CHAPTER 8
MANAGING EMPLOYEES MOTIVATION
AND PERFORMANCE
Process Perspectives on Motivation
Brain Washing
Process Perspectives approach to
motivation is to focus on why people
choose certain behavioral options to
fulfill their needs and how they evaluate
their satisfaction after they have
attained these goals.
Process Perspectives on Motivation
Process perspectives on motivation
include:
Expectancy theory
Equity theory
Goal Setting theory
Equity Theory
Equity Theory
Focuses on people’s perceptions of the
fairness (or lack of fairness) of their work
outcomes in proportion to their work
inputs.
• A relative outcome to input ratio comparison to
oneself or to another person (referent)
perceived as similar to oneself.
• Equity exists when a person perceives that their
outcome/input ratio to be equal to the referent’s
ratio.
• If the referent receives more outcomes, they should
also give more inputs to achieve equity.
Equity Theory
Condition Person Referent Example
Worker contributes
Outcomes = Outcomes more inputs but also
Equity Inputs Inputs gets more outputs
than referent
Worker contributes
Underpayment Outcomes < Outcomes more inputs but also
Equity Inputs Inputs gets the same outputs
as referent
Worker contributes
Overpayment Outcomes > Outcomes same inputs but also
Equity Inputs Inputs gets more outputs
than referent
Table 13.3
Equity Theory
Inequity exists when worker’s
outcome/input ratio is not equal to
referent.
• Underpayment inequity: ratio is less than the
referent.
• Workers feel they are not getting the outcomes they
should for their inputs.
• Overpayment inequity: ratio is higher than the
referent.
• Workers feel they are getting more outcomes than
they should for their inputs.
Equity Theory
Restoring Equity: Inequity creates tension in
workers causing them to attempt to
restore equity.
• In underpayment, workers may lower input
levels to correct (rebalance) the ratio or increase
their outcomes.
• If inequity persists, workers will often choose to
leave the organization.
• In overpayment, workers may change their
perceptions of their own or their referent’s
inputs or outcomes.
fair performance
Equity Theory evaluation system
• Equity theory are inputs, outcomes, and
referents. how much effort, ability
• Inputs are the contributions employees
make to the organization. Inputs include
education and training, intelligence,
experience, effort, number of hours
worked, and ability.
salary
• Outcomes are the rewards employees
receive in exchange for their contributions
to the organization.
Equity Theory
• Example of outcomes:
pay, fringe benefits, status symbols, job
titles and assignments, and even the
leadership style of their superiors.
• referents are others with whom people
compare themselves to determine if they
have been treated fairly.
Example: race, age…
Expectancy Theory
Brain-washing
Expectancy Theory
• Victor Vroom suggested that the relationship
between people's behavior at work and their
goals was not as simple as was first imagined by
other scientists. Vroom realized that an
employee's performance is based on individual
factors such as personality, skills, knowledge,
experience and abilities.
Expectancy Theory
• The theory suggests that although individuals may have
different sets of goals, they can be motivated if they
believe that:
i- There is a positive correlation between efforts and
performance,
ii- Favorable performance will result in a desirable
reward,
iii- The reward will satisfy an important need,
iv- The desire to satisfy the need is strong enough to
make the effort worthwhile.
3 Belief - valence, expectancy,
Expectancy Theory
The theory is based upon the following beliefs:
Valence
direction
Valence refers to the emotional orientations
people hold with respect to outcomes [rewards].
The depth of the want of an employee for
extrinsic [money, promotion, time-off, benefits]
or intrinsic [satisfaction] rewards). Management
must discover what employees value.
Expectancy Theory
Expectancy
Employees have different expectations and
levels of confidence about what they are
capable of doing. Management must
discover what resources, training, or
supervision employees need.
Expectancy Theory
Instrumentality
The perception of employees as to whether they
will actually get what they desire even if it has
been promised by a manager. Management must
ensure that promises of rewards are fulfilled and
that employees are aware of that.
Expectancy Theory
Vroom suggests that an employee's beliefs about
Expectancy, Instrumentality, and Valence interact
psychologically to create a motivational force
such that the employee acts in ways that bring
pleasure and avoid pain.
Goal-setting Theory
• The goal-setting theory argues that specific and difficult
goals lead to better work performance. Such goals
ensure that employees are aware of:
◊ What needs to be done
◊ How much effort will be needed
• Feedback from management will further encourage
higher performance towards these goals, as opposed to
no feedback.
• In sum, specific and difficult goals produce a higher level
of output than generalized goals such as “do your best”.
• Specific and difficult goals, therefore, function as internal
stimuli for enhanced employee performance.