EQUITY THEORY
• This process theory focuses on workers'
perceptions of the fairness of their work
outcomes and inputs. Specifically they
strive to maintain ratios of their own
rewards to contributions which are equal
to others' ratios .
EQUITY EQUATIONS
• Equity
– Outcomes (self)
Inputs
=
(self)
• Underpayment Inequity
Outcomes (self)
Inputs (self)
•Overpayment Inequity
Outcomes (self)
Inputs
(self)
Outcomes (other)
Inputs (other)
<
>
Outcomes (other)
Inputs (other)
Outcomes (other)
Inputs (other)
BALANCING THE SCALES
• Workers can change their inputs
• Workers can change their outcomes
• Workers can try to change others
outcomes and inputs
• Workers can change their perceptions
• Workers can change their reference
person
• Workers can change jobs
IMPLICATIONS OF EQUITY
THEORY
•
•
•
•
•
Avoid underpayment
Avoid overpayment
Be sensitive to inequity perceptions
Monitor regularly for creeping inequity
When sacrifices are needed distribute
equally from top to bottom
PROCEDURAL JUSTICE
• A process theory about motivation that
focuses on workers perceptions of the
fairness of the procedures used to
determine outcomes. It deals with how
performance is evaluated and how pay
scales are determined and how
grievances are handled.
BUILDING PROCEDURAL
JUSTICE
• Treat workers with respect
• Give workers a voice in decisions
concerning them
• Explain decisions to workers
ETHICAL ISSUES AND
PROCEDURES
•
•
•
•
•
Conflict of interest
Nepotism
Equal employment opportunity
Intellectual property rights
Whistle blowing
EXPECTANCY THEORY
• A process theory that states motivation is
determined by the outcomes people
expect as a result of their actions on the
job. Essentially it holds that people will
be motivated when expect that they will
be able to achieve what they want from
their jobs
EXPECTANCY
COMPONENTS
• Expectancy — the belief that efforts will
influence performance. Ex. If I study
hard, I'll be able to answer exam
questions.
• Instrumentality — Belief that
performance leads to a specific outcome.
If I answer that questions, I can get an A.
• Valence — The value attached to a
reward or outcome.
EXPECTANCY EQUATION
Effort
Expectancy
X
Performance
Reward
Rewards
s
Instrument
ality
X
Valence
MOTIVATION
IMPLICATIONS OF
EXPECTANCY THEORY
• Clarify expectancies about effort and
levels of performance
• Help employees attain desired level of
performance, be a coach
• Clearly link rewards and performance
• Know what types of rewards are desired.
• Be sensitive to workers perceptions of
expectancy
COMPARING THE
THEORIES
• Need theory -- works well when the focus
is one outcomes and you have control
over the outcomes
• Equity theory -- salient when appraisals
are done, increases are given
• Expectancy theory -- salient at times of
goal setting and performance appraisal,
and salary increases, and promotions.
BACKWARDS & FORWARDS
• Summing up: How fairness in the work place
can motivate to a change in performance when
we looked at equity theory. The importance of
tying performance to outcomes was the heart of
expectancy theory.
• Next time we look at some common
applications of motivational theory to the
workplace: job design, goals setting and pay.