b10chap10 - 11/6/2011 Chapter 10: Motivating Employees...

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11/6/2011 1 Chapter 10: Motivating Employees Intrinsic Rewards -- Personal satisfaction felt for a job well done. • Kinds of Intrinsic Rewards: - Pride in your performance - Sense of achievement 10-2 Extrinsic Rewards -- Something given as a recognition of good work. • Kinds of Extrinsic Rewards: - Pay Raises - Promotions -Aw a
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11/6/2011 2 ¾ One of the earliest management consultants ¾ Asked “how can we increase worker productivity?” ¾ Provided a three part answer: 1. Change supervisor methods 2. Systematically study work 3. Implement best practices Said most factories today have two main problems: 1. The supervisors don’t know how much work a worker can get done in a day, and 2. The supervisors assume the workers are slacking off as much as possible. Thus, in the interests of cost minimization, the supervisors either: 1. Pay workers by the day, no matter how hard they work, or 2. Pay a piece rate, and lower that piece rate every time the workers find a faster way to work, so that their daily earnings never go up. As a result of this ignorance and behavior: 1. Workers actually do slack off as much as possible, and 2. Everybody (shareholders, workers, and the nation) suffers
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3 1. Management’s goal should be to build and maintain a high-wage, high productivity factory. 2. Management should systematically discover and evaluate the 30-40 ways workers have of completing each elementary task, and find the one best way to do that task. 3. Standardize methods, tools, and motions throughout the factory. 4. Set piece rates, day rates, or hourly rates generously . Share with workers a portion of the gains you are reaping from the higher productivity you are getting with scientific management. 5. Management and workers work together to eliminate wasted steps and wasted motion . ¾ Most companies are focused on using piece rates and bonuses to increase worker effort . ¾ But supervisor ignorance of how to do their jobs properly, an ill-conceived wage-setting policy , and inefficiently designed processes are the real limiting factors. ¾
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This note was uploaded on 11/26/2011 for the course BUSINESS 10 taught by Professor Lilly during the Fall '11 term at DeAnza College.

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b10chap10 - 11/6/2011 Chapter 10: Motivating Employees...

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