3. DYNAMICS OF PERCEIVED INEQUITY
EQUITY THEORY OF MOTIVATION
dependent on comparing own ratio of
A person (P)
Compares
input/output with ratios of 'referent‘ others
and perceives
with certain
his/her
inputs (I) and
input/outcome
receiving certain
ratio to reference
outcomes (O) EQUITY SENSITIVITY
person’s (RP)
inputs (I) and
outcomes (O)
BENEVOLENTS
OP
ORP
= IP
IRP
Equity
OP
< ORP
IP
IRP
Negative
Inequity
OP
> ORP
IP
IRP
Positive
Inequity
What I put into my job:the person
What I get from my job: pay, salary,
IP: Inputs of time, effort,
ability, loyalty, hard work, tolerance,
bonus and
ENTITLEDS commission, perks,
OP: Outcomes of the person
flexibility, integrity, commitment,
benefits, job security, promotion,
reliability, heart and soul, personal
IRP: Inputs of reference person recognition, interest, development,
sacrifice, trust in our superiors,
reputation, praise,
REDUCING INEQUITY responsibility,
enjoyment, sense of achievement and
support to the colleagues, etcreference person
ORP: Outcomes of
advancement, etc
inputs
outputs
People become demotivated, reduce input and/or seek change/improvement whenever
they feel their inputs are not being fairly rewarded. Fairness is based on perceived
market norms.
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4. PRACTICAL LESSONSCONCEPT OFTHEORY
EXPANDING THE FROM EQUITY EQUITY
Give employees the opportunity to
Provides explanation of how
appeal decisions that affects
beliefs & attitude affect their
DISTRIBUTIVE
Treating performance
employees inequitably can
welfare
JUSTICE
lead to litigation & costly rework
Employees are more likely to
Paying attention toorganizational
accept and support employee’s
PROCEDURAL JUSTICE
perceptions of what is fair &
change if it is fairly implemented
equitable
and produces equitable outcomes
Managers need to pay attention to the
organization’s climate per justice
INTERACTIONAL
Allowing employees to participate
Managers can promote cooperation
JUSTICE
in making decisions about
&teamwork among group members by
important work equitably
treating them outcomes
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5. INSTRUMENTALITY
The strength of a tendency
to act in a certain way
VALENCE
depends on the strength
of Theexpectancyreward
an value of a that the
act will be followed by a
given consequence & on
the value or attractiveness
of that consequence
EFFORT =
PERFORMANCE
EXPECTATION
Represents a
person’s belief that a
particular outcome
is contingent on a
specific level of
performance
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6. Some workers value interesting work and
recognition more than money
Extrinsic rewards can lose their
motivating properties overtime and
many undermine intrinsic motivation
Research On
Expectancy
Theory
Monetary rewards must be large enough
to generate motivation
Four Prerequisites to Linking Performance &
Rewards
Managers need to determine the relative
Managers should use develop and
Managers need to the performance
valid and accurate
mix of individual versus team contribution
performance ratings with which to compare
communicate performance standards to
ratings to differentially allocate rewards
to performance and then reward accordingly
among employees
employees
employees
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7. Four
Management
Insights From
Motivational
Goal Setting
by Objectives
Research
Mechanisms
Goals Direct Attention
Goal Difficulty
Goals Regulate Effort
Goal Specificity
Feedback Enhances the Effect of
Goals Increase Persistence
Specific Goals
Goals Foster the Development &
Participative goals, assigned
Application of Task Strategies & Action
goals& self set goals
Goal Commitment
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9. Managerial Actions for Enhancing
Goal Commitment
Practical Application of Goal Setting
Break a Long term goal into short
Provide valued sub goals for goal
term outcomes
accomplishment
Have Raise employee’s a public commitment
employees make self efficacy
to the goal
Ensure that inspiring vision & explain how
Communicate anemployees have the
resources required to accomplish the
individual goals relate to accomplishing the vision
Provide Support and
goal
Feedback
Allow employees to participate in
setting the goals
Promote Goal Commitment
Behave supportively rather than
punitively
Set Goals
