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10.MotivationPerformance-Part2-10.29.18-K1.pptx10. Motivation and Performance (Part 2)
Maryana Arvan, M.A.
10/29/2018
Overview
Equity theory
Justice and motivation
Equity theory
Argues that people’s perceptions and beliefs about the fairness of their treatment at work affect their motivation, attitudes, and behaviors
People compare their own input-outcome ratios to those of others holding similar positions
Input-outcome ratio: what I bring to my job situation and what I get from my job situation
If I believe my input-outcome ratio ≠ the input-outcome ratio of similar others, I perceive inequity
People are motivated to reduce inequities
If inequities persist, people will get upset, leave their jobs
Equity theory: Inputs and outcomes
Work inputs:
Effort, skill, knowledge, education, experience, ability, diversity, time invested, work quality
Work outcomes
Pay, benefits, other tangible rewards (e.g., office space), experience, learning, opportunities, recognition, satisfaction
Equity theory: Two types of inequity
Table 13.3 Equity Theory
| Condition | Person | Referent | Example | |
| Equity | Outcomes Inputs | = | Outcomes Inputs | An engineer perceives that he contributes more inputs (time and effort) and receives proportionally more outcomes (a higher salary and choice job assignments) than his referent. |
| Underpayment inequity | Outcomes Inputs | < (less than) | Outcomes Inputs | An engineer perceives that he contributes more inputs but receives the same outcomes as his referent. |
| Overpayment inequity | Outcomes Inputs | > (greater than) | Outcomes Inputs | An engineer perceives that he contributes the same inputs but receives more outcomes than his referent. |
Table 13.3 Equity theory
There are two types of inequity: underpayment inequity and overpayment inequity.
Underpayment inequity: exists when a person’s own outcome–input ratio is perceived to be less than that of a referent
In comparing yourself to a referent, you think you are not receiving the outcomes you should be, given your inputs
Overpayment inequity: exists when a person perceives that his or her own outcome–input ratio is greater than that of a referent
In comparing yourself to a referent, you think you are receiving more outcomes than you should be, given your inputs
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Equity theory: Reducing perceived inequity
Four ways to reduce perceive inequity
Change inputs
If we get < we deserve: reducing effort is only option
If we get > we deserve: increase effort, expand our skillset
Change outcomes
If we get < we deserve: ask for a raise, promotion, recognition
If we get > we deserve: ask for a demotion, lower salary
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Equity theory: Reducing perceived inequity
Alter perceptions
Rethink whether there is actually an input-outcome ratio imbalance between you and the similar other (e.g., your coworker)
May alter perceptions of ourselves or the similar others
Change our referent
“I may not make as much as my coworker, but I’m earning way more than my cousin.”
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Equity theory: The case of overqualification
When individuals possess more education, experience, knowledge, skills, & abilities than required by their jobs
Two components:
Objective overqualification
Perceived overqualification
Employees who feel overqualified are dissatisfied, more likely to leave their jobs, less engaged at work
Why? They believe their input-outcome ratio ≠ input-outcome ratio of similar others
Negative outcomes don’t necessarily occur with objective overqualification
Perceptions are key
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10/29/2018 7:52 PM
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Equity theory: Implications and issues
Mixed support
Predicts well in cases of under-reward
However, does not predict well in cases of over-reward
People don’t ask for a pay cut, smaller office space, etc., even if they realize that they are being over-rewarded
Does not predict how we determine who “similar others” are
Only addresses one type of injustice– distributive inequity (unfairness in outcomes)
Three types of justice
Distributive justice
Perceived fairness in how outcomes are actually distributed
Is the input-outcome ratio equal for everyone? Or imbalanced?
Procedural justice
Perceived fairness in the procedures and processes used to decide how outcomes are distributed
Ex: How did we decide who got a raise? Was it a fair process?
Interactional justice
Fairness in how employees are treated. Two types:
Informational justice: communicating honestly with employees about key decisions, and keeping them informed of important organizational matters
Interpersonal justice: Treating employees with dignity and respect
In-class activity
Get into groups of 3-5 people
I am going to show you a series of clips.
After each clip, I will allow you to discuss and determine which type(s) of (in)justice you can detect. Write them down and justify your answer.
Write your name clearly.
What type(s) of injustice(s) do you see?
Example 1: 4:17-6:44
Example 2: 35:00-36:55
Example 3: 45:04-46:22
Example 4: 39:04-40:00
Example 5: 37:55- 39:00; 1:04:46-1:05:46
https://www.youtube.com/watch?v=lUrCHAa9JQc
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Justice and motivation
All three types of injustice are demotivating, have serious consequences
Individuals experiencing any type of injustice are:
Less engaged, more dissatisfied
More likely to perform CWBs that violate organizational norms and harm the organization or others at work
Perform less prosocial behaviors at work (i.e. less OCBs)
More likely to leave the organization
Equity theory and justice: Implications for motivation at work
Distribute rewards fairly
Use fair procedures to make decisions. This involves:
Consistency: applied consistently across people/time
Bias suppression: not affected by personal self-interest
Accuracy: accurate information should be used for decisions
Ethicality: procedures should reflect the concerns, values, and outlooks of individuals affected
Providing employees with a voice
Voice: capacity to influence outcomes, though not determine them
Voice is input into the process (different than choice)
Transparency: the process of making a decision is clear and evident; all employees are aware of it
Treat employees with honesty, respect, and dignity
