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Entrepreneurship and Innovation
ENTI 201
Norman Althouse

Motivation: something that prompts a person to release his or her energy in a certain direction Need: the gap between what is and what is required Want: the gap between what is and what is desired EARLY THEORIES OF MOTIVATION Frederick Taylorʼs Scientific Management (1900-mid 1930s) Classical era of management * Scientific management: four basic principles: 1. Develop a scientific approach for each element of a personʼs job 2. Scientifically select, train, teach, and develop workers 3. Encourage cooperation between workers and managers, so that each job can be accomplished in a standard, scientifically determined way 4. Divide work and responsibility between management and workers according to who is better suited to each task >However, it had a fundamental flaw in its assumption that all people are primarily motivated by economic means. The Hawthorne Studies (began 1930s) human relations era * Elton Mayo (1927-1932 study) - developed sense of pride from being selected. Pride = increased productivity * Hawthorne effect: the phenomenon that employees perform better when they feel singled out for attention or feel that management is concerned about their welfare >Indicates that in addition to the personal economic needs emphasized in the classical era, social needs play an important role in influencing work-related attitudes and behaviours Maslowʼs Hierarchy of Needs * Maslowʼs Hierarchy of Needs: a theory of motivation developed by Abraham Maslow; holds that humans have five levels of needs and act to satisfy their unmet needs. At the base of the hierarchy are fundamental physiological needs followed in order by safety, social, esteem, and self-actualization needs * Physiological needs: food, shelter, clothing, etc. * motivates a person to find a job * Safety needs: feeling secure, protected from physical harm, avoid the unexpected * Work sense: job security and protection from work hazards * Social needs: belonging (acceptance from others), and giving and receiving friendship and love * Informal social groups on and off the job * Esteem needs: needs for the respect of others, and a sense of accomplishment and achievement * Praise and recognition from managers and others in the firm contribute to the sense of self-worth * Self-actualization needs: fulfillment, living up to oneʼs potential, using oneʼs abilities to the utmost >Maslow claimed that a higher level need was not activated until a lower level need was met. He also claimed that a satisfied need was not a motivator. The theory also concentrates on moving up the hierarchy without moving back down. !"#$%&'(' !"#$%&')' McGregorʼs Theories X and Y !  !"#$%'%(#$)#'*+,$-.*/.0#*$ !  ;+'0$.*$,%27'%/$%*$)/%:$+'$'#*2$ * Theory X: a management style formulated by Douglas 1+'0$%,-$1.//$%&+.-$.2$.3$ McGregor that is based on a pessimistic view of human )+**.4/#$ !  ;+'0#'*$8%,$4#$6+2.&%2#-$4:$7*.,($ nature and assumes that the average person dislikes work, $ )+*.2.$.,8#,2.*$ !  5#+)/#$67*2$4#$8+,2'+//#-9$ will avoid it if possible, prefers to be directed, avoids responsibility, and wants security above all. -.'#82#-9$+'$2"'#%2#,#-$1.2"$ !  !"#$%'%(#$)#'*+,$*##0*$+72$ * Theory Y: a management style formulated by Douglas )7,.*"6#,2$ '#*)+,*.4./.2:$ $ McGregor that is based on a relatively optimistic view of !  !"#$%'%(#$)#'*+,$)'#3#'*$2+$ human nature; assumes that the average person wants to 4#$-.'#82#-9$%&+.-*$ work, accepts responsibility, is willing to help solve problems, '#*)+,*.4./.2:9$.*$,+2$ and can be self-directed and self-controlled %64.2.+7*9$%,-$1%,2*$*#87'.2:$ Ouchiʼs Theory Z * Theory Z: a theory developed by William Ouchi that combines US and Japanese business practices by emphasizing long-term employment, slow career development, moderate specialization, group decision making, individual responsibility, relatively informal control over the employee, and concern for workers Herzbergʼs Motivator-Hygiene Theory (1950s study) * “What do people really want from their work experience?” * Motivating factors (job satisfiers): intrinsic job elements that lead to worker satisfaction * Hygiene factors (job dissatisfiers): extrinsic elements of the work environment that do not serve as a source of employee satisfaction or motivation > Herzbergʼs studies implied that the opposite of satisfaction was not dissatisfaction. (Proper management of hygiene factors could prevent employee dissatisfaction but would not serve as a source of satisfaction or motivation. CONTEMPORARY VIEWS ON MOTIVATION Expectancy Theory * Expectancy theory: a theory of motivation that holds that the probability of an individualʼs acting in a particular way depends on how strongly that person believes the act will have a particular outcome, and on whether they value that outcome * The degree to which an employee is motivated depends on three important relationships: 1. The link between effort and performance, or the strength of the individualʼs expectation that a certain amount of effort will lead to a certain level of performance 2. The link between performance and outcome, or the strength of the expectation that a certain level of performance will lead to a particular outcome 3. The link between outcomes and individual needs, or the degree of which the individual expects the anticipated outcome to satisfy personal needs Motivating employees: • Determine the rewards valued by each employee • Determine the desired performance level • Communicate it clearly • Make the performance level attainable • Link rewards to performance • Determine what factors might counteract the effectiveness of an award • Make sure the reward is adequate for the level of performance Equity Theory * Equity theory: a theory of motivation that holds that worker satisfaction is influenced by employeesʼ perceptions about how fairly they are treated compared to their coworkers *
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