Leadership theories

&

Morale and Motivation

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A.Leadership theories
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Lecture Plan

Leadership theory a. Trait theory b. Behavior theory c. Contingency theory (situation theory) Substitute Servant Content & Process theories

What Is Leadership? Leadership

The ability to influence a group toward the achievement of goals

Management

all actions focused on accomplishing the tasks in an organization.

Effective Leadership and Management Styles

Personal Check-In: Individual Leadership Reflection Think about a leadership experience that really pleased you, a time when you worked with others and did a good job of helping something positive or effective occur. It can be a work experience or a personal experience. 1. Briefly summarize the situation. 2. What action did you take to make it happen?

What is the skills approach to leadership?

A. Robert Katzs research surfaced a set of skills for leadership success. B. Skill 1-Technical skills involving hands-on activity. C. Skill 2 -Human skills which is the ability to work with people. -Greatest asset to have. D. Skill 3 -Conceptual skills having ability to work with ideas and concepts.

The Different Views of Leadership

Trait definition of leadership Leader
Height Intelligence Extroversion Fluency Other traits

Process definition of leadership Leader

Leadership

Leadership
Interaction

Followers

Followers

Trait Theories of leadership

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from non leaders.

Traits (Bennis & Nanus, 1985, pp. 152)

Trait Approach

Logical thinking Persistence Empowerment Self-control

Assumption: Leaders are born Goal: Select leaders Problems

Traits do not generalize across situations Better at predicting leader emergence than leader effectiveness Unclear evidence of the cause and effect of relationship of leader and traits

Behavioral Theories Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from nonleaders
Behavioral Theory

Leadership behaviors can be taught.

vs. Trait Theory

Leaders are born, not made.

Behavioral Approach

Ohio State Studies/University of Michigan (pp.154)

Initiating Structure/Production Orientation Consideration/Employee Orientation

Assumption: Leaders can be trained Goal: Develop leaders Problem: Effective behaviors do not generalize across situations.

Initiating Structure

Ohio State Studies

The extent to which a leader is likely to define and structure his or her role and those of subordinates in the search for goal attainment

Consideration

The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinates ideas, and regard for his/her feelings

University of Michigan Studies

Employee-oriented Leader

Emphasizing interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members

Production-oriented Leader

One who emphasizes technical or task aspects of the job

Leadership style

Refers to the behavior of leaders towards subordinates, the manner in which tasks and functions of leadership are conducted. Autocratic style to democratic/participative style Task/Structure orientation Vs people/interpersonal orientation

The Managerial Grid

(Blake and Mouton)

E X H I B I T 121

Contingency Theories

All Consider the Situation

Fiedler Contingency Model Houses Path Goal Theory

Assumptions underlying the different models:

Fiedler: Leaders style is fixed. Others: Leaders style can and should be changed.

Fiedler Model

Leader: Style Is Fixed (Task-oriented vs. Relationship- oriented) Considers Situational Favorableness for Leader

Leader-member relations Task structure Position power

Leader must fit situation; options to accomplish this: Select leader to fit situation Change situation to fit leader

Key Assumption

Fiedler Model: and can Leader The be Assumption: Leaders style is fixed
measured by the least preferred co-worker (LPC) questionnaire.

Least Preferred Co-Worker (LPC) Questionnaire

The way in which a leader will evaluate a co-worker who is not liked will indicate whether the leader is task- or relationship-oriented.

Fiedler Model: Defining the Leader-Member Relations Situation

Task Structure

The degree of confidence, trust, and respect subordinates have in their leader

The degree to which the job assignments are procedurized

Position Power

Influence derived from ones formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases

Findings of the Fiedler Model

Good
Task-Oriented

Performance

Relationship -Oriented

Poor Favorable Category LeaderMember Relations Task Structure

I Goo d High

II Goo d Hig

III Goo d Low Stro

Moderat e IV V Goo d Lo w High Stro ng Poor

Unfavorable VI Poo r Hig h Low Stro ng VII Poor VIII Poo r Lo w

Premise

Path-Goal Theory

Expectancy theory of motivation, emphasizing on the leaders effect on subordinatess goals and the paths used to achieve those goals.

Flexibility of leader behavior:

Directive behaviors: planning, setting expectations and clarifying instructions Suportive behaviors: offering friednly consideration Participative behaviors: involving subordinates in DM Achivement-orientated behavior: setting objectives and expecting them to be achieved.

Path-Goal Theory

E X H I B I T 124

What are the major components of the Contingency Theories? A. Contingency theory identifies: -Key situational factors, -Specifies how they interact, and -Determines best leadership approach. -This is called

Contingency Theories continued

B. Fred Fiedler developed the Contingency Theory. -Effectiveness depends on situation. C. Three factors. -Leader-member relations. -Task structure. -Leader position

Situational leadership is build upon the contingency theory, and refined by Ken Blanchard in the 1980s.

Contingency Theories continued

Leadership is composed of both a directive and supportive dimension. Coaching and delegating were added to provide four styles.

Contingency Theories continued

D. Path-Goal Theory developed by Evans & House. -Adapting leadership to the situation. -Leader can impact performance of others by offering paths to desired goals. -Rewards contingent on increased performance.

Contingency Theories continued

E. Four leader behaviors: -Directive: gives specific guidance and direction. -Supportive: provides assistance. -Participative: hand-in-hand with subordinates. -Achievement Oriented: sets challenging goals and has high expectations. F. Best style to use is to adapt to the participative leadership

Substitute theory
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Substitutes for Leadership

RelationshipOriented or Considerate Leader Behavior is Unnecessary Characteristic Task-Oriented or Initiating Structure Leader Behavior is Unnecessary

Of the Subordinate
1. Ability, experience, training, knowledge 2. Need for Independence 3. Professional orientation 4. Indifference toward organizational rewards X X X X X X X

Of the Task
5. Unambiguous and Routine 6. Methodically invariant 7. Provides its own feedback concerning accomplishment 8. Intrinsically satisfying. X X X

Substitutes for Leadership (cont)

RelationshipOriented or Considerate Leader Behavior is Unnecessary Characteristic Task-Oriented or Initiating Structure Leader Behavior is Unnecessary

Of the Organization
9. Formalization (explicit plans, goals, and areas of responsibility) 10. Inflexibility (rigid, unbending rules and procedures) 11. Highly specified and active advisory and staff functions 12. Closely knit, cohesive work groups 13. Organizational rewards not with the leaders control 14. Spatial distance between superior and subordinate X X X X

X X X X X

Servant & super leadership theory

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Servant and Superleadership

Servant Leadership represents a philosophy in which leaders focus on increased service to others rather than to oneself. A superleader is someone who leads others to lead themselves by developing employees self-management skills. Superleaders attempt to increase employees feelings of personal control and intrinsic motivation.

Characteristics of the Servant-Leader

1. Listening
Servant-leaders focus on listening to identify and clarify the needs and desires of a group. 2. Empathy Servant-leaders try to empathize with others feelings and emotion. An individuals good intentions are assumed even when he or she performs poorly. 3. Healing Servant-leaders strive to make themselves and others whole in the face of failure or suffering. 4. Awareness Servant-leaders are very self-aware or their strengths and limitations.

Characteristics of the Servant-Leader (continued)

5. Persuasion
Servant-leaders rely more on persuasion than positional authority when making decisions and trying to influence others. to develop broader based conceptual thinking. Servant-leaders seek an appropriate balance between a shortterm, day-to-day focus and a long-term, conceptual orientation.

6. Conceptualization Servant-leaders take the time and effort

7. Foresight

Servant-leaders have the ability to foresee future outcomes associated with a current course of action or situation.

Characteristics of the Servant-Leader (continued)

8. Stewardship Servant-leaders assume that they are stewards of the people and resources they manage. 9. Commitment to Servant-leaders are committed to people the growth of beyond their immediate work role. They people commit to fostering an environment that encourages personal, professional, and spiritual growth. 10. Building Servant-leaders strive to create a sense of Community community both within and outside the work organization.

Continuum theory
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Motivation at Work

Content & Process theories

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Motivation
The force which drives behaviour (pp.48)

DIRECTION - i.e. what a person is trying to do EFFORT - how hard a person is trying PERSISTENCE - i.e. how long a person continues trying

Theories of motivation
Content theories (pp.49)
Two-factor theory ( Hersberg): intrinsic and extrinsic Types of needs: classification of needs: deficiency versus growth Hierarchy of needs (e.g. Maslow): ordering of need by relative priority

Process theories
Expectancy theory (Vroom; Porter & Lawler): : a rational estimate of the likely result of their behaviour Goal theory ( Locke) Equity theory ( Adams)

Content Theories 1.Hierarchy of Needs Theory

Abraham Maslow (pp.56)

There is a hierarchy of 5 needs---physiological, safety,social,esteem,& self-actualization---and as each need is sequentially satisfied,the next need becomes dominant review:1.intuitively logical,ease of understanding, receiving wide recognition, particularly among practicing managers. 2.little empirical support

Maslow's Hierarchy of Needs 1. Biological and Physiological needs - air, food, drink, warmth, sleep, etc. 2. Safety needs - protection from elements, security, order, law, limits, stability, etc. 3. Belongingness and Love needs - work group, family, affection, relationships, etc. 4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc. 5. Self-Actualization needs - realizing personal potential, selffulfillment, seeking personal growth and peak experiences.

Content Theories 2. ERG theory (Alderfer, pp.58)

There are three groups of core needs: existence, relatedness and growth Difference:(1) more than one need may be operative at the same time,(2) if the gratification of a higher level needs is stifled, the desire to satisfy a lower level need increases Maslow: a rigid step like progression. ERG:contains a frustration-regression dimension Several studies have supported the ERG theory:natives of Spain & Japan place social needs before their physiological requirements

Content Theory 3.McClellands Acquired Needs Theory

Acquired needs theory. Developed by David McClelland. Three needs achievement, affiliation, and power

are acquired over time, as a result of experiences. Managers should learn to identify these needs and then create work environments that are responsive to them.

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Content Theory 3.McClellands Acquired Needs Theory

Need for achievement. The desire to do something better or more efficiently, to

solve problems, or to master complex tasks. High need for achievement people: Prefer individual responsibilities. Prefer challenging goals. Prefer performance feedback.

50

Content Theory 3.McClellands Acquired Needs Theory

Need for affiliation. The desire to establish and maintain friendly and warm

relations with others.

High need for affiliation people: Are drawn to interpersonal relationships. Seek opportunities for communication.

51

Content Theory 3.McClellands Acquired Needs Theory

Need for power. The desire to control others, to influence their

behavior, or to be responsible for others. High need for for power people: Seek influence over others. Like attention. Like recognition.

52

Content Theory 3.McClellands Acquired Needs Theory

Research evidence on acquired needs theory. Identification of the need profiles that are required

for success in different types of jobs. People can be trained to develop the need for achievement, particularly in developing nations.

53

Content Theories 4. Motivation-Hygiene Theory

Developed by Frederick Herzberg. Also known as Two Factor theory. Portrays two different factors hygiene factors and

motivator factors as the primary causes of job dissatisfaction and job satisfaction.

54

Content Theories 4. Motivation-Hygiene Theory

Hygiene factors. (Mostly Extrinsic) Sources of job dissatisfaction. Associated with the job context or work setting. Improving hygiene factors prevent people from being

dissatisfied but do not contribute to satisfaction.

55

Content Theories 4. Motivation-Hygiene Theory

Motivator factors. (Mostly Intrinsic) Sources of job satisfaction. Associated with the job content. Building motivator factors into the job enables people

to be satisfied. Absence of motivator factors in the job results in low satisfaction, low motivation, and low performance.

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Content Theories 4. Motivation-Hygiene Theory

Problems with Content Theories

Not specific about what behaviours and rewards satisfy which needs.
l

Neglect the impact of the social context on peoples interpretation of their needs.
l

People do not necessarily strive to move up the hierarchy - at least, not through their work.
l l

How to define needs?

1.

Process Theories Vrooms Expectancy Theory (1964) pp.51

Motivation ( M)=Expectation (E) x Valence Where: Expectancy - If I tried would I be able to perform the action? Valence - How much do I value those outcomes?

Process Theories 2. Goal-setting Theory (Locke,pp.51)

A goal is a target level of performance If a goal is: difficult specific And if a person:accepts the goal feels committed to it gets feedback on their progress Then their performance improves because: their behaviour is focused they try hard they keep trying they develop strategies

SLIDE 9.19

Some live issues in GoalSetting

How to enhance goal commitment (participative?) Who defines challenging? Conflict between goals Individual v. group Competing personal goals Goals set Vs dynamic environment

Process theories 3.Equity theory (Adams, 1963, pp.65)

Individuals compare their job inputs & outcomes with those of others & then respond so as to eliminate any inequities

Minor qualifications: 1. people have a great deal more tolerance of overpayment inequities than of underpayment inequities. 2. not all people are equity sensitive,such as benevolent types

Process theory 3.Equity theory

Motivation and Job Design Hackman and Oldham (1980, pp.73)

Motivation through design of work. Five Core Job Dimensions 1. 2. 3. 4. 5. Skill Variety Task Identity Task Significance Autonomy Feedback

Sowhat do all these theories add up to?

1. 2. 3. 4. 5. 6. Successful work performance can arise from many different needs/motives. People need to believe they can perform effectively if they try. The rewards for good performance should actually be desired by the people concerned. What constitutes good performance should be clearly defined. People need feedback on their performance. Peoples values and identity matter.

B. Morale & Motivation

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Content

Motivation Introduction to Morale Mechanism of motivation Importance of morale Theories Signs of morale Work & Motivation Indices of morale Ways to morale Measure motivate them Summary Morale & productivity

Define - Morale

How somebody feels emotionally: the general level of confidence or optimism felt by a person or group of people, especially as it affects discipline and motivation [Mid-18th century. Via French moral< Latin moralis]

Define Moral
(Social Justice)

1. involving right and wrong: relating to issues of right and wrong and to how individual people should behave 2. derived from personal conscience: based on what somebody's conscience suggests is right or wrong, rather than on what rules or the law says should be done 3. according to common standard of justice: regarded in terms of what is known to be right or just, as opposed to what is officially or outwardly declared to be right or just a moral victory. 4. encouraging goodness and decency: giving guidance on how to behave decently and honorably 5. good by accepted standards: good or right, when judged by the standards of the average person or society at large 6. able to tell right from wrong: able to distinguish right from wrong and to make decisions based on that knowledge 7. based on personal conviction: based on an inner conviction, in the absence of physical proof

Why study morale?

Poor morale leads to:

Retention and recruitment problems Increased absenteeism Increased incidents and accidents, including needlestick injuries Increased adverse outcomes Reduction in quality of care All of these issues cost organisations $$$

Importance of Morale
When employee morale is high Staff are satisfied with their jobs, they can tolerate perceived discrepancies. They can work long hours without complaint, take disappointments in stride, support changes in the company, and maintain a positive attitude toward their workplace.

When morale slides.?

Everything becomes more acute. Overtime becomes onerous, disappointments become discouraging, change becomes stressful, and a negative attitude takes over. Grumbling, complaining, gossiping, and increased absenteeism are signs of low morale.

Signs of High Morale

Employees look forward to coming to work Employees show up with new ideas Employees care about the organization Employees endorse organizational goals Employees volunteer Employees willingly undertake assignments Employees help each other Employees demonstrate pride in their work Employees concern themselves with their work area, tools and job equipment Employees work well with little direction Employees occasionally go above and beyond the job description Employees enjoy their work

Signs of Low Morale

High absenteeism Lateness Low productivity Large amount of error in work Frequent necessity to redo work Lack of enthusiasm Jealousy or disputes among the staff Customer service complaints15

Indices of low morale

Employee unrest Absenteeism & Tardiness Employee turnover Grievances Need for discipline Fatigue and monotony

Indices of low morale- Remedies!!!

Remedies for Effective profit sharing program HR programs Employee unrest Other socialization programs Absenteeism & Tardiness Employee turnover Grievances Need for discipline Fatigue and monotony

Morale & HR

Areas that contribute to job satisfaction include good working relationships with immediate supervisors, management recognition of employee job performance, and effective communication between employees and senior management.

Good communicationis vital tool as booster of Morale

Good communication is your strongest tool for maintaining morale within your company. This ranges from one-to-one interactions between employees and supervisors, to company-wide communication about progress and future direction. Avoid employee misperceptions by practicing good communication techniques.

Measure morale
1. 2. 3.

4. 5.

Observation Method Interview Method Printed questionnaire for Attitude Surveys Projective Techniques Company Records and Reports

Improve and Hold morale High!!

Managers That Boost Morale Good managers can make the difference when it comes to retaining quality employees. Jeffrey Saltzman, an industrial psychologist recommends business owners looks for these traits in their managers: Considerate treatment of subordinates Ability to give clear directions Offers rewards and challenges on the job Dont Overlook Job Satisfaction Avoid Burn Out Appreciate Your Team Keeping a Small Business Fun Games, Company sponsored lunches, Dress codes and relaxations!!!!

Morale & Productivity

High High Morale Low productivity Morale Low Morale Low Productivity Low High Morale High productivity Low Morale High productivity

Low

Productivity

High

Theories of Motivation

Motivation

Maslow

Drucker

Likert

Taylor

Argyris

Herzberg

Hygiene Factors

Conditions Pay Status Security Company policies

Motivation factors

Achievement Recognition Growth/Advancement Interest in the job

McClelland

McGregor

Mayo

Mechanisms of Motivation
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Motivation and Incentives

Motivation - factors within and outside an organism that cause it to behave a certain way at a certain time Motivational state or drive - an internal condition, which can change over time, that orients an individual to a specific set of goals (e.g., hunger, thirst, sex, curiosity) Incentives - goals or reinforcers in the external environment (e.g., good grades, food, a mate)

Drives as Tissue Needs

Homeostasis - the constancy of internal conditions that the body must actively maintain Drives may be an upset in homeostasis, inducing behavior to correct the imbalance Animals do behave in accordance with their tissue needs (e.g., increasing or decreasing caloric intake, drive for salt) However, homeostasis cannot explain all drives

Types of Drives

Regulatory drives - helps preserve homeostasis (e.g., hunger, thirst, oxygen) Nonregulatory drives - serve other purposes (e.g., sex, achievement)

Drives as States of the Brain

Central state theory of drives - different drives correspond to neural activity in different sets of neurons in the brain Central drive system - set of neurons in which activity constitutes a drive

Reward Pathways in the Brain

Medial forebrain bundle runs from the midbrain through the lateral area of the hypothalamus into the nucleus accumbens in the basal ganglia

neurons in this tract secrete dopamine animals will self-stimulate this pathway euphoria-producing drugs affect the level of dopamine in this tract evolved to promote survival and reproduction

THE NATURE OF WORK MOTIVATION (Interpretation with theories)

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Work Motivation

Definition: The psychological forces that determine the direction of a persons behavior, a persons level of effort, and a persons level of persistence. Key elements to the definition:

Effort Persistence Direction/goal orientation

Key Elements of Work Motivation

Direction of Behavior - Which behaviors does a person choose to perform in an organization? Level of Effort - How hard does a person work to perform a chosen behavior? Level of Persistence - When faced with obstacles, roadblocks, and stone walls, how hard does a person keep trying to perform a chosen behavior successfully?

Links between Motivation and Performance

Performance is an evaluation of the results of a persons behavior. It involves determining how well or poorly a person has accomplished a task or done a job. Motivation is only one factor among many that contributes to a workers job performance. Other contributing factors:

Personality and ability Task difficulty Resource availability Working conditions Chance or luck

Intrinsic vs. Extrinsic Motivation

Intrinsically Motivated Behavior: Behavior that is performed for its own sake. Extrinsically Motivated Behavior: Behavior that is performed to acquire material or social rewards or to avoid punishment.

Advice to Managers

Keep in mind that motivation determines what behaviors workers choose to perform, how hard they work, and how persistent they are in the face of difficulties. Do not equate motivation with performance. Motivation is only one of several factors that contribute to determining performance. To better understand the source of your subordinates work motivation, determine whether they are intrinsically or extrinsically motivated.

Insert Figure 6.1 here

Insert Figure 6.2 here

Need Theories of Motivation

A group of content theories about work motivation that focus on workers needs as the sources of motivation. These theories attempt to explain what motivates workers. A need is a requirement for survival and wellbeing. Individual needs within organizations vary. Managers should try to:

Determine what needs a worker is trying to satisfy on the job. Ensure that a worker can satisfy his or her needs by engaging in behaviors that contribute to organizational effectiveness.

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Maslows Hierarchy of Needs

Physiological Needs: Basic needs for things such as food, water, and shelter that must be met in order for an individual to survive. Safety Needs: Needs for security, stability, and a safe environment. Belongingness Needs: Needs for social interaction, friendship, affection, and love. Esteem Needs: The need to feel good about oneself and ones capabilities, to be respected by others, and to receive recognition and appreciation. Self-Actualization Needs: The need to realize ones full potential as a human being.

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Basic Tenets of Maslows Theory

Basic needs must be satisfied before an individual seeks to satisfy needs higher up in the hierarchy. Unsatisfied needs are the prime motivators of behavior. Once a need is satisfied, it is no longer a source of motivation. At any particular time, only one set of needs motivates behavior; it is not possible to skip levels.

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Alderfers ERG Theory

Existence Needs: Basic needs for human survival such as the need for food, water, clothing, shelter, and a secure and safe environment. Relatedness Needs: The needs to have good interpersonal relations, to share thoughts and feelings, and to have open two-way communication. Growth Needs: The needs for selfdevelopment and creative and productive work.

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Differences from Maslows Theory

Reduces the number of universal needs from five to three. No rigid hierarchy:

A higher-level need can be a motivator even if a lowerlevel need is not fully satisfied. Needs at more than one level can be motivators at any time.

When an individual is motivated to satisfy a higherlevel need but has difficulty doing so, his/her motivation to satisfy lower-level needs will increase.

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Advice to Managers
Do not assume that all workers are motivated by the same needs or desires. To determine what will motivate any given worker, determine what needs that worker is trying to satisfy on the job. Make sure you have the ability to administer or withhold consequences that will satisfy a workers needs. Structure work situations so that workers can satisfy their needs by performing behaviors that enable the organization to achieve its goals.

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Expectancy Theory

A process theory about work motivation that focuses on how workers make choices among alternative behaviors and levels of effort. Two main questions are addressed:

Do individuals believe that their inputs will result in a given level of performance? Do individuals believe that performance at this level will lead to obtaining outcomes they desire? Valence Instrumentality Expectancy

Keys to the theory:

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Valence

Definition: The desirability of an outcome to an individual. Can be positive or negative:

Outcomes with positive valence are desirable. Outcomes with negative valence are undesirable.

Can vary in magnitude to indicate how desirable or undesirable an outcome is.

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Definition: A perception about the extent to which performance of one or more behaviors will lead to the attainment of a particular outcome. Can be positive or negative. Range is from -1 to +1.

Instrumentality

I = -1 means that the individual perceives that performance will definitely not lead to the outcome. I = 0 means that the individual perceives no link between performance and outcome. I = +1 means that the individual perceives that performance is certain to lead to the outcome.

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Expectancy

Definition: A perception about the extent to which effort will result in a certain level of performance. Range is from 0 to 1:

0 means that the individual believes there is no chance that his/her effort will result in performance. 1 means that the individual is certain that his/her effort will lead to performance.

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Insert Figure 6.3 here

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Advice to Managers

Determine what outcomes your subordinates desire. More specifically, identify outcomes that have high positive valence for your subordinates in order to motivate them to perform at a high level. Once you have identified desired outcomes, make sure that you have control over them and can give them to subordinates or take them away when warranted. Let subordinates know that obtaining their desired outcomes depends on their performing at a high level (raise instrumentalities). Administer the highly valent outcomes only when subordinates perform at a high level (or engage in desired organizational behaviors). Do whatever you can to encourage workers to have high expectancies: Express confidence in subordinates abilities, let them know that others like themselves have been able to perform at a high level, and give them guidance in terms of how to perform at a high level. Periodically assess workers beliefs concerning expectancies and instrumentalities and their valences for different outcomes by directly asking them or administering a survey. Using these assessments, make different outcomes available to workers, and clarify instrumentalities, or boost expectancies when necessary.

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Equity Theory

A process theory about work motivation that focuses on workers perceptions of the fairness of their work outcomes and inputs. According to equity theory, what is important to motivation is the way a worker perceives his or her outcome/input ratio compared to that of another person. Outcome/input ratio is the relationship between what a worker gets from a job (outcome) and what the worker contributes to the job (input).

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Types of inputs

Inputs, Outcomes, and Referents

Special skills Education and training Work effort Pay and benefits Opportunities for advancement Coworkers Self at another job or at another time Other people in the same job

Types of outcomes

Referents

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How Equity Theory Works

An individual compares his/her outcome/input ratio to that of the referent to see if they are in balance:
Self Referent

Outcomes? Outcomes Inputs = Inputs

Overpayment inequity exists when a person perceives that his/her outcome/input ratio is greater than the ratio of the referent. Underpayment inequity exists when a person perceives that his/her outcome/input ratio is less than the ratio of the referent.

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Conditions of Equity and Inequity

(Table 6.4)

Equity

Individual Referent Outcomes Outcomes ------------ = -----------Inputs Inputs

Example
A financial analyst contributes more inputs (time and effort) to her job and receives proportionally more outcomes (a promotion and a pay raise) than her referent receives. A financial analyst contributes the same level of inputs to her job as her referent but receives more outcomes than the referent receives. A financial analyst contributes more inputs to her job than her referent but receives the same outcomes as her referent.

Overpayment Inequity

Outcomes Outcomes ------------ > -----------Inputs Inputs Outcomes Outcomes ------------ < -----------Inputs Inputs

Underpayment Inequity

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Ways to Restore Equity

Workers can change their own inputs or outcomes. Workers can try to change their referents inputs or outcomes. Workers can change their perceptions of inputs and outcomes (either their own or the referents). Workers can change the referent. Workers can leave the job or organization or force the referent to leave.

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Advice to Managers

Because inputs are likely to vary across workers, outcomes should also vary. Do not give all workers at a given level or holding the same job title the same level of outcomes unless their inputs are identical. Distribute outcomes to workers based on their inputs to their jobs and the organization. Because underpayment inequity or overpayment inequity can have negative organizational consequences, strive to maintain equity for maximum motivation. Because it is the perception of equity or inequity that drives motivation, frequently monitor and assess workers perceptions about relevant outcomes and inputs, as well as their own standing on these outcomes and inputs. Correct any inaccurate perceptions workers may have. Realize that failure to recognize above-average levels of inputs has major motivational implications.

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Procedural Justice Theory

A process theory about work motivation that focuses on workers perceptions of the fairness of the procedures used to make decisions about the distribution of outcomes. Causes of procedural justice perceptions:

How workers are treated by distributors of outcomes. The extent to which managers explain their decisions to workers.

8 ways to motivate employees

Focus On What You Can Control, Not On What You Cant Do The Big Three: Notice what employees do right, Listen, and Show Appreciation Engage Your Staff In Ongoing Conversations About Improving Morale Ask For Feedback About Your Management Style, Especially After Difficult Interactions Ask yourself: Am I Inspired? Ask Yourself: Am I Inspiring? Learn Which Factors And Practices Make The Biggest Difference In Employee Morale And Productivity, And Commit To Executing These Learn More About Human Nature And How To Work With It, Rather Than Against It

References

Management, VSP Rao, V.Hari krishna, Excel Books, Page- 559- 599. Organisation Behaviour, N Kumar, Page- 173-178. Importance of morale at workplace, Allison Rohner, Rowan University, June/1999. Motivation, www.bized.co.uk, net based article. Chapter 6, nature of work motivation, prentice hall article, 2002.

Reference

Stephen Covey, 7 habits of highly effective people, Ist edition. Ronald D. Snee, Develop leadership skills, Tunnell Consulting, Roanoke, VA, 2002. Julian Lapiton, Principles of leadership and management, IRRI,web article-ppts. Doan Xuan Huy Minh, Lecture on leadership, motivation & problem solving.