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Motivation II: Equity,Motivation II: Equity,

Expectancy, and GoalExpectancy, and GoalSettingSetting

Chapter Seven

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Adams Equity Theory of Motivationdams Equity Theory of MotivationThe Individual-Organization Exchange Relationship

Negative and Positive Inequity

Expanding the Equity Concept

Practical Lessons from Equity Theory

Expectancy Theory of Motivationxpectancy Theory of MotivationVrooms Expectancy TheoryResearch on Expectancy Theory and ManagerialImplications

Chapter Seven OutlineChapter Seven Outline

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Motivation Through Goal Settingotivation Through Goal Setting Goals: Definition and Background

How Does Goal Setting Work?

Insights from Goal Setting Research

Practical Applications of Goal Setting

Putting Motivational Theories to Workutting Motivational Theories to Work

Chapter Seven Outline (continued)Chapter Seven Outline (continued)

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Adams Equity Theory

People strive for fairness and justice in

social exchanges

Cognitive perception of fairness or lack ofit affects behavior

Inputs education, skills, training, effort,

etc.

Outputs pay, fringe, security,

recognition, etc.

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A. An Equitable Situation. An Equitable SituationSelfSelf

OtherOther

$21 hour

= $2 per hour $42 hours

= $2 per hour

Negative and Positive InequityNegative and Positive Inequity

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$21 hour

= $2 per hour $31 hour

= $3 per hour

B. Negative Inequity. Negative InequitySelfSelf OtherOther

Negative and Positive Inequity (cont)Negative and Positive Inequity (cont)

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$21 hours

= $1 per hour

C. Positive Inequity. Positive Inequity

$31 hour

= $3 per hour

SelfSelfOtherOther

Negative and Positive Inequity (cont)Negative and Positive Inequity (cont)

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Equity Sensitivityquity Sensitivity is an individuals tolerancefor negative and positive equity.

Benevolentsenevolents Sensitivesensitives Entitledsntitleds

Equity SensitivityEquity Sensitivity

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Distributive Justiceistributive Justice:The perceived fairness ofhow resources and rewards are distributed.Procedural Justice:rocedural Justice:The perceived fairness of

the process and procedures used to makeallocation decisions.

Interactional Justice:nteractional Justice:The perceived fairness of thedecision makers behavior inthe process of decisionmaking.

Organizational JusticeOrganizational Justice

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Lessons in Equity Theory

Pay attention to what employees perceive to be

fair and equitable

Allow employees to have a voice

Employees should have opportunity to appeal

Organizational changes, promoting cooperation,

etc. can come easier with equitable outcomes

Failure to achieve equity could be costly Climate of justice

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Expectancy:xpectancy:Belief that effort leads to aspecific level of performance

Instrumentality:nstrumentality: A performance outcomeperception.

Valence:alence:The Value of a reward or outcome

Vrooms Expectancy TheoryVrooms Expectancy Theory

ConceptsConcepts

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Determine the outcomes employees value.Determine the outcomes employees value.

Identify good performance so appropriateIdentify good performance so appropriatebehaviors can be rewarded.behaviors can be rewarded.

Make sure employees can achieve targetedMake sure employees can achieve targetedperformance levels.performance levels.

Link desired outcomes to targeted levels ofLink desired outcomes to targeted levels ofperformance.performance.

Make sure changes in outcomes are large enoughMake sure changes in outcomes are large enoughto motivate high effort.to motivate high effort.

Monitor the reward system for inequities.Monitor the reward system for inequities.

Managerial Implications ofManagerial Implications of

Expectancy TheoryExpectancy Theory

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Reward people for desired performance, and doReward people for desired performance, and donot keep pay decisions secret.not keep pay decisions secret.

Design challenging jobs.Design challenging jobs.

Tie some rewards to group accomplishments toTie some rewards to group accomplishments tobuild teamwork and encourage cooperation.build teamwork and encourage cooperation.

Reward managers for creating, monitoring, andReward managers for creating, monitoring, andmaintaining expectancies, instrumentalities, andmaintaining expectancies, instrumentalities, andoucomes that lead to high effort and goaloucomes that lead to high effort and goal

attainment.attainment. Monitor employee motivation through interviewsMonitor employee motivation through interviews

or anonymous questionnaires.or anonymous questionnaires.

Accommodate individual differences by buildingAccommodate individual differences by building

flexibility into the motivation program.flexibility into the motivation program.

Organizational Implications ofOrganizational Implications of

Expectancy TheoryExpectancy Theory

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Goal:oal:What an individual is trying to accomplish.

Encouraging thedevelopment of goal-attainment strategies

or action plans

Increasingones persistence

Regulatingones effort

Directingones attention

Goalsmotivate the

individualby...

Taskperformance

Goals

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Difficult Goals Lead to Higher Performance.ifficult Goals Lead to Higher Performance.- Easy goals produce low effort because the goal is too easyto achieve.

- Impossible goals ultimately lead to lower performancebecause people begin to experience failure.

Specific Difficult Goals Lead to Higher Performance forpecific Difficult Goals Lead to Higher Performance forSimple Rather Than Complex Tasks.imple Rather Than Complex Tasks.- Goal specificity pertains to the quantifiability of a goal.- Specific difficult goals impair performance on novel, complex

tasks when employees do not have clear strategies forsolving these types of problems.

Feedback Enhances The Effect of Specific, Difficult Goals.eedback Enhances The Effect of Specific, Difficult Goals.- Goals and feedback should be used together.

Insights from Goal-Setting ResearchInsights from Goal-Setting Research

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Participative Goals, Assigned Goals, and Self-Set Goalsarticipative Goals, Assigned Goals, and Self-Set GoalsAre Equally Effective.re Equally Effective.- Managers should set goals by using a contingency approach.

Different methods work in different situations.

Goal Commitment and Monetary Incentives Affect Goal-oal Commitment and Monetary Incentives Affect Goal-Setting Outcomes.etting Outcomes.- Difficult goals lead to higher performance when employees

are committed to their goals.- Difficult goals lead to lower performance when employees

are not committed to their goals.- Goal based incentives can lead to negative outcomes for

employees in complex, interdependent jobs requiringcooperation.

* Employees may not help each other.

* Quality may suffer as employees pursue quantitygoals.

Insights from Goal-Setting ResearchInsights from Goal-Setting Research

(continued)(continued)

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SpecificMeasurableAttainableResults orientedTime bound

Guidelines for Writing SMARTGuidelines for Writing SMART

GoalsGoals

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Exercises

Ron Swoboda quote

Re: Fair Days Work and Player Piano Regarding Ginnys and Jimmies responses,

which theory of motivation would you use toexplain their behavior? How?

Re: Am I Invisible (will be discussedThursday) What was Kerrys evaluation of Lesley an

example of? What was he rewarding?