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After the end of the Industrial Revolution, large corporations were beginning to grow in
size and power in order to satisfy what seemed the endless demands for new goods and
services. As corporations and labor forces grew, there was a need to develop a more
systematic study of organization and management, known as management theory, the
significant being Frederick Taylor Principles of Scientific Management which involved the
development of training workers through special incentives and compensation (Boone
p.33). In general, early management scientists tended to believe that there was a single way
to organize companies and manage employees. By the beginning of the 20th century, there
were initial attempts for launching a systematic and scientific study of management; by the
1950, there were multiple books and articles focused on organization and management
theory. Since then, a number of new paradigms, or models, concerning employee
motivation and employee-employer relationships have aroused influencing the basic
principles of modern management theory.
Literature Review: Herzberg and Drucker
Frederick Herzberg, a pioneer on management theory, is best known for his
motivation-hygiene theory and work in job enrichment. In his article, One More Time:
How do you Motivate Employees, Herzberg explores the past theories of motivation and
development of the motivation-hygiene theory. The motivation-hygiene theory suggests
the factors involved in producing job satisfaction (and motivation) are separate and distinct
from the factors that lead to job dissatisfaction (Boone p.174). In others words, job
satisfaction and job dissatisfaction are not the opposite of one another but rather two
separate attitudes. Herzberg claims that managers should realize that people have a natural
drive to avoid pain from the environment (in this case, the job environment) and a need to
achieve and experience psychological growth (job content) so that managers can have
productive, satisfied employees.
Herzberg concluded that extrinsic rewards, or hygiene factors, could never create real
work motivation. The growth or motivational factors in a firm include achievement,
recognition, responsibility, and advancement while the dissatisfaction -avoidance or
hygiene factors consists of extrinsic factors such as administration, supervision,
interpersonal relationships, working conditions and salary (Boone p.176). Thus, in
attempting to enrich an employee job, it was necessary for management to reward and
recognize personal contribution rather than just giving the employee the opportunity to
growth. This school of thought is known as vertical loading was at the time thought of to
be more rewarding to employees and increase productivity rather than horizontal loading,
which did not concentrate on employees motivational factors.
