - even a serious one - they trust that they will not be arbitrarily penalized for having  taken that initiative."


Empowerment "Dilbert Style"

Chpt 16

Merit System text page  459

reward is based on people's job performance
- a subjective opinion

Incentive System text page  459

reward is based on what they actually do
- an objective opinion
- used in industry and manufacturing situations

Chpt 17

Frank Stronach is the founder and Chairman of Magna International Inc.

Stronach bio
Chpt 17
Chapter 17 Leadership and Influence Processes

The textbook for BUS 203 has an online companion website - at which you can find all kinds of interesting stuff.
Power Profile 
The concept of Power is introduced on pages 469-472. Take this test (which is linked to the site from the publisher of the BUS 203 text) which will evaluate the extent to which you seek power and status. You are encouraged to try this online test to determine whether you are "power hungry" or just a regular shmoe

Chpt 17

Distinctions between Management and Leadership  text page 469
Activity Management Leadership
Creating an Agenda Planning and Budgeting
- Plans, Strategy and Tactics of GOPST
Establish Direction
- develop a vision of the future
- Goals and Objectives of GOPST
Developing the HR for achieving the Goal Organizing and Staff Aligning people
- communicating the Goals to influence how people carry on
Executing Plans Controlling and Problem Solving
- identify where you go wrong
Motivating and Inspiring
- energizing people
Outcomes Does things based on predictable outcomes Has the power to make dramatic changes in the face of environmental changes and competitive pressure
  • in small sized organizations, people can be both Managers and Leaders
  • in large sized organizations, there are usually different people who are Managers and Leaders
Chpt 17

Power  text page 469-470
Power !
  • Legitimate Power
  • Reward Power
  • Coercive Power
  • Referent Power
  • Expert Power
Chpt 17

Leadership Grid text page 475 similar to the leadership grid on page 475 in your text

there are many variations of this on the Net

Developed by Robert R. Blake and Jane S. Mouton,
 The Leadership Grid® provides a framework for  understanding types of leadership. 

 The grid consists of two behavioral dimensions: 

   1.Concern for production 
   2.Concern for people. 
read this

"The Leadership Grid was developed over 30 years ago by two behavioral scientists, Drs.Blake and Mouton. It has been the most extensively used management and leadership development program, throughout the world. The Grid itself is the most reliable visual framework we know of for understanding various approaches to leadership."

"While there are numerous ways of looking at the relationship between Production and People concerns, the Grid identifies seven major theories about how people exercise leadership in the pursuit of organizational objectives with and through others, and how each of the seven theories affects  productivity. It allows people to see the differences and similarities among them, to identify the strengths and weaknesses of each style, and to develop conclusions regarding sound and unsound ways of leading."