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Chapter 11

AFM131 Chapter Notes - Chapter 11: Job Satisfaction, Hawthorne Effect, Stopwatch

Accounting & Financial Management
Course Code
Robert Sproule

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Chapter 11 – Motivating Employees
Importance of Motivation
- work is fun if managers make effort to motivate them – work satisfaction is important
happy workers lead to happy customers leads to successful business
- if workers unhappy, the will leave and lose valuable/skilled workers which is costly to
business – lost of productivity
- people are willing to work and work hard if feel their work is appreciated/making a
-Intrinsic value: good feeling you have when you have done a job well (feeling that
made a contribution)
-Extrinsic value: something given to you by someone else as recognition for good
work; extrinsic rewards include pay increases, praise, and promotions
- both types of value motivate the workers
- important to motivate yourself first – find the right job for you to help fulfill your life
- job of a leader is to find commitment of workers, encourage it and focus it on
common goal
Frederick Taylor: The Father of Scientific Management
-Principles of Scientific Management – written by American efficiency engineer Frederick
oTitle earned him title “father of scientific management”
oTaylor wanted to improve productivity of firm and workers – thought could do
so but scientifically studying the most efficient way to do things - find best
method then to teach others the same method
oScientific management: studying workers to find most efficient ways of
doing things and then teaching people those techniques
o3 elements to his approach: time, methods and rules of work – most
important tool is observations and stopwatch – Taylor’s thinking is behind
today’s standards
- Watched people shovelling different material – different material requires different
oTime motion studies: studies begun by Frederick Taylor, of which tasks
must be performed to complete a job and the time needed to do each task
use of different shovels with stopwatch to measure output over time
When have more efficient shoves and techniques, more output
- Engineers Frank and Lillian Gilbreth used Taylor’s ideas – developed Principle of
motion economy: that every job can be broken down into a series of elementary
- Taylor believed that there was a psychological factor to productivity – if workers paid
enough would work at high level of effectiveness
- Some businesses today still implement Taylor’s ideas – emphasize work rules – tell
workers exactly what to do – no room for creativity, flexibility and responsiveness
Elton Mayo and the Hawthorne Studies
- from Taylor’s research – start new research at Hawthorne plant in Illinois
- Elton Mayo (Hardvard University) went to Hawthorne to test degree of lighting
associated with optimal productivity (keep track of productivity under different levels
of illumination) – initially problem with experiment – illumination did not affect

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productivity, productivity always increased (tried in room where could also change
temperature, humidity, and environmental factors) and still productivity increased.
But why?
oInterviewed workers
Test room was like social group – informal atmosphere could talk
freely, felt special and work hard to stay in group – motivation to work
Were part of planning experiment – felt important therefore motivated
Felt special in room, additional pay, job satisfaction increase,
therefore motivated to work – productivity increase
-Hawthorne effect: tendency for people to behave differently when they know they
are being studied
- Mayo’s findings led to completely new assumption about employees – pay was not
the only motivator (in fact it was relatively ineffective)
Motivation and Maslow’s Hierarchy of Needs
- Abraham Maslow – understand motivation to work, understand human motivation in
- People are motivated to satisfy unmet needs; needs that have been satisfied no
longer provide motivation
-Maslow’s Hierarchy of Needs: theory of motivation that places different types of
human needs in order of importance:
oPhysiological needs: basic survival needs (food, water, shelter)
oSafety needs: feel secure at work/home
oSocial needs: need to feel loved, accepted, part of a group
oEsteem needs: need for recognition and acknowledgement – well respected
and sense of status/importance
oSelf actualization: need to develop one’s fullest potential
- Work to satisfy needs of lower levels of hierarchy first, then move up – no longer use
the bottom, and now achieve for the higher levels – to compete successfully firms
must create environment that motivates best/brightest workers. Environment of
social contribution, honesty, reliability, service, quality, dependability, unity
Applying Maslow’s Theory
- believe that motivation all self-motivated – when people have achieved goal no
longer motivated, must find way to keep workers consistently motivated
Herzberg’s Motivating Factors
- Frederick Herzberg – rank various job related factors in order of importance relative
to motivation
-Most important motivating factors:
- Sense of achievement
- Earned recognition
- Interest in the work
- Opportunity for growth
- Opportunity for
- Importance of
- Peer/group
- Pay
- Supervisor’s fairness
- Company
- Status
- Job security
- Supervisor’s
- Working conditions
- Workers like to feel they have contributed to company (sense of achievement), want
to earn recognition, and feel that job is important – want responsibility for
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