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OSU BA 352 - Motivation II: Equity, Expectancy, and Goal Setting

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Slide 1Slide 2Slide 3Adams’ Equity TheorySlide 5Slide 6Slide 7Slide 8Slide 9Lessons in Equity TheorySlide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Motivation II: Equity, Motivation II: Equity, Expectancy, and Goal Expectancy, and Goal SettingSettingChapter SevenAdam’s Equity Theory of MotivationAdam’s Equity Theory of Motivation•The Individual-Organization Exchange Relationship•Negative and Positive Inequity•Expanding the Equity Concept•Practical Lessons from Equity TheoryExpectancy Theory of MotivationExpectancy Theory of Motivation•Vroom’s Expectancy Theory•Research on Expectancy Theory and Managerial ImplicationsChapter Seven OutlineChapter Seven OutlineMotivation Through Goal SettingMotivation Through Goal Setting•Goals: Definition and Background•How Does Goal Setting Work?•Insights from Goal Setting Research•Practical Applications of Goal SettingPutting Motivational Theories to WorkPutting Motivational Theories to WorkChapter Seven Outline (continued)Chapter Seven Outline (continued)Adams’ Equity Theory•People strive for fairness and justice in social exchanges•Cognitive perception of fairness or lack of it affects behavior•Inputs – education, skills, training, effort, etc.•Outputs – pay, fringe, security, recognition, etc.A. An Equitable A. An Equitable SituationSituationSelfSelfOtherOther$21 hour = $2 per hour$42 hours = $2 per hourNegative and Positive InequityNegative and Positive Inequity$21 hour = $2 per hour$31 hour = $3 per hourB. Negative InequityB. Negative InequitySelfSelfOtherOtherNegative and Positive Inequity Negative and Positive Inequity (cont)(cont)$21 hours = $1 per hourC. Positive InequityC. Positive Inequity$31 hour = $3 per hourSelfSelfOtherOtherNegative and Positive Inequity Negative and Positive Inequity (cont)(cont)Equity Sensitivity Equity Sensitivity is an individual’s tolerance for negative and positive equity.• BenevolentsBenevolents• SensitivesSensitives• EntitledsEntitledsEquity SensitivityEquity SensitivityDistributive JusticeDistributive Justice:: The perceived fairness of how resources and rewards are distributed.Procedural Justice:Procedural Justice: The perceived fairness of the process and procedures used to make allocation decisions. Interactional Justice:Interactional Justice: The perceived fairness of thedecision maker’s behavior in the process of decisionmaking.Organizational JusticeOrganizational JusticeLessons 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 justiceExpectancy:Expectancy: Belief that effort leads to a specific level of performanceInstrumentality:Instrumentality: A performance  outcome perception.Valence:Valence: The Value of a reward or outcomeVroom’s Expectancy Theory Vroom’s Expectancy Theory ConceptsConcepts•Determine the outcomes employees value.Determine the outcomes employees value.•Identify good performance so appropriate Identify good performance so appropriate behaviors can be rewarded.behaviors can be rewarded.•Make sure employees can achieve targeted Make sure employees can achieve targeted performance levels.performance levels.•Link desired outcomes to targeted levels of Link desired outcomes to targeted levels of performance.performance.•Make sure changes in outcomes are large Make sure changes in outcomes are large enough to motivate high effort.enough to motivate high effort.•Monitor the reward system for inequities.Monitor the reward system for inequities.Managerial Implications of Managerial Implications of Expectancy TheoryExpectancy Theory•Reward people for desired performance, and Reward people for desired performance, and do not keep pay decisions secret.do not keep pay decisions secret.•Design challenging jobs. Design challenging jobs. •Tie some rewards to group accomplishments to Tie some rewards to group accomplishments to build teamwork and encourage cooperation.build teamwork and encourage cooperation.•Reward managers for creating, monitoring, and Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, maintaining expectancies, instrumentalities, and oucomes that lead to high effort and goal and oucomes that lead to high effort and goal attainment.attainment.•Monitor employee motivation through Monitor employee motivation through interviews or anonymous questionnaires.interviews or anonymous questionnaires.•Accommodate individual differences by Accommodate individual differences by building flexibility into the motivation program.building flexibility into the motivation program.Organizational Implications of Organizational Implications of Expectancy TheoryExpectancy TheoryGoal:Goal: What an individual is trying to accomplish.Encouraging thedevelopment of goal-attainment strategiesor action plansIncreasingone’s persistenceRegulatingone’s effortDirectingone’s attentionGoalsmotivate theindividualby...TaskperformanceGoalsDifficult Goals Lead to Higher Performance.Difficult Goals Lead to Higher Performance.- Easy goals produce low effort because the goal is too easy to achieve.- Impossible goals ultimately lead to lower performance because people begin to experience failure.Specific Difficult Goals Lead to Higher Performance for Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks.Simple 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 for solving these types of problems.Feedback Enhances The Effect of Specific, Difficult Feedback Enhances The Effect of Specific, Difficult Goals.Goals.- Goals and feedback should be used together.Insights from Goal-Setting Insights from Goal-Setting ResearchResearchParticipative Goals, Assigned Goals, and Self-Set Goals Participative Goals, Assigned Goals, and Self-Set Goals Are Equally Effective.Are Equally Effective.- Managers should set goals by using a contingency approach. Different methods work in different situations.Goal Commitment and Monetary Incentives Affect Goal-Goal Commitment and Monetary Incentives Affect Goal-Setting


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OSU BA 352 - Motivation II: Equity, Expectancy, and Goal Setting

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