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Chapter 10

MGTA01H3 Chapter Notes - Chapter 10: Hawthorne Effect, Flextime, Telecommuting

Management (MGT)
Course Code
Chris Bovaird

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Chapter 10 – Motivating and Leading Employees
- psychological contractthe 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
(inducements) in return
- human relationsinteractions between employers and employees and their attitudes toward one
- job satisfaction – the pleasure and feeling of accomplishment employees derive from
performing their jobs well
- moralethe generally positive or negative mental attitude of employees toward their work and
Why Businesses Need Satisfied Employees
- turnoverthe percentage of an organizations workforce that leaves and must be replaced 
low morale may increase this percentage
- motivation – the set of forces that causes people to behave in certain ways
Classical Theory and Scientific Management
- classical theory of motivation – a theory of motivation that presumes that workers are motivated
almost solely by money
- scientific managementbreaking down jobs into easily repeated components, and devising
more efficient tools and machines for performing them
The Behaviour Theory: The Hawthorne Studies
- first challenge to classical theory of human relations management
- a study at Hawthorne Works of Western Electric examine the relationship between changes in
the physical environment and worker output, with an eye to increasing productivity
increasing lighting levels improved productivity but so did lowering lighting levels
raising the 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
Contemporary Motivation Theories
The Human-Resources Model: Theories X and Y

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- Theory X management approach based on the belief that people must be forced to be
productive because they are naturally lazy, irresponsible, and uncooperative (also lack ambition,
are self-centred, resist change, are gullible and not very bright)
- Theory Y approach based on the belief that people want to be productive because they are
naturally energetic, ambitious, responsible, can be selfless, want to contribute to business
growth and change, are intelligent and cooperative
Maslows Hierarchy of Needs Model
- hierarchy of human needs modeltheory 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 are necessary for survival; includes food, water, shelter and sleep.
Businesses address these needs by providing both comfortable working environments and
salaries sufficient to buy food and shelter
Security needsneed for stability and protection from the unknown. Thus, employers
offer pension plans and job security
Social needs need for friendship and companionship; “belong” to company and making
friends within company
Esteem needs need for status and recognition and self-respect; respected job titles and
large offices
Self-Actualization needsneed for self-fulfillment; needs to grow and develop ones
capabilities and to achieve new and meaningful goals (ex. challenging job assignments)
Two-Factor Theory
- Psychologist Herzberg concludes that job satisfaction and dissatisfaction depend on two factors
hygiene factors working conditions) and motivating factors recognition for a job well done)
- two-factor theorytheory of human relations developed by Frederick Herzberg that identifies
factors that must be present for employees to be satisfied with their jobs and factors that, if
increase, lead employees to work harder
- according to this theory, hygiene factors affect motivation and satisfaction only if they are
absent or fail to meet expectations if working conditions improve, they do not necessarily
become satisfied, but rather not dissatisfied
- if workers receive recognition for successful work they will likely become more satisfied
- managers first must ensire that hygiene factors are acceptable, resulting in absence of
dissatisfaction, then they should offer motivating factors to improve satisfaction and motivation
Reinforcement/Behaviour Modification Theory
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