1. Motivation II: Equity, Expectancy, and Goal Setting
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. Negative and Positive Inequity
A. An Equitable Situation
Other
Self $2
1 hour
= $2 per hour $4
2 hours
= $2 per hour

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

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

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. 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

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