It analyzes motivation as a systemic phenomenon influenced by leadership, environment, and individual psychology, and identifies specific Theory Z factors for each category that increased motivation when implemented, leading to significant financial benefits.

1. Beyond Theory Z - Motivation in
the Knowledge-Value Era
by
Joseph J. Haefner
Engineering Management

2. Abstract
Employee motivation in the emerging
knowledge-value era is an extension of
Maslow’s Theory Z. Recent research on
motivation has identified theory Z factors
affecting employee motivation and
performance. The storyboard displays the
result of replacing Theory X motivation
techniques with Theory Z motivation
techniques in a $10,000,000 Production
throughput success.

3. Cost Penalty
Annual Throughput Per Shift
$14,000,000
$10,000,000 Lost
$12,000,000
Loss
$10,000,000
Loss
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
A B C
Shift

4. Theory X Does Not Engage
Leadership Environment Individual Positive
Enabling Formulation Org. Values & Dynamics Self-efficacy Valued Work
Task Significance Interest Alignment Prosocial Motivation Enlightened HR Policy
Natural Work Units Trust Commitment Fact-based Management
Intellectual Stimulation Autonomy Self-monitoring Quality Systems
Regulatory Foci Shared Norms Agreeableness Consistency in Task
Significance &
Performance
Participative Decision- Normative Intrinsic Positive Mood & Attitude High Perceived Utility
Making
Job Design Group Rewards Intrinsic Motivation High Task
Interdependence
Extrinsic Motivation Self-determination Task Simplicity
Goal Setting Goal Regulation Low Formalization

5. Systemic Motivation
• The basis for motivation is much more
than Theory X (workers cannot be
trusted), and Theory Y (workers can be
empowered).
• Motivation is a systemic phenomenon with
elements in:
– Leadership
– Environment
– Individual Psychology

6. Leadership
• Enabling formulation
• Task significance forming natural work units
• Intellectual stimulation
• Regulatory foci
• Participative decision-making
• Job design
• Extrinsic motivation
• Goal setting

7. Environment
• Social interaction and normative values
• Interest alignment
• Trust.
• Autonomy
• Shared norms
• Normative intrinsic motivation
• Interaction of reward system and socialization
regime

8. Individual Psychology
• Self-efficacy
• Prosocial motivation
• Commitment.
• Self-monitoring
• Goal regulation
• Agreeableness
• Positive mood
• Intrinsic motivation
• Self-determination

9. Motivation Deterrence
• Employer undervaluing work results.
• Punitive focus.
• “Impression” management, non-fact based.
• Not using Total Quality Management practices.
• Inconsistent relationship between task
significance and job performance.
• Perceived task utility is low.
• Task interdependence is low.
• Task complexity.
• High task formalization

10. Low to High Motivational Saturation
The improvement began with Enabling Management & Intellectual Stimulation
e.g. technical skills.
Non-Deterrent
Non-Deterrent
1.00
1.00
0.80
0.60
0.50
0.40
0.20
0.00
Individual Leadership
Individual Leadership
0.00
Environment
Environment
Interest alignment, and trust created the positive synergy to release
other latent motivational behaviors.

11. Motivational Engagement Success
Leadership Environment Individual Positive
Enabling Formulation Social Interaction Self-efficacy Valued Work
Task Significance Interest Alignment Prosocial Motivation Enlightened HR Policy
Natural Work Units Trust Commitment Fact-based Management
Intellectual Stimulation Autonomy Self-monitoring Quality Systems
Regulatory Foci Shared Norms Agreeableness Consistency in Task
Significance &
Performance
Participative Decision- Normative Intrinsic Positive Mood & Attitude High Perceived Utility
Making
Job Design Group Rewards Intrinsic Motivation High Task
Interdependence
Extrinsic Motivation Self-determination Task Simplicity
Goal Setting Goal Regulation Low Formalization

12. Cost Benefit
Motivation
Over $10,000,000 Yield Improvement
Bonus
$14,000,000
$12,000,000
Loss
$10,000,000
Recovery
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
A B C
Shift C Employees Became
Shift
Self-Motivated And Broke
Production Records
Joseph.Haefner@Waldenu.edu