Management 3101 Chapter 7

Equity Theory

- A model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships - It is is based on cognitive dissonance theory, developed by social psychologist Leon Festinger

Expectancy

- According to Vroom's terminology, represents an individual's belief that a particular degree of effort will be followed by a particular level of performance

Expectancy Theory

- Holds that people are motivated to behave in ways that produce desired combinations of expected outcomes. - Perception plays a central role in expectancy theory because it emphasizes cognitive ability to anticipate likely consequences of behavior.

Management by objectives

- Is a management system that incorporates participation in decision making, goal setting, and objective feedback - Employees' job satisfaction was significantly related to top management's commitment to an management by objectives implementation

Instrumentality

- Is a performance → Outcome perception - Represents a person's belief that a particular outcome is contingent on accomplishing a specific level of performance

Valence

- Refers to the positive or negative value people place on outcomes -mirrors our personal preferences

Insights from Goal-setting Research

- Research consistently has supported goal setting as a motivational technique - Setting performance goals increases individual, group, and organizational performance

Threshold of equity & inequity

- Research has shown that people respond differently to the same level of inequity due to an individual difference called equity sensitivity - Equity sensitivity: Reflects an individual's different preferences for, tolerances for, and reactions to the level of equity associated with any given situation - Benevolents: People who have a higher tolerance for negative inequity -Equity sensitives: Described an individuals who adhere to a strict norm of reciprocity and are quickly motivated to resolve both negative and positive inequity

Practical application of goal setting

- There are three general steps to follow when implementing a goal-setting program. Serious deficiencies in one step cannot make up for strength in the other two - Set goals, promote goal commitment, and Provide Support and Feedback

Goals Increase Persistence

- Within the context of goal setting, persistence represents the effort expended on a task over an extended period of time - Persistent people tend to see obstacles as challenges to be overcome rather than as reasons to fail - A difficult goal that is important to an individual is a constant reminder to keep exerting effort in the appropriate direction

Goal-setting studies given managers five practical insights

1) Specific high goals lead to greater performance 2) Feedback enhances the effect of specific, difficult goals 3) Participative goals, assigned goals, and self-set goals are equally effective 4) Action planning facilitates goal accomplishment 5) Goal commitment and monetary incentives affect goal-setting outcomes