1. Creating the Human Resource Advantage
Part 4
Creating the Human Resource Advantage
Part 4 of your textbook is: Creating the Human Resource Advantage.
© 2015 McGraw-Hill Education.

2. CHAPTER 9 CHAPTER 10 Motivating the Workforce Managing Human Resources
Motivating the workforce is the topic covered in chapter nine. We will consider the early studies that laid the groundwork for modern theories of motivation and describe strategies that managers use to motivate employees.

3. Learning Objectives
LO 9-1 Define human relations and determine why its study is important.
LO Summarize early studies that laid the groundwork for understanding employee motivation.
LO Compare and contrast the human-relations theories of Abraham Maslow and Frederick Herzberg.
LO Investigate various theories of motivation, including Theories X, Y, and Z; equity theory; and expectancy theory.
LO Describe some of the strategies that managers use to motivate employees.
After reading this chapter, you will be able to:
Define human relationships, and determine why its study is important
Summarize early studies that laid the groundwork for understanding employee motivation
Compare and contrast the human-relations theories of Abraham Maslow and Frederick Herzberg
Investigate various theories of motivation, including theories X, Y, and Z; equity theory; and expectancy theory
Describe some of the strategies that managers use to motivate employees
Critique a business’s program for motivating its sales force

4. Nature of Human Relations
The study of the behavior of individuals and groups in organizational settings
Motivation
An inner drive that directs a person’s behavior toward goals
A goal is the satisfaction of some need, and a need is the difference between a desired state and an actual state
The question of what motivates employees to perform on the job is the central issue of human relations. Human relations is the study of the behavior of individuals and groups in organization settings. Successful companies provide important lessons about how to treat and motivate employees. Most top managers agree that employees are the company’s most important resource. Motivating employees can be challenging. Motivation is an inner drive that directs a person’s behavior towards goals. An important question for managers is: “What motivates employees to perform?”

5. Motivating the Workforce
Human relations is concerned with the needs of employees, their goals and how they try to achieve them, and the impact of those needs and goals on job performance
Motivating employees to stay engaged is a key responsibility of management
Engagement involves emotional involvement and commitment
Being engaged results in carrying out the expectations and obligations of employment
Human relations is concerned with the needs of employees, their goals and how they try to achieve them, and the impact of those needs and goals on job performance.
Motivating employees can be challenging. Motivating employees to stay engaged is a key responsibility of management. Engagement involves emotional involvement and commitment by the employee. Being engaged results in carrying out the expectations and obligations of employment by the employee.

6. The Motivation Process
A person who recognizes or feels a need is motivated to take action to satisfy the need and achieve a goal ( Figure 9.1 on the slide above). Consider a person who takes a job as a salesperson. If his or her performance is far below other salespeople’s, he or she will likely recognize a need to increase sales. To satisfy that need and achieve success, the person may try to acquire new insights from successful salespeople or obtain additional training to improve sales skills. In addition, a sales manager might try different means to motivate the salesperson to work harder and to improve his or her skills.

7. Morale Morale A prominent aspect of human relations
An employee’s attitude toward his or her job, employer, and colleagues
A prominent aspect of human relations
High morale contributes to high levels of productivity, high returns to stakeholders, and employee loyalty
An important concept for human relations is morale. While we spend a considerable amount of time discussing motivation, morale is very important. We define morale as an employee’s attitude toward his or her job, employer, and colleagues. High morale contributes to high levels of productivity, high returns to stakeholders, and employee loyalty.

8. High morale contributes to:
High levels of productivity
High returns to stakeholders
Employee loyalty
Low morale may cause:
High rates of absenteeism
Absenteeism can cost a company as much as 36% of payroll
High rates of employee turnover
Morale is an employee’s attitude toward his or her job, employer, and coworkers. It should be intuitively obvious that when employees have high morale, motivation is high, and goals are achieved. For businesses, high employee morale leads to higher levels of productivity, profitability that provides returns to stakeholders, and lower levels of turnover associated with employee loyalty to the firm. Low morale may lead to higher rates of absenteeism. Absenteeism can cost a company as much as 36% of its payroll. A business always wants to seek out ways to improve employee morale.

9. Morale Boosters Respect Positive organizational culture Appreciation
Adequate compensation
Promotions
A pleasant work environment
Involvement
An important question to ask yourself as a potential manager is: “What can I do to increase the morale of employees?” The answer is provided on this slide. Several elements contribute to improving morale among employees. These include respect for the employee, involving them in the decision making associated with their jobs, showing appreciation for their efforts, and creating a pleasant work environment.

10. Tips for the Leader about Employee Motivation
Many companies offer a diverse array of benefits designed to improve the quality of employees’ lives and increase their morale and satisfaction. Some of the “best companies to work for” offer onsite day care, concierge services (e.g., dry cleaning, shoe repair, prescription renewal), domestic partner benefits to same-sex couples, and fully paid sabbaticals. Table 9.2, displayed on this slide, offers suggestions as to how leaders can motivate employees on a daily basis.

11. Rewards Intrinsic Rewards Extrinsic Rewards
The personal satisfaction and enjoyment that you feel after attaining a goal
In this class, you may feel personal enjoyment in learning how business works and aspire to have a career in business or to operate your own business one day
Intrinsic Rewards
Benefits and/or recognition received from someone else
In this class, your grade is extrinsic recognition of your efforts and success in the class
Extrinsic Rewards
Employees are motivated by their perceptions of extrinsic and intrinsic rewards. An intrinsic reward is the personal satisfaction and enjoyment that you feel from attaining a goal. Extrinsic rewards are benefits and/or recognition that you receive from someone else. Both intrinsic and extrinsic rewards contribute to motivation that stimulates employees to do their best in contributing to business goals.

12. Top 10 Ways to Retain Great Employees
Respect, involvement, appreciation, adequate compensation, promotions, a pleasant work environment, and a positive organizational culture are all morale
boosters. Table 9.1, displayed on this slide, lists some ways to retain good employees.

13. Historical Perspectives on Employee Motivation
Theory suggesting that money is the sole motivator for workers
Early 20th century
Frederick W. Taylor and Frank & Lillian Gilbreth
Analyzed how workers perform specific work tasks in an effort to improve the employees’ productivity
Led to the application of scientific principles to management
Classical Theory of Motivation
Motivating employees can be difficult. Employers should use simple, powerful words. Even small symbols of recognition can serve as strong motivators for employees. Employers can motivate their employees by providing regular feedbacks, making time for people, and by communicating.
Throughout the twentieth century, researchers have been studying employee behavior and trying to figure out what actually motivates employees in the workplace. To understand modern, contemporary approaches to motivation, it is important to briefly discuss the historical development of modern theories of motivation. At the turn of the twentieth century in the late 1800s and early 1900s, researchers concluded that pay is the sole motivator for employees. Frederick Winslow Taylor and Frank and Lillian Gilbreth analyzed workers performance which led to time and motion studies.

14. Classical Theory of Motivation
To improve productivity managers should:
Break down each job into its component tasks (specialization)
Determine the best way to perform each task
Specify the output to be achieved by a worker performing the task
Incentives motivate employees to be more productive
Link workers’ pay directly to their output
To improve productivity, managers should try to break down each job into its component tasks (sometimes called specialization), determine the best way to perform each task, and specify the output to be achieved by a worker performing the task. It is well understood that incentives motivate employees to be more productive. Today, companies still tie pay to performance but there are other considerations as well.

15. Historical Perspectives on Employee Motivation
The Hawthorne Studies
at the Hawthorne Works Plant
Marks beginning of concern for human relations in the workplace
Elton Mayo:
Postulated that physical conditions in workplace stimulate productivity
Productivity increased regardless of the physical conditions (the Hawthorne effect)
Findings show that social and psychological factors could significantly affect productivity and morale
Elton Mayo and researchers from Harvard were studying how physical conditions in the workplace impacted productivity. Specifically, they were looking at noise levels and lighting conditions at the Western Electric Hawthorne plant. What they discovered is that regardless of how much or little light there was, productivity seemed to increase. They concluded that the attention that was being paid to these employees by the researchers and managers was what led to increased productivity. This is known as the Hawthorne effect and is the beginning of the modern human relations movement in the study of motivation.

16. Hawthorne Studies Working conditions are important
However, the Hawthorne studies, which were carried out at the electric company shown here beginning in the 1920s, found that the workers became more productive because of the attention they received— regardless of their working conditions.
Working conditions are important. However, the Hawthorne studies, which were carried out at the electric company, shown in this slide, beginning in the 1920s, found that the workers became more productive because of the attention they received—regardless of their working conditions.

17. Job Aspects Important to Employee Satisfaction
Aside from salary, which one of the following aspects of your job is most tied to your satisfaction?
Figure 9.2, displayed on this slide, indicates how employees value a healthy work/life balance. When asked the question “Aside from salary, which one of the following aspects of your job is most tied to your satisfaction?”, 28% of the respondents chose “Work/Life Balance”.

18. Herzberg’s Two-Factor Theory McGregor’ s Theory X and Theory Y
Theories of Employee Motivation
Maslow’s Hierarchy of Needs
Herzberg’s Two-Factor Theory
McGregor’ s Theory X and Theory Y
Theory Z
Variations on Theory Z
Equity Theory
Expectanc y Theory
The research of Taylor, Mayo, and many others has led to the development of a number of theories that attempt to describe what motivates employees to perform. Some of the theories are listed in this slide

19. Maslow’s Hierarchy of Needs
A theory that arranges the five basic needs of people—physiological, security, social, esteem, and self-actualization—into the order in which people strive to satisfy them
Abraham Maslow was a psychologist who postulated that people have five basic needs that explain why employees are motivated at any given time. These needs are arranged in a hierarchical fashion with low level needs at the bottom and self-actualization, the highest level need, at the top of the pyramid. According to Maslow, an employee is motivated by where he or she is at any given time relative to their needs. Managers should understand their employees’ needs, according to Maslow, in order to discover what the most appropriate motivators would be at any given time. This pyramid organizes needs into the order in which people seek to attain them, the most basic being on the bottom.

20. Maslow’s Hierarchy of Needs
Physiological Needs
The most basic human needs to be satisfied—water, food, shelter, and clothing
Security Needs
The need to protect oneself from physical and economic harm
Social Needs
The need for love, companionship, and friendship—the desire for acceptance by others
Esteem Needs
The need for respect—both self-respect and respect from others
Self-Actualization Needs
The need to be the best one can be; at the top of Maslow’s hierarchy
This slide provides a brief definition of each of the five needs in Maslow’s Hierarchy of Needs Theory. The basic, lowest level needs are physiological including the need for food, water, and shelter. As you can see, the needs progress in terms of their order moving from physiological needs to security to social needs and esteem. Ultimately, once all lower-level needs have been satisfied, employees seek to self-actualize or maximize their potential. Many people never achieve the higher order of needs, and people may slip from one category to the other depending on circumstances and times in their lives.

21. Herzberg’s Two-Factor Theory
Hygiene Factors
Aspects of Herzberg’s theory of motivation that focus on the work setting and not the content of the work; these aspects include adequate wages, comfortable and safe working conditions, fair company policies, and job security
Motivational Factors
Aspects of Herzberg’s theory of motivation that focus on the content of the work itself; these aspects include achievement, recognition, involvement, responsibility, and advancement
In the 1950s Fredrick Herzberg proposed a theory of motivation that focuses on the job and the environment where the work was done. After studying numerous factors at work, Herzberg classified these factors into two classifications: hygiene factors and motivational factors. Herzberg postulated that hygiene factors are important for employees because without them, employees could not be motivated. Hygiene factors include wages and working conditions and factors that focus on the work setting not the content of the work. On the other hand, according to Herzberg, employee motivation can be improved dramatically through motivational factors that deal with the content of the work, not the work setting. These include achievement, recognition, responsibility, and advancement. It is important to understand that Herzberg suggested that the hygiene factors alone will not motivate employees to excel, that they first need to be satisfied. Once done, motivational factors dealing with the work itself will provide motivation for employees. Herzberg’s Theory focuses on the job and the environment where work is done.

22. McGregor’s Theory X and Theory Y
McGregor’s traditional view of management whereby it is assumed that workers generally dislike work and must be forced to do their jobs
The average person naturally dislikes work and will avoid it when possible
Most workers must be coerced, controlled, directed, or threatened with punishment to get them to work toward the achievement of organizational objectives
The average worker prefers to be directed and to avoid responsibility, has relatively little ambition, and wants security
Douglas McGregor related Maslow’s ideas about personal needs to management. He contrasted two opposite views of management. The traditional view, according to McGregor, was called Theory X and a humanistic view he called Theory Y. Theory X assumes that workers generally dislike work and must be forced to do their jobs. This requires careful and constant supervision and a lack of trust by managers. They believe that the following statements are true of workers:
1. The average person naturally dislikes work and will avoid it when possible.
2. Most workers must be coerced, controlled, directed, or threatened with punishment to get them to work toward the achievement of organizational
objectives.
3. The average worker prefers to be directed and to avoid responsibility, has relatively little ambition, and wants security.

23. McGregor’s Theory X and Theory Y
Theory X style of management focuses on physiological and security needs and virtually ignores the higher needs discussed by Maslow
Theory Y
McGregor’s humanistic view of management whereby it is assumed that workers like to work and that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs
Theory Y, on the other hand, is a humanistic view which suggests that workers like to work and that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs.
Theory Y assumes:
The expenditure of physical and mental effort in work is as natural as play or rest

24. McGregor’s Theory X and Theory Y
Theory Y assumptions (continued):
People will exercise self-direction and self-control to achieve objectives to which they are committed
People will commit to objectives when they realize that the achievements of those goals will bring them personal reward
The average person will accept and seek responsibility
Imagination, ingenuity, and creativity can help solve organizational problems, but most organizations do not make adequate use of these characteristics in their employees
Organizations today do not make full use of workers’ intellectual potential
McGregor describes the assumptions behind Theory Y in the following way:
1. The expenditure of physical and mental effort in work is as natural as play or rest.
2. People will exercise self-direction and self-control to achieve objectives to which they are committed.
3. People will commit to objectives when they realize that the achievement of those goals will bring them personal reward.
4. The average person will accept and seek responsibility.
5. Imagination, ingenuity, and creativity can help solve organizational problems, but most organizations do not make adequate use of these characteristics in
their employees.
6. Organizations today do not make full use of workers’ intellectual potential.

25. Theory Z
Theory Z
A management philosophy that stresses employee participation in all aspects of company decision making
Incorporates many elements associated with the Japanese approach to management (trust and intimacy) but Japanese ideas have been adapted for use in the U.S.
Results in employees feeling organizational ownership
Research has found that such feelings of ownership may produce positive attitudinal and behavioral effects for employees
Theory Z is a management philosophy that stresses employee participation in all aspects of company decision making. This theory was proposed by William Ouchi which sought to incorporate many elements associated with the Japanese approach to management into the practices of managers in the United States. Theory Z organizations are characterized by managers and workers sharing responsibilities with a management style of participation and long-term employee and employer commitments. Theory Z has spawned a number of other theories.

26. Comparison of American, Japanese, and Theory Z Management Styles
Table 9.4, displayed on this slide, compares the traditional American management style, the Japanese management style, and Theory Z (the modified Japanese management style).

27. Variations on Theory Z
Theory Z has been adapted and modified for use in a number of U.S. companies
Quality circles (quality-assurance teams) – Are small, usually having 5-8 members who discuss ways to reduce waste, eliminate problems, and improve quality, communication, and work satisfaction
Often modified and operate under names such as: participative management, employee involvement, or self-directed work teams
They strive to give employees more control over their jobs while making them more responsible for the outcome of their efforts
Many companies today have incorporated variations on the Theory Z approach. Companies using participative management, employee involvement, and teams, strive to give employees more control over their jobs while making them more responsible for the outcome of their efforts. One adaptation involves workers in decisions through quality circles, which is a common technique for harnessing the knowledge and creativity of hourly employees to solve problems in companies. Quality circles are often modified and operate under names such as participative management, employee involvement, or self-directed work teams.

28. Equity Theory Equity is a subjective notion
An assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange
Equity is a subjective notion
Equity theory might explain why many consumers are upset about CEO compensation
Corporations have now begun to tie CEO compensation with company performance
Feelings of inequity may underlie some unethical or illegal behavior in business
We have thus far considered the classical theories of motivation and those emphasizing human relations. Equity theory also focuses on the needs and interests of the individual employees. It assumes that how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange for their efforts. Almost all of the issues involved in equity theory are subjective and pose problems for mangers and researchers alike.

29. Expectancy Theory
Expectancy Theory
The assumption that motivation depends not only on how much a person wants something but also on how likely he or she is to get it
A person who wants something and has reason to be optimistic will be strongly motivated
If you do not believe you are likely to get what you want, you may not be motivated to try to get it, even though you really want it
The psychologist Victor Vroom developed expectancy theory which suggests that motivation depends not only on how much a person wants something but also on the person’s perception of how likely he or she is to get it. A person who wants something and has a reasons to be optimistic about getting it, will be strongly motivated, according to expectancy theory.

30. Positive Reinforcement
When employees are recognized for a job well done, they are more likely to put forth the same amount of effort or more in their future tasks
Positive reinforcement is so effective because it clearly and immediately defines the kind of behaviors that are appreciated by employers
This tactic works especially well with employees who naturally take pride in their work and are inherently motivated to do well
However, it still has positive results among the less naturally motivated employees
Positive reinforcement also empowers employees through self- confidence making them more adaptable and open to change
Positive Reinforcement
Positive reinforcement, which is the practice of rewarding good or acceptable behavior, has a tremendous effect on employee motivation. When employees are recognized for a job well done, they are more likely to put forth the same amount of effort or more in their future tasks. Positive reinforcement is so effective because it clearly and immediately defines the kind of behaviors that are appreciated by employers. This tactic works especially well with employees who naturally take pride in their work and are inherently motivated to do well. However, it still has positive results among the less naturally motivated employees. Positive reinforcement also empowers employees through self-confidence making them more adaptable and open to change.
SOURCE: Dr. Seidenfeld. “Using Positive Reinforcement in Employee Motivation”. September 2, (accessed September 30, 2013).
SOURCE: Dr. Seidenfeld. “Using Positive Reinforcement in Employee Motivation”. September 2, (accessed September 30, 2013).

31. Strategies for Motivating Employees
Behavior Modification
Changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself
Behavior that is rewarded will tend to be repeated
Behavior that is punished will tend to be eliminated
The two strategies may not be equally effective
Punishing unacceptable behavior may provide quick results but may lead to employee dissatisfaction and increased turnover
In general, rewarding appropriate behavior is a more effective way to modify behavior
Based on the various theories and approaches to the study of motivation, businesses have developed several strategies for motivating their employees, boosting morale, and improving productivity. One strategy is based on the work of the psychologist B.F. Skinner. Behavior modification, as it is called, is an attempt to reinforce or change employee behavior toward desired outcomes by relating the consequences of that behavior to the behavior itself. In other words, when an employee is appropriately productive, that productivity would be reinforced through a reward that is valued by that employee. Behavior that is rewarded will tend to be repeated– rewarding good behavior tends to be a more effective behavior modification strategy in the long term. Behavior that is punished will tend to be eliminated.

32. Strategies for Motivating Employees
Job Rotation
Movement of employees from one job to another in an effort to relieve the boredom often associated with job specialization
Job Enlargement
The addition of more tasks to a job instead of treating each task as separate
One strategy that was derived from Herzberg’s work is job rotation. In job rotation employees move from one job to another so as to relieve the monotony and boredom that is associated with repetitive tasks. Because employees may eventually become bored with all the jobs in the cycle, job rotation does not totally eliminate the problem of boredom.
Job enlargement adds more tasks to a job. This strategy was developed to overcome the boredom associated with specialization. The rationale of this approach suggests that jobs are more satisfying as the number of tasks performed by an individual increase.
Job enrichment focuses on motivational factors, not hygiene factors that are associated with job rotation and enlargement. Job enrichment increases the level of responsibility and opportunities for achievement, recognition, and advancement into a job.
Job Enrichment
The incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement, into a job

33. Strategies for Motivating Employees
Flexible scheduling strategies:
Flextime
A program that allows employees to choose their starting and ending times, provided that they are at work during a specified core period
Compressed Workweek
A four-day (or shorter) period during which an employee works 40 hours
As you know, most U.S. companies have a traditional forty-hour workweek consisting of five days and eight hours each day. Diversity in the workforce, poor morale and high absenteeism have given rise to new approaches designed to combat the causes of these organizational problems. Flexible scheduling strategies allow for variations on the theme of the forty-hour work week and allow individuals to work those forty-hours in different ways.
Flextime is a program that allows employees to choose their starting and ending times as long as they are at work during a specified core period.
The compressed workweek is a four-day (or shorter) period during which an employee works 40 hours.

34. Strategies for Motivating Employees
Flexible scheduling strategies:
Allowing full-time workers to work part time for a certain period
Allowing workers to work from home either full or part time
Job Sharing
Performance of one full-time job by two people on part-time hours
A few other flexible scheduling strategies include:
Job sharing, which has two part-time employees perform the work previously accomplished by one full-time employees.
Allowing full-time employees to work part-time for a certain period of time.
Allowing employees to work from home either full or part time.

35. Flextime, Showing Core and Flexible Hours
Flextime provides many benefits, including improved ability to recruit and retain workers who wish to balance work and home life
More flexible schedules are associated with healthier lifestyle choices such as increased physical activity and healthier sleep habits
Flextime provides many benefits, including improved ability to recruit and retain workers who wish to balance work and home life. More flexible schedules are associated with healthier lifestyle choices such as increased physical activity and healthier sleep habits.

36. SAS Family
Several of the companies listed on Fortune’s “Best Companies to Work For” list receive this recognition for how well they treat their employees. Good treatment of employees leads to higher motivation levels and overall company productivity
SAS, a business analytics company, made the number two spot on Fortune’s list in 2013
They effectively motivate their employees with extensive benefits that go beyond the traditional set of benefits companies usually offer
SAS values their employees’ families by offering full family health care coverage, adoption services and educational training
They also value the employees’ well-being by offering fitness and recreational facilities and programs
To see other of examples of companies that effectively motivate their employees, see the following link:
SAS Family
Several of the companies listed on Fortune’s “Best Companies to Work For” list receive this recognition for how well they treat their employees. Good treatment of employees leads to higher motivation levels and overall company productivity. SAS, a business analytics company, made the number two spot on Fortune’s list in They effectively motivate their employees with extensive benefits that go beyond the traditional set of benefits companies usually offer. SAS values their employees’ families by offering full family health care coverage, adoption services and educational training. They also value the employees’ well-being by offering fitness and recreational facilities and programs. To see other of examples of companies that effectively motivate their employees, see the following link:
SOURCE: SAS. “SAS Family – US”. (accessed September 30, 2013).
SOURCE: SAS. “SAS Family – US”. (accessed September 30, 2013).

37. Importance of Motivational Strategies
Fosters employee loyalty
Boosts productivity
Influences many areas such as pay, promotion, job design, training opportunities, and reporting relationships
Employees are motivated by the nature of the relationships they have with their supervisors, by the nature of their jobs, and by characteristics of the organization
As you have seen in this chapter, the importance of motivation is more than a tool that managers use to foster employee loyalty and boost productivity. Motivation is a process that affects all the relationships with an organization and influences pay, promotion, job design, training opportunities, and reporting relationships. As you can see from the list on this slide, motivational strategies are very important for all members of an organization.

38. Importance of Motivational Strategies
The economic environment can change an employee’s motivation:
In a recession economy, morale can drop because of the need to cut jobs
Firm may have to work harder to keep good employees and to motivate all employees to work to overcome obstacles
In good economic times, employees may be more demanding and be on the lookout for better opportunities
New rewards or incentives may help motivate workers
Even the economic environment can change an employee’s motivation. In a slow growth or recession economy, sales can flatten or decrease and morale can
drop because of the need to cut jobs. In the most recent recession, many workers feared losing their jobs and increased the amount they were saving. The firm may have to work harder to keep good employees and to motivate all employees to work to overcome obstacles. In good economic times, employees may be more demanding and be on the lookout for better opportunities. New rewards or incentives may help motivate workers in such economies. Motivation tools, then, must be varied as well.

39. Best Companies to Work For
Table 9.5, displayed on this slide, shows the top 10 companies in the Fortune 100 Best Companies to Work For, along with the types of strategies they use to motivate employees.

40. Discussion
Why do managers need to understand the needs of their employees?
Contrast the assumptions of theory X and theory Y. Why has theory Y replaced X in management today?
Why do managers need to understand the needs of their employees?
Managers need to understand the needs of their employees because in an organizational setting individuals and groups need to be satisfied in order to achieve organizational goals. Human relations is concerned with the needs of employees, their goals, and the impact of these needs and goals on job performance. Social and psychological factors significantly affect productivity and morale. Managers who understand employees’ needs, beliefs, and expectations are most successful in motivating them.
Contrast the assumptions of theory X and theory Y. Why has theory Y replaced theory X in management today?
Theory X assumes that (1) workers do not like work and will avoid it when possible; (2) workers must be coerced, controlled, directed, or threatened with punishment to get them to work toward achievement of organizational goals; and (3) workers prefer to be directed, prefer to avoid responsibility, want security, and have little ambition.
By contrast, theory Y assumes (1) the expenditure of physical and mental effort and work is natural; (2) workers will exercise self‑direction and self-control in the service of objectives to which they are committed; (3) workers will commit to objectives when they realize that achievement to those objectives will bring about their personal reward; and (4) workers will accept and seek out responsibilities.
Probably the main reason theory Y has supplanted theory X is that managers had determined that theory X management styles did not lead to improved productivity. Also, many organizations have studied the success of the Japanese in worker productivity. The Japanese had long ago dropped theory X management styles.