RSM 100Y Chapter 10: Motivating and Leading Employees Psychological Contract Informal contract between employee and firm, where an employee has a specific set of expectations of what they will receive (inducements) for their contributions. Job Satisfaction: Pleasure and feeling of accomplishment employees Morale: Positive or negative mental attitudes of employees Low Morale = High Turnover Motivation = Making people do things Classical Theory and Scientific Management Classical Theory = Pay people more They do more work Scientific Management = Maximize efficiency of a job (Time-and-motion studies) Hawthorne Studies Hawthorne Effect Productivity increases when workers receive attention from management Human Resources Theory X and Theory Y Theory X People are naturally lazyunproductive; must be punished or rewarded to do work Theory Y People are naturally energetic, self-motivated and productive Maslows Hierarchy of Needs Model Lower Level needs need to be satisfied before higher level ones 1. Physiological Needs a. Necessary for Survival (Food, water, shelter, sleep) 2. Security Needs a. Protection and stability from unknown (Pension, EI, Job Security) 3. Social Needs a. Includes needs for friendshiprelationships (Company Culture) 4. Esteem Needs a. Need for recognition and self-respect (Promotions, titles, raises) 5. Self-Actualization Needs a. Inner growth and development (Overcoming Challenging Tasks) As a level of need is satisfied, it no longer motivates someone.