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

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

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

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.

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

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

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

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

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.

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

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

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.

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.

attainment strategies 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

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.

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.

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