Lecture Notes: Chapter 9
x You can waste capital, you can misuse capital
x You can abuse natural resources, you can dump it
x Human resource is the most difficult to manage
x Human resources are not like pennies or nickels or ten dollar bills, they have feelings
x You have to work a little harder to get humans to work ,try , to do stuff
x All management activities should be focused around getting people who work for you to
contribute to what you are trying to do
The belief or feeling that causes us to behave in a particular way.
x By calling someone lazy or stupid, it will not motivate them to do somethin
Some Theories and Experiments About
What Motivates People and How to Motivate Them
Theory X and Theory Y
Maslow's "Hierarchy of Needs"
Herzberg's "Motivation - Hygiene" Theory
Classical Theory of Motivation & Scientific Management
According to "Classical Theory of Motivation"
Workers are motivated solely by money.
Ask yourself: "From my own experience, is this true?"
Not everyone will do stuff for money
If there was a true/false question ³$FFRUGLQJ to Classical theory of Motivation, I
Principles of Scientific Management (1911)
Frederick W Taylor(discovered these theories) wanted to improve efficiency of
If Classical Theory is correct (workers motivated only by money)
If workers can produce more, firm can afford to pay them more.
Taylor analysed workers' jobs
Broke each job into simple, separate tasks:
Time and motion studies > industrial engineers > job analysis > specialisation >
Structure there job in such a way where they were experts in a certain function
Using Fred Taylors theory, productivity went through the roof, but then it decline
again, because it got bored.
- remove all decision making from workers environment
-remove all the creativity from the workers environment
- tell them the exact speed you expect them to work
Step 1: Break down 1 big tasks into MANY little tasks
Step 2: Have many workers each doing one repetitive task
Step 3: Æ You become an expert/efficient at doing one thing well.
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1906 1907 1908 1909 1910
The graph went down again because people got bored with the efficient way of doing
removing inefficiencies, minimise waste, productivity should increase
introduce repetition and specialisation
piece rate system: pay workers for their output.
Problem with Scientific Theory
people seen as machines(treated them as machines, but they are not)
Taylor's experiment: increased productivity in the short term
however: increased alienation, boredom, disaffection in long term
e.g. flipping Hamburgers( the 100th burger was more interesting than the 400th
burgerÆ repetition ,becoming a machine)
Hawthorne Studies (1927)
Conducted by profs at Harvard
If Taylor's research suggests that money isn't only or prime motivator, what does
Theory: a pleasant environment?
Workers affected by the physical environment.
Look at physics environment compared to your mood to work.
Unattended consequence(surprised) when environment was good or bad the
productivity went through the roof. Why? Because the workers felt important when the
professors walked around with notepads and checklists.
Harvard researchers wanted to determine optimal environment.
Experiments at Western Electric Company, Chicago.
Researchers turned the lights up: brighter, warmer feeling
What do you think happened? People will work harder
Researchers turned the lights down: darker, colder feeling
What do you think happened? People do not work as hard
If people feel they are important they work harder.
MBWA ( Management By Walking Around )