Motivation

1
Motivation

• What is motivation?

2
Motivation

• Rewards
• Extrinsic outcomes
• Intrinsic outcomes
• People are motivated to behave in ways that
  maximize their own outcomes

3
Equity Theory

• Fair exchange
• Ratio of outcomes over inputs
• Comparison other
• Equity balanced ratios
• Inequity unbalanced ratios

4
Equity Theory

• If a person experiences inequity (underpayment or
  overpayment), they will experience anger and
  tension.

Inequity
Anger Tension
5
Equity Theory

• If a person experiences the anger and tension
  associated with inequity, they will react in one
  of the following ways.
• Behaviors (inputs, outcomes, withdraw, act
  against other)
• Cognitions (own inputs and outcomes, others
  inputs and outcomes, reference groups)
• Certain reactions are detrimental to organizations

6
Equity Theory

• Individual differences in responses to inequity
• Equity sensitives
• Benevolents
• Entitleds

7
Equity Sensitivity Instrument
8
Equity Sensitivity

• Benevolents, equity sensitives, entitleds differ
  in
• Attitudes
• Emphasis
• Nationality
• Motivation and Behavior ?

9
New directions in equity theory

• Distributive, interactional and procedural
  justice
• The experience of underpayment (distributive
  injustice) is affected by the interpersonal style
  (interactional justice) of the manager and the
  decision rule (procedural justice)
• People react less negatively to underpayment when
  the manager apologizes for it (interactional) and
  explains that the underpayment is due to an
  honest mistake (procedural)

10
Merck

• Should the performance appraisal and salary
  administration system be revised? Why?
• What changes would you recommend?
• Discuss possible negative consequences of your
  recommendation. How would you minimize these
  negative consequences?

11
Implications for Managers
12
Next Class

• Goal Theory
• George Jones (2002) Chapter 7, pp. 234-237.
• Case Hausser Food Products Company (2002)
• What are Brenda Coopers key problems?
• What is the Florida team doing? Why?
• What should Brenda Cooper do?