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COVER PAGE

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TABLE OF CONTENTS

Title Page No

1. Expectancy Theory
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2. Equity Theory 5

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EXPECTANCY THEORY

The strength of a tendency to act in a certain way depends on the strength


of an expectation that the act will be followed by a given outcome and on the
attractiveness of that outcome to the individual.

Case Study

Mr. Manish - MCA topper from Indore University

Mr. Raghu - Project manager with the Hitachi Process in Patni Computers LTD, under
Whom Manish Works.

An appraisal prevents an employee from quitting job.

Mr. Manish got selected as a software engineer in Patni Computers on campus


interviews for a pay scale 1.2 lacks /annum. The company was the first one to come on
campus and the college had the policy that once a candidate gets selected in a
company, he cannot appear for other company’s interviews. So Mr. Manish selected the
company afraid of that may not be better campus interviews after this (finally Mr. Manish
joined the company). But there comes other companies on campus offering better
packages than Patni did for Manish. So Manish is already disappointed for the wrong
choice of the selection of the company, but he is still consoles himself by thinking that
the company will provide him with regular heights if performed well.

Mr. Manish joined the company and starts performing well. But to his sad expectations
he doesn’t get the expected hike for the first six months. Disappointed by this Manish
thinks that he will get reorganized in the later period and keeps working, but not wit that
enthusiasm in the beginning of his work. The next six months are over and there was no

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hike for Manish because the higher authorities are not so much concern for the appraisal
of a fresher.

Mr. Manish finally frustrated, plans to quite the company because his classmates are
working on better packages than his. Here his project manager comes in the seen. He
realizes the potential of Manish. He knows that Mr. Manish leaving the company will be a
big loss. He talks to the senior authorities about the lack of motivation for this employee.
He makes them realize that the particular employee is not a normal employee and
definitely needs a hike. He has an extra ordinary ability to contribute the company, and if
motivated, will prove a real asset to the company. He shows them the records of
Manish’s performance for the past one year and compares with the performance of other
employees.

Finally the superior realizes the difference in Manish’s contribution and accept for a hike
for him.

As a result Mr. Manish gets a hike in salary as desired by him. Manish was also asked to
give a feedback to the senior authorities whether he was satisfied with the hike and Mr.
Manish gave a positive feedback.

So we see that a timely motivation from the project manager saved the Patni Computers
from losing a valuable asset.

EQUITY THEORY

A theory that individuals compare there job inputs and outcomes with those of others
and then responds to eliminate any inequities.

Case Study

Mr. Praveen – marketing Executive with 15 months of work experience in Airtel


Broadband Services.

Mr. Rahul – Boss of Mr. Praveen who manages the complete sales and services of Airtel
Broadband services of West Pune division.

Mr. Praveen joined Airtel Broadband services as marketing executive. His previous
company Sify was offered him only 50% of what Airtel is offering him now. Other than
this Airtel is famous for giving good incentives. Praveen worked very hard and exceeded
his target sales every month. He was appreciated by his seniors and had an outstanding
performance in making sales. He was well satisfied with his salary of 10200 and never
asked for an increase in payment.

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Six months later company recruited fresh MBA graduate as marketing executives, now
this fresh recruits, being MBA graduates were offered 13500 per month. Mr. Praveen has
to train these fresh recruits.

Half of the freshers to training under him against their will. They had the feeling of
Inequality that the post graduates was taking training under a graduate. Finally after one
month, the training section was over and the freshers started marketing of there on.

Marketing executives had the responsibility of reporting the day’s performance to the
assigned senior. The MBA freshers who didn’t like reporting to the senior, Mr. Praveen,
started reporting to the boss directly. This was the time when Mr. Praveen realized the
inequality meted out to him. Even being a senior and having a work experience of more
than 2 years in two different companies, the team under him were given the freedom to
act of their on. They were even offered a salary much higher than him. He completely
lost the interest and enthusiasm in his work.

Instead of exceeding his monthly target, he just manages to reach the monthly target.
The boss Mr. Rahul realizes this and had a talk with Praveen. Praveen told him that the
50% of his team didn’t want to work under him and all of them were having salary much
higher than him. Mr. Rahul took this in to consideration and promised to resolve the
issue.

But the issue wasn’t resolved. His salary wasn’t hiked and the juniors continued to act of
there on. Praveen didn’t like even talking to his boss again about this issue. He started
looking for an alternative job thinking this is the best solution. He finally manages to get
a good job with good packages and better position in another company.

So we can understand that the inequality in an organization can have grave


consequences in the functioning of organization.

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