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Motivation Theory - Taylor
• Taylor made three key assumptions about human
  behavior at work:
(1) Man is a rational economic animal concerned
  with maximizing his economic gain;
(2) People respond as individuals, not as groups
(3) People can be treated in a standardized
  fashion, like machines
• Taylor had a simple view about what motivated
  people at work - money. He felt that workers
  should get a fair day's pay for a fair day's
  work, and that pay should be linked to the
  amount produced (e.g. piece-rates).
The 3 Basic Variables.

• EXPECTANCY : The belief that one’s efforts will
  positively influence one’s performance.

• INSTRUMENTALITY: An individual’s belief
  regarding the likelihood of being rewarded.

• VALENCE: The value a individual places on the
  rewards.
Equity Theory
• The Adams’ Equity Theory is named after John Stacey
  Adams, a workplace and behavioral psychologist, who
  developed this job motivation theory in 1963
• Focuses on people’s perceptions of the fairness (or lack
  of fairness) of their work outcomes in
  proportion to their work inputs.
• A relative outcome to input ratio comparison to
  oneself or to another person (referent) perceived as
  similar to oneself.
• Equity exists when a person perceives that their
  outcome/input ratio to be equal to the referent’s ratio.
   – If the referent receives more outcomes, they should
     also give more inputs to achieve equity.
The Hawthorne Studies
• Study of worker efficiency at the Hawthorne
  Works of the Western Electric Co. during
  1924-1932.
  –   Worker productivity was measured at various
      levels of light illumination.
  –   Researchers found that regardless of whether
      the light levels were raised or
      lowered, productivity rose.
• Actually, it appears that the workers enjoyed
  the attention they received as part of the
  study and were more productive.
Behavioral Management
• Focuses on the way a manager should
  personally manage to motivate employees.
• Mary Parker Follett: an influential leader in
  early managerial theory.
  –   Suggested workers help in analyzing their jobs
      for improvements.
  –   The worker knows the best way to improve the
      job.
  –   If workers have the knowledge of the task, then
      they should control the task.
Behavioral theories of pay system

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Behavioral theories of pay system

  • 1.
  • 2. Motivation Theory - Taylor • Taylor made three key assumptions about human behavior at work: (1) Man is a rational economic animal concerned with maximizing his economic gain; (2) People respond as individuals, not as groups (3) People can be treated in a standardized fashion, like machines • Taylor had a simple view about what motivated people at work - money. He felt that workers should get a fair day's pay for a fair day's work, and that pay should be linked to the amount produced (e.g. piece-rates).
  • 3. The 3 Basic Variables. • EXPECTANCY : The belief that one’s efforts will positively influence one’s performance. • INSTRUMENTALITY: An individual’s belief regarding the likelihood of being rewarded. • VALENCE: The value a individual places on the rewards.
  • 4. Equity Theory • The Adams’ Equity Theory is named after John Stacey Adams, a workplace and behavioral psychologist, who developed this job motivation theory in 1963 • Focuses on people’s perceptions of the fairness (or lack of fairness) of their work outcomes in proportion to their work inputs. • A relative outcome to input ratio comparison to oneself or to another person (referent) perceived as similar to oneself. • Equity exists when a person perceives that their outcome/input ratio to be equal to the referent’s ratio. – If the referent receives more outcomes, they should also give more inputs to achieve equity.
  • 5. The Hawthorne Studies • Study of worker efficiency at the Hawthorne Works of the Western Electric Co. during 1924-1932. – Worker productivity was measured at various levels of light illumination. – Researchers found that regardless of whether the light levels were raised or lowered, productivity rose. • Actually, it appears that the workers enjoyed the attention they received as part of the study and were more productive.
  • 6. Behavioral Management • Focuses on the way a manager should personally manage to motivate employees. • Mary Parker Follett: an influential leader in early managerial theory. – Suggested workers help in analyzing their jobs for improvements. – The worker knows the best way to improve the job. – If workers have the knowledge of the task, then they should control the task.