Prepared By -

• Abinash Dash
• Subhankar Panda
• Biplab Adhya
• Sudipta Mohapatra
• Roni Priyadarsini
 Contents
•Vroom’s Expectancy Theory
•Porter And Lawler Theory
•Goal Setting Theory
•Equity Theory
•Conclusion
 Motivation
 Motivation is defined as the process that
initiates, guides, and maintains goal-oriented
behaviours.
 Motivation is what causes you to act,
whether it is getting a glass of water to
reduce thirst or reading a book to gain
knowledge.
 Goal Theory

Equity Process Vroom’s

Theory Theory Theory

Porter &
Lawler
Theory
 Vroom’s Expectancy Theory
• Victor H. Vroom has given this theory in 1964.

This theory emphasizes the needs for organizations to

relate rewards directly to performance and to ensure that the
rewards provided are those rewards deserved and wanted by
the recipients
 Expectancy Theory
• Valence
The attractiveness/importance of the performance
reward (outcome) to the individual.

• Expectancy (Effort – Performance linkage)

The perceived probability that an individual’s effort will
result in a certain level of performance.

• Instrumentality
The perception that a particular level of performance will
result in the attaining a desired outcome (reward).
 Vroom’s Expectancy Theory
• Process of expectancy theory –

 Effort: Employee abilities and training/development

 Performance: Valid appraisal systems
 Rewards (goals): Understanding employee needs

Individual 1 Individual 2 Organisational 3 Personal Goals

effort Performance Reward

 This theory focuses on three relationship:

Effort Performance
Performance reward
Rewards – Personal goals
 Porter And Lawler Theory
• Lyman Porter and Edward Lawler III, two OB
researchers developed this theory.
 Porter And Lawler Theory
• Porter and Lawler’s theory states that the relationship
amongst efforts, performance, rewards & satisfaction.
• Individual effort of an employee is basically dependent
upon the value of expected reward.
• In anticipation of the expected reward, employee effort
leads to better performance.
• For better performance, a person must have the
necessary abilities and skills.
• Effort and performance cannot be equated.
• In between them, traits and abilities have a play.
• The reward, along with the equity of individual lead to
satisfaction.
 Porter And Lawler Theory
• Performance leads to rewards – either intrinsic
rewards which come from within the employee, such
as own satisfaction or extrinsic rewards, like pay,
promotion, etc which are given by organisation.
• Satisfaction is invariably connected with rewards.
• If the actual rewards are greater than the perceived
reward, employee gets satisfaction and vice versa.
• This satisfaction will have an influence on the future
personal values.
• This model provide a very useful tool for
understanding the human behaviour in organisation.
Porter And Lawler Theory
 Goal Setting Theory
• This theory was developed by Edwin A. Locke.
 Goal Setting Theory
 Goal setting theory states that specific and difficult
goals with feedback, lead to higher performance.

 Intentions to work towards a goal are a major

source of work motivation.

 Goals tell an employee what needs to be done and

how much effort will need to be done and how
much effort will need to be extended.
 Goal Setting Theory
 “ More difficult the goal, higher the level of performance”
because,
o Challenging goals help to get our attention and tend to help
us focus.
o Difficult goals energize us because we have to work harder
to attain them.

o When goals are difficult people will persist in trying to attain

them.
o Difficult goals lead us to discover strategies that help us to
perform the job or task more efficiently.
 Goal Setting Theory
• People do better when they get feedback on how
well they are progressing towards their goals.
• Feedback helps to identify discrepancies between
what they have done and what they want to do.
• Feedback acts to guide behaviour.
• Factors influencing the goals – performance
relationship are:
Goal Commitment- When an individual is
committed to the goal, he/she believes that
he/she can achieve the goals or wants to achieve
it.
 Goal Setting Theory
 Task Characteristics- Goals seem to have a more
substantial effort on performance rather than
complex and independent, these are
interdependent.
 National Culture- The goal setting theory is
cultured bound, employees will be responsible
independent.
 Managers and employees will seek challenging
goals as performance is considered important by
both.
 Equity Theory
• First developed in 1963 by John Stacey
Adam.
 Equity Theory
• Proposes that employees perceive what they get from
a job situation (outcomes) in relation to what they
put in (inputs) and then compare their inputs-
outcomes ratio with the inputs-outcomes ratios of
relevant others.
o If the ratios are perceived as equal then a state of
equity (fairness) exists.
o If the ratios are perceived as unequal, inequity exists
and the person feels under or over rewarded.
o When inequities occur, employees will attempt to do
something to rebalance the ratios (seek justice).
IA

Equity Theory
• Employees make comparison of their job
inputs and outcomes relative to those of
others:
O < O Inequity due to being under rewarded
IA IB

O = O Equity
IA IB
O > O
IA IB Inequity due to being over rewarded
 Equity theory
 Employee responses to perceived inequities:
• Distort own or others’ ratios.
• Induce others to change their own inputs or
outcomes.
• Change own inputs (increase or decrease efforts) or
outcomes (seek greater rewards).
• Choose a different comparison (referent) for other
(person, systems, or self).
• Quit their job.
 Employees are concerned with both the absolute and
relative nature of organizational rewards.
 Inputs & Outputs
Inputs Outputs
 Individual’s contribution to  Organization’s return to an
an organization. individual.
 Time  Job security
 Effort  Salary
 Loyalty  Employee benefits
 Hard work  Recognition
 Commitment  Reputation
 Abilities  Sense of achievement
 Conclusion
• Though no one’s theory is successful, all the
theory together help us to understand the
behaviour of the employees.