Week 15 Motivation Theories Revised - Student

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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?

    Week 15: Theories of 22

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    3/18/12 Week 15: Theories of

    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

    Week 15: Theories of 33

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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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    3/18/12 Week 15: Theories of

    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.

    Motivation Theories 1616

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    Craft to Mass production

    http://www.youtube.com/watch?v=PvbG

    Week 15: Theories of 1717

    http://www.youtube.com/watch?v=PvbG9Sjp97o&feature=relmfuhttp://www.youtube.com/watch?v=PvbG9Sjp97o&feature=relmfu
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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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    3/18/12 Week 15: Theories of

    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

    Week 15: Theories of 2626

    http://www.youtube.com/watch?v=CYbsBcPDVQMhttp://www.youtube.com/watch?v=kFsBC0_Uglghttp://www.youtube.com/watch?v=PvbG9Sjp97o&feature=relmfuhttp://www.youtube.com/watch?v=PvbG9Sjp97o&feature=relmfuhttp://www.youtube.com/watch?v=kFsBC0_Uglghttp://www.youtube.com/watch?v=CYbsBcPDVQM
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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

    Motivation Theories 2929

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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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    3/18/12 Week 15: Theories of

    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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    3/18/12 Week 15: Theories of Week 15: Theories of 4444

    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