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Chapter 10

MGTA03 Chapter 10

7 Pages
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Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird

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Chapter 10 – Motivating and Leading Employees
PSYCHOLOGICAL CONTRACTS IN ORGANIZATIONS
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
If either party sense inequity in the contract, there may be a change in the party.
Employees can ask for a pay raise, promotion or bigger office. The organization
can have change by training workers, improving their skills, terminating them
In order for employers to get value from employees, they need the right
inducements or else valuable employees will leave for better jobs, but overpaying
them will make unnecessary costs as well
Human Relations: Interactions between employers and employees and their
attitudes toward one another
Due to downsizing and cutbacks recently, many organizations cannot offer
reasonable assurances of job permanence as an inducement anymore. Now it’s
only benefits packages
However, if psychological contracts are created, maintained and managed
effectively then workers will be motivated and satisfied
THE IMPORTANCE OF JOB SATISFACTION AND MORALE
Job Satisfaction: The pleasure and feeling of accomplishment employees derive
from performing their jobs well
Morale: The generally positive or negative mental attitude of employees toward
their work and workplace. Morale can be determined by job satisfaction, pays,
benefits, promotion opportunities
Why Businesses Need Satisfied Employees
Satisfied workers are more likely to work hard and make useful contributions and
less likely to engage in negative behaviours. Ensuring that workers are satisfied
mean gaining a more efficient and smooth running company.
Dissatisfied workers will be more absent and low morale may result in high
turnoverThe percentage of an organization’s workforce that leaves and must
be replaced
Sometimes minimal turnover is good to weed out bad workers but too much can
cause disruption in production, decreased productivity, etc.
MOTIVATION IN THE WORKPLACE
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Employee motivation is critical to a firm’s success
Motivation: The set of forces that causes people to behave in certain ways
3 major approaches to motivation in workplace
Classical Theory and Scientific Management
Classical Theory of Motivation: A theory of motivation that presumes that
workers are motivated almost solely by money, developed by Frederick Taylor
If workers are motivated by money, then paying them would prompt them to
produce more
Firms who analyzed jobs and found better ways to perform would be able to
produce goods more cheaply, make higher profits and pay and motivate workers
better than its competitors do
Scientific Management: Breaking down jobs into easily repeated components
and devising more efficient tools and machines for performing them, this was
popular in the early 20th century, and Canada and US hired people to do time-and-
motion studies and also many industrial engineering techniques were applied to
each job to see how it can be performed more efficiently
Behaviour Theory: The Hawthorne Studies
This theory came out an accident by Havard researchers beginning a study at the
Hawthorne Works to examine the relationship between changes in physical
environment, worker output and increasing productivity
Through lightning tests, they found that raising pay of workers does not increase
their productivity instead it was this:
Hawthorne Effect: The tendency for workers’ productivity to increase when they
feel that they are receiving special attention from management, this majorly
influenced human relations management
Contemporary Motivation Theories
1) The Human Resources Model: Theories X and Y
Douglas McGregor concluded that managers have different beliefs about
how to best use the human resources at a firm’s disposal
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
~People are lazy
~People lack ambition and dislike responsibility
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Description
Chapter 10 Motivating and Leading Employees PSYCHOLOGICAL CONTRACTS IN ORGANIZATIONS 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 If either party sense inequity in the contract, there may be a change in the party. Employees can ask for a pay raise, promotion or bigger office. The organization can have change by training workers, improving their skills, terminating them In order for employers to get value from employees, they need the right inducements or else valuable employees will leave for better jobs, but overpaying them will make unnecessary costs as well Human Relations: Interactions between employers and employees and their attitudes toward one another Due to downsizing and cutbacks recently, many organizations cannot offer reasonable assurances of job permanence as an inducement anymore. Now its only benefits packages However, if psychological contracts are created, maintained and managed effectively then workers will be motivated and satisfied THE IMPORTANCE OF JOB SATISFACTION AND MORALE Job Satisfaction: The pleasure and feeling of accomplishment employees derive from performing their jobs well Morale: The generally positive or negative mental attitude of employees toward their work and workplace. Morale can be determined by job satisfaction, pays, benefits, promotion opportunities Why Businesses Need Satisfied Employees Satisfied workers are more likely to work hard and make useful contributions and less likely to engage in negative behaviours. Ensuring that workers are satisfied mean gaining a more efficient and smooth running company. Dissatisfied workers will be more absent and low morale may result in high turnover The percentage of an organizations workforce that leaves and must be replaced Sometimes minimal turnover is good to weed out bad workers but too much can cause disruption in production, decreased productivity, etc. MOTIVATION IN THE WORKPLACE www.notesolution.com
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