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.
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Motivation II: Equity, Expectancy, and Goal SettingChapter SevenAfter 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.Equity TheoryEquity theorymodel of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationshipsNegative and Positive InequityFigure 7-1Thresholds of Equity and InequityBenevolents people who have a higher tolerance for negative inequity prefer their outcome/input ratio to be lower than ratios from comparison othersSensitives adhere to a strict norm of reciprocity and are quickly motivated to resolve both negative and positive inequityThresholds of Equity and InequityEntitleds have no tolerance for negative inequityexpect to obtain greater output/input ratios than comparison others and become upset when this is not the case.Organizational JusticeDistributive 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.Practical Lessons from Equity TheoryNo 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 outcomesPractical Lessons from Equity TheoryEmployees should be given the opportunity to appeal decisions that affect their welfare.Managers can promote cooperation and teamwork among group members by treating them equitablyExpectancy Theory of MotivationExpectancy theory Holds that people are motivated to behave in ways that produce valued outcomes.Vroom’s Expectancy TheoryInstrumentality A performance outcome perceptionValence the positive or negative value people place on outcomesOutcomes different consequences that are contingent on performanceManagerial and Organizational Implications of Expectancy TheoryInsights from Goal-Setting ResearchSpecific high goals lead to greater performanceGoal specificity – quantifiability of a goalFeedback enhances the effect of specific, difficult goalsParticipative goals, assigned goals, and self-set goals are equally effective.Insights from Goal-Setting ResearchAction planning facilitates goal accomplishment. Action plan outlines the activities or tasks that need to be accomplished in order to obtain a goal.Goal commitment and monetary incentives affect goal-setting outcomesGoal commitment – extent to which an individual is personally committed to achieving a goalGuidelines for Writing SMART Goals