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COMMERCE 1B03 Lecture Notes - Goal Setting, Lillian Moller Gilbreth, Job Enrichment

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Rita Cossa

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Chapter 13: Motivating Employees
-Motivation: a person’s internal drive to act
-Intrinsic Reward: the good feeling you have when you have done a job well
-Extrinsic Reward: Something given to you by someone else as recognition for good work; extrinsic
rewards include pay increases, praise and promotions
-Scientific Management: Studying workers to find the most efficient ways of doing things and then
teaching people those techniques
-Time-Motion Studies: Studies, begun by Frederick Taylor, of which tasks must be performed to
complete a job and the time needed to do each task
-Principle of Motion Economy: Theory developed by Frank and Lillian Gilbreth that every job can be
broken down into a series of elementary notions
-Hawthorne Effect: the tendency for people to behave differently when they know they are being
-Maslow’s Hierarchy of Needs: Theory of motivation that places different types of human needs in order
of importance, from basic psychological needs to safety social and esteem needs to self-actualization
-Motivators: In Herzberg’s theory of motivating factors, job factors that cause employees to be
productive and that give them satisfaction
-Hygiene (Maintenance) Factors: In Herzberg’s theory of motivating factors, job factors that can cause
dissatisfaction if missing but that do not necessarily motivate employees if increased
-Job enrichment: A motivational strategy that emphasizes motivating the worker through the job itself
-Job enlargement: job enrichment strategy that extends the work cycle by adding related tasks to the
job description
-Job rotation: a job enrichment strategy that involves moving employees from one job to another
-Goal-setting Theory: the idea that setting ambitious but attainable gaols can motivate workers and
improve performance if the goals are accepted, accompanied by feedback, and facilitated by
organizational conditions
-Management by Objectives (MBO): A system of goal setting and implementation that involves a cycle of
discussion, review, and evaluation of objectives among top and middle-level managers, supervisors and
-Expectancy Theory: Victor Vroom’s theory that the amount of effort employees exert on a specific task
depend on their expectations of the outcome
-Reinforcement Theory: Theory that positive and negative reinforcements motivate a person to behave
in certain ways
-Equity Theory: The idea that employees try to maintain equity between inputs and outputs compared
to others in similar positions
-A manager’s main goal is to motivate the workers to keep them committed and productive since happy
employees lead to happy customers which lead to a successful business
-Keeping employees motivated and happy is not only beneficial to the business; it keeps the employees
from leaving and decreasing the turnover rate, since there is a great amount of money that is used to
train and hire the employee
-Direct costs that are associated with losing an employee include: the time that it takes to hire the
replacement (this includes the process, the paperwork, and the interview process) and the costs related
to onboarding (and this includes orientation, training and new material and equipment)
-Indirect costs are harder to calculate since the employee that left may have been part of a certain team
within the organization and there is also the time that it will take for the new employee to catch up with
the speed of things
-When organization hire a certain worker, they are investing in the person since they are offering skills
development, training and knowledge and when an employee leaves, it companies view the situation as
if the employee took all that was invested in him/him and walked out the door with it
-People are willing to work hard only if they feel the work they contribute is actually making a difference
and people are motivated by intrinsic rewards which can be as simple as praise and compliments, and
recognition and intrinsic rewards is the feeling that one gets when they have done a good job.
-On the other hand some people are motivated by extrinsic rewards, which is something given to the
person as recognition and this can include a pay raise, promotion.
-Canadian Tire Financial Services Ltd. Have developed a program that helps with rewarding their
employees and this program is called “Customer’s for Life”. The program recognizes and rewards
employees that have demonstrated superior customer service and are given a plaque in their honour.
Frederick Taylor: The Father of Scientific Management
-Frederick Taylor, an American Efficiency Engineer, wrote the book The Principles of Scientific
-the goal of the book was to increase worker productivity so that it would be beneficial to both the
employees and the firm
-Taylor wanted to scientifically study the most efficient ways to do things and find the “best” way to do
the tasks and then teach the employees these methods and thus the term scientific management was
coined (studying workers to find the most efficient ways of doing things and then teaching people those
-The scientific management was based off of 3 elements: time, methods and rules of work and the
scientific management has influenced McDonalds. McDonald’s has a set number of burgers that they
expect the employees to flip
-Time-motion studies were studies of the time that it took to perform a task and through these studies,
people were able to develop the standard for every job
-Taylor’s scientific management works was able to help increase productivity
-Henry L. Gantt was a follower of Taylor and developed the principle of motion economy which analyzed
each elementary motion of each action and see what could be done to make the action more efficient
-Some people criticized the methods Taylor’s idea since it compared humans to machines and it was
only concerned with the productivity of the people and not the psychological or human aspects of work.
Elton Mayo and the Hawthorne Studies
-discovered that human and psychological factors
-They created a special room where employees could freely change the environmental factors of the
room and they discovered that the employees that worked in the test room were thought of as a social
group. The people in the special room also enjoyed the atmosphere that was created in the special room
and along with the increased pay they were getting, their job satisfaction increased dramatically.
-Hawthorne effect is referred to how people behave differently when they know that they are being
watched. Mayo’s study found out that money was an ineffective motivator for the employees and that
motivation was based of specifically of Abraham Maslow’s work
Motivation and Maslow’s Hierarchy of Needs
-Maslow believed that motivation arises from need and people are motivated so that they can satisfy
these unmet needs. Any need that has been satisfied no longer provides motivation for the person
-The main needs that Maslow discovered were:
-Psychological Needs: Basic survival needs such as the need for food, water, shelter
-Safety Needs: The need to feel secure at work and at home
-Social Needs: The need to fee loved accepted and part of the group
-Esteem Needs: The need for recognition and acknowledgement from others as well as self-
respect and a sense or importance
-Self-Actualization Needs: The need to develop to one’s fullest potential