SMALL BUSINESS

SMALL BUSINESSES CAN MOTIVATE WITHOUT BIG COSTS

GROUP 8

SMALL BUSINESS

SMALL BUSINESSES CAN

MOTIVATE WITHOUT BIG

COSTS

 MCGEGOR’S THEORY X AND THEORY Y

 TREATING EMPLOYEES FAIRLY: EQUITY THEORY.

 BUILDING TEAMWORK THROUGH OPEN

COMMUNICATION.

 MOTIVATION IN THE FUTURE.

MCGREGOR’S THEORY X AND

THEORY Y

Douglas McGregor (1906–1964) was a

Management professor at the

MIT Sloan School of Management and president of Antioch College from

1948 to 1954.

In his 1960 book, The Human Side of

Enterprise, Douglas McGregor

proposed two theories by which to view employee motivation These

theories are Theory X and Theory Y.

 Assume that employees dislike work and avoid

- Assume that employees take a

voluntary, active interest in their

work

- Employees don’t view work as a

burden imposed on them

Management makes a

relaxed managerial atmosphere

for workers to go beyond the

goals set by management

Employees are given empowerment

THEORY Y

- Definition.

- It is a real motivator if the management follows three steps:

Find out what people think the problems

in the organization are.

Let them design the solutions.

Get out of the way and let them put

those solutions into action.

EMPOWERMENT

TYPE J( JAPANESE)

1 Lifetime employment.

2 Consensual decision making.

3 Collective responsibility.

4 Slow evaluation and promotion.

5 Implicit informal control.

6 Nonspecialized career paths

7 Holistic concer for employees.

There are 2 types of management approach: type American (type A)and type Japanese ( type j)

4 Rapid evaluation and promotion.

5 Explicit formalized control.

6 Specialized career paths.

7 Segmented concern for employees.

Theory z come out of Japanese management and stresses long –term employment,

collective decision making, individual responsibility , slow evaluation and

promotion ,implicit, informal control with explicit control, moderately specialized career

path, and a holistic concern for employees

GOAL-SETTING

THEORY AND MANAGEMENT BY

OBJECTIVES

MBO

Management by objectives (MBO): A system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle-level

managers, supervisors, and employees.

wrong direction

MBP is Management By Process is a management cycle has been analyzed and carefully defined.

Advantages Disadvantages

Ensure a high concentration,

even were all preset

Little misleading in all respects,

thus ensuring the standards set

out, including difficulties

Easy-standard

Control the process from

beginning to end

Subordinates as much creativity as all have been strictly regulated

Initiative is not high but high dependence

No high flexibility

OUTCOME: IS THE REWARD WORTH IT?

YES

MOTIVATED

YES

NOT MOTIVATED

NOT MOTIVATED NOT MOTIVATED

MEETING EMPLOYEE EXPECTATIONS:

EXPECTANCY THEORY

EXPECTANCY THEORY

• Determine what rewards are valued by employees

• Determine each employee’s desired performance standard

• Ensure that performance standards are attainable

• Guarantee rewards tied to performance

• Be certain that rewards are considered adequate

THE MANAGER WANTS ALL REPORTS TO BE

Praise or publicly recognize

Do not praise

Punishment Positive Negative

REINFORCEMENT THEORY

EQUITY THEORY

• Perceptions of fairness

• Affect employee’s willingness to perform

• Employees try to maintain equity between

inputs and outputs

INEQUITY

• Try to reestablish equitable exchanges

BUILDING TEAMWORK THROUGH OPEN COMMUNICA TION

Create an organizational culture that rewards listening.

Train supervisors and managers to listen.

Remove barriers to open

Actively undertake efforts to facilitate communication.

APPLYING OPEN COMMUNICATION IN SELF-MANAGED TEAMS

To implement such teams, managers

at most companies must reinvent work This mean respecting worker,

providing interesting work, rewarding good work, developing workers’ skills, allowing autonomy,

and decentralizing authority

Motivation in past

+ Baby boomer ( 1945-1964) indicate the generation after

world war II who was successful in jobs and make a huge

impact to the economy.

+ Generation X (1965-1980) had different think from the

previous generation they cared about family more than job, and always look for opportunities to improve their skills.

+ Generation Y (after 1980) high technology was improved rapidly at this period, so it affects Gen Yer's mind they has to update new things everyday.

Why does the baby bummers hold most of country's

wealth?