© 2012 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Motivation II: Equity,

Expectancy, and Goal Setting

Chapter Seven

7-2

After reading the material in this chapter, you should be able to:

LO7.1 Discuss the role of perceived inequity in employee motivation.LO7.2 Describe the practical lessons derived from equity theory.LO7.3 Explain Vroom’s expectancy theory.LO7.4 Describe the practical implications of expectancy theory.LO7.5 Identify five practical lessons to be learned from goal-setting research.LO7.6 Specify issues that should be addressed before implementing a motivational program.

7-3

Equity Theory

Equity theory model of motivation

that explains how people strive for fairness and justice in social exchanges or give-and-take relationships

7-4

The Individual-Organization Exchange Relationship

An employee’s inputs, for which he expects a just return, include education/training, skills, creativity, seniority, age, personality traits, effort expended, and personal appearance.

7-5

The Individual-Organization Exchange Relationship

On the outcome side the organization provides such things as pay/bonuses, fringe benefits, challenging assignments, job security, promotions, status symbols, recognition, and participation in important decisions.

7-6

Negative and Positive Inequity

Negative inequity Comparison in which another person receives

greater outcomes for similar inputs.

Positive inequity Comparison in which another person receives

lesser outcomes for similar inputs.

7-7

Dynamics of Perceived Inequity

1. People have varying sensitivities to perceived equity and inequity

2. Inequity can be reduced in a variety of ways

7-8

Negative and Positive Inequity

Figure 7-1

7-9

Thresholds of Equity and Inequity

Equity sensitivity reflects an

individual’s “different preferences for, tolerances for, and reactions to the level of equity associated with any given situation”

7-10

Thresholds of Equity and Inequity

Benevolents people who have a higher tolerance for

negative inequity prefer their outcome/input ratio to be lower than ratios from comparison others

Sensitives adhere to a strict norm of reciprocity and are

quickly motivated to resolve both negative and positive inequity

7-11

Thresholds of Equity and Inequity

Entitleds have no tolerance for negative inequity expect to obtain greater output/input ratios than

comparison others and become upset when this is not the case.

7-12

Organizational Justice

Distributive justice The perceived fairness of how resources and

rewards are distributed.Procedural justice The perceived fairness of the process and

procedures used to make allocation decisions.Interactional justice quality of the interpersonal treatment people

receive when procedures are implemented.

7-13

Question?

Employees at Globe Trade have always felt that resources and rewards are allocated unfairly at work. Such employee perceptions reflect _________.A.Distributive justiceB.Interpersonal justiceC.Equitable justiceD.Procedural justice

7-14

Practical Lessons from Equity Theory

No matter how fair management thinks the organization’s policies, procedures, and reward system are, each employee’s perception of the equity of those factors is what counts.Managers benefit by allowing employees to participate in making decisions about important work outcomes

7-15

Practical Lessons from Equity Theory

Employees should be given the opportunity to appeal decisions that affect their welfare.Managers can promote cooperation and teamwork among group members by treating them equitably

7-16

Practical Lessons from Equity Theory

Employees’ perceptions of justice are strongly influenced by the leadership behavior exhibited by their managersManagers need to pay attention to the organization’s climate for justice.

7-17

Question?

At work, if Jamal's outcome to input ratio is greater than that of Tony's (his relevant co-worker), Jamal will experienceA.Equity.B.No satisfaction.C.Positive inequity.D.High dissatisfaction.

7-18

Expectancy Theory of Motivation

Expectancy theory Holds that people

are motivated to behave in ways that produce valued outcomes.

7-19

Vroom’s Expectancy Theory

Motivation boils down to the decision of how much effort to exert in a specific task situation.

Expectancy represents an individual’s belief that a particular

degree of effort will be followed by a particular level of performance.

7-20

Expectancy

The following factors influence an employee’s expectancy perceptions: Self-esteem. Self-efficacy. Previous success at the task. Help received from others. Information necessary to complete the task. Good materials and equipment to work with

7-21

Vroom’s Expectancy Theory

Instrumentality A performance outcome perception

Valence the positive or negative value people place on

outcomes

Outcomes different consequences that are contingent on

performance

7-22

Question?

Niles believes that he will be promoted if he meets his sales goals. This is his ___________ perception.A.ExpectancyB.InstrumentalityC.ValenceD.Outcome

7-23

Managerial and Organizational Implications of Expectancy Theory

7-24

Managerial and Organizational Implications of Expectancy Theory

Some workers value interesting work and recognition more than moneyExtrinsic rewards can lose their motivating properties over time and may undermine intrinsic motivation

7-25

Question?

Dana believes in designing challenging jobs for her employees. This is an implication of _________ theory.A.EquityB.MotivationC.ExpectancyD.Reinforcement

7-26

Goals: Definition and Background

Goal what an individual is trying to accomplish object or aim of an action

7-27

Goals: Definition and Background

Management by objectives management system incorporating participation

in decision making, goal setting, and feedback

7-28

How Does Goal Setting Work

Goals direct attentionGoals regulate effortGoals increase persistenceGoals foster the development and application of task strategies and action plans

7-29

Insights from Goal-Setting Research

1. Specific high goals lead to greater performance Goal specificity – quantifiability of a goal

2. Feedback enhances the effect of specific, difficult goals

3. Participative goals, assigned goals, and self-set goals are equally effective.

7-30

Insights from Goal-Setting Research

4. Action planning facilitates goal accomplishment. Action plan outlines the activities or tasks that

need to be accomplished in order to obtain a goal.

5. Goal commitment and monetary incentives affect goal-setting outcomes Goal commitment – extent to which an individual

is personally committed to achieving a goal

7-31

Question?

Julia wants to become a successful heart surgeon. This reflects Julia'sA.ExpectancyB.PerceptionC.GoalD.Personality

7-32

Practical Application of Goal Setting

Step 1: Set goals Use time and motion studies, average past

performance, benchmarking Should be SMART

7-33

Practical Application of Goal Setting

Two additional recommendations:1.For complex tasks, managers should train employees in problem-solving techniques and encourage them to develop a performance action plan

7-34

Practical Application of Goal Setting

2. Because of individual differences, it may be necessary to establish different goals for employees performing the same job.

7-35

Guidelines for Writing SMART Goals

7-36

Practical Application of Goal Setting

Step 2: Promote goal commitment Involve employees in the goal setting and

action planning process Have managers explain the rationale behind

higher level goals

7-37

Practical Application of Goal Setting

Step 3: Provide support and feedback ensure that each employee has the necessary

abilities, training, technology/equipment, and information needed to achieve his or her goals

7-38

Question?

Jim is the manager of a sales team at Woo Automotive. He expects his salespeople to sell 250 cars per week. Which guideline for writing SMART goals does this violate?A.SpecificB.MeasurableC.AttainableD.Time-bound

7-39

Video Case: Hot Topic

What unique features does the culture at Hot Topic have? How do these features contribute to their success?What benefits do you like that are offered by Hot Topic? Are they different than the benefits you have heard about from your parents or others?How does Hot Topic keep itself current with what its customers and employees want?

7-40

Video Case: Motivation Convention

Are people fundamentally different today than in the past? Why do workers need to be “buttered up” more today?What are some different types of incentives employees are given today to “motivate” them? What have you received in terms of different incentives from your employers?Why is motivating employees so important - do you think it makes that big of a difference?