1. MGMT 371 Chapter 7: Motivation through Equity, Expectancy & Goal Setting Adam’s Equity Theory Adam’s Equity Theory Organizational Justice Organizational Justice Expectancy Theory Expectancy Theory Motivation through Goal Setting Motivation through Goal Setting Application of theories Application of theories

2. Adam’s Equity Theory of Motivation Negative and positive inequity Negative and positive inequity Equity sensitivity Equity sensitivity Reducing inequity Reducing inequity Organizational Justice Organizational Justice Distributive Distributive Procedural Procedural Interactional Interactional Findings and applications Findings and applications

3. Figure 7-1 Negative and Positive Inequity McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. A. An Equitable Situation Self Other$2 1 hour = $2 per hour $4 2 hours = $2 per hour McGraw-Hill/Irwin

4. Figure 7-1 Negative and Positive Inequity (Cont.) McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. $2 1 hour = $2 per hour $3 1 hour = $3 per hour B. Negative Inequity Self Other McGraw-Hill/Irwin

5. Figure 7-1 Negative and Positive Inequity (Cont.) McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. $2 1 hour = $1 per hour C. Positive Inequity $3 1 hour = $3 per hour Self Other McGraw-Hill/Irwin

6. Expectancy Theory of Motivation Vroom’s Model Vroom’s Model Expectancy Expectancy Instrumentality Instrumentality Valence Valence

7. Organizational Implications of Expectancy Theory Reward people for desired performance and be transparent. Reward people for desired performance and be transparent. Design challenging jobs. Design challenging jobs. Tie some rewards to team work. Tie some rewards to team work. Reward managers for creating and maintaining expectancies (self-efficacy), instrumentalities, and outcomes Reward managers for creating and maintaining expectancies (self-efficacy), instrumentalities, and outcomes

8. Organizational Implications of Expectancy Theory Monitor employee motivation through interviews or anonymous questionnaires Monitor employee motivation through interviews or anonymous questionnaires Accommodate individual differences by building flexibility into the motivation program Accommodate individual differences by building flexibility into the motivation program

9. Motivation through Goal Setting Goals Goals How does goal setting work? How does goal setting work? Attention Attention Effort Effort Persistence Persistence Factors: Factors: Difficulty Difficulty Specificity Specificity Participative Participative Commitment Commitment

10. Table 7-2 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Guidelines for Writing SMART Goals S pecific M easurable A ttainable R esults oriented T ime bound McGraw-Hill/Irwin

11. Motivation through Goal Setting Process Process Step 1: Set goals Step 1: Set goals Step 2: Goal commitment Step 2: Goal commitment Step 3: Support and feedback Step 3: Support and feedback Theory applications Theory applications

12. McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: Managerial Actions for Enhancing Goal Commitment 1. Provide valued outcomes for goal accomplishment. 2. Raise employees’ self-efficacy about meeting goals by: 1. Training 2. Role modeling desired behaviors and actions 3. Persuasively communicating confidence in the employee 3. Make goals public 4. Communicate an inspiring vision and explain how individual goals relate to the vision. McGraw-Hill/Irwin

13. McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: Managerial Actions for Enhancing Goal Commitment (Cont.) 5. Participative goal setting 6. Be supportive rather than punitive. 7. Incremental goals 8. Ensure that employees have necessary resources to accomplish goals McGraw-Hill/Irwin