MGMT 2130 Chapter Notes - Chapter 13: Equity Theory, Expectancy Theory, Belongingness

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Concerned with the choices people make regarding how much effort they will put
forth in their jobs
Initiation of effort
Concerned with the choices people make in deciding where to put forth effort in
their jobs
Direction of effort
Concerned with the choices people make about how long they will put forth effort
in their jobs before reducing or eliminating those efforts
Persistence of effort
Set of forces that initiates, directs, and makes people persist in their efforts to accomplish a
goal
Motivation
Effort and Performance
JOB PERFORMANCE = MOTIVATION X ABILITY X SITUATIONAL COSTRAINTS
Degree to which someone works hard to the job well
Motivation
Degree to which workers possess the knowledge, skills, and talent they need to do a job
well
Ability
Beyond the control of individual employees such as tools, policies, and resources that
have an effect on job performance
Situational constraints
Needs satisfaction
The physical or psychological requirements that must be met to ensure survival and
well-being
Psychological
Safety
Belongingness
Esteem
Self-actualization
Progresses up the level of needs
People are motivated by five basic needs
(1) Maslow's Hierarchy of Needs
Existence (safety and physiological needs)
Relatedness (belongingness)
Growth (esteem and self-actualization
People can be motivated by more than one need at a time
(2) Alderfer's ERG theory
Affiliation (to be liked and accepted)
Achievement (to accomplish challenging goals)
Power (to influence others)
Needs are learned, not innate
(3) McClelland's Learned Needs Theory
Three well-known needs theories
Needs
Extrinsic and Intrinsic Rewards
Chapter 13 - Motivation
July 24, 2016
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Extrinsic and Intrinsic Rewards
Tangible and visible to others and are given to employees contingent on the performance of
specific tasks or behaviors
Join the organization
Regularly attend their jobs
Perform their jobs well
Stay with the organization
Companies use extrinsic rewards to motivate people to perform four basic behaviors
Extrinsic rewards
Natural rewards associated with performing a task or activity for its won sake
Intrinsic rewards
1. ask people what their needs are
2. satisfy lower order needs first
3. expect people's needs to change
4. create opportunities for employees to satisfy higher order needs
Motivating with the basics
How perceptions and expectations affect motivation
A theory that states that people will be motivated when they perceive that they are being
treated fairly
Stresses the importance of perceptions
Equity is not objective, but depends on perception
Components of equity theory
Contributions employees make to an organization
Inputs
What employees receive in exchange for their contributions to the organization
Include pay, fringe benefits, status symbols, and job titles and assignments
Outcomes
Those others with whom people compare themselves when determining whether they
are being treated fairly
Referents
Comparison of outcomes to inputs
Outcome/input (O/I) ratio
Inequity can take two forms…
A form of inequity in which you are getting fewer outcomes relative to inputs than your
referent is getting
People may decrease or withhold their inputs (effort)
Increasing outcomes
Rationalize or distort inputs or outputs
Changing the referent
Employees may just leave
Underreward
A form of inequity in which you are getting more outcomes relative to inputs than your
Overreward
Equity Theory
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