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Chapter 10

Chapter 10 Motivating and Leading Employees.doc

Management (MGT)
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H Laurence

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Chapter 10 Motivating and Leading Employees
Psychological contract: the set of expectations help 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
All organizations want value from their employees and must give employees the right inducements
Human relations: interactions between employers and employees and their attitudes towards one
now job permanence is less likely, alternative inducements like benefits may be needed instead
The Importance of Job satisfaction and More
Job Satisfaction: the pleasure and feeling of accomplishment employees derive from performing
their jobs well
Morale: the generally positive or negative mental attitude employees toward their work and
Satisfied employees likely to have high morale
Morale reflect the degree to which they perceive that their needs are being met by their jobs
Morale is determined by job satisfaction, and satisfaction with such things as pay, benefits, co-
workers and promotion opportunities
Why Business needs Satisfied Employees
Low morale may result in high turnovers
Turnover: the percentage of an organizations workforce that leaves and must be replaced
Some turnover good cuz it weeds out low performing workers in organization
But high turnovers result in numerous vacancies, disruption in production, decreased productivity
and high retraining costs
2005 average turnover rate in Canada was 8% up from 6.6% in 2004
Highest turnover rates are retail, services, lowest are natural resources and
Motivation in the Workforce
Motivation: the set of forces that causes people to behave in certain ways
Many theories have been proposed on motivation
Classical theory and scientific management, behaviors theory and contemporary motivation theory
Classical Theory and Scientific Management
Classical theory of Motivation: workers are motivated by money
Fredrick Taylor reasoned that paying ppl more would prompt them to produce more
Firms that analyzed jobs and found better ways to perform them would be able to produce more at
cheaper costs, making higher profit, and this pay more and motivate employees
Taylors approach is known as scientific management
Scientific Management: breaking down jobs into easily repeated components, and devising more
efficient tools and machines for performing them
After he sated this firms were hiring ppl to perform time and motion studies
Behavior Theory: The Hawthorne Studies
Hawthorne Effect: the tendency for workers; productivity to increase when they feel they are
receiving special attention from management
Contemporary Motivation Theories
After Hawthorne’s theory focuses more attention on the importance of good human relations’ in
motivating employee performances
Major motivation theories include: human resources model, the hierarchy of needs model, two
factory theory, expectancy theory, equity theory and goal setting theory
The Human Resources Model: Theories X and Y
Douglas McGregor concluded that managers have different beliefs about how best to use the human
resources at firms disposal: Theory X and Theory Y
Mc Gregor favored theory Y beliefs, theory Y managers are more likely to have motivated, satisfied
Maslow’s Hierarchy of Needs
Hierarchy of Human needs model: theory of motivation describing five levels of human needs
and arguing basic needs must be fulfilled before people work to satisfy high level needs
Physiological needs: necessary for survival—food, water, shelter, clothes—businesses provide
conformable working environments and salaries sufficient to buy food and shelter
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