EQUITY THEORY
•This process theory focuses on workers'
perceptions of the fairness of their work
outcomes and inputs. Specifically they
strive to maintain ratios of their own
rewards to contributions which are equal
to others' ratios .
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Equity, Procedural Justice, and Expectancy Theory: Motivation in the Workplace, Slides of Sociology of Work and Employment
An overview of three prominent motivation theories in the workplace: Equity Theory, Procedural Justice, and Expectancy Theory. Equity Theory focuses on workers' perceptions of fairness in outcome-input ratios, Procedural Justice deals with the fairness of procedures used to determine outcomes, and Expectancy Theory asserts motivation is determined by expected outcomes. implications and comparisons of these theories.
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2021/2022
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EQUITY THEORY
- This process theory focuses on workers' perceptions of the fairness of their work outcomes and inputs. Specifically they strive to maintain ratios of their own rewards to contributions which are equal to others' ratios.
EQUITY EQUATIONS
- Equity
- Outcomes (self) = Outcomes (other) Inputs (self) Inputs (other)
- Underpayment Inequity Outcomes (self) Inputs (self) <^
Outcomes (other) Inputs (other)
- Overpayment Inequity Outcomes (self) Inputs (self) >^
Outcomes (other) Inputs (other)
IMPLICATIONS OF EQUITY
THEORY
- Avoid underpayment
- Avoid overpayment
- Be sensitive to inequity perceptions
- Monitor regularly for creeping inequity
- When sacrifices are needed distribute equally from top to bottom
PROCEDURAL JUSTICE
- A process theory about motivation that focuses on workers perceptions of the fairness of the procedures used to determine outcomes. It deals with how performance is evaluated and how pay scales are determined and how grievances are handled.
ETHICAL ISSUES AND
PROCEDURES
- Conflict of interest
- Nepotism
- Equal employment opportunity
- Intellectual property rights
- Whistle blowing
EXPECTANCY THEORY
- A process theory that states motivation is determined by the outcomes people expect as a result of their actions on the job. Essentially it holds that people will be motivated when expect that they will be able to achieve what they want from their jobs
EXPECTANCY EQUATION
Effort
Perfor- mance
Reward s
Expectancy
Instrument ality
Valence
MOTIVATION
X
Rewards^ X
IMPLICATIONS OF
EXPECTANCY THEORY
- Clarify expectancies about effort and levels of performance
- Help employees attain desired level of performance, be a coach
- Clearly link rewards and performance
- Know what types of rewards are desired.
- Be sensitive to workers perceptions of expectancy
BACKWARDS &
FORWARDS
- Summing up: How fairness in the work place can motivate to a change in performance when we looked at equity theory. The importance of tying performance to outcomes was the heart of expectancy theory.
- Next time we look at some common applications of motivational theory to the workplace: job design, goals setting and pay.