Final answer:
Job specialization can lead to increased efficiency and higher quality output from employees, but it is not the only factor in employee motivation. Other aspects such as job security and working conditions also impact motivation, especially in light of trends like outsourcing.
Step-by-step explanation:
The statement that making jobs smaller and more specialized is the most effective way of motivating employees is not definitively true or false, as it depends on the context and the individual preferences of employees. However, in business management, this concept is tied to the principle of division of labor, where specialization can lead to increased efficiency and expertise.
Job specialization can indeed provide benefits such as workers learning to produce more quickly and with higher quality. This is evidenced in several industries where specialized tasks lead employees to suggest innovative improvements. Nevertheless, not all employee motivation can be attributed exclusively to job specialization, as other factors involving working conditions, job security, and personal growth opportunities also play significant roles.
The trend towards outsourcing and the reduction in certain types of jobs, however, has impacted the stability of certain employment sectors. This has made job security a more prominent factor in employee motivation than job specialization in those affected areas.