Motivation and Reward System

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Motivation and Rewards System
GROUP III

Motivation through Equity, Expectancy and Goal Setting
Three Cognitive Theories of Work Motivation
1. Adams’s Equity Theory is a model of motivation that explains how people strive for

fairness and justice in social exchanges or give-and-take relationship and based on Cognitive Dissonance Theory. 2. Expectancy Theory

Holds that people are motivated to behave in ways that produce desired combinations of expected outcomes What an individual is trying to accomplish: it is the object or aim of an action

3. Goal Setting

Cognitive Dissonance Theory

People are motivated to maintain consistency between their cognitive beliefs and their behavior. Perceived inconsistencies create cognitive dissonance ( or psychological discomfort) which, in turn, motivates corrective action. (by LEON FESTINGER)

Factors Considered When Making Equity Comparisons
INPUTS Time OUTCOMES Pay / Bonuses

Education / Training Experience
Past Performance Ability and Skill Creativity

Fringe Benefits Challenging Assignments
Time off with Pay Job Security Career Advancement/Promotion

TYPES OF INEQUITY 1. Negative Inequity

Comparison in which another person receive greater outcomes for similar inputs Comparison in which another person receives lesser outcomes for similar inputs

2. Positive Inequity

1.

1.

DYNAMICS OF PERCEIVED INEQUITY Negative inequity is less tolerable than positive inequity Equity Sensitivity – reflects an individuals as different preferences for, tolerance for, and reactions to the level of equity associated with any given situation Inequity can be reduced in a variety of ways

METHODS 1. Person can increase his /her inputs 2.Person can decrease his/her inputs 3. Person can attempt to increase his /her outcomes 4. Person can decrease his/her outcomes 5. Leave a field 6. Person can psychologically distorts his/her inputs and outcomes 7. Person can psychologically distort the inputs or outcomes of comparison other

EXAMPLES Work harder, Attend School or specialized trainings Don’t work as hard: take longer breaks Ask for a raise: ask for a new title: seek outside intervention Ask for less pay Absenteeism and turnover Convince self that certain inputs are not important: boring: monotonous job Conclude that other has more experience or works harder and has more important title

EXPANDING THE CONCEPT OF EQUITY: ORGANIZATION JUSTICE 1. Distributive Justice the perceived fairness of how resources and rewards are distributed and allocated The Perceive fairness of the process and procedures used to make allocation decisions

2. Procedural Justice

3.Interactional Justice

Extent to which people feel fairly treated when procedures are implemented

Practical Lessons from Equity Theory:
1. Equity Theory provides managers with yet another explanations of how beliefs and attitudes affect job performance 2. Research on equity theorize emphasize the need for managers to pay attention to employee’s perceptions of what is fair and equitable.

3. Managers benefit by allowing employees to participate in making decisions about important work outcome 4. Employees should be given the opportunity to appeal decisions that affect their welfare 5. Employees are more likely to accept and support org. change when they believe it is implemented fairly and when it produces equitable outcomes. 6. Managers can promote cooperation and teamwork among group members by treating them equitably 7.Treating employees inequitably can lead to litigation and costly cost settlements 8. Managers need to pay attention to the organization climate for justice

Measuring Perceived Fair Interpersonal Treatment
Strongly Disagree Disagree Neither Agree Strongly Agree

1. Employees are praised for good work 2. Supervisors do not yell at employees 3. Employees are trusted

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

4. Employees’ complaints are dealt with effectively
5. Employees...
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