Organizational behavior 5e by kinichi Chap007KF motivation II equity, expectancy, and goal setting

Motivation II: Equity, Expectancy, and Goal Setting Chapter Seven... Thresholds of Equity and InequityBenevolents  people who have a higher tolerance for negative inequity prefer thei

Motivation II:

Equity, Expectancy, and Goal Setting

Chapter Seven

After reading the material in this chapter,

you should be able to:

LO7.1 Discuss the role of perceived inequity in employee

motivation.

LO7.2 Describe the practical lessons derived from

equity theory.

LO7.3 Explain Vroom’s expectancy theory.

LO7.4 Describe the practical implications of expectancy theory.

LO7.5 Identify five practical lessons to be learned from goal-setting research.

LO7.6 Specify issues that should be addressed before

Equity Theory

Equity theory

 model of motivation

that explains how

people strive for

fairness and justice in

social exchanges or

give-and-take

relationships

The Individual-Organization

Exchange Relationship

An employee’s inputs, for which he expects

a just return, include education/training,

skills, creativity, seniority, age, personality

traits, effort expended, and personal

appearance

The Individual-Organization

Exchange Relationship

On the outcome side the organization

provides such things as pay/bonuses, fringe benefits, challenging assignments, job

security, promotions, status symbols,

recognition, and participation in important

decisions

Negative and Positive Inequity

Negative inequity

 Comparison in which another person receives

greater outcomes for similar inputs.

Positive inequity

 Comparison in which another person receives

lesser outcomes for similar inputs.

Dynamics of Perceived Inequity

1 People have varying sensitivities to

perceived equity and inequity

2 Inequity can be reduced in a variety of

ways

Negative and Positive Inequity

Figure 7-1

Thresholds of Equity and Inequity

Equity sensitivity

 reflects an individual’s

“different preferences for, tolerances for, and reactions to the

level of equity associated with any

Thresholds of Equity and Inequity

Benevolents

 people who have a higher tolerance for

negative inequity prefer their outcome/input

ratio to be lower than ratios from comparison

others

Sensitives

 adhere to a strict norm of reciprocity and are

quickly motivated to resolve both negative and positive inequity

Thresholds of Equity and Inequity

Entitleds

 have no tolerance for negative inequity

 expect to obtain greater output/input ratios than comparison others and become upset when

this is not the case.

Organizational Justice

Distributive justice

 The perceived fairness of how resources and

rewards are distributed.

Procedural justice

 The perceived fairness of the process and

procedures used to make allocation decisions.

Interactional justice

 quality of the interpersonal treatment people

receive when procedures are implemented.

Practical Lessons from Equity

Theory

No matter how fair management thinks the organization’s policies, procedures, and

reward system are, each employee’s

perception of the equity of those factors is

Practical Lessons from Equity

Theory

Employees should be given the opportunity

to appeal decisions that affect their welfare.Managers can promote cooperation and

teamwork among group members by

treating them equitably

Practical Lessons from Equity

Theory

Employees’ perceptions of justice are

strongly influenced by the leadership

behavior exhibited by their managers

Managers need to pay attention to the

organization’s climate for justice

Expectancy Theory of Motivation

Vroom’s Expectancy Theory

Motivation boils down to the decision of how much effort to exert in a specific task

situation

Expectancy

 represents an individual’s belief that a particular degree of effort will be followed by a particular level of performance.

The following factors influence an

employee’s expectancy perceptions:

 Self-esteem.

 Self-efficacy.

 Previous success at the task.

 Help received from others.

 Information necessary to complete the task.

 Good materials and equipment to work with

Vroom’s Expectancy Theory

Niles believes that he will be promoted if he

meets his sales goals This is his

Managerial and Organizational

Implications of Expectancy Theory

Managerial and Organizational

Implications of Expectancy Theory

Some workers value interesting work and

recognition more than money

Extrinsic rewards can lose their motivating

properties over time and may undermine

intrinsic motivation

Dana believes in designing challenging jobs

for her employees This is an implication of

Goals: Definition and Background

Goal

 what an individual is trying to accomplish

 object or aim of an action

Goals: Definition and Background

Management by objectives

 management system incorporating participation

in decision making, goal setting, and feedback

How Does Goal Setting Work

Goals direct attention

Goals regulate effort

Goals increase persistence

Goals foster the development and

application of task strategies and action

plans

Insights from Goal-Setting Research

1 Specific high goals lead to greater

performance

 Goal specificity – quantifiability of a goal

2 Feedback enhances the effect of specific,

difficult goals

3 Participative goals, assigned goals, and

self-set goals are equally effective

Insights from Goal-Setting Research

4 Action planning facilitates goal

accomplishment

 Action plan outlines the activities or tasks that

need to be accomplished in order to obtain a

goal.

5 Goal commitment and monetary incentives

affect goal-setting outcomes

 Goal commitment – extent to which an individual

is personally committed to achieving a goal

Julia wants to become a successful heart

surgeon This reflects Julia's

A.Expectancy

B.Perception

C.Goal

D.Personality

Practical Application of

Goal Setting

Step 1: Set goals

 Use time and motion studies, average past

performance, benchmarking

 Should be SMART

Practical Application of

Goal Setting

Two additional recommendations:

1.For complex tasks, managers should train

employees in problem-solving techniques and encourage them to develop a performance

action plan

Practical Application of

Goal Setting

2 Because of individual differences, it may be

necessary to establish different goals for

employees performing the same job

Guidelines for Writing

SMART Goals

Practical Application of

Goal Setting

Step 2: Promote goal commitment

 Involve employees in the goal setting and

action planning process

 Have managers explain the rationale behind

higher level goals

Practical Application of

Goal Setting

Step 3: Provide support and feedback

 ensure that each employee has the necessary abilities, training, technology/equipment, and

information needed to achieve his or her goals

Jim is the manager of a sales team at Woo

Automotive He expects his salespeople to

sell 250 cars per week Which guideline for

writing SMART goals does this violate?

A.Specific

B.Measurable

C.Attainable

D.Time-bound

Video Case: Hot Topic

What unique features does the culture at Hot

Topic have? How do these features contribute

to their success?

What benefits do you like that are offered by

Hot Topic? Are they different than the benefits you have heard about from your parents or

others?

How does Hot Topic keep itself current with

Video Case: Motivation Convention

Are people fundamentally different today than in

the past? Why do workers need to be “buttered

up” more today?

What are some different types of incentives

employees are given today to “motivate” them?

What have you received in terms of different

incentives from your employers?

Why is motivating employees so important - do

you think it makes that big of a difference?