Equity, Expectancy
Equity, Expectancy
Equity, Expectancy
Equity,
Expectancy, and
Goal Setting
Chapter Seven
McGraw-Hill/Irwin
2012 The McGraw-Hill Companies, Inc. All rights reserved.
Equity Theory
Equity theory
model of motivation
that explains how
people strive for
fairness and justice in
social exchanges or
give-and-take
relationships
7-2
The Individual-Organization
Exchange Relationship
An employees inputs, for which he expects a just
return, include education/training, skills, creativity,
seniority, age, personality traits, effort expended,
and personal appearance.
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.
7-3
Positive inequity
Comparison in which another person receives
lesser outcomes for similar inputs.
7-4
7-5
Sensitives
adhere to a strict norm of reciprocity and are quickly
motivated to resolve both negative and positive 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
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.
7-8
7-11
7-12
Expectancy
The following factors influence an
employees expectancy perceptions:
Self-esteem.
Self-efficacy.
Previous success at the task.
Help received from others.
Information necessary to complete the task.
Good materials and equipment to work with
7-13
P-to-O
Instrumentality
Outcomes
& Valences
Outcome 1
+ or -
Effort
Performance
Outcome 2
+ or -
Outcome 3
+ or -
7-14
7-15
7-16
Management by objectives
management system incorporating participation
in decision making, goal setting, and feedback
7-17
7-18
7-19
Practical Application of
Goal Setting
Step 1: Set goals
Use time and motion studies, average past
performance, benchmarking
Should be SMART
7-21
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
2. Because of individual differences, it may be
necessary to establish different goals for
employees performing the same job.
7-22
7-23
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