Transcript Equity Theory

Chapter Thirteen
Motivation and
Performance
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
The Nature of Motivation
 Motivation
≈ The psychological forces that determine the
direction of a person’s behavior in an
organization, a person’s level of effort, and a
person’s level of persistence
≈ Explains why people behave the way they do
in organizations
 Performance is function of ability, effort,
situational factors
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The Nature of Motivation
 Intrinsically Motivated Behavior
≈ Behavior that is performed for its own sake.
 Extrinsically Motivated Behavior
≈ Behavior that is performed to acquire material
or social rewards or to avoid punishment.
 Prosocially motivated behavior
≈ behavior performed to benefit or help others
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Outcomes and Inputs
 Outcome
≈ Anything a person gets from a job or an
organization
 Pay, job security, autonomy, accomplishment
 Input
≈ Anything a person contributes to his or her
job or organization
 Time, effort, skills, knowledge, work behaviors
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The Motivation Equation
Figure 13.1
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Expectancy, Instrumentality, and Valence
Figure 13.2
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Need Theories
 Need Theories
≈ People are motivated to obtain outcomes at
work that will satisfy their needs
 Need
≈ A requirement or necessity for survival and
well-being.
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Maslow’s Hierarchy of Needs
Needs
Highest-level
needs
Lowest-level
needs
Table 13.1
Description
Examples
Selfactualization
Realize one’s
full potential
Use abilities
to the fullest
Esteem
Feel good
about oneself
Promotions
and recognition
Belongingness
Social
interaction, love
Interpersonal
relations, parties
Safety
Security, stability
Job security,
health insurance
Physiological
Food, water,
shelter
Basic pay level
to buy items
Lower-level needs must be satisfied
before higher-level needs are addressed.
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Alderfer’s ERG Theory
Needs
Highest-level
needs
Lowest-level
needs
Description
Examples
Growth
Self-development,
creative work
Continually
improve skills
Relatedness
Interpersonal
relations, feelings
Good relations,
accurate feedback
Existence
Food, water,
clothing, and shelter
Adequate pay
for necessities
After lower level needs satisfied, person seeks higher needs. When
unable to satisfy higher needs, lower needs motivation is raised.
Table 13.2
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Herzberg’s Motivation-Hygiene Theory
 Focuses on outcomes that lead to higher
motivation and job satisfaction, and those
outcomes that can prevent dissatisfaction.
 Unsatisfied hygiene needs create
dissatisfaction; satisfaction of hygiene
needs does not lead to motivation or job
satisfaction.
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Herzberg’s Motivation-Hygiene Theory
 Motivator needs relate to the nature of
the work itself—autonomy, responsibility,
interesting work.
 Hygiene needs are related to the physical
and psychological context of the work—
comfortable work environment, pay, job
security.
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McClelland’s Needs for Achievement,
Affiliation, and Power
 Need for Achievement
≈ A strong need to perform challenging
tasks well and meet personal standards for
excellence
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McClelland’s Needs for Achievement,
Affiliation, and Power
 Need for Affiliation
≈ Concerned about establishing and maintaining
good interpersonal relations, being liked, and
having the people around him get along with
each other
 Need for Power
≈ A desire to control or influence others
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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.
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Equity Theory
Condition
Equity
Underpayment
Equity
Overpayment
Equity
Person
Outcomes
Inputs
Outcomes
Inputs
Outcomes
Inputs
Referent
Example
= Outcomes
Inputs
Worker contributes
more inputs but also
gets more outputs
than referent
< Outcomes
Inputs
Worker contributes
more inputs but also
gets the same outputs
as referent
> Outcomes
Inputs
Worker contributes
same inputs but also
gets more outputs
than referent
Table 13.3
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Goal Setting Theory
 Goal
≈ What a person is trying to accomplish through
his efforts and behaviors
≈ Must be specific and difficult
 Goals point out what is important to the firm.
≈ Workers should be encouraged to develop
action plans to attain goals.
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Learning Theories
 Managers can increase employee
motivation and performance by the ways
they link the outcomes that employees
receive to the performance of desired
behaviors in an organization and the
attainment of goals
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Operant Conditioning Theory
 Operant Conditioning
≈ People learn to perform behaviors that lead to
desired consequences and learn not to
perform behaviors that lead to undesired
consequences.
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Operant Conditioning Tools
 Positive Reinforcement
≈ Gives people outcomes they desire when they
perform organizationally functional behaviors
 Negative Reinforcement
≈ Eliminating undesired outcomes once the
functional behavior occurs
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Operant Conditioning Tools
 Extinction
≈ Curtailing the performance of a dysfunctional
behavior by eliminating whatever is
reinforcing it.
 Punishment
≈ Administering an undesired/negative
consequence to immediately stop a
dysfunctional behavior.
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Avoiding Side Effects of Punishment
 Downplay the emotional element involved
 Try to punish dysfunctional behaviors as
soon as they occur
 Try to avoid punishing someone in front of
others
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Organizational Behavior Modification
 Organizational Behavior Modification
≈ Managers systematically apply operant
conditioning techniques to promote the
performance of organizationally functional
behaviors and discourage the performance of
dysfunctional behaviors
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Steps in Organizational Behavior
Modification
Figure 13.4
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Social Learning Theory
 Social Learning Theory
≈ Proposes that motivation results not only from
direct experience of rewards and punishments
but also from a person’s thoughts and beliefs
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Social Learning Theory
 Vicarious Learning (Observational
Learning)
≈ Occurs when a person becomes motivated to
perform a behavior by watching another
person perform the behavior and be positively
reinforced for doing so
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Social Learning Theory
 Self-reinforcement
≈ Any desired or attractive outcome or award
that a person can give himself or herself for
good performance.
 Self-efficacy
≈ A person’s belief about his or her ability to
perform a behavior successfully.
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Pay and Motivation
 Pay as a Motivator
≈ Expectancy: Instrumentality, the association
between performance and outcomes, must be
high for motivation to be high.
≈ Need Theories: pay is used to satisfy many
needs.
≈ Equity Theory: pay should be given in relation
to inputs.
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Pay and Motivation
 Pay as a Motivator
≈ Goal Setting Theory: pay should be linked to
attainment of goals.
≈ Learning Theory: outcomes (pay) should be
distributed upon performance of functional
behaviors.
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Merit Pay and Performance
 Merit Pay Plan
≈ A compensation plan that bases pay on
performance.
 Clarification: Merit pay typically based on individual
performance, as assessed via performance appraisal
• Typically results in base-pay increase
≈ Pay-for-performance plans can be based on
individual, group, or organizational performance
 Can result in base-pay increases or one-time payments
• One-time payments likely to have more motivational value
than base-pay increases
 Regardless, requires performance measurement to be
valid to have motivational value (expectancy theory)
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Awards and Performance
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Salary Increase or Bonus?
Employee Stock Option
≈ A financial instrument that entitles the bearer to
buy shares of an organization’s stock at a
certain price during a certain period of time or
under certain conditions.
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