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Chapter 10

MGTA03 Chapter 10 Notes.docx

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Management (MGT)
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Chris Bovaird

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MGTA03 Introduction to Management Chapter 10—Motivating and Leading Employees Psychological Contracts in Organizations  a psychological contract is the set of expectations held by an employee concerning what he or she will contribute to an organization (contributions) and what the organization will provide the employees (inducements) in return  human relations is the interactions between employers and employees and their attitudes toward one another The Importance of Job Satisfaction and Morale  job satisfaction is the pleasure and feeling of accomplishment employees derive from performing their jobs well  satisfied employees are likely to have a high morale (general positive or negative mental attitude of employees towards their work and workplace) Why Businesses Need Satisfied Employees  satisfied workers are more committed to their work and are more likely to work hard and try to make useful contributions to the organization, less likely to engage in negative behaviours and are more likely to remain with the organization  turnover is the percentage of an organization’s workforce that leaves and must be replaced Motivation in the Workforce  motivation is the set of forces that causes people to behave in certain ways Classical Theory and Scientific Management  according to the classical theory of motivation workers are motivated almost solely by money  according to the theory of scientific management breaking down jobs into easily repeated components and devising more efficient tools and machines for performing them (Frederick Taylor) Behaviour Theory: The Hawthorne Studies  the Hawthorne effect describes the tendency for workers’ productivity to increase when they feel they are receiving special attention from management (Harvard researchers at Hawthorne Works of Western Electric) Contemporary Motivation Theories  the human resources model (theory X and theory Y): managers had radically different views about how best to use human resources (Douglas McGregor)  Theory X—management approach based on the belief that people must be forced to be productive because they are naturally lazy, irresponsible and uncooperative  people are lazy, they lack ambition and dislike responsibility, are self-centered, resist change are gullible and not very bright  Theory Y—management approach based on the belief that people want to be productive because they are naturally energetic, responsible and cooperative  people are energetic, ambitious, seek responsibility, can be selfless, want to contribute to business growth and change, are intelligent  Abraham Maslow’s hierarchy of human needs model is a motivation theory that describes five levels of human needs and argues that basic needs must be fulfilled before people work to satisfy higher-level needs:  physiological needs are necessary for survival such as food, water and shelter; businesses: comfortable working environment and sufficient salaries for food and shelter  security needs include the needs for stability and protection from the unknown; businesses: job security and pension plans  social needs include the needs for friendship and companionship; businesses: friends at work  esteem needs include the need for status and recognition as well as the need for self-respect; businesses: respected job titles, large offices  self-actualization needs are for self-fulfillment, include the needs to grow and develop one’s capabilities and to achieve new and meaningful goals; businesses: challenging job assignme
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