Two-Factor Theory (Frederick Herzberg)

Overview of Expectancy Theory

Effort Performance Reward

Valence of
Expectancy X Instrumentality X reward

MOTIVATION
Abilities Role perceptions
and traits and opportunities

JOB
PERFORMANCE
David McClelland’s Theory of Needs

nPow

nAch nAff
Matching Achievers and Jobs
Reinforcement Theory

Concepts:
Behavior is environmentally caused.
Behavior can be modified (reinforced) by
providing (controlling) consequences.
Reinforced behavior tends to be repeated.
Ken Thomas’s Model of Intrinsic Motivation

 Employees are intrinsically motivated when

rewards an employee gets from work result from:
– Choice– the ability to freely self-select and perform
task activities.
– Competence– the sense of accomplishment from
skillfully performing chosen tasks or activities.
– Meaningfulness– pursuing a task that matters in the
larger scheme of things.
– Progress– the feeling of significant advancement in
achieving the task’s purpose.
Equity Theory

Referent
Comparisons:
Self-inside
Self-outside
Other-inside
Other-outside
Equity Theory (cont’d)

Choices for dealing with inequity:

1. Change inputs (slack off)
2. Change outcomes (increase output)
3. Distort/change perceptions of self
4. Distort/change perceptions of others
5. Choose a different referent person
6. Leave the field (quit the job)
Equity Theory (cont’d)

Propositions relating to inequitable pay:

1. Overrewarded employees produce more
than equitably rewarded employees.
2. Overrewarded employees produce less, but
do higher quality piece work.
3. Underrewarded hourly employees produce
lower quality work.
4. Underrewarded employees produce larger
quantities of lower-quality piece work than
equitably rewarded employees
Equity Theory (cont’d)
Expectancy Theory

EXHIBIT 6-8
Performance Dimensions

EXHIBIT 6-9