1. Motivation: Equity, expectancy, goal setting Chapter 7

2. Example: Gary Hall  Set swimming records since he was in high school.  Most decorated American summer Olympic athlete.  Graduated Indiana University.  Graduated from University of Cincinnati Medical School.  Practicing Ophthalmologist.

3. Adam’s Equity Theory of Motivation  Equity Theory: Holds that motivation is a function of fairness in social exchanges.  Do rewards = contributive input?  Compare perceived fairness with others.  Inequity = motivation to restore equity ex) “getting even”

4. Practical Lessons: Equity Theory  Managers should not discount employees’ feelings & perceptions.  It is the employees’ view of reality that counts.  Employees should be given a voice  Treating employees inequitably can lead to litigation.

5. Expectancy Theory of Motivation  Expectancy Theory: hold that people are motivated to behave in ways that produce valued outcomes.  Effort= performance expectancies= outcome.

6. Practical Lessons: Expectancy Theory  Managers need to link employee performance and valued rewards.  What are some prerequisites to linking performance and rewards? - develop and communicate performance standards - need valid and accurate performance ratings - determine relative mix of individual vs. team - use performance ratings to allocate rewards

7. Motivation Through Goal Setting  Difficult goals lead to high performance.  Goals should not be impossible.  Feedback enhances the effect.  Participative, assigned, and self-set goals are equally effective.  Goal commitment and monetary incentives.

8. Putting Motivational Theories to Work  Dynamics within an organization interfere with applying motivational theories in “pure”.  Motivation is only one of several factors that influence performance.  Individual differences are important to motivation.  Method used for evaluation is important.

9. Implications for managers  Managers need to make extrinsic rewards contingent on performance.  Managers need to ensure that performance goals are directed to achieve the “right” end.  Managers need to make rewards that are clearly tied to performance.  Feedback should also be linked to performance.