1. © 2012 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Motivation II: Equity, Expectancy, and Goal Setting Chapter Seven

2. 7-2 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 implementing a motivational program.

3. 7-3 Equity Theory Equity theory  model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships

4. 7-4 Negative and Positive Inequity Figure 7-1

5. 7-5 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

6. 7-6 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.

7. 7-7 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.

8. 7-8 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 what counts. Managers benefit by allowing employees to participate in making decisions about important work outcomes

9. 7-9 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

10. 7-10 Expectancy Theory of Motivation Expectancy theory  Holds that people are motivated to behave in ways that produce valued outcomes.

11. 7-11 Vroom’s Expectancy Theory Instrumentality  A performance  outcome perception Valence  the positive or negative value people place on outcomes Outcomes  different consequences that are contingent on performance

12. 7-12 Managerial and Organizational Implications of Expectancy Theory

13. 7-13 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.

14. 7-14 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

15. 7-15 Guidelines for Writing SMART Goals