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Chapter 10A Lecture

Management (MGT)
Course Code
Ingrid L.Stefanovic

of 4
Chapter 10 .ppt A / 01
Laurence, Hugh
MGTA03, Lec. 03
Motivating and Leading Employees
o Leading the Business
o What do employees expect from the employer?
o What does the employer expect from the employee?
o These expectations shape the workplace and the way employers treat employees, and
employees treat employers
o Expectations of Employers and Employees
o Employers wish to motivate employees to be productive
o Employers need to take these expectations into account in motivating employees
to work for the business
o Satisfied Employees
o Job satisfaction
Pleasure and
Feeling of accomplishment
From performing jobs well
o If employees have job satisfaction, they will have high morale
o Satisfied workers remain with the business
o Satisfied workers are more productive
o Workers remaining with the business mean lower job turnover, which reduces the
cost of replacing workers and retraining them
o Many workers are satisfied with the work, but not the way management treats
o Many workers are unhappy about the lack of control and under ± use of their
o Many workers are conflicted between the demand of work and family life
o Motivation in the Workplace
o We assume employees are agent who make choices
o So we need to lead employees to make the choices that assist the business
o We speak of motivation as the attempt to shape choices that assist the business
o Various theories of how to motivate
o Classical theory of Frederick Taylor
o Hawthorne Experiments
o Theory X and Theory Y
o Maslow`s Hierarchy of Needs
o Herzberg`s Motivation Theory
o Classical Theory of Motivation
o Frederick Taylor and Scientific Management
o Workers work harder if you pay them more
Chapter 10 .ppt A / 02
o To pay them more, they must be more productive
o To be more productive, they must work more efficiently, like a machine
o Based on the theory that ONLY the pay motivates workers
o Is this true?
o Employees may work for higher pay, but what do they bring to the work when
they are treated like machinery?
o What is efficiency?
o Hawthorne Studies
o Can we increase productivity by making the working conditions more pleasant?
o Will increased lighting enhance motivation (that is, productivity?)
o Increased lighting DID increase productivity
o Then they decreased the lighting
o That increased productivity as well
o ANY special attention paid to workers will increase productivity
o Hawthorne effect
o What does this say about motivation?
o Contemporary Motivation Theories
o Hawthorne studies suggested that good human relations were important in
increasing productivity
o Note emphasis is on increased productivity ± still working with the underlying
assumption of Taylor that wages drive workers
o Human Resources Model: Theories X and Y
o Theory X
Employees are lazy and uncooperative
Employees need to be punished or rewarded to motivate them to be more
You FORCE employees to do something they would otherwise not do
o Theory Y
Employees are energetic, growth ± oriented, self ± motivated and
Employees are motivated by being treated well and shown how to identify
with the business
You encourage employees to channel their own inclinations to be
o Theory X: people are lazy, lack ambition shun responsibility, self ± centered,
resist change, gullible, and rather stupid
o Theory Y: people are energetic, are ambitious, seek responsibility, can be selfless,
can change, perceptive, and intelligent
o Theory X and Y
Theory X
x Consistent with Taylor`s scientific theory
x Workers perform well only in highly controlled environments
Chapter 10 .ppt A / 03
x Workers do not WANT to work, so they must be forced to work
with threats
x Only the motivation of money, and the need for money, get them to
work at all
Theory X is also consistent also with the way European colonizers treated
subject people
Theory Y is consistent with the way managers feel about themselves
Simplistic categories
But simple rules often underlie different management styles
o Maslow`s Hierarchy of Need Model
o Abraham Maslow was a psychologist
o Need are in 5 types, arranged in a hierarchy
The most basic needs must be satisfied first
Then higher ± level needs can be satisfied
o Basic needs ± physiological needs
Necessary for survival ± food, water, shelter, sleep
o Security needs
Stability in life, protection from the unknown
o Social needs
Friendship, feeling a part of a community
o Esteem needs
Status and recognition, self ± respect
o Self ± actualization
Growing and developing one`s capabilities, achieve new goals
o According to Maslow, once one set of needs has been satisfied, it no longer
motivates behaviour
o So needs at the highest unsatisfied level become the prime motivator
o Needs will vary by the individual
o Maslow thought his hierarchy of needs was social and universal
o Later research has suggested that the hierarchy varies
By individual
By culture
o Emphasis on various needs, and various levels of needs, helps managers deal with
employees more subtly than Theory X/Y
o Theory has more to say about dignity and relationships than Theory X/Y
o Motivators in a business
Physiological needs satisfied by wages
Stability needs satisfied by job security, benefit and insurance plans
Social needs satisfied by communities and friends at work
Esteem needs by status and recognition
Self ± actualization needs by challenging jobs and job achievement
o Managing with a variety of needs instead of just one means you need to pay
attention to each employee
o For each employee, some needs become most important at a particular time
o Workplace can satisfy some needs but not all