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Summary Chapter 12 - Business Management 114

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Chapter 12 – Motivating and satisfying employees
and teams

Motivation – individual internal process that energizes and directs
the personal force that causes you to behave in a particular way.

Moral
 Employees attitude or feelings towards his/her job
 High Moral – leads to dedication, loyalty and a desire to do a
job well
 Low Moral – Shoddy work, absenteeism and high turnover of
employees

Historical perspective in motivation

Scientific Management – using scientific principles to manage
workers

Price-rate system – employees are paid per unit output they produce

Maslow’s Hierarchy of needs
In descending order
1. Physiological Needs – required to survive
2. Safety needs – Physical and emotion. E.g job insurance, health
insurance etc.
3. Social Needs – Love and affection
4. Esteem Needs – require respect and recognition of others
5. Self-actualization – Need to grow and develop as a person

Herzberg’s Motivation – Hygiene theory

Satisfaction and dissatisfaction in different dimensions

Motivation factors – increases job satisfaction but doesn’t decrease
job satisfaction if its absent.
Hygiene factors – reduces dissatisfaction but doesn’t increase
satisfaction

Theory X vs. Theory Y

Theory X Theory Y
Attitude towards Dislike Involvement
work
Control Systems External Internal
Supervision Direct Indirect
Level of Low High
commitment
Employee Ignored Identified

, potential
Use on Human Limited Not Limited
resources




Views on motivation
 Reinforcement theory – rewarded behavior will be repeated
 Equity theory – People are motivated to obtain and preserve
equitable (reasonable) treatment for them.
 Expectancy theory – Depends on how much we want
something and how likely we are to get it.
 Goal setting theory – motivated to achieve goals set by them
and there managers together.

Key Motivating Techniques
Cheap and easy
 Celebrating birthdays
 Nominations for awards
 Flexible work hours
 Wash employees cars

Management by Objectives
Advantages
– Motivates employees by actively involving them
– Improves communication
– Makes employees feel like an important part of the
organization
– Periodic review enhances control
Disadvantages
– Only works if the process begins at the top of the organization
– Can result in excessive paperwork
– Some managers assign goals instead of collaborating on
creating them

Job enrichment - Motivation by giving employees variety of tasks as
well as responsibility surrounding their job.
 Job enlargement – Expanding employees tasks by adding
similar tasks
 Job redesign – work is restructured to fit individual employee

Behavior modification – systematic program of reinforcement to
encourage desirable behavior
1. Identify target behavior
2. Measure target behavior
3. Provide positive reinforcement for desired behavior
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