Process or Cognitive Theories of Motivation Equity Theory of Motivation Expectancy Theory of Motivation Goal-setting Theory of Motivation Copyright © 2010 John Wiley & Sons, Inc.

Equity Theory of Motivation (Stacy Adams) Any perceived inequity becomes a motivating state of mind. People are motivated to behave in ways that restore equity in situations. Foundation of equity is social comparison. Motivation is a function of how one evaluates rewards relative to efforts made, and as compared to the rewards received by others relative to their efforts made. A key word in this comparison is “fairness.” Everyone does not have to receive the same rewards, but the rewards should be in accordance with individual contributions. Copyright © 2010 John Wiley & Sons, Inc.

Equity Theory of Motivation Individual Outcomes > < Others’ Outcomes Others’ Efforts Individual Efforts Perceived inequity occurs when someone believes that the rewards received for their work contributions compare unfavorably to the rewards other people appear to have received for their work. We compare our efforts and resultant outcomes to the efforts and outcomes of others. If we find they are equivalent, we are satisfied and motivated. When the comparison is out of balance, we are dissatisfied and lose motivation. Copyright © 2010 John Wiley & Sons, Inc.

Equity Theory of Motivation Equity theory prediction: Negative inequity. Individual feels he/she has received relatively less than others in proportion to work inputs. Positive inequity. Individual feels he/she has received relatively more than others in proportion to work inputs. When people believe that an inequity exists, the theory states that they will be motivated to act in ways that remove the discomfort and restore a sense of felt equity. People who feel they are overpaid are likely to try and increase the quantity and quality of their work. Those who feel they are underpaid are likely to try and decrease the quantity and quality of their work. Copyright © 2010 John Wiley & Sons, Inc.

Equity Theory of Motivation Equity restoration behaviors. Change work inputs. Change the outcomes or rewards received. Leave the situation. Change the comparison points. Psychologically distort the comparisons. Take actions to change the inputs or outputs of the comparison points. Change work inputs (example: reduce your efforts and your performance, stop studying, come in late) Change the outcomes or rewards received (example: ask for a raise, ask to check your paper again, ask for a promotion) Leave the situation (example: quit your job, quit the course, quit school, ask for a transfer, look for another job) Change the comparison points (example: compare yourself to a different worker or student, compare different results) Psychologically distort the comparisons (example: rationalize that the inequity is only temporary, the supervisor has made a mistake, the supervisor is being fooled by other workers, they did not see your best work, you were sick when you wrote that exam) Take actions to change the inputs or outputs of the comparison points (example: get a co-worker to accept more work, get someone to help you with your work, study more for the next exam, complain to the teacher or supervisor) Copyright © 2010 John Wiley & Sons, Inc.

Equity Theory of Motivation Steps for managing equity dynamics a) Recognize that equity comparisons are inevitable in the workplace. b) Anticipate felt negative inequities when rewards are given. c) Communicate clear evaluations for any rewards given. d) Communicate an appraisal of performance on which the reward is based. e) Communicate comparison points that are appropriate in the situation A reward given by a team leader and expected to be motivational to a team may or may not work as intended. Unless it is perceived as fair and equitable in comparison with results for other teammates, the reward may create negative equity dynamics and work just the opposite of what the team leader expected. You have to realize that the workers are going to compare their work and rewards with the other workers – it is inevitable. You have to realize that some workers will not be happy and will feel that they have not been treated fairly. You have to communicate clearly with everyone what you will be offering a reward for; state clearly what you are looking for You have to explain clearly how you evaluated the results, why this worker received a reward of a certain salary You can explain how you compared the results, why one performance was better than another performance In certain cultures, where the collective values are very important, the concern runs more for equality rather than equity. Copyright © 2010 John Wiley & Sons, Inc.

Your experience… Increase your efforts by working longer hours. You regularly work longer hours than anyone else in your department. Yet, you do not feel that you are being adequately recognized or rewarded. According to equity theory, you will most likely …. Increase your efforts by working longer hours. Ask for a raise or bonus. Reduce your efforts by decreasing hours. Frame the situation as a learning experience and beneficial for your future career. Copyright © 2010 John Wiley & Sons, Inc.

Equity Theory of Motivation Organizational justice How people view the fairness and equity of practices in their workplace. In ethics, the justice view of moral reasoning considers behavior to be ethical when it is fair and impartial in the treatment of people. Organizational justice notions are important in OB. It refers to the ways in which people perceive they are being treated at work in respect to procedural, distributive, and interactional justice are likely to affect their motivations. It is their perceptions of these justice types that create the ultimate motivational influence. Copyright © 2010 John Wiley & Sons, Inc.

Equity Theory of Motivation Distributive justice - degree to which all people are treated the same under a policy, regardless of race, ethnicity, gender, age or any other demographic characteristic. Interactional justice - degree to which the people affected by a decision are treated with dignity and respect. Procedural justice - degree to which the rules and procedures specified by policies are properly followed. Copyright © 2010 John Wiley & Sons, Inc.