1. Theories of Motivation

2. Equity Theory -Stacy Adams Based on the notion that perceived inequity acts as a motivator Based on the notion that perceived inequity acts as a motivator Inequity = When people believe they have been unfairly treated in comparison to others Inequity = When people believe they have been unfairly treated in comparison to others

3. Perceived inequities occur whenever people feel that the rewards received for their work efforts are unfair given the rewards others appear to be getting Perceived inequities occur whenever people feel that the rewards received for their work efforts are unfair given the rewards others appear to be getting

4. People will try to deal with negative inequity by doing 1 of 4 things: People will try to deal with negative inequity by doing 1 of 4 things: 1. Change work inputs by putting less effort into job 1. Change work inputs by putting less effort into job 2. Change the rewards received by asking for better treatment 2. Change the rewards received by asking for better treatment 3. Change the comparison points to make things seem better. 3. Change the comparison points to make things seem better. 4. Change the situation by leaving the job. 4. Change the situation by leaving the job.

5. There is also evidence that the equity dynamic occurs among people who feel overpaid. There is also evidence that the equity dynamic occurs among people who feel overpaid. This time the inequity is associated with a sense of guilt This time the inequity is associated with a sense of guilt How to restore equity? How to restore equity? -increase quality/quantity of work -increase quality/quantity of work -work overtime -work overtime

6. Perceptions determine the motivational outcomes, not rewards! Perceptions determine the motivational outcomes, not rewards! When giving rewards to employees, carefully communicate the intended value of the rewards being given, clarify the performance appraisals upon which they are based and suggest appropriate comparison points When giving rewards to employees, carefully communicate the intended value of the rewards being given, clarify the performance appraisals upon which they are based and suggest appropriate comparison points

7. Expectancy Theory -Victor Vroom What determines the willingness of an individual to work hard at tasks important to the organization? What determines the willingness of an individual to work hard at tasks important to the organization?

8. Motivation to work depends on the relationship among 3 expectancy factors… Motivation to work depends on the relationship among 3 expectancy factors…

9. EXPECTANCY 1. Expectancy: A person’s belief that working hard will result in a desired level of task performance being achieved (effort = performance) 1. Expectancy: A person’s belief that working hard will result in a desired level of task performance being achieved (effort = performance)

10. INSTRUMENTALITY A person’s belief that successful performance will be followed by rewards and other potential outcomes A person’s belief that successful performance will be followed by rewards and other potential outcomes

11. VALENCE The value a person assigns to the possible rewards and other work-related outcomes The value a person assigns to the possible rewards and other work-related outcomes M=E*I*V M=E*I*V Mathematically speaking, a zero in either E, I, or V will produce ZERO motivation Mathematically speaking, a zero in either E, I, or V will produce ZERO motivation

12. All factors must be addressed! All factors must be addressed! Employees exert effort to achieve task performance and realize work-related outcomes Employees exert effort to achieve task performance and realize work-related outcomes See figure 14.6 on page 369 for ways to maximize E, I & V See figure 14.6 on page 369 for ways to maximize E, I & V

13. Goal-Setting Theory -Edwin Locke Task goals can be highly motivating if they are properly set and if they are well managed. Task goals can be highly motivating if they are properly set and if they are well managed. Goals: Goals: -give direction to people -clarify performance expectations -establish a frame of reference for feedback

14. Brings management & subordinates together in joint decision making process of goal setting Brings management & subordinates together in joint decision making process of goal setting Locke believes goal setting can enhance individual work performance and job satsifaction Locke believes goal setting can enhance individual work performance and job satsifaction

15. Manager’s Notepad See Notepad 14.1 on page 370 for how to make goal setting work! See Notepad 14.1 on page 370 for how to make goal setting work!