soft costs loss of intellectual capital decreased morale of remaining workers increased employee stress decreased customer service interrupted product The Value of Motivation society development and a poor reputation engagement employees level of motivation passion and commitment intrinsic reward the personal satisfaction you feel when you perform well and complete goals the belief your work makes a significant contribution to the org or extrinsic reward something given yo you by someone else as recognition for good work pay increases praise and promotions scientific management studying workers to find the most efficient ways of doing things and then teaching people those techniques I Frederick Taylor The Father of Scientific Management The Principles of Scientific Management by Frederick Taylor 1911 3 elements time methods and rules of work Most important tools observations the stopwatch dominant strategy for improving productivity in the early 1900s therblig viewed people largely as machines that needed to be properly programmed time motion studies studies begun by Frederick Taylor of which tasks must be performed to complete a job and the time needed to do each task principle of motion economy theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions called a II Elton Mayo and the Hawthorne Studies Western Electric Company s Hawthorne plant in Cicero Illinois in 1927 Researchers concluded Workers felt special and worked hard to stay in the group this motivated them They believed their ideas were respected and felt engaged in managerial decision making Workers enjoyed the atmosphere of their special room the additional pay for being more productive job satisfaction increased Hawthorne effect the tendency for people to behave differently when they know they are being studied Led to completely new assumptions about employees Pay is not the only motivator III Motivation and Maslow s Hierarchy of Needs Maslow s hierarchy of needs theory of motivation based on unmet human needs from basic physiological needs to safety social and esteem needs to self actualization needs based on the idea that motivation comes from need if a need is met it s no longer a motivator physiological basic survival food water shelter safety feel secure at work home social the need to feel loved accepted and part of the group esteem recognition acknowledgement from others as well as self respect a sense of status importance self actualization to develop to one s fullest potential Frederick Herzberg in the mid 1960s asked What creates enthusiasm for workers and makes them work to full potential IV Herzberg s Motivating Factors 1 Sense of achievement 2 Earned recognition 3 Interest in the work itself 4 Opportunity for growth 5 Opportunity for advancement 6 Importance of responsibility 7 Peer and group relationships 8 Pay 9 Supervisor s fairness 10 Company policies and rules 11 Status 12 Job security 13 Supervisor s friendliness 14 Working conditions motivators in Herzberg s theory of motivating factors job factors that cause employees to be productive and that give them satisfaction work itself achievement recognition responsibility growth advancement hygiene factors In Herzberg s theory of motivating factors job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if company policy administration supervision working conditions interpersonal relations co workers salary status and job security The best way to motivate employees is to make their jobs interesting help them achieve their objectives and recognize their achievement through advancement increased added responsibility Because of this dislike workers must be forced controlled directed or threatened with punishment to make them put forth the effort to achieve the The average worker prefers to be directed wishes to avoid responsibility has relatively little ambition wants security V McGregor s Theory X and Theory Y 1 Theory X the average person dislikes work and will avoid it if possible organization s goals primary motivators are fear and money Managers watch closely micromanage 2 Theory Y most people like work it is as natural as play or rest most people naturally work toward goals to which they are committed the depth of a person s commitment to goals depends on the perceived rewards for achieving them under certain conditions most people not only accept but also seek responsibility people are capable of using a relatively high degree of imagination creativity cleverness to solve problems in industry the average person s intellectual potent is only partially realized people are motivated by a variety of rewards Each worker is stimulated by unique reward Managers emphasize a relaxed managerial atmosphere empower employees 1 Find out what people think the problems in the organization are 2 Let them design the solutions 3 Get out of the way and let them put those solutions into action Ouchi s Theory Z Japanese approach Type J included lifetime employment consensual decision making collective responsibility for the outcomes of decisions slow evaluation and promotion implied control mechanisms nonspecialized career paths and holistic concern for employees Focus on trust and intimacy within the group family U S management approach Type A relied on short term employment individual decision making individual responsibility for the outcomes of decisions rapid evaluation and promotion explicit control mechanisms specialized career paths and segmented concern for employees Focus on individual rights achievements Theory Z includes long term employment collective decision making individual responsibility for the outcomes of decisions slow evaluation and promotion moderately specialized career paths and holistic concern for employees including family Views organization as a family that fosters cooperation organizational values VI Goal Setting Theory and Management By Objectives goal setting theory the idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted and accompanied by feedback and facilitated by organizational conditions management by objectives MBO Peter Drucker s system of goal setting and implementation it involves a cycle of discussion review and evaluation of objectives among top and middle level managers supervisors and employees Calls on managers to formulate goals in cooperation with