The Nature of Business

This week like all the others previously was filled with a large amount of information that was

relevant to our understanding of the nature of business. The nature and importance of contracts in

the workplace are important to both the employee and the employer. The employer has certain

expectations and the employee must fulfill them, and the employee has certain expectations

from their employer and expects this in return of doing a good job. Job satisfaction is then

directly related to these psychological contracts because people all have differing levels of

satisfaction that their jobs provide. Employers want to satisfy their employees in most cases

because they will do a better job with quality and pride if they believe and are content with what

they do. The most important theories of employee motivation are human resources model; the

hierarchy of needs model, the two-factor theory, the expectancy theory, the equity theory, and

the goal setting theory. Theory X says that people can are basically lazy and unproductive

therefore need to be rewarded or punished for motivation. The hierarchy of human needs theory

says that people rely on the 5 basic needs to be satisfied and after that they will be more

motivated and productive.

The two-factor theory is a theory that suggests job satisfaction is solely dependent on hygiene

and motivation. The expectancy theory suggests that people work hard to obtain goals and they

expect to be rewarded accordingly. The equity theory believes that people evaluate the way that

their employer treats them by the way they treat other people.

Understanding how leadership varies asks us to understand the different styles of leadership.

Some of these styles are autocratic which management just issues orders and expects them to be

followed. The democratic style asks for input from subordinates then they actually have full

decision-making power. The next style is free reign style usually allow their subordinates to

follow through with the decision making process and advise them of how they should proceed.

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