This document summarizes key motivation theories including reinforcement theory and equity theory. Reinforcement theory states that behavior is influenced by external rewards and punishments, and positive reinforcement increases the likelihood of desired behaviors. Equity theory proposes that employees evaluate whether their inputs and outcomes are fairly balanced compared to others. Perceived inequity can lead employees to change inputs/outcomes, distort perceptions, or leave their job. Procedural and distributive justice also impact employee attitudes and behaviors. The reading assignment covers motivation theories from pages 162 to 194 of the textbook.
Expectancy theory is a mental process regarding the selection of choices. It’s a motivation theory first proposed by Victor Vroom of the Yale school of management.
It;s pros and con.
Additive and Multiplicative effects of work characteristics on entrepreneurs'...INPERE
Presented at the 15th International Conference of the European Association of Work and Organizational Psychology, Maastricht, The Netherlands, May 25th-28th, 2011
Expectancy theory is a mental process regarding the selection of choices. It’s a motivation theory first proposed by Victor Vroom of the Yale school of management.
It;s pros and con.
Additive and Multiplicative effects of work characteristics on entrepreneurs'...INPERE
Presented at the 15th International Conference of the European Association of Work and Organizational Psychology, Maastricht, The Netherlands, May 25th-28th, 2011
Motivating Employees Through Compensation Chapter 11.docxgilpinleeanna
Motivating Employees Through Compensation
Chapter 11
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Learning Objectives
After reading this chapter you should be able to:Describe how employee compensation practices strategically align with overall HR strategy. Use the concepts of reinforcement theory, goal setting theory, equity theory, expectancy theory, and agency theory to explain how people react to compensation practices. Describe how pay surveys are conducted and used to create compensation level strategies.Explain job-based pay and skill-based pay approaches to compensation structure.Describe the major protections provided by the Fair Labor Standards Act, as well as state and local regulations.
How Can Strategic Employee Compensation Make an Organization Effective?Employee compensation is the process of paying and rewarding people for the contributions they make to an organization.Compensation is a broad term which includes pay and benefits such as insurance, retirement savings, and paid time off from work.Compensation represents the total package of rewards—both monetary and nonmonetary.
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Employee compensation is the process of paying and rewarding people for the contributions they make to an organization.
A major part of compensation, of course, is the amount of money employees take home in their paychecks, but there are other important aspects as well. Compensation includes benefits such as insurance, retirement savings, and paid time off from work.
Employees’ positive feelings that come from working at a particular place are also sometimes seen as a form of compensation.
Compensation thus represents the total package of rewards—both monetary and psychological—that an employee obtains from an organization.
HOW IS EMPLOYEE COMPENSATION STRATEGIC? (LO1)Compensation practices are strategic because they encourage employees to put forth their best effort and perform in ways that help the company produce its particular goods and services. Organizations choosing an external labor orientation frequently hire new employees, and these employees are not expected to form a long-term attachment to the organization.
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Organizations choosing an external labor orientation frequently hire new employees, and these employees are not expected to form a long-term attachment to the organization.
The lack of long-term commitment makes compensation particularly important.
In fact, compensation is the primary factor in these employees’ decisions about where to work.
External EquityEmployees’ perception of external equity—which concerns the fairness of what the company is paying them compared with what they could earn elsewhere—are critical in such employment relationships. Organizations with an external labor orientation must assess how their compensation compares with the compensation offered by other organizations.
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Current and potential employees frequently compare the organization’s compensation packages with packages offered by other employers.
Employe ...
Running head Discussion Week 32Organizati.docxjeanettehully
Running head: Discussion Week 3 2
Organizational Behavior
Melanie Fore
University of the Cumberlands
Introduction
At the very beginning of this course the authors stated the core topics of organizational behavior are motivation, leader behavior and power, interpersonal communication, group structure and processes, attitude development and perception, change processes, conflict and negotiation, and work design. This week’s reading goes into depth of a couple of those topics: perception and motivation.
Chapter Six
Chapter six defines for us what perception is, “a process by which we organize and interpret sensory impressions in order to give meaning to their environment.” There are a few factors that shape our perception, perceiver, target, and context. Our perception of people often come from our first impressions of them, we don’t get to know them. This is because of four shortcuts people take in judging someone. First, is selective perception, this means people judge based on their interest and background. Next, the halo effect, where people judge on a single characteristic. The contrast effects are where individuals compare someone who has a distinctive characteristic to others you know with the same characteristics. And lastly, is stereotyping. We know from previous chapters that stereotyping is based on the group to which someone belongs. When someone makes a decision, it is based on their perception. Generally, in organizational behavior there are three things that determine what kind of decision someone makes. One is the rational model. This is where someone decides, after they know all the information, on the option that has the highest utility. Bounded rationality is another. This means the person making the decision doesn’t know all of the information, but they can construct models that extract the essential features. Finally, there is intuition. This is where someone doesn’t know all the information, but they make their decision based on experience. There are several biases that can take place in decision making, these include overconfidence bias, anchoring bias, confirmation bias, availability bias, and hindsight bias. Along with biases, there are errors as well. These are escalation of commitment, randomness error, and risk aversion. Your decisions influence you as an individual and your organization. One of the most important things to know in any career and something that is taught in almost every class are ethics and that is also covered in the end of chapter six.
Chapter Seven
Chapter 7 and 8 cover the motivation topic of organizational behavior. Our authors define motivation as “the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.” Chapter seven is full of motivation theories. The early theories included, the hierarchy of needs, two-factor theory, and McClelland’s theory of needs. The hierarchy of needs include five needs: physiological, safety-sec ...
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2. Definitions
Motivation:
The process that account for
an individual’s intensity,
direction, and persistence of
effort towards attaining a
goal.
3. Reinforcement theory
Reinforcement theory dominated the
motivation literature until early 1960s,
conceptualizes motivation entirely in terms of
observable behavior.
This theory assumes that behavior is caused
by events external to the person and that
behavior can be understood in terms of simple
laws that apply to both human beings and
animals.
According to this theory, individuals exhibit a
particular behavior because they have been
reinforced (rewarded) for that behavior in the
past.
Behavior modification: The process of using
reinforcement principles to change behavior.
4. Reinforcement theory (continued)
Skinner (1974) defined consequences that influence the probability
of behaviors:
1- Positive reinforcement increases the probability of behaviors that
they were contingent upon.
2- Negative reinforcement increases the probability of behaviors by
taking away or reducing its intensity.
3- Punishments reduce the probability of behaviors.
5. Reinforcement theory (continued)
Punishment may be effective when positive
reinforcers are also used.
Without using positive reinforcers, punishment leads
to only short term suppression of the undesirable
behaviors.
If managers frequently use punishment, it may
create a fearful atmosphere, which undermines
learning and the effectiveness of communication.
6. Reinforcement theory (continued)
Some important points for using rewards effectively:
1- Use reward to get individuals engaged in an activity, and then gradually withdraw
the reward when they show some interest.
2- Make sure that it is clear to individuals what behavior the reward is contingent.
3- Reward genuine achievements, such as high levels of effort and persistence.
Avoid rewarding performance that required little or no effort.
4- Use the most modest reward that will work.
5-Make sure that the time between the desired behavior and the reward is not so
great that reward has no effect.
6- Make sure that rewards are realistically available.
7- Make sure that you treat employees fairly!
7. Equity theory (J. Stacy Adams)
Adams described the employment relationship
as an exchange relationship in which
employees contributed inputs and received
outcomes in return.
Inputs: education, previous work experience,
effort on the job, training, and etc.
Outcomes: Pay, recognition, praise by
supervisors, promotion, and etc.
8. Equity theory (continued)
According to this theory, every employee compares
himself/herself with other employees.
When an inequity is perceived, there are six choices:
4. Changing inputs
5. Changing outcomes
6. Distorting perception of self or others
7. Changing the inputs or outcomes of the referent
others
8. Choosing a different referent
9. Leaving the field
9. Equity theory (continued)
procedural justice, the perceived fairness of the
process used to determine the distribution of
rewards, has strong impact on organizational
commitment, trust in managers, intention to quit,
and organizational citizenship behaviors.
Distributive justice (fairness of allocation) is more
important for job satisfaction.
Research has shown that perceived distributive
justice is greatly influenced by perceived procedural
justice.
10.
11. Reading
Please read page 162 to 194 of the text
book.