Expectancy theory
The Expectancy theory was developed Victor Vroom and is very popular theory of work motivation. Vroom suggests that motivation will be high when workers feel:
• High levels of effort lead to high performance
• High performance will lead to the attainment to desire outcomes.
The expectancy theory consists of three areas: Expectancy, instrumentally and valence.
Expectancy, instrumentally and valence
Effort – expectancy: person’s perception that their effort will result in performance.
Performance- Instrumentally: perception that performance results in outcomes.
Outcomes- valence: how desired are the outcomes from a job.
Expectancy, instrumentally and valence
Expectancy: is the perception that effort (input) will result in a level of performance.
• You will work hard if it leads to high performance.
• You will be less willing to work hard if you knew that the best you would get on a paper was a D regardless of how hard you tried.
Instrumentally: Performance leads to outcomes.
• Workers are only motivated if they think performance leads to an outcome
• Managers should link performance to outcomes.
Valence: How desirable each outcome is to a person.
• Managers should determine the outcomes works want most
Maslow's Hierarchy of needs
People are motivated to obtain outcomes at work to satisfy their needs.
• A need is a requirement for survival
• To motivate a person
• Managers must determine what needs worker wants satisfied.
• Ensure that a person receives the outcome when performing well.
Equity theory
- Consider worker's perception of the fairness of work outcomes in proportion to their inpute
- The Outcome/input ratio is compared by worker with another person called a referent
- The referent is perceived similar to the worker
- Equity exists when a person perceives their outcome/input ratio to be equal to the referents ratio
- If the referent receives more outcomes, they should also give more inputs to achieve equity
Inequity
- Inequity exists when workers outcome/income ratio is not equal to referent
- Underpayment inequity: ratio is less than the referent. Workers feels they are not getting the outcomes they should give inputs
- Overpayment inequity: ratio is the higher than the referent. Worker feels they are getting more outcomes than they should give inputs
- Restoring equity: inequity creates tension in worker to restore equity
- In underpayment, workers reduce input levels to correct
- Over payment, worker can change the referent to adjust
- If inequity persists, worker will often leave the firm.