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Chapter 10

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Management (MGT)
Chris Bovaird

MGTA03Summer2011 Chapter 10 Motivating and Leading Employees Psychological Contracts In Organizations o Psychological contract the set of expectations held by an employee concerning what he or she will contribute to an organization and what the organization will provide the employee in return contributions and inducements o When there is an inequity in the agreement the employee may ask for a raise better benefits or change jobs while the employer may ask the employee to get further training transfer them or terminating their jobs o Human relations interactions between employers and employees and their attitudes toward one anothero Good human relationssatisfied and motivated workforce The Importance of Job Satisfaction and Moraleo Job satisfaction the pleasure and feeling of accomplishment employees derive from performing their jobs well o Satisfied employees are more likely to have high morale o Morale the generally positive or negative mental attitude of employees toward their work and workplacedetermined by pay benefits coworkers and promotion opportunities are the needs met by the jobs Why Businesses Need Satisfied Employees o Satisfied employees ensures that the company is running smoothly and efficiently o Dissatisfied workers are more likely to take time off for injury or personal leave and have a general disinclination to go to work o Low morale may also result in high turnover o turnover the percentage of organizations workforce that leaves and must be replaced o some turnover is natural and needed to take out the low performing workersbut high turnover can result in disruption in production decreased productivity and high retaining costs Motivation in the Workplace o motivation the set of forces that causes people to behave in certain ways Classical Theory and Scientific Management o classical theory of motivation a theory of motivation that presumes that workers are motivated almost solely by money o Taylors scientific management breaking down jobs into easily repeated components and devising more efficient tools and machines for performing themdoing so would increase productions and reduce costs therefore the company is able to pay the workers more to keep them motivated o Time and motion studies were used to determine the best way and the best tools to perform a tasko Boring repetitive jobs cause alienation disaffection and absenteeismBehaviour Theory The Hawthorne Studies o Increasing lighting levels improved productivity but so did lowering the lighting levels and raising the pay of workers failed to increase their productivityo Anything management did that caused the workers to believe they were being paid attention to caused the productivity to increase o Hawthorne effect the tendency for workers productivity to increase when they feel they are receiving special attention from management
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