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3/18/12 Week 15: Theories of
Motivation Theories
Week 21Units 66
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The carrot or the stick?
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Questions
Non-FinancialMotivation
Question 1, p375
Question 2, p376
Question 3, p377 Case study p380
FinancialMotivation
Question 2, p384
Question 3, p387
Case study,p388
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Learning Outcomes
Explain the meaning of motivation inthe business context and describesome of the theories of motivation
Explain the difference betweenfinancial and non-financial methodsof motivation
Describe and provide examples offinancial and non-financial methodsof motivation that are commonly
used in businesses 44Week 15: Theories of
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What is Motivation?
Psychological process that givesbehaviour purpose and direction
An internal drive to satisfy anunsatisfied need
Drives, ambitions, desires and needs
that cause us to want to achievesomething.
Needs and how they can be satisfied,
differ between people. 55Week 15: Theories of
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Why is Motivationimportant in business?
Short-term: Lack of motivation maylead to reduced effort and a lack ofcommitment.
Negative motivation: fear ofredundancy/wage cuts.
Long-term: lack of motivation mayresult in
High levels of absenteeism
Industrial disputes 66Week 15: Theories of
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y are us nessesinterested in staff
motivation?1. Better productivity lead to lower unit costs ofproduction sell product at a lower price thancompetitors.
2.
Less absenteeism employees happy in work3. Less staff turnover fewer people
leaving/joining the business reduces training andHR costs.
4. Improved industrial relations with TradeUnions.
5. Contented workers give the firm a goodreputation, making it easier to recruit the best
workers.
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Theories of Motivation
Content theories
Process theories
Content: explain the specificfactors that motivate people. Whatdrives behaviour?
Maslow, McGregor, McClelland andHerzberg.
Process: concerned with the
thought processes that influence88Week 15: Theories of
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Maslows Hierarchy ofNeeds
Self-actualisation
99Motivation
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Maslows Hierarchy ofNeeds
Motivation Theories 1010
Be what you wantto be
Respect / recognition
Need to belong /affection
Secure environment
Food, clothes etc
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Maslow Hierarchy ofNeeds
Appeal: find out which level eachindividual is at and decide onsuitable rewards.
Problems: some categories do notexist for certain individuals.
Rewards can appear in more thanone category.
When is a level satisfied?
Exceptions as Maslow realised.Week 15: Theories of 1111
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as ow s erarc y oNeeds:
Criticisms
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Historical Developments inManagement Theory
Around 1900 we find managerstrying to place their theories onwhat they regarded as a thoroughly
scientific basis.The early theorists can be divided into
two main groups:
1. Practicing Managers- (eg. Taylor &Fayol) (Classical theorists)
2. Social Scientists- (eg. Mayo &
McGregor) (Human relationstheorists
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Historical Developments inManagement Theory
1. Practicing Managers- Reflect upon andtheorise from personal experience, drawup principles. Focus on structuring of
work and organisations. Very prescriptiveto managers.
1. Social Scientists- academics, researchinto human behaviour in workplace motivation, communication, leadershipstyle, social behaviour.
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Taylors Scientific Theory
Developed at the beginning of the20th century in Henry Fordsfactories
Why?
Taylor: regarded arrangements ashaphazard and inefficient.
Management: did not understandthe shop floor allowed wastefulpractice to continue.
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Craft to Mass production
http://www.youtube.com/watch?v=PvbG
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Frederick Winslow Taylor(Scientific Management)
Taylor was born in Philadelphia,Pennsylvania, to a wealthy Quakerfamily.
In 1874, he became an apprenticemachinist, learning of factoryconditions at the grass-roots level.
Spent much of his life working on theproblem ofachieving greaterefficiency on the shop-floor,conducting experiments in improving
labour productivity.
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Frederick Winslow Taylor
Taylor thought that by analysing work, the"One Best Way" to do it would be found.
Remembered for developing the time andmotion study. He would break a job into itscomponent parts and measure each to thesecond.
One of his most famous studies involvedshovels. He noticed that the workers used
the same shovel for all materials. Hedetermined that the most effective loadwas 2 1/2 lb, and found or designedshovels that for each material would scoopup that amount.
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Frederick Winslow Taylor
Then the supervisor, would teach it to the workerand make sure the worker did only those actionsessential to the task. This is why is it referred to asscientific management as Taylor attempted to
make a science for each element of work andrestrict alternatives to remove human variability orerrors.
Taylor was not really concerned with otherorganisational or management issues, his focus
was on efficiency.
Taylor believed that by increasing specialisationand the division of labour, the production process
would become more efficient.
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Frederick Winslow Taylor
He was writing at a time when factorieswere creating big problems formanagement who needed new methodsfor dealing with the management
challenges.
Taylor was one of the first to attempt tosystematically analyse behaviour at work.
His model was the machine therefore hisideas are often characterised as themachine model of organisations.
Each task was broken down to its smallest
unit to identify the best way to do each
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Taylorism
He is known for coinage of the termscientific management, a form of industrialengineering that established the
organisation of work as in Ford's assemblyline.
This discipline moved management theoryfrom early time-and-motion studies to the
latest total quality control ideas. His approach is often referred to, as
Taylor's Principles, or frequently as
Taylorism.
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Taylorism 4 Principles
Taylor developed four principles of Scientific Management:
1. Replace rule-of-thumb work methods with methods basedon a scientific study of the tasks.
2. Scientifically select, train, and develop each worker ratherthan passively leaving them to train themselves.
3. Cooperate with the workers to ensure that the scientificallydeveloped methods are being followed.
4. Divide work nearly equally between managers and workers,so that the managers apply scientific managementprinciples to planning the work and the workers actually
perform the tasks
. His ideas, as well as Henry Ford's, relating toefficiency became highly influential during the
early days of the Soviet Union.
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Taylor and motivation
Workers are mainly motivated bypay.
His theory of scientific management argued:
Workers dont enjoy work and need closesupervision and control
Managers should break down production into
a series of small tasksWorkers then given training and tools towork as efficiently as possible on one set task
Workers then paid according to how much
they produce in a set period of time (piece-rate
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Taylor and motivation
However-
Workers came to dislike thisapproach as they were given boring,repetitive task, and were treated likehuman machines.
Firms (like Ford) could afford to sackworkers as productivity levelsincreased.
Lead to more strikes and industrialaction b dissatisfied workers.
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http://www.youtube.com/watch?v=CYbs
Mass Production : Ford Pt 2
http://www.youtube.com/watch?v=kFsB http://www.youtube.com/watch?v=PvbG
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Taylors Scientific Theory
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Taylors Scientific Theory
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Taylor: Arguments in Favourof Money as a Motivator
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Taylor: Arguments AgainstMoney as a Motivator
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Taylors Scientific Theory:Weakness
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Motivation money?
Implementation of Taylors ideas hadsome success.
However in 1920s and 30s someapplications led to industrial unrest.
Recognition of other factors affectingmotivation.
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Human Relations Theories
Hawthorne Studies 1927-32 (EltonMayo)
Changes made in incentive schemes rest periods, hours of work, lighting,heating etc.
Conclusion: changes in financialincentives and conditions - littleeffect on productivity.
Cohesion and communicationbetween workers as the interactedWeek 15: Theories of 3333
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Mayo and motivation
Workers not just motivated bymoney, but more importantly byhaving their social needs met at
work
managers taking more of aninterest in workers, treating them with
respect and allowing them to interactand work in groups.
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Elton Mayo: HumanRelations Model
Elton Mayo found out that the social contacts aworker has at the workplace are very importantand that boredom and repetitiveness of tasks leadto reduced motivation.
Mayo believed that workers could be motivated byacknowledging their social needs and makingthem feel important.
As a result, employees were given freedom tomake decisions on the job and greater attentionwas paid to informal work groups.
Mayo named the model the Hawthorne effect. The
problem with his model is undue reliance on social
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Mayo and motivation
Mayo concluded workers are best motivated by:
1. Better communication between managers andworkers.
2. Greater management involvement inemployees working lives
3. Working in groups or teams
In practice, businesses should reorganise workersand production processes into groups and teams, andintroduce personnel departments to encourage greatermanager involvement in employees interests.
l
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Elton Mayo: HumanRelations Model
Elton Mayo found out that the social contacts aworker has at the workplace are very importantand that boredom and repetitiveness of tasks leadto reduced motivation.
Mayo believed that workers could be motivated byacknowledging their social needs and makingthem feel important.
As a result, employees were given freedom tomake decisions on the job and greater attentionwas paid to informal work groups.
Mayo named the model the Hawthorne effect. The
problem with his model is undue reliance on social
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Frederick Herzberg (1966)
Theory suggests that things whichprevent dissatisfaction are NOT thesame as things which create
satisfaction Both the approaches (hygiene and
motivational) should be done
simultaneously to be effective Professional and managerial staff
NOT shop floor workersMotivation 3838
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H b T F t
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Herzbergs Two-FactorTheory
Dissatisfaction andDe-motivation
Not dissatisfied butnot de-motivated
Satisfaction andMotivation
Hygiene
Factors (AvoidUnpleasantne
ss)
Motivator
Factors(Create
Satisfaction)
4040Motivation
Wages, and otherfinancialremuneration
Quality ofsupervision
Quality of inter-personal relations
Workingconditions
Feelings of jobsecurity
Status
Recognition
Challenging /stimulating work
Responsibility
M l Hi h f
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Maslows Hierarchy ofNeeds
Motivation Theories 4141
Be what you wantto be
Respect / recognition
Need to belong /affection
Secure environment
Food, clothes etc
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Job enrichment
Herzberg argues that only the higherlevels of Maslows hierarchy actuallymotivate workers.
Idea of job enrichment: workers havetheir jobs expanded so that theycan experience more of the
production process. More involvement, higher motivation
and a greater sense of achievement.
Theor su ests that thin s whichMotivation 4242
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McGregors Theory X and Y
Motivation 4343
Theory X
Theory Y
Lack integrityAvoid responsibilityWork as little as possible
Prefer to be told what todo
Have integrityWork towards objectivesWant to achieve
Will make decisions
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Douglas McGregor: Theory X
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Douglas McGregor: Theory Xor Theory Y?
Every management action rests ontheory
Theory X: traditional view of directionand control
Most people dislike work and will tryto avoid it
They must be coerced, controlled,
D l M G Th X
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Douglas McGregor: Theory Xor Theory Y?
Theory Y: integration of individual and organisational goals
External control and threat are not the only means ofdirecting effort
People can exercise self-direction and control towardsobjectives to which they are committed
Under proper conditions people will seek moreresponsibility
Imagination, ingenuity and creativity can be encouraged inthe solution of organisational problems
Do glas McGregor Theor X
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Douglas McGregor: Theory Xor Theory Y?
Those who see workers as Theory Xhave different policies (control, timerecording, supervision) than those
who hold Theory Y assumptions(responsibility, trust, initiative) e.g.Recognising potential at 3M
Hofstede (1989) (Section 15.6)showed that assumptions aboutwork also vary between countries
Process theories goal
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Process theories goalsetting theory
Locke (1968) goals affect motivation
Challenging but achievable goals motivate
Specific goals motivate more than vague ones
Participation in setting goals is motivating
Knowing results of past performance is necessary to