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Chapter 10

MGTA01H3 Chapter Notes - Chapter 10: Reinforcement, Overnight Delivery, Fax

Management (MGT)
Course Code
Chris Bovaird

of 12
Chapter 10 Motivating and Leading Employees
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
-The foundation of good human relations is a satisfied and motivated workforce
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
- 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
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
- Perform time-and-motion studies
- Break job into simple and separate tasks
- Specialization + Repetition
- Remove inefficiencies and wasted time
- Increase output & productivity
- People are not Machines!
- Boring, repetitive jobs lead to:
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
- 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
- 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
- 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