1. Chapter 6
Process
Motivation
Theories

2. Expectancy according to Vroom

3. Expectancy - expanded Outcome 1 High Effort Performance Goal Outcome 2
“What are my chances
of reaching my
performance goal
if I work hard?”
Expectancy
“What are my chances
of reaching my
performance goal
if I work hard?”
Outcome 3
Instrumentality
“What are my chances
of getting various
outcomes if I achieve
my performance goal?”
Valence
“How much do I value
these outcomes?”
Decision to
Exert Effort
Expectancy
“What are my chances
of reaching my
performance goal
if I slack off?”
Expectancy
“What are my chances
of reaching my
performance goal
if I slack off?”
Outcome 1
Low Effort
Performance
Goal
Outcome 2
Outcome 3

4. Expectancy exemplified
Outcome 1
(1.0)
Make $3,600 in
commission
(+2)
Outcome 2
High Effort
Performance
Gain respect from
peers and recognition
from boss
(.80)
(.75)
(+1)
Work hard for
10 hours a day
Work hard for
10 hours a day
Work hard for
10 hours a day
Sell nine cars
a month
Outcome 3
(-.9)
Have more time to
spend with boyfriend
(+2)
Instrumentality
Expectancy
Expectancy
Valence
Outcome 1
(1.0)
Make $1,200 in
commission
(+.5)
Low Effort
Performance
Outcome 2
(.80)
(.75)
Work hard for
5 hours a day
Sell three cars
a month
Lose respect from
peers and recognition
from boss
(-1)
Outcome 3
(.60)
Get fired
(-2)

5. Porter and Lawler’s version

6. Equity Theory of Motivation
Definition: Equity theory:
Motivation is a function of fairness in social exchanges

7. The equity theory model

8. The individual – organisation exchange relationship
Factors considered when making equity comparisons
Inputs
Outcomes
Time
Pay/bonusses
Education/training
Fringe benefits
Experience
Challenging assignments
Skills
Job security
Creativity
Career advancement/promotions
Seniority
Status symbols
Loyalty to organisation
Pleasant/safe working environment
Age
Opportunity for personal growth/development
Personality traits
Supportive supervision
Effort expended
Recognition
Personal appearance
Participation in important decisions

9. Negative and Positive Inequity
An Equitable Situation - Comparison in which another person’s ratio of outcomes to inputs is equal to your outcome to input ratio - Example: Self = €2 = €2 per hour vs. Other = €4 = €2 per hour hour 2 hours
Negative Inequity - Comparison in which another person receives greater outcomes for similar inputs - Example: Self = €2 = €2 per hour vs. Other = €3 = €3 per hour hour 1 hour
Positive Inequity - Comparison in which another person receives lesser outcomes for similar inputs - Example: Self = €3 = €3 per hour vs. Other = €2 = €2 per hour hour 1 hour

10. Tresholds of inequity
Negative inequity is less tolerable than positive inequity
Inequity can be reduced

11. Eight ways to reduce inequity
Methods
Examples
Increase inputs
Work harder; attend school or training
Decrease inputs
Don’t work as hard; Take longer breaks
Increase outcomes
Ask for a raise; Ask for a new title; Seek outside intervention
Decrease outcomes
Ask for less pay
Leaving
Absenteeism and turnover
Psychological distortion of inputs and outcomes
‘Certain inputs are not important’; ‘Boring and monotonous job’
Psychological distortion of inputs or outcomes of comparison other
‘Other has more experience or works harder’
Change comparison other
Pick an new comparison person; Compare to previous job

12. Practical Lessons from Equity Theory
Employees’ beliefs and attitudes affect job performance.
Employees’ perceptions of distributive and procedural justice are important because they affect many different employee outcomes.
Managers benefit by allowing employees to participate in making decisions about important work outcomes.
Perceptions of fairness are increased by giving employees the opportunity to appeal decisions that affect them.
Employees are more likely to accept change when they believe the organisation is treating them fairly and equitably.
Managers can promote cooperation and teamwork among work group members by treating them equitably.

13. Locke’s model of goals-setting
Goal: What an individual is trying to accomplish.

14. Evidence 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 May or May Not Lead to Higher Performance
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.

15. Difficulty and performance

16. Evidence from Goal-Setting Research
Participative, assigned, 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. Feedback
Feedback
Objective information about individual or collective performance.
Functions of Feedback
Instructional
Motivational

18. A cognitive-processing model of feedback

19. Sources of feedback – and outcomes
Sources of Feedback: - Others - Task - Self
Behavioural Outcomes: - Direction - Effort - Persistence - Resistance

20. The Recipient of Feedback
Recipient’s Characteristics
Self-esteem
Self-efficacy
Needs and goals
Desire for performance feedback
Recipient’s Perception
Sign and content of feedback message
Recipient’s Cognitive Evaluations
Feedback accuracy
Source credibility
System fairness
Expectancies
Behavioural standards

21. Signs of Trouble Feedback Systems
Feedback is used to punish, embarrass, or put down employees
Those receiving the feedback see it as irrelevant to their work
Feedback information is provided too late to do any good
People receiving feedback believe it relates to matters beyond their control
Employees complain about wasting too much time collecting and recording feedback data
Feedback recipients complain about feedback being too complex or difficult to understand

22. Giving Good Feedback
Relate feedback to existing performance goals and clear expectations.
Give specific feedback tied to observable behaviour or measurable results.
Channel feedback toward key result areas.
Give feedback as soon as possible.
Give positive feedback for improvement, not just final results.
Focus feedback on performance, not personalities.
Base feedback on accurate and credible information.

23. Non-traditional feedback
Traditional performance appraisal systems have created widespread dissatisfaction.
Team-based organisation structures are replacing traditional hierarchies. This trend requires professionals to have good interpersonal skills that are best evaluated by team members.
Systems using ‘multiple-raters’ are said to make for more valid feedback than single-source rating.
Advanced computer network technology (the Internet and company Intranets) now facilitates multiple-rater systems.
Bottom-up feedback meshes nicely with the trend toward participative management and employee empowerment.
Co-workers and subordinates are said to know more about a professional’s strengths and limitations than the boss

24. 360-degree feedback
Comparison of anonymous feedback from one’s superior, subordinates and peers, with one’s self-perceptions.

25. Conditions for feedback to work
Top management should be involved, both in the role of rater and in the role of focal person.
Complement the results of peer and self-appraisals with additional data from assessment centre methods.
Involve the users in the design of the 360-degree process.
Involve the users in the choice of peers and others who will be rating their skills, behaviour and outcomes.
Anonymity and confidence of the feedback must be guaranteed, so the focal person remains the final owner of the data.
Be careful in coupling multi-rater feedback systems with regular appraisal systems.
Make sure the instrument is tested for coherence, and that it is scored, interpreted and reported following a research based procedure.

26. Organisational reward systems

27. Types of rewards
Extrinsic rewards: financial, material and social rewards from the environment
Intrinsic rewards: self-granted, psychic rewards
Extrinsic motivation: being motivated by extrinsic rewards, like monetary incentives
Intrinsic motivation: being motivated by intrinsic rewards, like self-determination or need of competence

28. Organisational reward norms
Profit maximisation: maximising net gain
Equity: allocation in proportion to contributions
Equality: rewarding all parties equally
Need: distributing rewards according to needs

29. Reward distribution criteria
Performance: results
Performance: actions and behaviours
Non-performance considerations: customary or contractual

30. Why do rewards fail to motivate?
Too much emphasis on monetary rewards.
Rewards lack an ‘appreciation effect’.
Extensive benefits become entitlements.
Counter-productive behaviour is rewarded
Too long a delay between performance and rewards.
Too many one-size-fits-all rewards.
Use of one-shot rewards with a short-lived motivational impact.
Continued use of demotivating practices such as lay-offs, across-the-board pay rises and cuts and excessive executive compensation.

31. Evidence about rewards
Interesting work and recognition more valued than money
Extrinsic rewards lose their motivation over time
Mixed results as to the performance-enhancing effect of
Monetary rewards must be large enough to motivate
Pay  goal achievement:
Performance goals are under the employees’ control
Goals are quantitative and measurable
Frequent, relatively large payments are made for performance achievement

32. Stimulate a performance culture with..
Mission and Goals
A well-articulated and clear mission and operating vision that is understood and accepted.
Organisational goals that are credible, measurable and verifiable.
Department, work unit and team goals that have a clear line of sight (connection) to the success of the organisation.
Individual goals or work measures that are intuitively related to good performance.

33. Stimulate a performance culture with..
Communication and Feedback
A pay philosophy that is clearly specified and communicated to employees.
Regular communication that keeps employees informed of performance results.
Regular feedback to employees to guide and encourage their growth and career progression.
Regular communication to recognise the importance of employee efforts and to make clear how their efforts contribute to the organisation’s

34. Stimulate a performance culture with..
Organisational Culture
An organisational climate that encourages people to look for new and better ways to accomplish goals.
An organisational climate that stimulates people to pursue challenging goals.
An organisational climate that encourages people to tackle new problems and new tasks to accomplish organisational goals.
An organisational climate that emphasises the importance of the individual, his/her needs and aspirations.
Training and development that is seen as an investment in people.
An organisational climate where people have the opportunity to participate in the development of performance measures.

35. Stimulate a performance culture with..
Reward System
A reward system that reinforces the importance of good performance at all levels, including both monetary and non-monetary rewards.
A reward system that is implemented in a fair and objective way, including an appeal process for people who believe they have been treated unjustly.
A reward system that encourages people to work together and cooperate, and that also creates opportunities to celebrate people’s accomplishments.