Wk 13

1- Expectancy theory : a process governing choices among alternative activities. Employess are
more likely to be motivated when they perceive their efforts will result in successful
performance and, ultimately, desired rewards and outcomes.

four most important components of expectancy theory are

▪ Effort-to-performance (E ➝ P) (expectancy ): It refers to the individual’s perception of how probable

it is that exerting a given amount of effort will lead to good performance. ranges from 0 to 1.

▪ Performance-to-outcome (P ➝ O) (Instrumentality): whether performing at a particular level will

lead to the attainment of a desired outcome, ranges from –1 to +1

▪ Rewards–Personal Goals Relationship ( Valence ): the degree to which organizational rewards satisfy
an individual’s personal goals or needs and the attractiveness of those potential rewards for the
individual. Valence ranges from –1 (very undersirable reward) to +1 (very desirable reward)

▪ Outcomes :

- focuses on the three relationships ▪ Expectancy ▪ Instrumentality ▪ Valence

2- Goal-Setting Theory : A goal is “what an individual is trying to accomplish; it is the object or

aim of an action. Goals tell an employee, ▪ what needs to be done and ▪ how much effort will
need to be expended.
goal setting motivates in four ways:
1 - Goals direct attention: Goals indicate where individuals should direct their efforts when
they are choosing among things to do.
2 - Goals regulate effort: Goals suggest how much effort an individual should put into a given
task.
3 - Goals increase persistence: Persistence represents the effort spent on a task over time
4 - Goals encourage the development of strategies and action plans: Once goals are set,
individuals can develop plans for achieving those goals

Effective Goals:
they should be “SMART.”
Specific : Individuals know exactly what is to be achieved.
Measurable : The goals must be tracked and reviewed.
Attainable : The goals should be reasonable and achievable.
Results-oriented: The goals should support the vision of the organization.
Time-bound : The goals are to be achieved within a stated time
 Contingency Factors in Goal-Setting
-feedback : most important factors that influences the relationship between goals and
performance if positive raises the goals , if negative lowers the goals
-Self-efficacy refers to an individual’s belief that he or she is capable of performing a task.
Four other factors have been also found to influence the goals-performance relationship: ▪
goal commitment ▪ adequate self-efficacy ▪ task characteristics ▪ national culture

3- Equity Theory: employees compare their job inputs (i.e., effort, experience, education,
competence, creativity) and outcomes (i.e., salary levels, raises, recognition, challenging
assignments, working conditions) with those of others.
-if we perceive our ratio to be equal, astate of equity is said to exist. We perceive our
situation as fair—that justice prevails.
-we see the ratio as unequal, we experience this as inequity

What Happens When We Feel Treated Inequitably?

-Change their inputs (for example, may decide to exert less effort playing quarterback).
-Change their outcomes (may try to renegotiate the contract to get himself/herself a higher
salary).
-Adjust perceptions of self (may think, “I’ve only been in the organization for two years.
Maybe I don’t really have the same experience as the other guys”).
-Adjust perceptions of others (may think, “his collegue has been a quarterback for a lot
longer, and maybe he/she deserves greater pay”).
-Choose a different referent (for example, could consider what other quarterbacks who have
been in the organization for only two years receive).
-Leave the field (may decide to leave the organization)

Fair Process and Treatment

distributive justice - the perceived fairness of the amount and allocation of rewards among
individuals.
procedural justice - the perceived fairness of the process used to determine the distribution
of rewards
interactional justice—the quality of the interpersonal treatment received from a manager.
WK 14

Cognitive Evaluation Theory : the introduction of extrinsic rewards, such as pay, for work
effort that was previously rewarding intrinsically (i.e., that was personally satisfying) will tend
to decrease the overall level of a person’s motivation

Extrinsic Rewards
1- Financial Rewards:
Salary and Wages Money is a major extrinsic reward. Although it is generally agreed that
money is the major mechanism for rewarding and modifying behavior in industry very
little is known about how it works. Unless employees can see a connection between
performance and merit increases, money will not be a powerful motivator.
Employee Benefits The major financial employee benefit in most organizations is the
pension plan, and for most employees, the opportunity to participate in the pension plan
is a valued reward. Employee benefits such as pension plans, hospitalization, and
vacations usually are not contingent on the performance of employees, but are based on
seniority or attend
2- Interpersonal Rewards: The manager has some power to distribute such interpersonal
rewards as status and recognition
3- Promotions: For many employees, promotion does not happen often; some employees
never experience it in their careers. The manager making a promotion reward decision
attempts to match the right person with the job.

Intrinsic Rewards

1- Completion: The ability to start and finish a project or job is important to some
individuals. That is called task completion. Some people have a need to complete tasks,
and the effect that completing a task has on a person is a form of selfreward.
Opportunities that allow such people to complete tasks can have a powerful motivating
effect.
2- Achievement: Achievement is a self-administered reward that is derived when a person
reaches a challenging goal. McClelland has found that there are individual differences in
striving for achievement. Some individuals seek challenging goals, while others tend to
seek moderate or low goals.
3- Achievement: In goal-setting programs, it has been proposed that difficult goals result in
a higher level of individual performance than do moderate goals. However, even in such
programs, individual differences must be considered before reaching conclusions about
the importance of achievement rewards.
4- Autonomy: Some people want jobs that provide them with the right and privilege to
make decisions and operate without being closely supervised. A feeling of autonomy
could result from the freedom to do what the employee considers best in a particular
situation
5- Personal Growth: The personal growth of any individual is a unique experience. An
individual experiencing growth senses his/her development and can see how his or her
capabilities are being expanded.

4 key rewards that increase an individual’s intrinsic motivation:

Sense of choice: The opportunity to select what one will do, and perform the way one thinks
best. Individuals can use their own judgment to carry out the task.

Sense of competence: The feeling of accomplishment for doing a good job. People are more
likely to feel a sense of accomplishment when they carry out challenging tasks.

Sense of meaningfulness: The opportunity to pursue worthwhile tasks. Individuals feel good
about what they are doing, and believe that what they are doing matters.

Sense of progress: The feeling of accomplishment that one is making progress on a task, and
that it is moving forward. Individuals feel that they are spending their time wisely in doing
their jobs

4 sets of behaviours managers can use to create intrinsic rewards for their employees:

▪ Leading for choice: Empowering employees and delegating tasks

▪ Leading for competence: Supporting and coaching employees

▪ Leading for meaningfulness: Inspiring employees and modelling desired behaviours

▪ Leading for progress: Monitoring and rewarding employees

Core Job Dimensions

Skill variety: The degree to which the job requires a variety of different activities so the
employee can use a number of different skills and talents.

Task identity: The degree to which the job requires completion of a whole and identifiable
piece of work.

Task significance : The degree to which the job has a substantial impact on the lives or work
of other people.

Autonomy : The degree to which the job provides substantial freedom, independence, and
discretion to the individual in scheduling the work and determining the procedures to be
used in carrying it out.

Feedback : The degree to which carrying out the work activities required by the job results in
the individual’s obtaining direct and clear information about the effectiveness of his or her
performance.

Critical Psychological States

Experienced meaningfulness: The model predicts that if an employee’s task is meaningful,

the employee will view the job as important, valuable, and worthwhile.

Experienced responsibility for outcomes: Employees feel a sense of personal responsibility for
results when their jobs give them greater autonomy.

Knowledge of the actual results: Feedback helps employees know whether they are
performing effectively. The feedback can come from managers, clients, coworkers, or the
nature of the task itself.