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Chapter 10

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Rotman Commerce
John Oesch

Motivating and Leading Employees [Chapter 10] Forms of employee behaviour  Employee behaviour: he pattern of actions by the members of an organizations that directly or indirectly influence the organizations effectiveness  Performance behaviours: the behaviours directly targeted at performing a job  Organizational citizenship: behaviours that provide positive benefits to the organization in indirect ways (eg. one that does his best job)  Counterproductive behaviours: behaviours that detract from organizational performance o Theft and sabotage, sexual harassment (or racial) leads a cost both direct (if sued) and indirectly (morale), violence, etc  Absenteeism: occurs when an employee does not show up for work  Turnover: the percentage of an organization’s workforce that leaves and must be replaced Individual differences amongst employees  Personality: the relatively stable set of psychological attributes that distinguishes one person from another  5 fundamental traits that are relevant to organizations: o Agreeableness (ability to get along with others) o Conscientiousness (number of things a person tries to accomplish) o Emotionality (degree to which you are positive or negative in outlook and behavior towards others) o Extroversion (persons comfort level with relationships)  introverts are less sociable and talkative o Openness (how open or rigid a person is in terms of their beliefs)  Emotional intelligence: [EQ] the extent to which people possess social skills, are self ware, can manage their emotions, can motivate themselves, and can express empathy for others o People with higher EQ perform better when they have to have interaction  Attitude: a reflection of our beliefs and feelings about specific ideas, situations, or others; important attitudes are: o Job satisfactions: the degree of enjoyment from jobs o Organizational commitment: individuals identification with the organization and its mission Matching people and jobs  Two key concepts for making this match are psychological contracts and the person-job fit o Psychological contracts: the set of expectations held y an employee concerning what they will contribute to the organization (contributions) and what the organization will provide to the employee in return (inducements)  This is not written on paper and not everything is negotiated o The person-job fit: the extent to which a person’s contributions and the organization’s inducements match one another Motivation in the workplace  Motivation: the set of forces that cause, focus, and sustain workers’ behaviour  Approaches to motivation: classical theory and scientific management, behaviour theory, contemporary motivation theories 1. Classical theory and scientific management: works are motivated solely by money  Scientific management: analyzing jobs in order to find better, more efficient ways to perform them 2. Early behavioural theory:  Hawthorne effect: the tendency for workers’ productivity to increase when they feel they are receiving special attention from management  Human relations: the interactions between employers and employees and their attitudes  this developed theories like human resources model, hierarchy of needs model, two factor theory o Human resources model: theories X and Y;  Theory X: a management approach based on the belief that people must be forced to be productive because they are naturally lazy  Theory Y: a management approach based on belief that people want to be productive because they are naturally hard working o Maslow’s hierarchy of needs: theory of motivation describing 5 levels of human needs and arguing that basic needs must be fulfilled before people will work to satisfy higher level needs  Physiological needs (shelter/salary)  Security needs (stability/pension plan)   Social needs (friendship/friends at work)   Esteem needs (status/job title)   Self actualization needs (self-fulfillment/challenging job) * o Two factor (motivation-hygiene) theory: a theory 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 increased, lead employees to work harder  Says job satisfaction is based on two factors: hygiene factors (such as working conditions, quality of supervision, pay, etc) and motivating factors (recognition, responsibility, achievement etc)  Motivation factors cause movement along continuum going from no satisfaction to satisfaction  Hygiene factors cause movement along continuum going from no dissatisfaction to dissatisfaction 3. Contemporary Motivation theory  Most useful theories: expectancy theory & equity theory o Expectancy theory: the theory that people are motivated to work toward rewards that they want and that they believe they have a reasonable change of obtaining o Equity theory: the theory that people compare (1) what they contribute to their job with that they get in return, & (2) their input/output ratio with that of other employees Strategies for enhancing motivation  6 of the most popular programs: reinforcement/behaviour modification theory, goal setting theory, participative management, team management, job enrichment and job redesign, modified work schedules  Reinforcement/behaviour modification theory: reinforcement: controlling and modifying employee behaviour through the use of systematic rewards and punishments for specific behaviours o Means applying or withholding positive or negative consequences in attempt to motivate; options: o 1) Positive reinforcement (apply positive consequences for desired beh
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