Perception/Motivation - Organizational Behavior Post and Responses
INeal
NeckOBPPT05-PARTII.pptxEquity Theory
Equity theory holds that motivation is based on our perception of how fairly we are being treated in comparison with others.
Neck, Organizational Behavior. © SAGE Publications, 2017.
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The concept of equity theory, introduced by psychologist J. Stacey Adams, holds that motivation is based on our perception of how fairly we are being treated in comparison with others. According to this theory, our perception of what is fair depends on the ratio O/I where O = our outcomes like the recognition, pay, and status we enjoy and I = our inputs like effort, experience, and ability.
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Figure 5.5: Equity Theory
Neck, Organizational Behavior. © SAGE Publications, 2017.
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Equity theory says we perceive the fairness of rewards as a ratio of input to outcome and compare our ratio to other people’s.
Comparison of Ratios
Equity Theory
People tend to compare their own perceived I/O ratio to their perceptions of the I/O ratio of referent others, or people whose situation is comparable to their own. As long as the ratios are similar there is no problem, but someone who perceives the other person’s ratio as greater than his or her own will feel an inequity. For example, Diego believes he is under-rewarded because he is getting lower tips than the other servers, which he thinks is unfair. People adopt several behaviors in the face of such perceived inequity.
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Equity Theory-Dealing with Inequity
Change inputs.
Attempt to change outcomes.
Carrying out cognitive re-evaluation.
Attempt to convince others to change inputs or outcomes.
Pick another “Other.”
Quit.
Neck, Organizational Behavior. © SAGE Publications, 2017.
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Equity Theory
Change inputs: People may increase or decrease their inputs depending on the situation.
Attempt to change outcomes: Employees might try to change the outcomes to restore I/O balance.
Carrying out cognitive reevaluation: Workers may change their perspective on the other person.
Attempt to get to change inputs or outcomes: Employees might try and convince others to reduce or give up other outcomes
Pick another Other: Employees might compare themselves to different co-workers to perceive a more equitable situation.
Leave the field (Quit): When employees feel strongly enough about the inequity, they will quit their jobs. Organizational turnover can cost a company significant amounts of money.
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Equity Theory
Organizational Justice
Organizational justice focuses on what people perceive as fairness in workplace practices.
Distributive justice.
Procedural justice.
Neck, Organizational Behavior. © SAGE Publications, 2017.
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Equity theory includes the concept of organizational justice, which focuses on what people perceive as fairness in workplace practices. There are two main kinds of organizational justice: distributive and procedural.
Distributive justice is the degree to which people perceive outcomes to be fairly allocated. For example, employees doing the same job as others expect to be compensated equally. When equal work does not produce equal outcomes, or when one employee is paid disproportionately to another for doing the same job, then there is a lack of distributive justice.
Procedural justice is the degree to which people perceive the implementation of company policies and procedures to be fair. For example, a company might have a strict policy regarding tardiness and disciplines for those who are consistently late for work. If the policy applies to all staff at every level, then employees will be more likely to accept it as fair; whereas, if others are exempt, then employees may not believe they are being treated equally.
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Goal−setting Theory
Goal-setting theory, suggests that human performance is directed by conscious goals and intentions.
Neck, Organizational Behavior. © SAGE Publications, 2017.
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Goal setting theory, developed by Edwin Locke and Gary Latham, suggests that human performance is directed by conscious goals and intentions. Studies of the effects of goal setting in the workplace showed that employees are motivated by clear goals accompanied by appropriate feedback. Goals can have both direct and indirect effects. Direct effects motivate and energize us, helping to achieve objectives, and indirect effects encourage us to use cognitive skills such as planning and strategizing to attain goals. For example, the direct effect of buying a house involves the ownership of the house, but it also has the indirect effect of working out how to pay the mortgage.
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Motivational Goals:
Are Specific (measureable).
Are Moderately Difficult.
Are Accepted by Employees (goal commitment).
Include Regular Feedback.
Neck, Organizational Behavior. © SAGE Publications, 2017.
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Specific goals: Research has shown that people respond more to, and produce better results for, clear, well-defined goals than vague, or “Do Your Best,” goals. Managers can set specific goals by making them clear and easy to understand, ensure they are challenging but attainable, make them measurable, and set them within a distinct timeframe.
Difficult goals: Similarly, researchers found that goals set at a high but not unreasonable level of difficulty produce better results than less challenging or easier goals.
Goal acceptance and commitment: In general, employees who accept and commit to goals set by or developed in participation with their managers will have higher levels of performance and be more motivated to achieve the objectives.
Feedback: Goals that are accompanied by regular feedback are more likely to motivate.
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Expectancy Theory
Figure 5.6: Expectancy Theory
Neck, Organizational Behavior. © SAGE Publications, 2017.
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Vroom’s expectancy theory holds that people will choose certain behaviors over others with the expectation of a certain outcome. The theory describes motivation as a function of an individual’s beliefs concerning effort-to-performance relationships (expectancy), work outcome relationships (instrumentality), and the desirability of various work outcomes (valence) .
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Expectancy Theory
Expectancy X Instrumentality X Valence
(Effort>Perf) (Perf>Outcome) (Value)
Expectancy
Instrumentality
Valence
Neck, Organizational Behavior. © SAGE Publications, 2017.
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Expectancy is the probability that the amount of work effort invested by an individual will result in a high level of performance. In other words, it could be phrased as “What's the probability that, if I work very hard, I'll be able to do a good job?” It is measured in a range from 0 to +1. If someone believes strong effort will not result in a higher performance level, his or her expectancy is zero; however, if the person believes a good effort will lead to high performance, expectancy is +1.
Instrumentality is the probability that good performance will lead to various work outcomes. Another way of saying this is“What's the probability that, if I do a good job, there will be some kind of outcome in it for me?” It can range from -1 to +1. An instrumentality of +1 would apply to people who believe that their performance would make an outcome likely, whereas people who think their performance will not result in outcomes would have an instrumentality of -1.
Valence is the value individuals place on work outcomes. Phrased a different way, “Is the outcome I get of any value to me?” Valences range from -1 to +1 and are positive or negative depending on the nature of the outcome.
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