Textbook notes Ch.9-Motivating and Leading Employees

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9 Aug 2010
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psychological contact: the set of expectations held by an employee concerning what he or she
will contribute to an organization (contributions) and what a the organization will provide the
employee (inducements) in return
- if either party perceives an inequity in the contract, that party may seek a change
- all organizations face the basic challenge of managing psychological contacts
Æ they want value from their employees, and they must give employees the right inducements
human relations: interactions b/w employers and employees and their attitudes towards one
- the foundation of a good human relationships is a satisfied and motivated workface
- if psychological contracts are created, maintained, and managed effectively, the results is likely
to be workers who are satisfied and motivated [vice vesa]
Job satisfaction: the pleasure and feeling of accomplishment employees derive from performing
their jobs well
Morale: the generally positive or negative mental attitude of employees towards their work and
Æ reflects the degree to which they perceive hat their needs are being met by their jobs
- determined by: job satisfaction, pay, benefits, co-worker, and promotion opportunities
Why Businesses Need satisfied Employees
- more useful contribution
- less grievances and are less likely to engage in negative behaviour
- more efficient and smooth-running company
turnover ±the percentage of organization¶VZRUNIRUFHWKDWOHDYHVDQGPXVWEHUHSODFHG
Æ caused by low morale
- high level of turn over: vacancies, disruption in production, decreased productivity, high
retraining costs
Æ highest: retail, service,
Æ lowest: natural resources, communications/telecommunications
Motivation: set of forces that cause ppl to behave in certain ways. The belief or feeling that
causes us to behave in a particular way. The feeling that makes you want to behave in a
particular way
- fundamental act of management is to communicate to the ppl that work for them
Classical Theory of Motivation & Scientific Management [MCQ]
Classical Theory of Motivation : Workers are motivated solely by money
- Back then, we had no pension plan ect pushed ppl to do anything for money. Ppl were starving
and desperate
Æ when those things came, the theory died
The Principles of Scientific Management (1911)
x Frederick W Taylor wanted to improve efficiency of workers
x If Classical Theory is correct (workers motivated only by money)
x Firms that analyze jobs and found better ways to perform them would produce goods
more cheaply, making higher profits, and pay higher wages
Scientific Management: breaking down jobs into easily repeated components, and
devising more efficient tools and machines for performing them
x Taylor analysed workers' jobs
1) Broke each job into simple, separate tasks:
Time and motion studies > industrial engineers > job analysis > specialisation >
2) have many workers, each do just one repetitive task
3) as a result: become expert and efficient and doing one thing
In theory:
x Removing inefficiencies, minimise waste, productivity should increase0DNHSSO¶VMREV
easier, do it w/o thinking
x Ppl will take pride in becoming an expert and then they can figure out ways to make it
even more efficient, and then you can pay them more
x introduce repetition and specialisation
x time and motion study: industrial ±engineering techniques were applied to each facet of a
job to determine how to perform it most efficiently
x piece rate system: pay workers for their output
Problem with Scientific Theory
x people seen as machines
x Taylor's experiment: increased productivity in the short term
x however: increased alienation, boredom, disaffection in long term
e.g. flipping Hamburgers
Æ production level went up and then went down again
Behaviour Theory: Hawthorne Studies (1927) [ conducted by profs of Harvard]
Hawthorne effectWKHWHQGHQF\IRUZRUNHVSURGXFWLvity to increase when they feel they are
receiving special attention from management
x If Taylor's research suggests that money isn't only or prime motivator, what does
motivate people?
x Theory: workers are affected by the physical environment
x Harvard researchers wanted to determine optimal environment.
x Experiments at Western Electric Company, Chicago.
x Researchers turned the lights up: brighter, warmer feeling
x Researchers turned the lights down: darker, colder feeling
x The brighter the lights, the more light bulbs made, but then they turned the lights down
again and production still went up
Contemporary Motivation Theories
The Human-Resource Model: Theories X and Y [behavioural sciences Douglas McGregor (1960)]
theory x: a management approach based on the believe that ppl must be forced to be productive
because they are naturally lazy, irresponsible and uncooperative
Æ consistent with Taylor's scientific management
- Workers perform best in highly controlled work environments.
- treat people with fear, threats, and punishment
- treat people with kindness and promises of rewards
theory Y: a management approach based on the believe that ppl want to be productive cuz they
are naturally energetic, responsible and cooperative
Theory X
Theory Y
People are lazy
People are energetic
People lack ambition and dislike
People are ambitious and seek
People are self-centred
People can be selfless
People resist change
People want to contribute to growth
and change
People are gullible and not very
People are intelligent
McGregor argued:
- Most managers behave as though people fall under the description offered by Theory X
- Whereas, in fact, they perceive themselves and behave according to Theory Y.
- It is necessary to manage them accordingly.
Maslow's Hierarchy of Needs (psychologist)
Hierarchy of human needs model: theory of motivation describing give level of human needs
and arguing that basic needs must be fulfilled before ppl work to satisfy high-level needs
Psychologist Abraham Maslow
x People have variety of different needs.
x Some are universal, i.e. everyone needs food and shelter.
x Some are useful to motivate those who are already reasonably comfortable.
Self-Actualisation Ability to grow and develop Interesting or challenging Self-Fulfillment job,
new skills1HHGVWRJURZDQGGHYHORSRQH¶VFDSDELOLWLHVDQGWRDchieve new and meaningful
goals, new projects/challenges, new initiative
Esteem Needs: need for status and recognition as well as need for self-respect. Respect, Status,