GEB 4455 Lecture 9: Ch 10 learnsmart
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Department
Management
Course
GEB 4455
Professor
William A Christiansen
Semester
Spring

Description
Ch 10 notes When that happens, the company usually loses more than an experienced employee. It can also lose the equivalent of 6 to 18 months’ salary to cover the costs of recruiting and training a replacement. 1The “soft” costs of losing employees are even greater: loss of intellectual capital, decreased morale of remaining workers, increased employee stress, decreased customer service, interrupted product development, and a poor reputation. An intrinsic reward is the personal satisfaction you feel when you perform well and complete goals. The belief that your work makes a significant contribution to the organization or to society is a form of intrinsic reward. An extrinsic reward is given to you by someone else as recognition for good work The Principles of Scientific Management was written by U.S. efficiency engineer Frederick Taylor and published in 1911, earning Taylor the title “father of scientific management.” Taylor’s goal was to increase worker productivity to benefit both the firm and the worker. The solution, he thought, was to scientifically study the most efficient ways to do things, determine the one “best way” to perform each task, and then teach people those methods. This approach became known as scientific management. Three elements were basic to Taylor’s approach: time, methods, and rules of work. His most important tools were observation and the stopwatch. Believing different materials called for different shovels, he proceeded to invent a wide variety of sizes and shapes of shovels and, stopwatch in hand, measured output over time in what were called time-motion studies. These were studies of the tasks performed in a job and the time needed for each. Taylor’s scientific management became the dominant strategy for improving productivity in the early 1900s Scientific management viewed people largely as machines that needed to be properly programmed. There was little concern for the psychological or human aspects of work. Taylor believed that workers would perform at a high level of effectiveness—that is, be motivated—if they received high enough pay. In the end, Mayo guessed that some human or psychological factor was at play. He and his colleagues interviewed the workers, asking about their feelings and attitudes toward the experiment. The answers began a profound change in management thinking that still has repercussions today. Here is what the researchers concluded: • The workers in the test room thought of themselves as a social group. The atmosphere was informal, they could talk freely, and they interacted regularly with their supervisors and the experimenters. They felt special and worked hard to stay in the group. This motivated them. • The workers were included in planning the experiments. For example, they rejected one kind of pay schedule and recommended another, which was adopted. They believed their ideas were respected and felt engaged in managerial decision making. This, too, motivated them. • No matter the physical conditions, the workers enjoyed the atmosphere of their special room and the additional pay for being more productive. Job satisfaction increased dramatically. Page 273 Researchers now use the term Hawthorne effect to refer to people’s tendency to behave differently when they know they’re being studied. The Hawthorne study’s results encouraged researchers to study human motivation and the managerial styles that lead to higher productivity. Research emphasis shifted from Taylor’s scientific management toward Mayo’s new human-based management. • Mayo’s findings led to completely new assumptions about employees. One was that pay is not the only motivator. In fact, money was found to be a relatively ineffective motivator. New assumptions led to many theories about the human side of motivation. One of the best-known motivation theorists was Abraham Maslow, whose work we discuss next. Psychologist Abraham Maslow believed that to understand motivation at work, we must understand human motivation in general. It seemed to him that motivation arises from need. That is, people are motivated to satisfy unmet needs. Needs that have already been satisfied no longer provide motivation. Figure 10.1 shows Maslow’s hierarchy of needs, whose levels are: 1. 2. Physiological needs: Basic survival needs, such as the need for food, water, and shelter. 3. Safety needs: The need to feel secure at work and at home. 4. Social needs: The need to feel loved, accepted, and part of the group. 5. Esteem needs: The need for recognition and acknowledgment from others, as well as self- respect and a sense of status or importance. 6. Self-actualization needs: The need to develop to one’s fullest potential. In the mid-1960s, psychologist Frederick Herzberg conducted the most discussed study in this area. Herzberg asked workers to rank various job-related factors in order of importance relative to motivation. The question was: What creates enthusiasm for workers and makes them work to full potential? The most important factors were: 1. Sense of achievement. 2. Earned recognition. 3. Interest in the work itself. 4. Opportunity for growth. 5. Opportunity for advancement. 6. Page 275Importance of responsibility. 7. Peer and group relationships. 8.Pay. 9. Supervisor’s fairness. 10.Company policies and rules. 11. Status. 12. Job security. 13. Supervisor’s friendliness. 14. Working conditions. Factors receiving the most votes all clustered around job content. Workers like to feel they contribute to the company (sense of achievement was number 1). They want to earn recognition (number 2) and feel their jobs are important (number 6). They want responsibility (which is why learning is so important) and to earn recognition for that responsibility by having a chance for growth and advancement. Of course, workers also want the job to be interesting. Do you feel the same way about your work? Workers did not consider factors related to job environment to be motivators. It was interesting to find that one of those factors was pay. Workers felt theabsence of good pay, job security, and friendly supervisors could cause dissatisfaction, but their presence did not motivate employees to work harder; it just provided satisfaction and contentment. Would you work harder if you were paid more? Herzberg concluded that certain factors, which he called motivators, made employees productive and gave them satisfaction. These factors, as you have seen, mostly related to job content. Herzberg called other elements of the job hygiene factors (or maintenance factors). These related to the job environment and could cause dissatisfaction if missing but would not necessarily motivate employees if increased. See Figure 10.2 for a list of motivators and hygiene factors. Management theorist Douglas McGregor observed that managers’ attitudes generally fall into one of two entirely different sets of managerial assumptions, which he called Theory X and Theory Y. Theory X The assumptions of Theory X management are: • The average person dislikes work and will avoid it if possible. • Because of this dislike, workers must be forced, controlled, directed, or threatened with punishment to make them put forth the effort to achieve the organization’s goals. • The average worker prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security. • Primary motivators are fear and punishment. Theory Y Theory Y makes entirely different assumptions about people: • Most people like work; it is as natural as play or rest. • Most people naturally work toward goals to which they are committed. • The depth of a person’s commitment to goals depends on the perceived rewards for achieving them. • Under certain conditions, most people not only accept but also seek responsibility. • People are capable of using a relatively high degree of imagination, creativity, and cleverness to solve problems. • In industry, the average person’s intellectual potential is only partially realized. • People are motivated by a variety of rewards. Each worker is stimulated by a reward unique to him or her (time off, money, recognition, and so on). Rather than authority, direction, and close supervision, Theory Y managers emphasize a relaxed managerial atmosphere in which workers are free to set objectives, be creative, be flexible, and go beyond the goals set by management. A key technique here is empowerment, giving employees authority to make decisions and tools to implement the decisions they make. For empowerment to be a real motivator, management should follow these three steps: 1. Find out what people think the problems in the organization are. 2. Let them design the solutions. 3. Get out of the way and let them put those solutions into action. In contrast, the U.S. management approach, which Ouchi called Type A, relied on short-term employment, individual decision making, individual responsibility for the outcomes of decisions, rapid evaluation and promotion, explicit control mechanisms, specialized career pat
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