When you finish studying the material in this chapter, you should be able to:

• Discuss the role of perceived inequity in employee motivation.
• Explain Vroom’s expectancy theory of motivation and Porter and Lawler’s extension of the expectancy theory.
• Explain how goal setting motivates people and identify five practical lessons to be learned from goal-setting research.
• Discuss how the recipient’s characteristics, perceptions and cognitive evaluations affect how people process feedback.
• List at least three practical lessons from feedback research.
• List different types of organisational rewards.
• Describe practical recommendations to implement an organisational reward system.
• Specify issues that should be addressed before implementing a motivational programme.