Objective [1]

Discuss the role of perceived inequity in employee motivation. Equity theory is a model of motivation that explains how people strive for fairness and justice in social exchanges. On the job, feelings of inequity revolve around a person's evaluation of whether he or she receives adequate rewards to compensate for his or her contributive inputs. People perform these evaluations by comparing the perceived fairness of their employment exchange with that of relevant others. Perceived inequity creates motivation to restore equity.

Objective [2]

Describe the practical lessons derived from equity theory. Equity theory has at least eight practical implications. First, because people are motivated to resolve perceptions of inequity, managers should not discount employees' feelings and perceptions when trying to motivate workers. Second, managers should pay attention to employees' perceptions of what is fair and equitable. It is the employee's view of reality that counts when trying to motivate someone, according to equity theory. Third, employees should be given a voice in decisions that affect them. Fourth, employees should be given the opportunity to appeal decisions that affect their welfare. Fifth, employees are more likely to accept and support organizational change when they believe it is implemented fairly and when it produces equitable outcomes. Sixth, managers can promote cooperation and teamwork among group members by treating them equitably. Seventh, treating employees inequitably can lead to litigation and costly court settlements. Finally, managers need to pay attention to the organizationfs climate for justice because it influences employee attitudes and behavior.

Objective [3]

Explain Vroom's expectancy theory. Expectancy theory assumes motivation is determined by one's perceived chances of achieving valued outcomes. Vroom's expectancy model of motivation reveals how effort --> performance expectancies and performance --> outcome instrumentalities influence the degree of effort expended to achieve desired (positively valent) outcomes.

Objective [4]

Describe the practical implications of expectancy theory. Managers are advised to enhance effort --> performance expectancies by helping employees accomplish their performance goals. With respect to instrumentalities and valences, managers should attempt to link employee performance and valued rewards. There are four prerequisites to linking performance and rewards: (a) Managers need to develop and communicate performance standards to employees, (b) managers need valid and accurate performance ratings, (c) managers need to determine the relative mix of individual versus team contribution to performance and then reward accordingly, and (d) managers should use performance ratings to differentially allocate rewards among employees.

Objective [5]

Identify five practical lessons to be learned from goal-setting research. Difficult goals lead to higher performance than easy or moderate goals: goals should not be impossible to achieve. Specific, difficult goals lead to higher performance for simple rather than complex tasks. Third, feedback enhances the effect of specific, difficult goals. Fourth, participative goals, assigned goals, and self-set goals are equally effective. Fifth, goal commitment and monetary incentives affect goal-setting outcomes.

Objective [6]

Specify issues that should be addressed before implementing a motivational program. Managers need to consider the variety of causes of poor performance and employee misbehavior. Undesirable employee performance and behavior may be due to a host of deficient individual inputs (e.g., ability, dispositions, emotions, and beliefs) or job context factors (e.g., materials and machinery, job characteristics, reward systems, supervisory support and coaching, and social norms). The method used to evaluate performance as well as the link between performance and rewards must be examined. Performance must be accurately evaluated and rewards should be equitably distributed. Managers should also recognize that employee motivation and behavior are influenced by organizational culture.