RSM100Y1 Chapter Notes - Chapter 10: Job Satisfaction, Flextime, Rein
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Chapter 10: Motivating and Leading Employees
Psychological Contracts in Organizations
- psychological contract is similar to a legal contract. It is the set of expectations held by an employee
concerning what he/she will contribue to an organization (the contributions) and what the organization will
provide the employee in return (the inducements)
- organizations want value from their employees and must give their employees the right inducements
- good human relations = interactions between employers and employees and their attitudes towards one
another - is a VDWLV¿HG and motivated work force.
- if psychological contracts are created, maintained and managed effectively, the result is likely to be workers
who are VDWLV¿HG and motivated
The importance of job satisfaction and morale
- job satisfaction is the pleasure and feeling of accomplishment that employees derive from doing their work.
If people do their work, they are VDWLV¿HG SaWLV¿HG employees have high morael - the mental attitude of
employees toward their work and workplace
- morale is the degree to which they feel that their needs are being met by their jobs
- morale is determined by job satisfaction, satisfaction with pay, EHQH¿WV co workers and promotion
why businesses need VDWLV¿HG employees?
- VDWLV¿HG workers are more likely to work hard to make useful contributions to the organization and they will
be less likely to engage in negative behaviours
- saWLV¿HG workers are more likely to stay with the organization
- GLVVDWLV¿HG workers (have low morale) are more likely to be absent for inadequate reasons
- low morale may result in high turnover (the percentage of an RUJDQL]DWLRQ¶V workforce that leaves and must
- turnover is good when you weed out the bad employees, get new talent etc. but LW¶V bad when there is a
disruption in production, decreased productivity and high retraining costs.
Motivation and the Work Place
- employee motivation is critical to a ¿UP¶V success
- motivation is the set of forces that causes people to behave in certain ways.
Classical 7KHRU\6FLHQWL¿F management
- classical theory of motivation - workers are motivated by money. Frederick Taylor said to pay workers more
in order to get them to produce more. Meanwhile, ¿rms needed to analyze jobs and ¿nd better ways to
produce goods and more cheaply, make higher SUR¿WV and pay and motivate workers.
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- This approach is known as VFLHQWL¿F management because the goal was to break down jobs into easily
repeated components and to devise more HI¿FLHQW tools and machines for performing them
Behaviour theory- Hawthorne Studies
- goal of the studies was to examine the relationship between changes in the physical environment and
worker output with an eye to increasing productivity
- the results were that you could increase the pay, but this did not raise productivity. To make workers work
better, management had to make workers believe that they were receiving special attention, and that would
cause worker productivity to rise. This result is known as the Hawthorne effect
Contemporary motivation theories
- looking at the factors that cause, focus and sustain ZRUNHUV¶ behaviour. Motivation theorists are concerned
with the ways in which management thinks about and treats employees
- HUMAN RESOURCES MODEL: THEORIES X & Y: see Table 10.1 pg 306***
- 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
- theory Y: people are naturally energetic, growth oriented, self motivated and interested in being
- theory Y managers are more likely to have VDWLV¿HG motivated employees.
- 0$6/2:¶6 HIERARCHY OF NEEDS MODEL: this is a theory of motivated that describes ¿ve levels of
human needs and he argues that basic needs must be IXO¿OOHG before people work to satisfy higher level
- physiological needs = survival. Businesses address these needs by providing good working
conditions and salaries VXI¿FLHQW to sustain their employees
- security = stability and protection. Businesses address these needs by providing job security
- social needs = friendship, companionship. Businesses address these needs by making you feel
like you belong in the company
- Esteem needs = status and recognition, and self respect. Businesses address these needs by
providing job titles and large RI¿FHV
- self actualization = self IXO¿OOPHQW Needs to grow and develop meaningful goals.
- Maslow said that once you satisfy a level of needs, it becomes irrelevant to your behaviour
- people have different needs, different things motivate them
- TWO FACTOR THEORY: job satisfaction depends on hygiene factors (working conditions) and motivating
factors (recognition for a job well done)
- the two factor theory states that hygiene factors affect motivation factors only if they fail to meet
expectations or if they are absent. For example, if the worker feels like he/she is working in poor
working conditions, he/she is GLVVDWLV¿HG If the working conditions become better, the person
simply becomes no longer GLVVDWLV¿HG However, if workers DUHQ¶W VDWLV¿HG because of lack of
recognition, provide recognition and they are more likely to become VDWLV¿HG
- motivating factors are related directly to the work that employees perform. Hygiene is related to the
- motivating factors: the continuum is VDWLV¿HG -- GLVVDWLV¿HG Hygiene: the continuum is VDWLV¿HG --
- so to make workers more motivated, managers need to ensure that the working conditions are
good which will result in an absence of dissatisfaction, then they must offer motivating factors like
recognition or added responsibility to improve satisfaction and motivation
- EXPECTANCY THEORY: people are motivated to work towards rewards that they want and that they
believe they have a reasonable chance of obtaining (high expectancy). A reward that seems to be out of
reach is not liley to be motivating
- performance reward issue - will/will not your performance give you the reward that you want
- rewards-personal goal issue - when the reward does/does not ¿t with your personal goals/life
- expectancy theory explains why some people GRQ¶W work too hard because they think their salaries
are based on seniority
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