Motivation II: Equity, Expectancy, and Goal Setting Chapter Seven McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, Inc All rights reserved Copyright © 2012 by The McGraw-Hill Companies, Inc All rights reserved 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 7-2 Equity Theory Equity theory model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships 7-3 The Individual-Organization Exchange Relationship An employee’s inputs, for which he expects a just return, include education/training, skills, creativity, seniority, age, personality traits, effort expended, and personal appearance 7-4 The Individual-Organization Exchange Relationship On the outcome side the organization provides such things as pay/bonuses, fringe benefits, challenging assignments, job security, promotions, status symbols, recognition, and participation in important decisions 7-5 Negative and Positive Inequity Negative inequity Comparison in which another person receives greater outcomes for similar inputs Positive inequity Comparison in which another person receives lesser outcomes for similar inputs 7-6 Dynamics of Perceived Inequity People have varying sensitivities to perceived equity and inequity Inequity can be reduced in a variety of ways 7-7 Negative and Positive Inequity Figure 7-1 7-8 Thresholds of Equity and Inequity Equity sensitivity reflects an individual’s “different preferences for, tolerances for, and reactions to the level of equity associated with any given situation” 7-9 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 7-10 Goals: Definition and Background Goal what an individual is trying to accomplish object or aim of an action 7-26 Goals: Definition and Background Management by objectives management system incorporating participation in decision making, goal setting, and feedback 7-27 How Does Goal Setting Work Goals direct attention Goals regulate effort Goals increase persistence Goals foster the development and application of task strategies and action plans 7-28 Insights from Goal-Setting Research Specific high goals lead to greater performance Goal specificity – quantifiability of a goal Feedback enhances the effect of specific, difficult goals Participative goals, assigned goals, and self-set goals are equally effective 7-29 Insights from Goal-Setting Research Action planning facilitates goal accomplishment Action plan outlines the activities or tasks that need to be accomplished in order to obtain a goal Goal commitment and monetary incentives affect goal-setting outcomes Goal commitment – extent to which an individual is personally committed to achieving a goal 7-30 Question? Julia wants to become a successful heart surgeon This reflects Julia's A.Expectancy B.Perception C.Goal D.Personality 7-31 Practical Application of Goal Setting Step 1: Set goals Use time and motion studies, average past performance, benchmarking Should be SMART 7-32 Practical Application of Goal Setting Two additional recommendations: 1.For complex tasks, managers should train employees in problem-solving techniques and encourage them to develop a performance action plan 7-33 Practical Application of Goal Setting Because of individual differences, it may be necessary to establish different goals for employees performing the same job 7-34 Guidelines for Writing SMART Goals 7-35 Practical Application of Goal Setting Step 2: Promote goal commitment Involve employees in the goal setting and action planning process Have managers explain the rationale behind higher level goals 7-36 Practical Application of Goal Setting Step 3: Provide support and feedback ensure that each employee has the necessary abilities, training, technology/equipment, and information needed to achieve his or her goals 7-37 Question? Jim is the manager of a sales team at Woo Automotive He expects his salespeople to sell 250 cars per week Which guideline for writing SMART goals does this violate? A.Specific B.Measurable C.Attainable D.Time-bound 7-38 Video Case: Hot Topic What unique features does the culture at Hot Topic have? How these features contribute to their success? What benefits you like that are offered by Hot Topic? Are they different than the benefits you have heard about from your parents or others? How does Hot Topic keep itself current with what its customers and employees want? 7-39 Video Case: Motivation Convention Are people fundamentally different today than in the past? Why workers need to be “buttered up” more today? What are some different types of incentives employees are given today to “motivate” them? What have you received in terms of different incentives from your employers? Why is motivating employees so important - you think it makes that big of a difference? 7-40 ... Management by objectives management system incorporating participation in decision making, goal setting, and feedback 7-27 How Does Goal Setting Work Goals direct attention Goals regulate effort Goals... quantifiability of a goal Feedback enhances the effect of specific, difficult goals Participative goals, assigned goals, and self-set goals are equally effective 7-29 Insights from Goal- Setting Research... persistence Goals foster the development and application of task strategies and action plans 7-28 Insights from Goal- Setting Research Specific high goals lead to greater performance Goal specificity