Business Management Unit 4

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1 Business Management Unit 4 AOS 1: The Human Resource Management Func8on 5.4 MOTIVATIONAL THEORIES

2 Area of Study Overview In this area of study, students examine the prac5ces and processes of human resource management in large- scale organisa5ons in Australia. A general introduc5on to human resources is followed by an inves5ga5on of the two key aspects of human resource management: the employment cycle and employee rela5ons. Students apply the principles of human resource management to a prac5cal or simulated situa5on. Outcome 1-60% On comple5on of this unit the student should be able to analyse and evaluate prac5ces and processes related to human resource management.

3 Key Knowledge Factors involved in managing human resources: rela8onship of human resource func8on to business objec8ves and business strategy employee expecta5ons, including condi5ons of employment, occupa5onal health and safety (OH&S), job security and work life balance key principles of Maslow s, Hertzberg s and Locke s theories of mo8va8on ethical and socially responsible human resource management;

4 Key Skills Accurately use relevant management terms; Research related aspects of human resource management using print and online sources; Analyse business literature, informa5on and data; Evaluate key aspects of human resource management theory; Apply human resource management knowledge and concepts to prac5cal and/or simulated situa5ons; Evaluate different prac5ces and processes for managing human resources.

5 Questions to address 1 What are the key func5ons of the human resources department in a large- scale organisa5on? 2 What is the role of the human resource manager? 3 What mo8vates employees to work produc8vely? 4 Explain what you think the phrase socially responsible management means. 5 What does the phrase business ethics mean and who is responsible for ensuring an organisa5on conducts its business in an ethical manner?

6 Employee Motivation Mo#va#on: The driving force that energises and gives direc#on to human behaviour Employee Mo#va#on: Factors that drive an employee to achieve in the workplace. Factors that mo5vate employees are unique there are internal (personal) and external (organisa5onal) influences. What mo5vates employees is con5nuously changing.

7 Employee Motivation - Internal Internal factors influencing employee mo8va8on, though unique to each individual, may include: The desire to be successful and ayain goals, both within and outside of the organisa5onal environment Aspira5on to climb the corporate ladder the need to provide a secure environment for family The desire to provide for recrea5onal opportuni5es such as travel or entertainment.

8 Employee Motivation - External External elements influencing employee mo8va8on are within the control of the organisa8on. They include: Opportuni5es for career development and advancement through training and succession planning Clearly defined and obtainable objec5ves for each employee Recogni5on based on performance and achievement of objec5ves Effec5ve leadership; that is, the ability of leaders and managers to mo5vate employees A culture where open and honest communica5on is a given and professional rela5onships are built on trust.

9 Work- Life Balance Many employees are now mo5vated by a need to achieve a work life balance; that is, a balance between their work and personal lives. They seek both job sa5sfac5on and a fulfilling life outside the working environment. Money is no longer a key mo5vator; therefore, offering employees a pay rise has become an ineffec5ve mo5va5onal tool. Research has also shown that flexible working hours, posi5ve workplace rela5onships and trust in an employee s ability con5nue to be mo5vators.

10 Work- Life Balance Successful organisa5ons look to human resource management to provide policies and procedures that will support and assist them in mo5va5ng and retaining employees. The task of directly mo5va5ng employees falls largely to line managers. Their effec5veness, ability to recognise and praise merit and capacity to lead are strong mo5vators for employees. Employees and poten5al employees recognise an employer who takes an interest in their job sa5sfac5on and work life balance.

11 Recap Questions

12 Motivation theories Mo#va#on theories: theories that emphasise the role of individual needs in employees mo#va#on and behaviour in the workplace Mo5va5on theories have been influen5al in aiding human resource managers to understand what mo5vates employees.

13 1. Maslow Draw a large triangle on your page Divide the triangle into 5 sec5ons Star5ng from the boyom - iden5fy what your most basic needs in life might be. As you move higher up, what other things help us live full lives? What do you think is the highest point of the triangle? What is the ul5mate point of living?

14 Abraham Maslow s Hierarchy of Needs Maslow s hierarchy of needs is one of the most popular mo5va5on theories. Created in the 1950s by psychologist Abraham Maslow, it proposes that employees are mo5vated to sa5sfy five needs physiological, safety, belonging, self- esteem and self- actualisa8on. Surmised that these needs are arranged in a hierarchy of importance, Maslow s theory depends upon the lower- order needs being sa5sfied before an employee can move to the next level of needs. Maslow s theory speculates that while a need is unsa#sfied it remains a mo#vator and indeed dominates the thoughts of an employee, thus influencing their actude and behaviour at work. Once that need is fulfilled, the employee moves to the next level

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17 Maslow s theory of needs While Maslow s hierarchy of needs is a guide for HR managers and organisa5ons, it remains a theory. There is no evidence to suggest that there are five levels of needs in real life, and no concrete evidence to suggest that because a need is sa5sfied it ceases to be a mo5vator. For example, an employee who wants to be recognised for good performance would s5ll wish that to occur within the context of a safe environment. Maslow s theory does not take into account variables such as the size of an organisa5on, the employee s current posi5on in the organisa5on, the age, sex or cultural background of the employee or the social and economic circumstances. All of these are variables that would in themselves be mo5va5ng factors for an employee.

18 Maslow s theory of needs What then does Maslow s theory suggest to human resource managers? It indicates the need to create an environment in which employees can fulfil their poten5al. It also suggests that employees whose needs remain unfulfilled may leave the organisa5on and seek job sa5sfac5on elsewhere. If the needs of employees are largely unfulfilled, an organisa5on should expect both increased employee turnover and decreased performance. In short, employees needs are mo8vators, and employees whose needs are met experience job sa8sfac8on. The organisa8on that can meet the needs of its employees is likely to have greater employee reten8on and sa8sfac8on.

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20 Hertzberg s two- factor theory Hertzberg s two- factor mo5va5on theory was published in the late 1950s. Frederick Hertzberg asserted that needs could be divided into two very different groups: hygiene (or environment) needs and mo5va5on needs. Factors leading to job sa5sfac5on were labelled mo5vators, while factors leading to job dissa5sfac5on were iden5fied as hygiene factors. Hertzberg argues that while mo5vators lead to job sa5sfac5on, the provision of hygiene factors does not lead to job sa5sfac5on, nor do they mo5vate; however, not providing them can lead to job dissa5sfac5on.

21 Hertzberg s two- factor theory Key hygiene factors, which lead to employee dissa8sfac8on if not provided are: Organisa5onal policies and procedures Effec5ve leadership and supervision Salary Interpersonal rela5onships with colleagues and peers Working condi5ons (which today should comply with occupa5onal health and safety, equal employment opportunity and affirma5ve ac5on legisla5on in Australia). OESIW or WOSIE

22 Hertzberg s two- factor theory Key mo8vators or factors leading to job sa8sfac8on are: Achievement Recogni5on Responsibility advancement; that is, clear career path and promo5onal opportuni5es work; that is, the job itself. ARRAW

23 Hertzberg s two- factor theory Implica8ons of Hertzberg s two- factor theory for human resource managers: Managers must recognise that resolving issues that dissa5sfy an employee neither results in job sa5sfac5on nor mo5va5on for that employee. Further, an employee who is performing well needs to have their performance recognised, either by an increase in responsibility for that employee or by advancement, depending on the situa5on. Although Hertzberg s theory is popular, it has one dis5nct disadvantage: the premise that employees will become dissa5sfied if hygiene factors are not provided. This allows employees to assume no blame for dissa5sfac5on, but rather place blame on the employer. Employees therefore need not accept any responsibility for changing those things that lead to their dissa5sfac5on.

24 Hertzberg s two- factor theory

25 Hertzberg s two- factor theory

26 Locke s theory of goal setting and task motivation Dr Edwin Locke completed his work on goal sefng and task mo5va5on in the late 1960s. In his research, Toward a Theory of Task Mo5va5on and Incen5ves, Locke found that employees were mo8vated by two key factors: goals and feedback. Clear goals provide employees with something to achieve while feedback helps an employee to achieve a goal. When goals and feedback work together, employee results (performance) improve.

27 Locke s theory of goal setting and task motivation Locke s goal- secng and task- mo#va#on theory: mo#va#on theory developed by Edwin Locke which found that performance and employee mo#va#on rely on two factors: goals and mo#va#on. Locke s theory shows that there is a clear rela5onship between the task (goal) set, the difficulty of the task and the ability of the employee to achieve the task. Locke s work disproved a theory that suggested easy goals were more achievable and mo5va5ng for employees. Rather, Locke found that hard goals that were very specific provided greater mo5va5on.

28 Locke s theory of goal setting and task motivation Locke conducted research with others to reinforce the need to set specific and difficult goals. They outlined five characteris5cs of successful goal sefng: Importance Self- efficacy Goal commitment Task complexity Feedback. (GIFTS)

29 Locke s theory of goal setting and task motivation FIVE CHARACTERISTICS OF GOAL SETTING Importance Managers and the organisa5on can convince employees that mee5ng goals is important. By suppor5ng and inspiring vision, managers can create integrity which mo5vates employees. Allowing employees to par5cipate in goal sefng can further enhance individual commitment to organisa5onal goals. Self- efficacy When employees believe they are capable of performing in a certain manner to achieve set goals, this enhances their goal commitment. Managers can raise confidence on employees and provide adequate training. Goal Commitment - To be effec5ve, goals must be understood and agreed upon.

30 Locke s theory of goal setting and task motivation FIVE CHARACTERISTICS OF GOAL SETTING Task complexity Managers must ensure they incorporate measure to help prevent employees becoming overwhelmed by tasks / goals. Employees who work in complicated and demanding roles are likely to be highly mo5vated so becoming overworked can happen if sufficient 5me is not provided to complete work. Feedback Feedback provides opportuni5es for employees to clarify expecta5ons, adjust goal difficulty and gain recogni5on. It is important for employees to provide benchmarks or targets so employees can determine for themselves how they are doing.

31 Activities Case Study Page 142 Ques8ons 1 & 2 Ac8vi8es Page 142 Ques8on 1-6