SIXTH EDITION

CHAPTER 6
Process
motivation theories
ORGANISATIONAL
ORGANISATIONAL BEHAVIOUR
BEHAVIOUR

Learning Outcomes

Discuss the role of perceived inequity in employee motivation

Explain Vroom’s expectancy theory of motivation, and Porter and Lawler’s

extension of expectancy theory

Explain how goal setting motivates people, and identify five practical lessons
to be learned from goal-setting research

Discuss how a recipient’s characteristics, perception and cognitive

evaluation affect how he or she processes feedback

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ORGANISATIONAL BEHAVIOUR
BEHAVIOUR

Learning Outcomes

List at least three practical lessons from feedback research

List different types of organisational reward

Describe practical recommendations to implement an organisational

reward system

Specify issues that should be addressed before implementing a

motivational programme

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The self-fulling prophecy

Pygmalion Galatea
effect effect

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Expectancy theory of motivation

• Why do people behave the way they do?

EXPECTANCY EQUITY THE GOAL-

THEORY THEORY SETTING MODEL

• How do organisations get their people to perform as desired?

FEEDBACK REWARDS

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Vroom’s expectancy theory

Figure 6.2 Vroom’s Expectancy Model

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Vroom’s expectancy theory

• The following factors influence an employee’s expectancy
perceptions:
o Self-esteem
o Self-efficacy
o Previous success at the task
o Help received from a supervisor and subordinates
o Information necessary to complete the task
o Good materials and equipment to work with

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Vroom’s expectancy theory

INSTRUMENTALITY • A performance → outcome perception

• The positive or negative value people place on

VALENCE outcomes
• Valence mirrors our personal preferences

PORTER AND LAWLER • A more complex version of the expectancy model

• Distinguishes between intrinsic motivation and
extrinsic motivation

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Application of expectancy theory

• What is equity theory?

• Motivation is a function of fairness in social exchanges.

• Fair treatment does not mean treating everyone the same.

• The concept of instrumentality is applied very clearly in the

concepts of performance-related pay (PRP), or pay-for-
performance

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Equity theory of motivation

• Key components: inputs and
outcomes.
• Comparison of inputs and
outcomes with those of other
colleagues.
• Focuses on what people are
motivated to do when they feel
treated inequitably.

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Equity theory of motivation

INPUTS OUTCOMES
Time Pay/bonusses
Education/training Fringe benefits
Experience Challenging assignments
Skills Job security
Creativity Career advancement/promotions
Seniority Status symbols
Loyalty to organisation Pleasant/safe working environment
Age Opportunity for personal growth/development
Personality traits Supportive supervision
Effort expended Recognition
Personal appearance Participation in important decisions

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Negative and positive inequity

• An equitable situation (=)

• Negative inequity (-)

• Positive inequity (+)

o Negative inequity is less tolerable than positive inequity

o Inequity can be reduced

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Dynamics of perceived inequity

METHODS EXAMPLES
Increase inputs Work harder; attend school or training
Decrease inputs Don’t work as hard; Take longer breaks
Increase outcomes Ask for a raise; Ask for a new title; Seek outside
intervention
Decrease outcomes Ask for less pay
Leaving Absenteeism and turnover
Psychological distortion of inputs and ‘Certain inputs are not important’; ‘Boring and
outcomes monotonous job’
Psychological distortion of inputs or ‘Other has more experience or works harder’
outcomes of comparison other
Change comparison other Pick an new comparison person; Compare to
previous job
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Applying equity in organisations

• Employees’ beliefs and attitudes affect job performance.
• Managers benefit by allowing employees to participate in making
decisions about important work outcomes.
• Perceptions of fairness are increased by giving employees the
opportunity to appeal decisions that affect them.
• Employees are more likely to accept change when they believe the
organisation is treating them fairly and equitably.
• Managers can promote cooperation and teamwork among work
group members by treating them equitably.
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The mechanisms of goal setting

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Evidence about the goal-setting model

• Goal difficulty
oLeads to higher performance.

oEasy goals produce low effort because the goal is too easy to achieve.
oImpossible goals ultimately
lead to lower performance
because people begin to
experience failure.

Figure 6.5
Relationship Between Goal
Difficulty and Performance
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Evidence about the goal-setting model

• Goal specificity
o Goals may or may not lead to higher performance.
o Goal specificity pertains to the how quantifiable the goal is.
o Specific difficult goals impair performance on novel, complex tasks when
employees do not have clear strategies for solving these types of problems.

• Goal commitment
o An individual is expected to persist in attempts to accomplish a goal when he
or she is committed.
o People with a higher need for achievement have a higher goal commitment and
outperform people with a low need for achievement.

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Application of the goal-setting model

• Goals should be ‘SMART’.
• Goal Conflict - refers to the degree to which people feel that multiple
goals are incompatible.
• Goal commitment is important because employees are more
motivated to pursue goals they view as reasonable, obtainable and
fair.
• Support and feedback in the form of resources and information
required to get the job done must be provided.

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A cognitive-processing model of feedback

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Evidence about motivating through feedback

Table 6.5 Trouble Signs for Organisational Feedback Systems

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Application of feedback thinking

• Relate feedback to existing performance goals and clear expectations.
• Give specific feedback tied to observable behaviour or measurable
results.
• Channel feedback toward key result areas.
• Give feedback as soon as possible.
• Give positive feedback for improvement, not just final results.
• Focus feedback on performance, not personalities.
• Base feedback on accurate and credible information.

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Upward and 360-degree feedback

• Traditional performance appraisal systems have created widespread dissatisfaction.
• Team-based organisation structures are replacing traditional hierarchies. This trend
requires professionals to have good interpersonal skills that are best evaluated by team
members - NOT superiors.
• Systems using ‘multiple-raters’ are said to make for more valid feedback than single-
source rating.
• Network technology now facilitates multiple-rater systems.
• Bottom-up feedback meshes nicely with the trend toward participative management and
employee empowerment.
• Co-workers and subordinates are said to know more about a professional’s strengths and
limitations than the boss.

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Upward and 360-degree feedback

• Upward feedback
o Generally anonymous

o Example: Anonymous lecturer-evaluation surveys

• 360-degree feedback
o ‘Full circle feedback’

o Is it really a 270-degree feedback? (Exclusion of customers)

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Application of feedback procedures

Table 6.6 Organisational Conditions for 360-Degree Feedback

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Organisational reward systems

Figure 6.7
A General Model
of
Organisational
Reward Systems

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Types of rewards
• Extrinsic rewards: financial, material and social rewards from the
environment

• Intrinsic rewards: self-granted, psychic rewards

• Extrinsic motivation: being motivated by extrinsic rewards, like

monetary incentives

• Intrinsic motivation: being motivated by intrinsic rewards, like self-

determination or need of competence

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Organisational reward norms

• Profit maximisation: maximising net gain

• Equity: allocation in proportion to contributions
o Reward equity norm

• Equality: rewarding all parties equally

• Need: distributing rewards according to needs

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Reward distribution criteria

• Performance in terms of results

• Performance in terms of actions and behaviours
• Non-performance considerations

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Rewards distributtion criteria

• Why do rewards fail to motivate?
1. Too much emphasis on monetary rewards.
2. Rewards lack an ‘appreciation effect’.
3. Extensive benefits become entitlements.
4. Counter-productive behaviour is rewarded.
5. Too long a delay between performance and rewards.
6. Too many one-size-fits-all rewards.
7. Use of one-shot rewards with a short-lived motivational impact.
8. Continued use of demotivating practices such as lay-offs, across-the-board
pay rises and cuts and excessive executive compensation.
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Evidence about rewards

• Interesting work and recognition more valued than money
• Extrinsic rewards lose their motivation over time
• Mixed results as to the performance-enhancing effect of
• Monetary rewards must be large enough to motivate
• Pay  goal achievement:
o Performance goals are under the employees’ control
o Goals are quantitative and measurable
o Frequent, relatively large payments are made for performance achievement

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Application of reward mechanisms

Mission and Goals

• A well-articulated and clear mission and operating vision that is

understood and accepted.
• Organisational goals that are credible, measurable and verifiable.
• Department, work unit and team goals that have a clear line of sight
(connection) to the success of the organisation.
• Individual goals or work measures that are intuitively related to good
performance.

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ORGANISATIONAL BEHAVIOUR

Application of reward mechanisms

Communication and Feedback
A pay philosophy that is clearly specified and communicated to
employees.
Regular communication that keeps employees informed of
performance results.
Regular feedback to employees to guide and encourage their growth
and career progression.
Regular communication to recognise the importance of employee
efforts and to make clear how their efforts contribute to the
organisation.
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Application of reward mechanisms

Organisational Culture
• An organisational climate that encourages people to look for new and better ways to accomplish
goals.
• An organisational climate that stimulates people to pursue challenging goals.
• An organisational climate that encourages people to tackle new problems and new tasks to
accomplish organisational goals.
• An organisational climate that emphasises the importance of the individual, his/her needs and
aspirations.
• Training and development that is seen as an investment in people.
• An organisational climate where people have the opportunity to participate in the development of
performance measures.

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ORGANISATIONAL BEHAVIOUR

Application of reward mechanisms

Reward System
• A reward system that reinforces the importance of good performance at all levels,
including both monetary and non-monetary rewards.
• A reward system that is implemented in a fair and objective way, including an
appeal process for people who believe they have been treated unjustly.
• A reward system that encourages people to work together and cooperate, and
that also creates opportunities to celebrate people’s accomplishments.

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Putting motivational theories to work

• There is no single clear-cut solution to deal effectively with
employee motivation.
• People are not motivated by the same aspects.
• People vary in their intensity and persistence of their motivated
behaviour.
• In keeping with expectancy theory, organisations should make
rewards contingent on performance.
• Feedback also needs to be linked to performance.
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