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Chapter 10 Motivating and Leading Employees.docx

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

Chapter 10 Motivating and Leading Employees  Human resources is the most difficult and important factors of production  Motivation o The internal process that energizes, directs and sustains our behavior o The personal force that causes us to behave in a particular way  Natural resources – If neglected, abused, or wasted, the cost is finite  Capital – If neglected, abused, or wasted, the cost is finite  Human resources – If neglected, abused or wasted they may never recover. They may try to undermine  Psychological contract: the set of expectations held by an employee concerning what he will contribute to an organization (contributions) and what the organization will provide the employee (inducements) in return  If there is inequality, seek change (e.g. promotion, raise)  Human relation: interactions between employers and employees and their attitudes toward one another  Firms used to use assurances on job performance to manage psychological contract, now use lavish benefits package (more alternate form) The Importance of Job Satisfaction and Morale  Job motivation: the pleasure and feeling of accomplishment employees derive from performing their jobs well  Morale: the generally positive or negative mental attitude of employees toward their work and workplace o More satisfied employees, higher morale o Reflect degree to perceive needs are being met by jobs o Determined by:  Pay, benefits, co-workers, promotion opportunities Classical Theory of Motivation  A theory of motivation that presumes that workers are motivated only by money  Paying them more would prompt them to produce more  The firm that analyzed jobs and found better ways to perform them would be able to produce goods more cheaply, make higher profits and pay and motivated workers better than its competitors  Flaws: there are more reasons for not doing a job o Because they are demeaning, because they are unpleasant, o Because our supervisors were condescending, arrogant, or unkind  It was true when starvation and poverty were still around  Manager is to get most out of the people to satisfy firm’s mission o Paying salary doesn’t work  Classical Theory is wrong! Scientific management  Scientific management: breaking down jobs into easily repeated components, and devising more efficient tools and machines for performing them  By Fredrick Taylor, an “efficiency” expert and his goal are to increase output.  Time and motion studies > job analysis > specialization > repetition  Develop “best” way to perform a job  Train workers in the standard method  Plan work to eliminate interruptions, remove inefficiencies, reduce waste, productivity should increase  Introduce repetition and specialization  Piece rate system: pay worker for their output  Problems: o Productivity does increase in short term o But - people are NOT machines! o Boring, repetitive jobs lead to alienation, disaffection, absenteeism Behavior Theory: The Hawthorne Studies  Study the relationship between changes in physical environment and work output  Goal is to increase productivity  Discovery: o Increasing light levels improved productivity o Decreasing light levels improved productivity (unintended consequences) o Raising the pay of work failed to increase their productivity  Lighting phenomenon lay in workers’ response to attention  Any action on the part of management that made workers believe they were receiving special attention  Hawthorne effect: tendency for workers’ productivity to increase when they feel they are receiving special attention from management Contemporary Motivation Theories The Human-Resources Model: Theories X and Y  Managers had radically different beliefs about how best to use human resources  Theory X: A management approach based on the belief that people must be forced to be productive because they are naturally lazy, irresponsible and uncooperative o People are  Lazy, lack ambition, dislike responsibility, self-centered, resist change, gullible and not very bright o Either punished or rewarded to be made productive o Work done best in controlled environments (restrictions and rules)  Theory Y: A management approach based on the belief that people want to be productive because they are naturally energetic, responsible and co-operative o People are  Energetic, ambitious, seek responsibility, selfless, contribute to business growth and change, intelligent  Theory Y managers are more likely to have satisfied, motivated employees  Theory X and Y distinction are simplistic and offer little concrete basis for action  Most businesses (hierarchies and rules) set up to manage people as Theory X but people see themselves behaving as Theory Y  Highlight and analyze manager attitudes toward employee Maslow’s Hierarchy of Needs Model  Psychologist Abraham Maslow  People have variety of different needs and they attempt to satisfy in their work  Some needs more basic than others  Everyone needs basic things to survive: food, shelter, clothing  As income, education, physical well-being improve we look to satisfy less basic needs  Hierarchy of Needs Model: theory of motivation describing the five levels of human needs and arguing that basic needs must be fulfilled before people work to satisfy higher-level needs o Physiological needs: necessary for survival  Water, food, shelter, sleep  Business address these needs by providing both comfortable working environments and salaries sufficient to buy food and shelter o Security needs: needs of stability and protection from unknown  Physical and emotional security  Business: job security, pension, health insurance o Social needs: needs of friendship and companionship  Love, affection, friendship  Business: friends at work, belong to a team o Esteem needs: need of status and recognition and self-respect  Status, respect honors  Business: respected job titles and large office o Self actualization: needs for self-fulfillment  Ability to grow, develop skills and capabilities and achieve new and meaningful goals  Business: interesting jobs, challenging jobs  Once one set of needs has been satisfied, it ceases to motivate behavior  Hierarchical because lower-level needs must be met before a person will try to satisfy those on a higher level  If a lower level need suddenly becomes unfulfilled, most people immediately refocus on that lower level  Needs vary across person and culture Two-Factor Theory  A theory of human relations developed by Herzberg that identifies factors that must be present for employees to be satisfied with their jobs and factors that, if increased, lead employees to work harder  Herzberg (1959) interested in: o What people liked about their jobs o What they disliked about their jobs o Survey of engineers and accountants  Result: o What people like about their job not the opposite of what they dislike o Factors which satisfy not opposite of factors that dissatisfies o Not opposites of a single range, but two completely separate groups  What they liked: motivating factors o Add motivating factors to increase satisfaction o Achievement, recognition, work itself, responsibility, advancement and growth o Continuum on satisfaction and no satisfaction o Real life example  Professors met students  High school tells you professors is not approachable  If you are treated well, you will think he is good and turn you on  Being treated well by professors is a motivating factor  What they disliked: hygiene factors o These factors exists, you cannot get rid of them o Best you can do is made these acceptable o Supervisors, working conditions, interpersonal relations, pay and security, company polices and administration o Continuum on dissatisfaction and no dissatisfaction o Example:  People will never like supervision  Best you can do is make them neutral, i.e. not dissatisfied  People will always want more pay  Best you can do: make them not dissatisfied o Real life example  Professors giving out exam reviews  Never satisfy with the time  Professors rate of returning work is a hygiene factor  Two step approach to enhance motivation o Adding motivation factors o Make hygiene factors acceptable  Limits to professional settings  One person’s hygiene factor may be his motivating factor o E.g. if money for one people is related to achievement and recognition Strategies for Enhancing Job Satisfaction and Morale Reinforcement/Behavior Modification Theory  Systematic rewards and punishments for specific behaviors  Reinforce desired behaviors, punish undesired behaviors  Reinforcement: controlling and modifying employee behavior through the use of
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