More Motivation Chapter 4 & The Well Paid Receptionist

Rewarding Employees – One More Consideration… A body of research supports the notion that that extrinsic rewards may quash intrinsic motivation Attribution theory (Why am I doing this?) Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments Abolish incentives Re-evaluate evaluation Create conditions for authentic motivation Collaboration Make jobs interesting Give people choice

Equity Theory Self Comparison Other Outputs Inputs Outputs Inputs

Equity Theory Compare Outcome-Input Ratio Maintain Status Quo Motivated to Change Ratio Equal Unequal Change Inputs Change Outcomes Change Perceptions of Self of Other Change Referent Leave the Situation

Forms of Organizational Justice outcomes  Distributive Justice: perceived fairness of the amount and distribution of rewards – focus on outcomes procedures  Procedural Justice: perceived fairness of the procedures used to determine distribution of rewards – focus on procedures 1.Consistency 2.Bias-suppression 3.Accuracy 4.Correctability 5.Ethicality 6.Representativeness

Forms of Organizational Justice interpersonal treatment  Interactional Justice: perceived quality (fairness) of the interpersonal treatment received during the decision-making process – focus on interpersonal treatment  Interpersonal Justice: dignity & respect; truthfulness, sensitivity, show concern for employees  Informational Justice: explanations & justification; adequate explanations, not just shifting responsibility

Equity Theory and Org. Justice in Action Participants – 183 employees at three different plants of the same company Context – organization needed to temporarily cut wages by 15% in two of the plants Manipulation: Plant A – Adequate explanation for cuts Plant B – Inadequate explanation Plant C – Control group – no cuts Predictions about employees’ perceptions? Predictions about theft? Greenberg, J. (1990). Employee theft as a reaction to underpayment inequity: The hidden cost of pay cuts. Journal of Applied Psychology, 75,

Results

How does Greenberg’s study illustrate Equity Theory? Why were employees motivated to steal?

Practical Implications of Equity Theory & Org. Justice 1.Avoid underpayment 2.Avoid overpayment 3.Make relevant inputs and outcomes very clear 4.Have fair procedures 5.Provide employees with clear and thorough explanations about decisions that effect them 6.Treat employees with dignity and respect