Session 3: Motivation and

Performance

Process Theories of
Motivation
Process Perspectives of Motivation
• Why people choose certain behavioral options
to satisfy their needs and how they evaluate
their satisfaction after they have attained their
goals.
• Process perspectives of Motivation
– Goal Setting Theory
– Equity Theory
– Expectancy Theory
GOAL SETTING THEORY

• Focuses on motivating workers to

contribute their inputs to their jobs
and organizations
• Considers how managers can
ensure that workers focus their
inputs in the direction of high
performance and the achievement
of organizational goals.
 GOAL SETTING THEORY

• Goal
– What a person is trying to accomplish
through his efforts and behaviors
– Must be specific and difficult
• Goals point out what is important to the
firm.
– Workers should be encouraged to develop
action plans to attain goals.
 ACTIVITY

Do equity, fairness and Expectancy

matter in motivating others?
 Equity Theory

Equity theory – the assumption that how much

people are willing to contribute to an
organization depends on their assessment of the
fairness (equity) of the rewards they will receive
in exchange.
EQUITY THEORY
• Equity Theory
– Focuses on people’s perceptions of the fairness
(or lack of fairness) of their work outcomes in
proportion to
their work inputs.
EQUITY THEORY
• A relative outcome to input ratio comparison
to oneself or to another person (referent)
perceived as similar to oneself.
• Equity exists when a person perceives that
their outcome/input ratio to be equal to the
referent’s ratio.
– If the referent receives more outcomes, they
should also give more inputs to achieve equity.
EQUITY THEORY
Condition Person Referent Example

Worker
Workercontributes
contributes
Outcomes
Outcomes == Outcomes
Outcomes more
more inputsbut
inputs butalso
also
Equity
Equity Inputs Inputs gets more outputs
Inputs Inputs gets more outputs
than
thanreferent
referent

Worker
Workercontributes
contributes
Underpayment
Underpayment Outcomes
Outcomes << Outcomes
Outcomes more
more inputsbut
inputs butalso
also
Equity Inputs
Inputs Inputs
Inputs gets the same outputs
gets the same outputs
Equity
as
asreferent
referent

Worker
Workercontributes
contributes
Overpayment
Overpayment Outcomes
Outcomes >> Outcomes
Outcomes same
same inputsbut
inputs butalso
also
Equity Inputs
Inputs Inputs
Inputs gets more outputs
gets more outputs
Equity
than
thanreferent
referent
EQUITY THEORY

• Inequity exists when worker’s outcome/input ratio

is not equal to referent.
– Underpayment inequity: ratio is less than the referent.
• Workers feel they are not getting the outcomes they
should for their inputs.
– Overpayment inequity: ratio is higher than the referent.
• Workers feel they are getting more outcomes than
they should for their inputs.
• Individuals equate value of rewards to effort and compare
it to other people.

outcomes(self) outcomes (other)

=
Inputs (self) Inputs (other)

Motivation to maintain current

Equity situation

Inputs/Outcomes Ways to reduce inequity

Comparison of self • Change inputs
with others • Change outcomes
• Alter perceptions of self
• Alter perceptions of other
Inequity • Leave situation
• Change comparisons
EQUITY THEORY

• Restoring Equity: Inequity creates tension in

workers causing them to attempt to restore equity.
– In underpayment, workers may reduce input levels to
correct (rebalance) the ratio or seek a raise.
– In overpayment, workers may change the referent
person and readjust their ratio perception.
– If inequity persists, workers will often choose to leave
the organization.
 EXPECTANCY THEORY
THE BASIC IDEA
• People tend to prefer certain goals, or
outcomes, over others.
• They anticipate experiencing feelings of
satisfaction should such a preferred outcome
be achieved.
• Basically, people are motivated to behave in
ways that produce valued outcomes.
 EXPECTANCY THEORY
A PROCESS PERSPECTIVE
M=ExIxV

• For motivated behavior to occur:

– Effort-to-performance must be greater than 0
– Performance-to-outcome must be greater than 0
– Sum of valences must be greater than 0*
* One or more valences may be negative!
EXPECTANCY MODEL OF MOTIVATION

Effort Performance Reward

Effort
Effort Performance Reward

Perceived effort– Perceived Perceived

performance performance–
Perceived value of reward
Perceived
probability reward probability
performance– value of reward
reward probability

“If I work hard, “What rewards “What rewards

will I get the job will I get when do I value?”
done?” the job is well
done?”
Expectancy Theory(Vroom et al.)

Motivation will be high when

workers believe:
– High levels of effort will lead
to high performance.
– High performance
will lead to the
attainment of
desired outcomes.
EXPECTANCY, INSTRUMENTALITY, AND VALENCE
EXPECTANCY THEORY