MGHB12H3 Chapter Notes - Chapter 9: Expectancy Theory, Equal Pay For Equal Work, Piece Work
Document Summary
It is not uncommon for organizations to establish very specific goals for linking their organizational objectives to their compensation program. Equity theory- for employees, equity is achieved when their perceived input. Output ratio equals the input/output ratio of referent others ( or those to whom they compare themselves) Expectancy theory- the expectancy theory of motivation predicts that one"s level of motivation depends on the attractiveness of the reward sought and the probability of obtaining those rewards. Three conditions must be met for a reward to be motivational : High valence- it must be valued by the employee. High instrumentality- believe that the attainment of goals and objectives set by the organization must result in the promised rewards. Expectancy- the required tasks can be attainable although sometimes might be challenging. Hourly work- work paid on an hourly basis. Piece work work paid according to the number of units produced.
