Management of the Enterprise
Chapter 11: Motivating Employees
The importance of motivation
- Motivation a person’s internal drive to act.
- One of the most challenging skills of a manager is the ability to induce motivation in employees
so that they will be committed and productive employees
- The importance of workforce satisfaction cannot be overstated
- Happy workers lead to happy customers, and happy customers lead to successful businesses.
- Direct costs include the time it takes to hire the replacement (ex. Process the paperwork,
interview candidates, moving costs, and signing/referral bonuses) and costs related to
onboarding (ex. Orientation, training, and new material and equipment.)
- The “soft” costs are even greater: loss of intellectual capital, decreased morale, increased
employee stress, and a negative reputation.
- Intrinsic reward the personal satisfaction you feel when you perform well and achieve goals.
- Extrinsic reward something given to you by someone else as recognition for good work;
extrinsic rewards include pay increases, praise, and promotions.
Frederick Taylor: The father of scientific Management
- The Principles of Scientific Management was written by American efficiency engineer Frederick
Taylor and published in 1911.
- Taylor’s goal was to increase worker productivity to benefit both the firm and the worker.
- The way to improve productivity, Taylor 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
- Scientific management studying workers to find the most efficient ways of doing things and
then teaching people those techniques.
- Time-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.
- Principle of motion economy Theory developed by Frank and Lillian Gilbreth that every job
can be broken down into a series of elementary motions.
- A crusader for better working conditions and pay for the working class, Taylor believed that the
resulting improved productivity should then benefit both the workers and the company. Elton Mayo and the Hawthorne Studies
- Elton mayo and his colleagues from Harvard University came to the Hawthorne plant to test the
degree of lighting associated with optimum productivity.
- The idea was to keep records of the workers’ productivity under different levels of
- The productivity of the experimental group compared to that of other workers doing the same
job went up regardless of whether the lighting was bright or dim.
- The second series of experiment was conducted: where productivity went up each time, and
increased by 50% overall.
- Mayo and his colleagues concluded from their experiments:
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 involved in the planning of the experiments. For example,
they rejected one kind of pay schedule and recommended another, which was
used. The workers felt that their ideas were respected and that they were
involved in managerial decision making. This also motivated them.
No matter what the physical conditions were, the workers enjoyed the
atmosphere of their special room and the additional pay they got for more
productivity. Job satisfaction increased dramatically.
- Hawthorne effect The tendency people to behave differently when they know they are being
Motivation and Maslow’s Hierarchy of Needs
- Maslow’s hierarchy of needs, whose levels are as follows:
o Basic survival needs, such as need for food, water, and shelter.
o The need to feel secure at work and at home
o The need to feel loved, accepted, and part of the group
o The need for recognition and acknowledgement from others, as
well as self respect and a sense of status or importance.
o The need to develop to one’s fullest potential. - Maslow’s hierarchy of needs theory of motivation that places different types of human
needs in order of importance, from basic physiological needs to safety, social and esteem needs
to self-actualization needs.
- When one need is satisfied, another, higher-level need emerges and motivates the person to do
something to satisfy it. The satisfied need is no longer a motivator.
- Lower-level needs may emerge at any time they are not met and take your attention away from
higher-level needs such as the need for recognition or status.
Herzberg’s Motivating Factors
- The most motivating factors were:
Sense of achievement
Interest in the work itself
Opportunity for advancement
Importance of responsibility
Peer and group relationships
Company policies and rules
- Herzberg noticed that the factors receiving the most votes were clustered around job content.
- Herzberg note further that factors having to do with the job environment were not considered,
motivators by workers.
- Motivators In Herzberg’s theory of motivating factors, job factors that cause employees to be
productive and that give them satisfaction.
- Hygiene factors (maintenance factors) In Herzberg’s theory of motivating factors, job factors
that can cause dissatisfaction if missing but that do not necessarily motivate employees if
- The best way to motivate employees is to make the job interesting, help them achieve their
objectives, and recognize that achievement through advancement and added responsibility.
Applying Herzberg’s Theories
- Improved working conditions are taken for granted after workers get used to them. - The best motivator for some employees is a simple and sincere, “Thanks, I really appreciate
what you’re doing.”
- Community involvement is one of the biggest things that draws employees to work for a firm.
- Many surveys conducted to test Herzberg’s theories have supported his finding that the
number-one motivator is not money but a sense of achievement and recognition for a job well
- Employees are most productive when they feel their contributions are valued and their
feedback is welcomed by management.
- Job enrichment a motivational strategy that emphasizes motivating the worker through the
- The motivational effect or job enrichment can come from the opportunities for personal
achievement, challenge, and recognition.
- The 5 characteristics of work that are important in affecting individual motivation and
performance are as follows:
o The extent to which a job demands different skills.
o The degree to which the job requires doing a task with a visible
outcome from beginning to end.
o The degree of freedom, independence, and discretion in
scheduling work and determining procedures.
o The amount of direct and clear information that is received
about job performance.
- Variety, identity, and significance contribute to the meaningfulness of the job.
- Autonomy gives people a feeling of responsibility, and feedback contributes to a feeling of
achievement and recognition.
- Job enrichment is based on Herzberg’s higher motivators such as responsibility, achievement,
- Job enlargement a job enrichment strategy that extends the work cycle