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Chapter 10

Chapter 10 Motivating and Leading Employees.docx

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University of Toronto St. George
Rotman Commerce
John Oesch

Chapter 10 Motivating and Leading Employees Forms of Employee Behavior Employee behavior – the pattern of actions by the members of an organization that directly or indirectly influences the organization’s effectiveness. Performance behaviors – the behaviors that directly targeted at performing a job. (Simple or Complex) Organizational citizenship – provide positive benefits to the organization but in more indirect ways. (good or bad) Counterproductive behaviors – those that detract from organizational performance. Absenteeism – occurs when an employee does not show up for work. Turnover – the percentages of an organization’s workforce that leaves and must be replaces. Turnover is natural, but a high turnover rate will cause: numerous vacancies, disruption in production, decreased productivity and increased retraining costs. Other forms of counterproductive behavior:  Theft and sabotage - direct financial costs for organization  Sexual/racial harassment – lowers morale, producing fear, and driving off valuable employees  Workplace aggression and violence Individual Differences Among Employees Individual Differences – phsycial, psychological, and emotional attributes that vary from one person to another. Two main catagories: personality and attitudes. Personality Personality – the relative stable set of psychoclogical attributes that distinguishes one person from another. Big Five Personality triats. 1. Agreeableness 2. Conscientiousness 3. Emotionality – People with +ve emotionality are better able to handle job stress, pressure and tension. Their stability might also cause them to be seen as more reliable than their less stable counterparts. 4. Extroversion – more likely to be attracted to jobs based on personal relationships i.e. sales/marketing positions. 5. Openness – reflects how open or rigid a person is in terms of his/her beliefs. Emotional Intelligence Emotional intelligence/emotional quotient EQ – the extent to which people possess social skills, are self- aware, can manage their emotions, can motivate themselves and can express empathy for others. EQ can be developed Attitudes Attitudes – reflection of our beliefs and feelings about specific ideas, situations, or other people.(i.e. Job satisfaction and organizational commitment)  Job satisfaction – the degree of enjoyment that people derive from performing their jobs (morale – overall attitude people have toward their workplace) High JS ≠ High productivity.  Organizational commitment (job commitment) – reflects an individual’s identification with the organization and its mission. Giving employees a voice helps increase employee commitment. Matching people and Jobs Psychological Contracts Psychological contracts – the set of expectations held by an employee concerning what he or she will contribute to an organization (contributions) & what the organization will provide the employee in return (inducements). Fig. 10.2 P.308 The Person-Job Fit Person-job fit – the extent to which a person’s contributions and the organization’s inducements match one another. If the organization can take perfect adv of those behaviors and abilities and exactly fulfill those needs, it will have achieved a perfect person-job fit. Motivation in the Workplace Motivation – the set of forces that cause, focus, and sustain workers’ behavior. 3 theories of motivation. Classical Theory and Scientific Management Classical theory of motivation – Workers are motivated solely by MONEY. Frederick Taylor – industrial engineer proposed a way for both companies and workers to benefit from this widely accepted view of life in the workplace (The Principals of Scientific Management.) Scientific management – analyzing jobs in order to find beter, more efficient ways to perform them. Time-and-motion studies (Gilbreth) – in order to discover the “one best way” of doing a job. Early Behavioral Theory Hawthorne effect – the tendency for workers’ productivity to incrase when they feel they are receiving special attention from management Human relations – the interactions between employers and employees and their attitudes toward one another. The human-resources model: Theories X and Y Douglas McGregor – Classified manager’s different beliefs into sets of assumptions (Theory X & Theory Y) He was in favor of theory Y Theory X – tend to believe that people are naturally lazy and uncooperative and must therefore be either punished or rewarded to be made productive. Theory Y – tend to believe that people are naturaly energetic, growth oriented, self-motivated and interested in being productive. Maslow’s Hierarchy of Needs Model Hierarchy of human needs model – By Abraham Maslow, proposed that people have five basic needs, which are arranged in a hierarchy of importance. Lower-level needs must be largely satisfied before a person will be motivated to satisfy higher-level needs. Fig. 10.3. Lower to Upper:  Physiological needs – survival oriented. GE:shelter. OE:Salary  Security needs – the needs for stability and protection from the unknown. GE:stability. OE:pension plan  Social needs – needs for friendship and companionship. OE: friends at work. So they have a feeling that they belong in the company.  Esteem needs – include the need for status, recognition & selfrespect. OE:Job Title  Self-actualization needs – needs for self-fulfillment, needs to grow & develop. OE:challenging job. According to maslow, once one set of needs has been satisfied, it ceases to motivate behavior. Two-Factor (Motivation-Hygiene) Theory Two-factor theory – Frederick Herzberg – Job satisfaction and dissatisfaction depend on two factors: 1. hygiene factors. i.e. working conditions, quality of supervision, interpersonal relations, pay and job security. Hygiene factors cause movement along a continuum, one from no dissatisfactiondissatisfaction 2. Motivation factors. i.e. recognition, responsibility, advancement, and achievement. Motivation factors cause movement along a continuum from no satisfaction  satisfaction Managers first must ensure that hygiene factors are acceptable then must offer motivating factors as means of improving satisfaction & motivation. Contemporary Motivation Theory Expectancy Theory Expectancy theory – people are motivated to work toward rewards that they want and that they believe they have a reasonable chance of obtaining. Fig. 10.5 Individual Effort EPIndividual PerformancePRorganizational rewardsRPGPersonal Goals Issues: Effort Performance Performance Reward Rewards Personal Goals Expectancy theory explan why some people do not work as hard as they can when their salaries are based purely seniority. Equity Theory Equity Theory – social comparisons (1) what they contribute to their job with what they get in return (2) their input/output ratio with that of other employees. Ratio of contribution to return – analyzing inputs and outputs. To restore equity by: asking for raises, reduce their effort, work shorter hours, complain to their bosses Strategies for Enhancing Motivation Reinforcement/Behavior Modification Theory  Many managers try to control/modify workers’ behavior through systematic rewards. 1. Define the specific behaviors that managers want their employees to exhibit and the specific behaviors they want to eliminate 2. ‘Shape’ employee behavior by using reinforcement. Reinforcement – applying/withholding positive/negative consequences in an attempt to motivate employees to exhibit behavior the manager wants. 4 basic reinforcement options: (1) Positive reinforcement – apply +ve consequences when employees exhibit desired behaviors (2) Punishment – apply -ve consequences when employees exhibit undesirable behaviors (3) Omission – withhold +ve consequences when employees exhibit undesirable behaviors (4) Negative reinforcement – withhold –ve consequences when employee exhibit desired behaviors. Positive reinforcement is the strategy most frequently used. Rewards work best when people are learning new behaviors, skills or jobs. When workers become more adept, rewards can be used less freq. Goal Setting Theory Goal Setting Theory – People perform better when they set specific, quantified, time-framed goals. SMART goals – Specific, measurable, agreed upon, realistic, and time framed and which are most likely to result in increased employee performance. MBO – Management By Objectives – a system of collaborative goal setting that extend from the top of an organization to its bottom. It tries to apply the goal setting theory throughout the organization. Has the biggest motivational impact. Participative management and Empowerment Participative management and empowerment – A method of increasing
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