Psychological Contract – an agreement where the employee will provide a contribution to the
organization and the organization will provide the employee something in return
Human Relations – Interaction between employers (owners) and employees and their attitude towards
one another (helps satisfy workers and motivate them)
Importance of Job Satisfaction & Morale
Job Satisfaction – the degree of enjoyment that people derive from performing their jobs
Morale – The generally positive or negative mental attitude of employees towards their work and
workplace (High Morale = Satisfied employee)
Satisfied workers are more likely to work hard and make useful contributions to the organization
Satisfied workers are more likely to come to work everyday
Low Morale leads to Turnovers (The percentage of the organizations workforce that leaves)
Motivation in the workplace
Motivation – a set of forces that causes people to behave in certain ways.
Classical Theory: workers are motivated only by money.
If there are jobs we won't return to, because they are demeaning, because they are unpleasant, because
our supervisors were condescending, arrogant, or unkind: Classical Theory is wrong!
Scientific management (By Fredrick Taylor)
Develop “best” way to perform a job by eliminating delays and interruptions
Let’s people perform simple tasks continuously using tools and machines
The productivity increased but only short term
Reason being is because people are doing repetitive and boring jobs using machines
People will try harder if they feel:
They’re part of a team, and what they do matters
The tendency for worker’s productivity to increase when they feel they are receiving special attention
The results came unintentionally when they noticed a change in lighting level (Up and down) resulted in
increase in productivity because they respond to attention
Theory X and Theory Y Theory (Douglas McGregor)
Theory X – Work is done best in controlled environments (Forced to be productive), so having lots of
rules, and need to treat people with threats and punishments.
Theory Y – A management approach based on the belief that people want to be productive because
they are naturally energetic, responsible and co-operative
Theory X: People are lazy, lack ambition, avoid responsibility, and are selfish, not very bright
Theory Y: People are energetic, are ambitious, seek responsibili