Theories of MotivationTheories of Motivation

Equity TheoryEquity Theory-Stacy Adams-Stacy Adams

Based on the notion that Based on the notion that perceived inequity acts as a perceived inequity acts as a motivatormotivator

Inequity = When people believe Inequity = When people believe they have been unfairly treated they have been unfairly treated in comparison to othersin comparison to others

Perceived inequities occur Perceived inequities occur whenever people feel that the whenever people feel that the rewards received for their work rewards received for their work efforts are unfair given the efforts are unfair given the rewards others appear to be rewards others appear to be gettinggetting

People will try to deal with negative People will try to deal with negative inequity by doing 1 of 4 things:inequity by doing 1 of 4 things:

1. Change work inputs by putting 1. Change work inputs by putting less effort into jobless effort into job

2. Change the rewards received by 2. Change the rewards received by asking for better treatmentasking for better treatment

3. Change the comparison points to 3. Change the comparison points to make things seem better.make things seem better.

4. Change the situation by leaving 4. Change the situation by leaving the job.the job.

There is also evidence that the There is also evidence that the equity dynamic occurs among equity dynamic occurs among people who feel overpaid.people who feel overpaid.

This time the inequity is This time the inequity is associated with a associated with a sense of guiltsense of guilt

How to restore equity?How to restore equity? -increase quality/quantity of -increase quality/quantity of

workwork -work overtime-work overtime

Perceptions determine the Perceptions determine the motivational outcomes, not rewards!motivational outcomes, not rewards!

When giving rewards to employees, When giving rewards to employees, carefully communicate the intended carefully communicate the intended value of the rewards being given, value of the rewards being given, clarify the performance appraisals clarify the performance appraisals upon which they are based and upon which they are based and suggest appropriate comparison suggest appropriate comparison pointspoints

Expectancy TheoryExpectancy Theory-Victor Vroom-Victor Vroom

What determines the willingness What determines the willingness of an individual to work hard at of an individual to work hard at tasks important to the tasks important to the organization?organization?

Motivation to work depends on Motivation to work depends on the relationship among 3 the relationship among 3 expectancy factors…expectancy factors…

EXPECTANCYEXPECTANCY

1. Expectancy: A person’s belief 1. Expectancy: A person’s belief that working hard will result in a that working hard will result in a desired level of task desired level of task performance being achieved performance being achieved (effort = performance)(effort = performance)

INSTRUMENTALITYINSTRUMENTALITY

A person’s belief that successful A person’s belief that successful performance will be followed by performance will be followed by rewards and other potential rewards and other potential outcomesoutcomes

VALENCEVALENCE

The value a person assigns to The value a person assigns to the possible rewards and other the possible rewards and other work-related outcomeswork-related outcomes

M=E*I*VM=E*I*V

Mathematically speaking, a zero Mathematically speaking, a zero in either E, I, or V will produce in either E, I, or V will produce ZERO motivationZERO motivation

All factors must be addressed!All factors must be addressed!

Employees exert effort to Employees exert effort to achieve task performance and achieve task performance and realize work-related outcomesrealize work-related outcomes

See figure 14.6 on page 369 for See figure 14.6 on page 369 for ways to maximize E, I & Vways to maximize E, I & V

Goal-Setting TheoryGoal-Setting Theory-Edwin Locke-Edwin Locke Task goals can be highly Task goals can be highly

motivating if they are properly motivating if they are properly set and if they are well set and if they are well managed.managed.

Goals: Goals: -give direction to people-give direction to people-clarify performance expectations-clarify performance expectations-establish a frame of reference for -establish a frame of reference for

feedbackfeedback

Brings management & Brings management & subordinates together in joint subordinates together in joint decision making process of goal decision making process of goal settingsetting

Locke believes goal setting can Locke believes goal setting can enhance individual work enhance individual work performance and job satsifactionperformance and job satsifaction

Manager’s NotepadManager’s Notepad

See Notepad 14.1 on page 370 See Notepad 14.1 on page 370 for how to make goal setting for how to make goal setting work!work!