OSU BUSMHR 3200 - K&F Chapter 7 – Motivation II: Equity, Expectancy, and Goal Setting

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K F Chapter 7 Motivation II Equity Expectancy and Goal Setting i I Introduction a Michelle Rhee former chancellor of Washington D C schools attempted to implement components of several motivational theories in order to increase teacher performances In her 3 year tenure a third of the principals turned over and she fired about 400 teachers for poor performance b Adam s Equity Theory of Motivation a Equity theory a model of motivation that explains how people strive for fairness and justice in social exchanges or give and take relationships i Based on cognitive dissonance theory 1 Cognitive dissonance people are motivated to maintain consistency between their cognitive beliefs and their behavior a Perceived inconsistencies create cognitive dissonance psychological discomfort which in turn motivates corrective action b The Individual Organization Exchange Relationship i Two primary components involved in the employee employer exchange 1 Inputs a An employee s inputs for which he or she expects a 2 Outcomes just return b Education training c Skills d Creativity e Seniority f Age g Personality traits h Effort expended i Personal appearance a Organization provides b Pay bonuses c Medical benefits d Challenging assignments e Job security f Promotion g Status symbols h Recognition i c Negative and Positive Inequity Participation in important decisions i Feels of inequity revolve around a person s evaluation of whether he or she receives adequate rewards to compensate for his or her contributive inputs ii Do this by comparing perceived fairness of their employment exchange to that of relevant others iii 3 types figure 7 1 1 equitable situation a a a self equal outcomes inputs other equal outcomes inputs 2 negative inequity 3 positive inequity self lower outcomes inputs other higher outcomes inputs self higher outcomes inputs other lower outcomes inputs d Dynamics of Perceived Inequity i Managers can derive practical benefits form Adam s equity theory by recognizing that 1 People have varying sensitivities to perceived equity and inequity Inequity can be reduced in a variety of ways 2 ii Equity sensitivity reflects an individual s different preferences for tolerances for and reactions to the level of equity associated with an given situation 1 Benevolents people who have higher tolerance for negative 2 Sensitives individuals who adhere to a strict norm of inequity reciprocity 3 Entitleds have no tolerance for negative inequity and actually expect to obtain greater output input ratios than comparison with others iii Consumer inequity important because if a consumer is upset they can go on youtube twitter etc and make it into a huge deal 1 HERO highly empowered and resourceful operative is the key to managing customers use the same technologies and social media used by disgruntled consumers e Expanding the Concept of Equity Organizational Justice i Organizational justice reflects the extent to which people perceive that they are treated fairly at work ii Distributive justice reflects the perceived fairness of how resources and rewards are distributed or allocated iii Procedural justice defined as the perceived fairness of the process iv and procedures used to make allocation decisions voice represents the extent to which employees who are affected by a decision can present relevant information about the decision to others 1 research shows that positive perceptions of distributive and procedural justice are enhanced by giving employees a voice v interactional justice related to the quality of the interpersonal treatment people receive when procedures are implemented f Practical Lessons from Equity Theory i 6 practical implications 1 the need for managers to pay attention to employees perceptions of what is fair and equitable 2 managers benefit by allowing employees to participate in making decisions about important work outcomes voice 3 employees should be given opportunity to appeal decisions that affect their welfare 4 managers can promote cooperation and teamwork among group members by treating them equitably 5 employees perceptions of justice are strongly influenced by the leadership behavior exhibited by their managers 6 managers need to pay attention to the organization s climate for justice II Expectancy Theory of Motivation a Expectancy theory holds that people are motivated to behave in ways that produce desired combinations of expected outcomes i Hedonism people strive to maximize their pleasure and minimize their pain b Vroom s Expectancy Theory mathematical model of expectancy theory with three key concepts expectancy instrumentality and valence i Expectancy according to Vroom s terminology represents an individual s belief that a particular degree of effort will be followed by a particular level of performance effort performance expectation Instrumentality is a performance outcome perception ii iii Valence refers to the positive or negative value people place on outcomes III Research on Expectancy Theory and Managerial Implications a Widespread agreement that behavior and attitudes are influenced when organizations link rewards to targeted behavior b Managers advised to enhance effort performance expectancies by helping employees accomplish their performance goals performance management leadership Important for managers to influence employees instrumentalities and to monitor valences for various rewards c d First research shows that some workers value interesting work and recognition more than money second extrinsic reward can lose their motivating properties over time and may undermine intrinsic motivation IV Motivation through Goal Setting a Successful people are goal oriented b Goals Definition and Background i Goal what an individual is trying to accomplish it is the object or aim of an action ii Management by objectives a management system that incorporates participation in decision making goal setting and objective feedback c How Does Goal Setting Work Locke s model has 4 motivational mechanisms i Goals direct attention ii Goals regulate effort iii Goals increase persistence iv Goals foster the development and application of test strategies and action plans d Insights from Goal Setting Research i Specific high goals lead to greater performance 1 Goal specificity pertains to the quantifiability of a goal For example a goal of selling nine cars a month is more specific than telling a salesperson to do his or her best ii Feedback enhances the effect of specific difficult


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OSU BUSMHR 3200 - K&F Chapter 7 – Motivation II: Equity, Expectancy, and Goal Setting

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