Chapter 9– there isn’t really much on motivation on this midterm. know the basic theories of
motivation and how they apply to the workplace. Intrinsic vs extrinsic motivation. what would
motivate employees based on their style of motivation. premack principle. Know expectancy
theory and the components.
Chapter 10 employee satisfaction and commitment
Know the difference between motivation and satisfaction. How does money interact with
motivation and satisfaction? There is a fair amount on equity theory issues and job satisfaction.
Know the various types of incentive plans used at companies and how they work and how they
differ from each other (merit pay, bonuses, etc), how does satisfaction interact with turnover and
what ways can we improve this. What is employee commitment and how is it affected. Why do
realistic job previews help with job satisfaction. What other ways do we have to improve job
satisfaction and tenure when there is no money or when money is not working. Know job
enlargement/enrichment/rotation/etc and what it looks like and how we use it. How goals affect
motivation. turnover and how to avoid it and reasons we tend to have it (and absenteeism also)
Job satisfaction— the attitude an employee has toward her job
Organizational commitment—the extent to which an employee identifies with
and is involved with an organization
Job satisfaction and organizational commitment are not the same, but highly
correlated. Meta analyses indicate that satisfied employees tend to be committed to
an organization and employees who are satisfied and committed are more likely to
attend work, stay with an organization arrive at work on time, perform well, and
engage in behaviors helpful to the organization than are employees who are not
satisfied or committed.
Equity theory: Components include input output and the ratio, possible situations
include under payment, over payment, and equal payment. Our levels of job
satisfaction and motivation are related to how fairly we believe we are treated in
comparison with others. If we believe we are treated unfairly, we attempt to
change our beliefs or behaviors until the situation appears to be fair. Equity theory
has recently expanded into 3 organizational justices;
Distributive justice: perceived fairness of the actual decisions made in an
Procedural justice: perceived fairness of the methods used to arrive at the decision
Interactional justice: perceived fairness of the interpersonal treatment employees’
Ex: The extent to which the employees believe that the use of the performance
appraisal, interview, and assessment center scores is fair would involve their
perceptions of procedural justice. Their agreement with who got promoted
involves their perceptions of distributive justice
No matter how much we intrinsically like our work, equity and justice theories
predict that we will become dissatisfied if rewards, punishments, and social interactions are not given equitably. If you work harder than a coworker, yet she
receives a bigger raise, you are less likely to be satisfied even though money may
not be the reason you are working.
Individual VS Group Incentives
Individual Incentive plans: Pay for performance. Merit pay.
Pay for performance: pay employees according to how much they individually produce.
EX is a worker who gets paid commission, or being paid for each unit of something sold.
Merit Pay: merit pay systems base their incentives on performance appraisal scores rather
than on such objective performance measures as sales and productivity (pay for
performance). Thus, merit pay is a potentially good technique for jobs in which
productivity is difficult to measure. Ex is that merit pay is used by California public
transit system, and a nonprofit mental health agency.
Group Incentive Plans (organization based): Profit sharing, gainsharing, stock
options. Tries to get employees to participate in the success or failure of the organization.
These plans reward employees for reaching group goals.
Profit sharing: provide employees with a percentage of profits above a certain
amount. EX in addition to their base salary, employees might receive 50% of the
profits a company makes above 6%.
Gainsharing: ties groupwide financial incentives to improvements (gains) in
organizational performance. EX First the company monitors performance
measures over some period of time to derive a baseline. Then productivity goals
above the baseline are set, and the employees are told that they will receive