Psychological Factors That Affect Organizational Behavior

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Psychological Factors that Affect Organizational Behavior Angela Austin Indian River State College Dr. Ricardo 1/20/2011

Abstract Psychological factors that increase high motivation within Bill’s Auto Repair and Service are examined using Herzberg’s Motivation – Hygiene Theory. The study of this organization includes interviews with four employees including the owner and CEO Bill Knight. Motivational factors include transportation and money. Demotivating factors are lack of health benefits and software technology. The Motivation – Hygiene Theory proves that through satisfying the needs of these employees, they become motivated to increase productivity.

Psychological Factors that Affect Organizational Behavior

There are many different factors that can affect behavior in an organization. Some of these are psychological in nature. According to Herzberg’s “Motivation – Hygiene Theory” Psychological factors that motivate high productivity are related to job satisfaction. Managers can motivate employees by providing them with motivators that satisfy some sort of need. There are also many factors within an organization that can demotivate productivity. These factors include those that do not lead to satisfaction but rather dissatisfaction. Psychological factors that motivate high productivity in an organization will be analyzed according to Herzberg’s “Motivation – Hygiene Theory”. Then Herzberg’s theory will be evaluated and applied to a study on the organizational culture characteristics of Bill’s Auto Repair, a local auto repair shop. Finally, it will scrutinize the dynamics behind these cultural characteristics that either motivate or demotivate high productivity in the workplace. Organizational behavior can be affected by many different elements including social, economic, political, and psychological. Employers are constantly trying to figure out the minds of their employees. Managers try to hire candidates who will be motivated, produce more, and therefore become a competitive advantage for the organization. Reinter, 1989/2010 Text describes the following: Motivation - psychological processes that arouse and direct goal – directed behavior. Researchers have proposed two general categories of motivatio n theories to explain psychological processes underlying employee motivation : Content theories and Process theories . Content theories focus on internal factors such as

instincts, needs satisfaction and job characteristics that energize employee motivation. Process theories focus on explaining how the process by which internal factors and cognitions influence employee motivation. The idea that the text offers is that while Content theories suggest that employees needs influence behavior, Process theories are more dynamic by nature and along with internal factors such as needs, cognition also plays a part. Some of the different theories include; Content - Maslow’s Need Hierarchy, Alderfers ERG, McClelland’s Need and Herzberg’s Motivation-Hygiene Theories, Process Theories include – Adams Equity, Vroom’s Expectancy and Goal Setting Theories. (212) Although many different theories suggest that employee motivation is based on meeting basic needs, it is necessary for a manager to determine what the individual needs of employees are in order to motivate them. This may not be as easy as it sounds. Employees are very diverse by nature and maintain different thoughts on what they may consider to be important. Treating employees with respect and offering various types of motivational factors within the organization will ultimately increase productivity. Herzberg’s theory was evident during a study conducted with employees from Bill’s Auto Repair & Service, a local auto repair shop in Vero Beach Fl. There were four subjects studied including Bill the owner - 16 years, Shawn a mechanic - 5years, Kyle a mechanic - 12 years, and Tom the companies detail man - 10 yrs. The subjects were first asked why they come to work every day. Each of the four men answered with a similar response; “the money”. This was an example of the Content portion of Herzberg’s theory. Motivation to work is based on the lower level needs to provide such things as food and shelter. The next question in this study was

“Why have you never tried to get a better job paying more money?” Shawn answered that he does not drive and Bill picks him up and drops him off, this motivates him to be a loyal employee to Bill. Kyle on the other hand replied “Bill taught me everything I know.” (Primrose personal communication, February 17, 2011) The close knit culture at Bill’s Auto Repair and the skills Kyle has learned from Bill keeps him loyal and motivated to work for the company. Tom’s answer mirrored Shawn’s, with transportation being the motivating factor. The next question in the study was “If you could change anything about your job what would it be?” Shawn answered that he would like to have an insurance plan. The fact that he has no insurance is a hygiene factor according to Herzberg. Kyle answered that a lot of other auto repair shops have a software program that would make life easier for them as mechanics; however, Bill cannot afford this kind of expense. This would be a hygiene factor because Kyle has the painstaking job of manually looking up a lot of codes that other organizations simply enter into a computer. This is a demotivating factor to Kyle because he knows that he could easily produce more at a faster rate and more efficiently with this software program. On the other hand if Bill did install the new software program, the mechanics would be motivated to produce more, at a faster rate and more efficiently. It would then become a motivator according to Herzberg’s Motivator – Hygiene Theory. With the present economy there have been a couple Friday’s (payday) where payroll could not be met. The boys had to wait to get paid. This was definitely a hygiene factor in which they were demotivated. This was also a hygiene factor to the owner Bill. Not being able to meet payroll demotivated Mr. Knight and according to him; “I am not sure if I will soon have to close the doors for good). (R. Knight, personal communication, February 17, 2011)

The motivating factors at Bill’s Auto Repair are money, transportation, and skills received from employment at the organization “These factors were all related to the outcomes associated with content of the task being performed. Herzberg labeled these factors motivators because each was associated with strong effort and good performance. He hypothesized that motivators caused a person to move from a state of no satisfaction to satisfaction.” (Kreitner & Kinicki, 2010) The demotivating factors included not having the software that would make the mechanics job easier which would be no satisfaction and not being to meet payroll which would be dis – satisfaction. Herzberg concluded that in order for an organization to maintain a sense of no dis – satisfaction they would need hygiene factors. (Net MBA Business Knowledge Center) According to an article on NetMBA Business Knowledge center Herzberg reasoned that because the factors causing satisfaction are different than those that causing dissatisfaction, the two feelings cannot be simply treated as opposites of one another. The opposite of satisfaction is not dissatisfaction but rather no satisfaction. Similarly, the opposite of dissatisfaction is no dissatisfaction. (Net MBA Business Knowledge Center) Satisfaction or Dissatisfaction usually begins with the culture of an organization. At Bill’s Auto Repair the clan culture consists of an internal focus and values flexibility. The dynamics behind the culture at this auto repair shop are based on the family atmosphere that is portrayed. Shawn is actually Bill’s nephew, Kyle was hired when he was a ripe 16 years old and Tom is Bill’s lifelong friend since elementary school. (40+ years) Bill Knight tries to accommodate his employees in every way possible. By providing the guys transportation to and from work Bill has eliminated reasons for his employees to arrive late or not at all. By training

Kyle since the age of 16 he has created a mechanic that values the skills he has been given and things are done according to Mr. Knight’s philosophy. By paying Tom by the car (piece – work) to detail, he has managed to increase motivation and productivity. By analyzing Herzberg’s Motivation – Hygiene Theory and applying the theory to the culture of Bill’s Auto Repair & Service many different motivational factors have been revealed. Bill Knight, owner CEO and General Manager uses transportation issues that are specific to his subordinates as a way to ensure motivation within his firm. Bill also embraces a clan culture that keeps his employees close knit. Hygiene factors within the organization include no health benefits and not having the latest software that would increase efficiency and make a lot of tasks easier within the company. By offering ongoing training Bill Knight keeps loyal motivated employees year after year. The retention rate at this establishment is 99%. This Organization has many lifetime, loyal customers due to the friendly atmosphere and loyal employees. Weather Bill’s employees know it or not, these employees are motivated to higher production for many reasons other than just money.

References Harper, T. (2011, February 17). Personal interview. Knight, R. (2011, Febuary 17). Personal interview. Kreitner, R. (2010). Organizational Behavior (Ninth Edition Ed.). New York: McGrawl - Hill Irwin. (Original work published 1989) Net MBA Business Knowledge Center. (n.d.). In NetMBA.com (Ed.), Herzberg's Motivation Hygiene Theory. Retrieved from NetMBA.com Business Knowledge Center Web site: http://www.netmba.com/mgmt/ob/motivation/herzberg/ Newland, S. (2011, Febuary 17). Personal interview. Primrose, K. (2011, Febuary 17). Personal interview.

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