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Chapter 10

Chapter 10 Motivating and Leading Employees .docx

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Management (MGT)
Chris Bovaird

Chapter 10 Motivating and Leading Employees PSYCHOLOGICAL CONTRACTS IN ORGANIZATIONS psychological contract: 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 employee (inducements) in return - Managing psychological contract - Valuable but underpaid employees may perform below their capabilities or leave for better jobs - Over-paying employees who contribute little incurs unnecessary costs Efficient managed psychological contracts: - Satisfied and motivated workers Poorly managed psychological contracts: - Dissatisfied and unmotivated workers human relations: Interactions between employers and employees and their attitudes toward one another -The foundation of good human relations is a satisfied and motivated workforce THE IMPORTANCE OF JOB SATISFACTION AND MORALE job satisfaction: The pleasure and feeling of accomplishment employees derive from performing their jobs well morale: The general positive or negative mental attitude of employees toward their work and workplace - Reflect the degree to which they perceive that their needs are being met by their jobs - Determined by:  job satisfaction  satisfaction with pay, benefits, co-workers, and promotion opportunities Why Businesses Need Satisfies Employees Satisfied workers: - likely to work hard and try to make useful contributions to the organization - have fewer grievances - less likely to engage in negative behavior (complaining, deliberately slowing work pace) - likely to come to work every day and are more likely to remain with the organization - management gains a more efficient and smooth-running company Unsatisfied workers: - likely to be absent due to minor illnesses or a general disinclination to go to work - low morale mat result in high turnover turnover: The percentage of an organization’s workforce that leaves and must be replaced - Some turnover is natural and healthy to weed out low-performing workers - High levels of turnover is negative:  Numerous vacancies  Disruption in production  Decreased productivity  High retraining costs MOTIVATE IN THE WORKPLACE motivation: The set of forces that causes people to behave in certain ways - Managers must understand the differences in behavior and the reasons for them 1. Classical Theory (classical theory of motivation) A theory of motivation that presumes that workers are motivated almost solely by money 2. Scientific management Breaking down jobs into easily repeated components, and devising more efficient tools and machines for performing them - The Principles of Scientific Management (1911), Frederick Taylor “efficiency” expert - Develop “best” way to perform a job - Train workers in the standard, method - Eliminate delays and interruptions HOW: - Perform time-and-motion studies - Break job into simple and separate tasks - Specialization + Repetition - Remove inefficiencies and wasted time GOALS: - Increase output & productivity PROBLEMS: - People are not Machines! - Boring, repetitive jobs lead to:  alienation  disaffection  absenteeism 3. Behaviour Theory: The Hawthorne Studies - 1925, research by Harvard University - Experiments conducted a “Hawthorne factory”, Western electric Co. (Chicago) - Research to determine best environment By: changing temperature, humidity, length of breaks and lighting levels HOWEVER: - Lowering lighting levels ALSO improved productivity - Raising pay of workers failed to increase productivity Hawthorne effect: The tendency for workers’ productivity to increase when they feel they are receiving special attention from management - they are part of a team - what they do matters major influence on human relations management CONCLUSION: - Pay attention and take notice of employees - If they do good work then thank them Contemporary Motivation Theories Stressing the factors that cause, focus, and sustain workers’ behavior, most theorists are concerned with the ways in which management thinks about and teats employees. The major motivation theories include: - Human-resources model - The hierarchy of needs model - Two-factory theory - Expectancy theory - Equity theory - Goal-setting theory 4. Theories X and Y (The Human-Resources Model) - Douglas McGregor (1906-1964), Professor of Management “The Human side of enterprise” Theory X: A management approach based on the belief that people must be forced to be productive because they are naturally lazy, irresponsible and uncooperative, (lack ambition, selfish and not very bright) - Work done best in controlled environment, “Scientific Management” - Establish lots of rules, treat people with threats and punishment - Most businesses (hierarchies and rules) set up to manage people as Theory X Theory Y: A management approach based on the belief that people want to be productive because they are naturally energetic, responsible, and co-operative, (ambitious, selfless and intelligent) - More likely to have satisfied and motivated employees - Businesses see themselves behaving as Theory Y * X and Y’s:- distinctions are simplistic and offer little concrete basis for action, should manage accordingly - values lie primarily in the ability to highlight and analyze the behavior of managers in light of their attitudes toward employees 5. Maslow’s hierarchy of Needs Model - Abraham Maslow (1908 – 1970), Psychologist, Columbia University - People have a variety of needs; Some needs are more basic than others - There are several BUTTONS to push to motivate people - Hierarchy of human needs model: Theory of motivation describing five levels of human needs and arguing that basic needs must be fulfilled before people work to satisfy higher-level needs  Physiological needs: - necessary for survival - businesses provide salaries to buy food and shelter  Security needs: - needs for stability and protection from the unknown - employers offer pension and job security  Social needs: - needs for friendship and companionship - making friends at work, “belong” in a company  Esteem needs: - need for status and recognition and self-respect - respected job title, large offices  Self-actualization needs: - need to grow and develop capabilities and achieve new and meaningful goals - challenging job assignments Challenging Self- Actualization Challenges, Achievements, Job Ability to grow Job Title Esteem Status, respect, admiration Social Friends at Work Love, belonging, friendship Security Health, safety, protection; Pension Plan Physical and emotional security Physiological Salary Food, Water, Shelter *The SENSE in which the hierarchy nature of lower- and higher-level needs affects employee motivation and satisfaction: If a lower-level need Once one set of needs has suddenly becomes been satisfeied, it ceases to unfulfilled, most people motivate behaviour immediately refocus on that lower level If you learn that your If you feel secure in job may be eliminated, your job, a new pension you might no longer plan will be less seek to meet your important than the esteem needs but find chance to make new the promise of job friends security at a new firm Maslow’s theory RECOGNIZES: - Different things motivate different people having different needs - Hierarchy varies widely for different people AND across different cultures 6. Two-Factor Theory (Herzberg: Motivation – Hygiene) - Frederick Herzberg (1923-2000), “One More Time, How Do You Motivate Employees?” - Surveyed (1959) a group of engineers and accountants - Concluded job satisfaction and dissatisfaction depend on two factors Two-factor theory: A theory of human relations developed by Frederick Herzberg that identifies factors that must be present for employees to be satisfies with their jobs and factors that, if increased, lead employees to work harder Hygiene factors: - Refer to the working environment in which employees perform work - affect motivation and satisfaction only if they are absent or fail to meet expectations - Dissatisfaction – NO dissatisfaction Dissatisfied: Not necessarily satisfied = Not dissatisfied : workers believe they have improved working poor working conditions conditions Dissatisfaction No Dissatisfaction (neutral) Hygiene Factors  Supervisors  Working conditions  Interpersonal relations  Pay and security  Company policies and administration Motivation factors: - Recognition for a job well done, related to the work that employees actually perform - Satisfaction – NO satisfaction Not satisfied (not dissatisfied): Likely MORE satisfied: workers recieve no recognition recognition is provided for successful work No satisfaction Satisfaction Motivation Factors
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