© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 6 McGraw-Hill Intrinsic reward Extrinsic reward Taylor’s Scientific Management Father of scientific management Time and motion studies Little concern for human element Principle of motion economy Importance of Motivation

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 7 McGraw-Hill Importance of Motivation Mayo’s Hawthorne Studies Elton Mayo Western Electric Company’s Hawthorne plant 6 year study – 1927 to experimental periods – Productivity always went up Hawthorne Effect

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 8 McGraw-Hill Importance of Motivation Maslow’s Hierarchy of Needs Desire to understand motivation When lower order needs are satisfied, the next higher order need emerges

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 9 McGraw-Hill Herzberg’s Two-Factor Theory Results showed most important factor: –Sense of achievement Job content vs. Job environment Motivators vs. Hygiene factors Job rotation Job enlargement Job enrichment