Organisation design & motivational theories

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  • Created by: Izzie
  • Created on: 12-03-18 21:21
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  • Organisation design & motivational theories
    • Tall Hierarchies
      • Suited businesses that wanted to supervise employees closely, fitting neatly with autocratic leadership
      • Have a long chain of demand
    • Flat Hierarchy
      • Suit businesses that want to encourage flexibility in the workforce
    • Delayering can cut costs
    • A chain of command sets out levels of authority for giving & taking instructions within an organisation
    • Centralised structures involve keeping decision making at top of hierarchy
    • Decentralised structures mean that businesses have moved the decision making process away from a central head offic and spread it through the organisation
    • Motivational Theorists
      • Taylor
        • People are rational & respond to incentives
        • If pay could be linked to output then it would rise
        • Recommends manager control workers carefully so each work efficiently
        • Reasons against him
          • Don't take into account different work ethics
          • Quality could suffer to meet targets
          • Repeitive nature was demotivating
      • Mayo
        • Could be more productive if their human needs were addressed
        • Human relations approach emphasises importance of ways people interact & how they're treated. This can increase motivation
        • Workers were reacting positively to being involved
        • Concludes psychological & social factors were more important in increasing productivity, emphasising importance of communicating as a 2 way process
      • Maslow
        • He identified a range of needs that contribute to motivation & show how they should be met
        • Problems with Maslow
          • Not all employee needs are the same
          • Higher order needs don't have much impact if there's a threat of redundancy
      • Herzberg
        • Motivating Factors- such as praise & promotion, but if other factors are absent there will be actual dissatisfaction
        • Hygiene Factors- they don't motivate by themselfbut without them dissatisfaction may occur
        • Problems
          • Different people respond differently
          • For some employees hygiene factors may be motivating
    • Piecework- paid according to output
    • Commission- based on a % of business generated by an employee (e.g. salesman)
    • Bonus scheme- reward for achieving targets sets
    • Profit share- agreed share of profits is paid
    • Performance related pay- wages are linked to performance

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