OSU BUSMHR 3200 - Chapter 7 - Motivation 2: Equity, Expectancy, and Goal Setting

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KF Chapter 7 Motivation 2 Equity Expectancy and Goal Setting Equity Theory a model of motivation that explains how people strive for fairness and justice in social exchanges or give and take relationships Inputs Education training skills Creativity Seniority Age Personality traits Effort expended Personal appearance Outcome Pay bonuses Medical benefits Challenging assignments Job security Promotions Status symbols Recognition Participation in important decisions 1 Negative inequality Your O I other person O I 2 Positive inequality Your O I other person O I 3 Equality your O I other person O I Reducing Inequality Altering your outcomes or inputs Negative inequality Increase output asking for a raise or promotion Reduce input work fewer hours or less effort Cognitively Other person works harder or has more expertise Organizational justice the extent to which people perceive that they are treated fairly at work Distributive justice reflects the perceived fairness of how resources and rewards are distributed or allocated Procedural justice the perceived fairness of the process and procedures used to make allocation decisions Interactional justice the quality of the interpersonal treatment people receive when procedures are implemented Practical Lessons from Equity Theory Managers need to pay attention to employees perceptions of what is fair and equitable o No matter how fair management things the organization s polices procedures and reward system are each employee s perception of the equity factors is what counts Managers should allow employees to make decisions about important work outcomes o In general employees perceptions of procedural justice are enhanced when they have a voice in the decision making process Employees should be given the opportunity to appeal decisions that affect their welfare o Fosters perceptions of distributive and procedural justice Managers can promote cooperation and teamwork among group members by treating them equitably o Sharing power among group members sharing resources with other teams avoiding linguistic triggers that cause envy delegating tasks projects across the team Employees perceptions of justice are strongly influenced by the leadership behavior exhibited by their managers Managers need to pay attention to the organization s climate for justice Expectancy Theory of Motivation Expectancy theory people are motivated to behave in ways that produce desired combinations of expected outcomes Vroom s Expectancy Theory The strength of a tendency to act in a certain way depends on the strength of an expectancy that the act will be followed by a given consequence outcome and on the value or attractiveness of that consequence outcome to the actor Expectancy an individual s belief that a particular degree of effort will be followed by a particular level of performance Effort performance on a scale from 0 to 1 0 is no impact on performance 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 Instrumentality A person s belief that a particular outcome is continent on accomplishing a specific level of performance performance outcome perception 1 to 1 1 attainment of a particular outcome is totally dependent on task performance 0 no relationship between performance and receiving an outcome 1 high performance reduces the chance of obtaining an outcome while low performance increases the chance Valence the positive or negative value people place on outcomes Mirrors our personal preferences 2 very undesirable being fired 0 neutral 2 very desirable bonus Motivation through Goal Setting Goal what an individual is trying to accomplish it is the object or aim of an action Management by objectives a management system that incorporates participation in decision making goal setting and objective feedback How goal setting works Goals direct attention Goals regulate effort Goals increase persistence Goals foster the development and application of task strategies and action plans Research for Goal Setting Increases individual group and organizational performance 1 Specific high goals lead to greater performance Goal specificity pertains to the quantifiability of a goal Ex sell 9 cars a month 2 Feedback enhances the effect of specific difficult goals Feedback lets people know if they are headed toward their goals or if they are off course 3 Participative goals assigned goals and self set goals are equally effective 4 Action planning facilitates goal accomplishment Action plan outlines the activities or tasks that need to be accomplished in order to obtain a goal Includes dates resources needed obstacles to overcome Employees should make them themselves to fuel autonomy 5 Goal commitment and monetary incentives affect goal setting outcomes Goal commitment the extent to which an individual is personally committed to achieving a goal Difficult goals lead to higher performance when people are committed to their goals and lower performance when not committed Monetary incentives should not be linked to goal setting unless 1 performance goals are under the employees control 2 goals are quantitative and measurable 3 frequent payments are made for performance achievement o Also warrant higher commitment to easier goals Practical Application of Goal Setting Step 1 Set goals Step 2 Promote Goal commitment more likely to set and fulfill when committed Step 3 Provide support and feedback Goals Specific quantifiable when possible Ex work 20 more hours not just more hours Measurable quality and quantity Attainable realistic but challenging Impossible goals reduce motivation Results Oriented Corp goals support org s vision individual goal support corp goals Time Bound need date of completion


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OSU BUSMHR 3200 - Chapter 7 - Motivation 2: Equity, Expectancy, and Goal Setting

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