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Chapter 10

Chapter 10


Department
Management (MGT)
Course Code
MGTA02H3
Professor
Chris Bovaird
Chapter
10

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Chapter 10: Motivating and leading employees
PHYCHOLOGICAL 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
oIf psychological contracts are created, maintained, and managed effectively, the
result is likely to be works who are satisfied and motivatedon the other hand,
poorly managed psychological contracts may result in dissatisfied, unmotivated
workers
Human relations: interactions between employers and employees and their
attitude toward one another
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 attitude of employees toward their work
and workplace
Why businesses need satisfied employees:
By ensuring that employees are satisfied, management gains a more efficient and
smooth-running company
Satisfied workers…work hard and try to make useful contributions to the
organization
Dissatisfied workerslikely to be absent due to minor illnesses, personal reasons, or
a general disinclination to go to work
Low morale results in high turnover
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oTurnover: the percentage of an organizations workforce that leaves and must be
replaced
MOTIVATION IN THE WORKPLACE
Motivation: the set of forces that causes people to behave in certain ways
Classical Theory and Scientific Management:
oClassical theory of motivation: a theory of motivation that presumes that
workers are motivated almost solely by money
oScientific management: breaking down jobs into easily repeated components, and
devising more efficient tools and machines for performing them
Frederick Taylor (the scientific management), an industrial engineer wrote
The Principles of Scientific Management (1911) and proposed that if workers
are motivated by money…then paying them more would prompt them to
produce moretime-and-motion studies were performed for ways of better
efficiency
Behaviour Theory: The Hawthorne Studies
In 1952, a group of Harvard researchers began a study at the Hawthorne Works of
Western Electric…their intent is to examine the relationship b/w 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
but raising pay didnt increase productivity
oHawthorne effect: the tendency for workers; productivity to increase when they
feel they are receiving special attention from management
Contemporary Motivation Theories:
The human-resource model: theories X and Y
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oBehavioural scientist Douglas McGregor concluded that managers had radically
different beliefs about how best to use the HR at a firms disposal
oTheory X: a management approach based on the belief that people must be forced to
be productive because they are naturally lazy, irresponsible, and uncooperative
oTheory Y: A management approach based on the belief that people want to be
productive because they are naturally energetic, responsible, and co-operative
McGregor favoured theory Y and believed that managers are more likely to
have satisfied, motivated employees
Theory XTheory Y
1.People are Lazy 1.People are energetic
2.People lack ambition and dislike
responsibility2.People are ambitious and seek
responsibility
3.People are self centered 3.People can be selfless
4.People resist change 4.People want to contribute to change &
growth
5.People are gullible and not very bright5.People are intelligent
Maslows hierarchy of Needs Model
oPsychologist Abraham Maslow came up with this model
oHierarchy of human needs model: theory of motivation describing five levels of
human needs and arguing that basic needs must be fulfilled before people work to
satisfy higher-level needsfive levels are:
What people want: How business responds:
Self-Actualization Ability to grow & develop
skillsInteresting & challenging job
EsteemStatus, respect honoursTitle, big office, parking spot
SocialLove, affection, FriendshipFriends @ work, belong to
team
SecurityPhysical & emotional
securityJob security, pension, health
insurance
PhysiologicalFood, ShelterSalary or wage
oOnce one set of needs has been satisfied, it ceases to motivate behavior
oExamples: (1) if you feel secure in your job, a new pension plan will probably be less
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