chapter 11 business Cartes

Motivated employees → higher productivity

Happy employees → happy customers

Employee turnover is costly for businesses

Why Motivation Matters:

Intrinsic Rewards (Internal)

Personal satisfaction from doing a good job

Example:

Feeling proud after completing a project successfully

Extrinsic Rewards (External)

Rewards given by others

Examples:

Salary increase

Bonus

Promotion

Praise from manager

What is Intrinsic Rewards and Extrinsic Rewards and what are examples

Workers are like machines → efficiency is key, Ignores human emotions and needs Example:

A delivery company tracks:

How fast drivers walk

Number of deliveries per day

Focus = efficiency, NOT employee satisfaction

Frederick Taylor what did believe and ex

People change behavior when they know they are being observed Importance:

Showed that human factors affect productivity

Hawthorne Effect Key Idea,Importance and example

People are motivated by unmet needs

Once a need is satisfied → it no longer motivates

Lower needs can return anytime

Maslow's Hierarchy of Needs Key Idea, Important

Physiological - food, water, rest

Safety - job security

Social - friendships, belonging

Esteem - recognition, respect

Self-Actualization - reaching full potential ex: An employee:

Wants salary (physiological)

What is Maslow's Hierarchy and ex

Motivators (Increase Satisfaction)

Achievement

Recognition

Responsibility

Growth

Hygiene Factors (Prevent Dissatisfaction)

Salary

Working conditions

Company policies

what are Herzberg's Two-Factor

Key Insight:

Good salary ≠ motivation

It only prevents dissatisfaction

Example:

Raising salary → stops complaints

Herzberg's Key Insight,Example

Theory X (Negative View)

Employees dislike work

Need supervision

Avoid responsibility

Theory Y (Positive View)

Employees enjoy work

Are self-motivated

Seek responsibility Seek responsibility

Example:

Theory X manager: micromanages staff

Theory Y manager: trusts employees to complete tasks independently

McGregor's what is Theory X and Theory Y

Specific and challenging goals improve performance

Accepted

Clear

Measurable

Supported with feedback

Management by Objectives

Managers + employees set goals together

Regular review and evaluation

Example: Manager and employee agree:

Goal-Setting Theory & MBO Effective Goals Must Be, Key Idea:

Employee works harder if:

They believe effort → bonus

Victor Vroom Key Idea: Ex

Behavior is shaped by consequences

Types:

Positive reinforcement → reward good behavior

Negative reinforcement → remove negative conditions

Punishment → reduce bad behaviour

Example:

Bonus for good performance = positive reinforcement

Reinforcement Theory (B.F. Skinner)Key Idea, ex

Inputs (effort) vs Outputs (rewards)

If unfair:

Lower effort

Quit job

Reduced quality ex Employee notices coworker earns more for same job → feels unfair → loses motivation.

Equity Theory (Adams)Key Idea, ex

Job Enrichment:

Make job more meaningful

Features:

Skill variety

Task identity

Autonomy

Feedback

Job Enrichment what is and what are features

Move employees between jobs

Example:

Employee rotates between cashier and inventory roles → learns new skills

Job Rotation what is and ex

Cultural Differences:

What motivates in one country may not work in another

Generational Differences:

Younger workers may value flexibility

Older workers may value stability

what Cultural Differences and Generational Differences