Chapter 5

Foundations of Employee
Motivation Part 2
Jing Zhu
Fall 2013

Motivation Theories

Major theories

Need-based theories

Maslow hierarchy of needs theory

Four drive theory

Reinforcement theory (Operant

conditioning)

Expectancy theory

Goal Setting theory

Equity theory

Creativity Exercise

Goal Setting Theory

The process of motivating employees

and clarifying their role perceptions by
establishing performance objectives

Goal Specificity
E.g. Do your best vs. Complete in 30 min
Goal Difficulty
Goal must be achievable

Goal-Setting Process
Assigned Goal

Satisfaction
Success

Personal Goal
Effort
Task-Produced
Feedback

Selfevaluation

Continue with
Same Effort
Dissatisfaction

Failure

Intensify Effort
Goal Reduction

Effective Goal Setting

Specific goal
Challenging goal
Goal Commitment
Goal Feedback
Goal Participation
Relevant goal

Task
Effort

Task
Performance

Goal Difficulty and

Performance
Task Performance

High

Low

Area of
Optimal
Goal
Difficulty

Moderate

Challenging

Goal Difficulty

Impossible

Effective Feedback
Specific

Credible

Effective
Feedback

Sufficiently
frequent

Relevant

Timely

Goal-Setting Theory

Other factors influencing the goals

performance relationship

Self-efficacy
Belief in ones ability to

Perform the task

Achieve the desired level of
performance

Expectancy
Belief that effort will lead to
outcome

Group Discussion:
What is the major disagreement
between?
Goal setting theory

Specific & difficult goal

higher performance

Expectancy theory

Effort-to-Performance,
Performance-toOutcome Expectancies

Equity Theory

Individuals compare their job inputs and outcomes

with those of others and then respond to eliminate
any inequities.
Three elements
Outcome/input ratio

Inputs: what employee contributes (e.g., skill, effort)

Outcomes: what employee receives (e.g., pay,
recognition)

Comparison with other

Person/people against whom we compare our ratio

Equity evaluation

Compare outcome/input ratio with the comparison

other

Equity Perception

Overreward vs Underreward
Inequity Scenario
Scenario
You1

Comparison
Other

2
You

Comparison
Other

Underreward Outcomes Outcomes Outcomes Outcomes

Inequity
Inputs

Overreward
Inequity

Inputs

Outcomes

Inputs

Inputs

Outcomes Outcomes
Outcomes

Inputs

Inputs

Inputs

Inputs

Correcting Inequity
Example
Actions
to
correct
inequity
Feelings
1. Reduce our inputs

Less organizational citizenship

2. Increase our outcomes

Ask for more positive evaluation

3. Increase others inputs

Ask the teammate to work harder

4. Reduce others
outcomes

Ask other teammates to lower

their evaluation of the target

5. Change our perceptions

Start thinking that the particular

outcome is not really so important

6. Change comparison
other

Compare self to someone closer

to your situation

7. Leave the field

Quit the group

Equity Theory
Distributive Justice
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.

Improving Procedural
Justice
Process fairness
Voice

encourage employees to present their facts and

opinions on the decision

Decision makers should:

be unbiased

rely on complete and accurate information

apply existing policies consistently

listen to all sides of the matter

provide opportunity to appeal

Treat people with respect and give full explanation

of resource allocation decisions

So, how to motivate?

Expectancy Effort
Theory
s

Equity
Theory
Performan
ce

Reward
s

Reinforcement
Theory
Goal-Setting
Theory

Goal
s

Implications for Managers

Motivating employees in organizations

Recognize individual differences

Provide a balanced opportunity for employees to

fulfill drives

Link rewards to performance

Use goals and feedback

Check the system for equity

Use a variety of motivational tools

Preparation for Next Class

Read Chapter 7
Read the West Indies Yacht Club case