Page 258 - Introduction to Business

232 PART 2 Managing Business Behavior (continued)

Ouchi’s Theory Z 1981 The best management practices of Japanese and American systems Infuse best practices of American and Japanese firms and ensure close binding of employees and management. Develop a new corporate culture for U.S. firms that combines lifetime employment, specialized career paths after job rotation, collective decision making, gradual wage increases, and so on.

McGregor’s Theory X and Y 1960 Whether employee falls in Type X, lethargic, or Type Y, hardworking and self-driven Operate the firm as if all employees are Type Y; this will motivate Type X employees as well. Give Type Y employees the opportunity to achieve corporate objective, and give Type X employees additional incentives to perform satisfactorily.

Herzberg’s Motivation- Hygiene Theory Late 1950s Job-related issues and work environment Address employee’s job satisfaction issues before attacking job dissatisfaction issues. Put more emphasis on motivation factors like wages and benefits that have a direct impact on productivity, customer service, and corporate profits.

Traditional Motivation Theories Maslow’s Hierarchy of Needs 1954 The stage of the five-stage hierarchy of needs that an employee is currently in Fulfill employee’s physiological needs before moving up to the next stage. After meeting an employee’s physiological needs, move up the hierarchy to satisfy safety, social, esteem, and self- actualization needs.

Hawthorne 1925–1932 Attention to environment Improve work environment. Give employees greater control over the work environment.

The Studies work

Evolution of Motivation Theories Taylor’s Scientific Management 1900–1930 Money Improve productivity by identifying the “best way” to get the job done. Implement a piece-rate system of compensation.

EXHIBIT 7.2 Period Key aspect of motivation theory (What motivates employees?) Enabler Approach

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