Lecture 7
MOTIVATION PART 2:
PROCESS THEORIES
Class Overview
• Lecture - process theories of motivation
– expectancy theory
– equity theory
– Porter-Lawler integrated model
• Group exercise: Critical Incident “Salary
versus Commission”
Introduction
• Why process theories?
• These theories focus upon those internal
processes that give rise to goal directed
behavior
• They highlight the importance of stimulus
conditions (rewards) and personal
expectations
Expectancy Theory
• Explains workers motivation in terms of
anticipated rewards
• the psychological force on an employee to
exert effort is a function of two factors:
– Expectancies in future
– Attractiveness of specific outcomes
Expectancy & Valence
• Expectancies - probabilities ranging from
zero to one:
– Effort  Performance
• What is the probability that my effort
will result in successful performance?
– Performance Outcome
• Will my good performance result in my
obtaining the outcome or reward?
• Attractiveness of outcomes are evaluated in
terms of their their valence (from -1 to +1)
Expectancy Theory (cont.)
• Motivation can be quantitatively
expressed in this theory by assigning a
probability “score” to each type of
employee expectation
• Motivation can be expressed as:
(P) x (PO) x (V) = Motivational
Force
Simple Example
•
•
•
•
•
Task: racing an Indy Car
My Effort-Performance expectancy: 0.5
My Performance-Outcome expectancy: 1.0
My valence for winning +1.0
Total motivational force =
0.5 * 1.0 * 1.0 = 0.5
• John Andretti’s Effort Performance
expectancy = 0.9
• His total motivational force = 0.9
Implications of Expectancy
Theory
• Employees must perceive a close link
between effort and performance
– requires careful selection, training, and job
design
• Employees must perceive a close and
consistent link between rewards and
performance
– requires careful compensation design and
administration, performance review, and
communications
Equity Theory
• Primary assumption: people compare
their situation to that of relevant others
• Specifically, we compare our efforts and
our rewards with those of others
• Equity theory proposes that people will
strive to restore equity if they feel an
imbalance exists
• It is this desire to restore equity that is
the cause of goal directed behavior
Effort and Rewards
• Inputs: All contributions that a person
makes to the employment relationship
– effort, years and type of education, prior
experience, training
• Outcomes: Anything provided by an
employee’s job
– e.g. pay, benefits, working conditions,
company car
Comparisons
• Comparison other: The person with
which an individual compares his/her
inputs and outcomes
– typical relevant others: coworkers, boss,
subordinates, professional peers, friends :
Os : Is
 Oo : Io
Example 1
• I work 8 hours a day and produce 50
widgets
• My coworker Rob also produces 50
widgets in the same period
• We both receive $500 a week, but Rob
gets to use the company car on weekends
• Equity?
Example 2
• Rob and I both work 5 days every week
• We both get paid the same $500
• I have a PhD, but Rob has a Bachelor’s
degree
• Equity?
Behavior under Inequity
• Under inequity we can try to change:
– our behavior, our outcomes, others behavior,
others outcomes
• Lower ratio status - employee feels
undercompensated:
– Increase outcomes by asking for raise
– Decrease inputs by being less productive
– Decrease comparison other’s outcomes by
persuading boss to alter B’s pay
– Increase B’s inputs by pressuring him/her to
work harder
Behavior under Inequity
• Higher ratio status - employee feels
overcompensated
– decrease outcomes? Unlikely
– increase others outcomes? Difficult
– decrease others inputs? Possible, but easier
to...
– increase own inputs. What typically will
occur is that over paid employees may
increase the quality of their output relative
to more equitably paid workers
Behavior under Inequity
• If inequity can’t be rectified, then the
individual may choose to pursue any of
the following options:
– Alter perceptions of situation to make
inequity disappear
– Select a different comparison other
– Leave the work setting by getting a new job
Porter-Lawler’s Model of
Motivation
• Integrates both content and process
theories into one interactive model
• Content theories: discuss what motivates
people to perform; e.g. theories of
Maslow, Herzberg, and McClelland
• Process theories: discuss how rewards
control behavior; e.g. expectancy, equity,
reinforcement, social learning theories
Conclusions of Porter-Lawler’s
Model
• A checklist for managers to use in
motivating employees; managers should:
– Offer valued rewards
– Create perceptions that effort will lead to
rewards
– Design jobs so that effort leads to high
performance
– Hire qualified employees
Conclusions of Porter-Lawler’s
Model (cont.)
– Train employees in the correct manner for
performing their task
– Design tasks so that performance is
measurable
– Design reward systems so that rewards are
tied to performance
– Ensure that rewards are viewed as fair and
equitable
Group Exercise
• Critical incident “Salary versus
Commission” (pp. 88-89)
• Individually read the incident
• As a group, discuss the three questions and
write down your answers
• I will call on you, so be prepared to defend
your answers