Organizational Behavior Exam 2

Expectancy

• "I can do this."

Valence

• A one-dimensional value assigned to an object, situation, or state that can usually be positive or negative. • "I value the reward."

Need Norm

• Based on the idea that those who need more should get more.

Input

• Each participant's contributions that are viewed as entitling him/her to rewards or costs. Examples include time, effort, and loyalty. • Effort, education level, experience, etc.

Equity Norm

• Employees expect a fair return for what they contribute to their jobs, a concept referred to as the "equity norm." • Employees expect a fair return for what they contribute to their jobs, a concept referred to as the "equity norm". Employees determine what their equitable return should be after comparing their inputs and outcomes with those of their coworkers

Expectancy Theory

• Proposes an individual will behave or act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the result of that selected behavior will be.

Interpersonal/Interactional Justice

• Refers to how employees are treated by their leaders including respect and propriety (which refers to whether the leader refrains from offending the follower with comments that are inappropriate) • E.g., has your leader treated you with respect?

External Equity

• Refers to the relationship between one company's pay levels in comparison to what other employers pay. Market definition is important to measuring external equity. • Outside the organization (product, service, labor market)

Equality Norm

• Regardless of their inputs, all group members should be given an equal share of the rewards/costs. Equality supports that someone who contributes 20% of the group's resources should receive as much as someone who contributes 60%.

What is the breakdown of organizational justice theory:

1. Distributive Justice 2. Procedural Justice 3. Interpersonal/Interactional Justice

What are the three distributive justice norms?

1. Equality Norm 2. Equity Norm 3. Need Norm

What are the types of equity comparisons?

1. Internal Equity 2. External Equity

Equity Theory

A theory that looks at how people compare their inputs to their outcomes. • Suggest that people may become demotivated or put forth less effort when they feel that what they give and what they get is not in balance. • According to the theory, a person (the focal person, or FP) compares himself to the coworker (or CO) • He compares his inputs (skills, abilities, effort on the job) to his outcomes.

Extrinsic Rewards

Are rewards emanating from outside the individual such as bonus, commission and pay increases.

Intrinsic Rewards

Are the positive feelings that the individual experiences from completing the task e.g. satisfaction, sense of achievement.

Internal Equity

Is the comparison of positions within your business to ensure fair pay. You must pay employees fairly compared to coworkers. Employees must also perceive that they are paid fairly compared to their coworkers.

Equity Occurs When...

O/I = O/I of comparison person

Inequity Occurs When...

O/I ≠ O/I of comparison

Comparison Person

Someone viewed as similar, same job position, other relatable factors

Porter-Lawler Model of Motivation

o Used Victor Vroom's expectancy theory as a foundation to develop their expectancy model. Similar to Vroom's theory Porter and Lawler concluded that an individual's motivation to complete a task is affected by the reward they expect to receive for completing the task. However Porter and Lawler introduced additional aspects to the expectancy theory. • Porter and Lawler's model suggested that an individual's view regarding the attractiveness and fairness of the rewards would affect motivation.

Procedural Justice

• The perception of how fair the process was in making decisions that affect employees • Has been shown to be more important than distributive justice in how followers respond to the decisions of their leaders in two meta-analytic studies that included a variety of organizational and occupational samples. • E.g., have you been able to express your views and feeling during the process?

Outcomes

• The positive and negative consequences that an individual perceives to be a result of his/her actions. Examples include praise, bonuses, and promotions. • Money, status, promotion, opportunities, etc.

Instrumentality

• The quality or condition of serving a purpose, being useful. • "I will receive a reward."

Distributive Justice

• What people receive as a result of their knowledge, skill, and effort on the job • Refers to the fairness of decisions made as perceived by the followers • E.g., is your outcome justified given in your performance?