Motivation II: Equity, Expectancy, and Goal Setting

1. Chapter Seven Motivation II: Equity, Expectancy, and Goal Setting

2. Chapter Seven Outline • Adam’s Equity Theory of Motivation • The Individual-Organization Exchange Relationship • Negative and Positive Inequity • Expanding the Equity Concept • Practical Lessons from Equity Theory • Expectancy Theory of Motivation • Vroom’s Expectancy Theory • Research on Expectancy Theory and Managerial Implications

3. Chapter Seven Outline (continued) Motivation Through Goal Setting • Goals: Definition and Background • How Does Goal Setting Work? • Insights from Goal Setting Research • Practical Applications of Goal Setting Putting Motivational Theories to Work

4. 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.

5. $2 1 hour $4 2 hours = $2 per hour = $2 per hour Negative and Positive Inequity A. An Equitable Situation Other Self

6. B. Negative Inequity Self Other $2 1 hour $3 1 hour = $2 per hour = $3 per hour Negative and Positive Inequity (cont)

7. $2 1 hours $3 1 hour = $1 per hour = $3 per hour Negative and Positive Inequity (cont) C. Positive Inequity Other Self

8. Equity Sensitivity Equity Sensitivity is an individual’s tolerance for negative and positive equity. • Benevolents • Sensitives • Entitleds

9. 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:The perceived fairness of the decision maker’s behavior in the process of decision making.

10. Lessons 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 justice

11. Vroom’s Expectancy Theory Concepts Expectancy:Belief that effort leads to a specific level of performance Instrumentality:A performance  outcome perception. Valence:The Value of a reward or outcome

12. Managerial Implications of Expectancy Theory • Determine the outcomes employees value. • Identify good performance so appropriate behaviors can be rewarded. • Make sure employees can achieve targeted performance levels. • Link desired outcomes to targeted levels of performance. • Make sure changes in outcomes are large enough to motivate high effort. • Monitor the reward system for inequities.

13. Organizational Implications of Expectancy Theory • Reward people for desired performance, and do not keep pay decisions secret. • Design challenging jobs. • Tie some rewards to group accomplishments to build teamwork and encourage cooperation. • Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and oucomes that lead to high effort and goal attainment. • Monitor employee motivation through interviews or anonymous questionnaires. • Accommodate individual differences by building flexibility into the motivation program.

14. Goals Goal:What an individual is trying to accomplish. Directing one’s attention Regulating one’s effort Task performance Goals motivate the individual by... Increasing one’s persistence Encouraging the development of goal- attainment strategies or action plans

15. Insights from Goal-Setting Research • 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 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 Goals.- Goals and feedback should be used together.

16. Insights from Goal-Setting Research(continued) • Participative Goals, Assigned Goals, and Self-Set Goals 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-Setting Outcomes.- Difficult goals lead to higher performance when employees are committed to their goals.- Difficult goals lead to lower performance when employees are not committed to their goals.- Goal based incentives can lead to negative outcomes for employees in complex, interdependent jobs requiring cooperation.* Employees may not help each other. * Quality may suffer as employees pursue quantity goals. * Commitment to difficult goals may suffer.

17. Guidelines for Writing “SMART” Goals Specific Measurable Attainable Results oriented Time bound