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Role of equity in human motivation
Equity theory of motivation essay
Equity theory of motivation versus expectancy theory
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A1. Bill Bailey
Bill Bailey should base his decision by keeping in mind Stacey Adams’ Equity Theory of Motivation. This theory explains how motivation is affected by people’s perception think they are treated by management. If an employee perceives him/her inequitably underpaid (outputs), relative to others with similar qualifications such as education or work experience (inputs), their motivation will suffer and their performance could decrease so as to eliminate perceived inequities (Schermerhorn, 2011).
Bill Bailey motivation to incorporate this theory came from the case of the Utah Symphony and the Utah Opera merger. In comparing both financially, the Utah Opera is financially more stable. The Chairman of the Board of the Utah Opera, Mr. Bill worries that the stability the Opera would be lost affecting its entire financial strength. If this were to happen, the symphony would have to go into the reserve funds to meet the contract that is set with the musicians. Other concerns would be that the symphony would become a tier-one organization.
Two different ways in looking or comparing these situation; one is negative inequity and where there is a negative, there should always be a positive inequity. Negative inequity refers to a state of affairs in which perceived outcomes are less than those to which the person feels entitled, whereas positive inequity occurs when perceived outcomes are greater than those to which the person feels entitled. Bill Parker is against the merger by pointing out several negative inequities; 1) financial stability and 2) overshadowing of the opera by the symphony. However, this could be also viewed a positive inequity towards the symphony one is because they could gain extra funding t...
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...proach would be consultation. Mrs. Ann would use the influence based on the expert and appeal power. Because consultation acts on thoughts, feelings, and actions, it is considered to be a strong approach. For consultation to be effective, Mrs. Ann must follow the Influencing Formula based on trust, preparation, and courage. It involves analyzing the problem and recommending solutions. As a general rule, Mrs. Ann would ask questions and use active listening to understand the problem and its root cause. Because consultation acts on thoughts and feelings while encouraging action, it is one of the most effective forms of influence when the consultant is truly a trusted advisor. In this case, because Mrs. Ann reputation with the staff for many years, she could ask them to support the merger as a personal favor to her as a long-standing and trusting relationship.
Bill Barley should utilize the Adams’s equity theory of motivation to oppose the merger. Adams’s equity motivation theory is a process theory which deals with people’s perception of fairness in a social exchange relationship (kreitner R., Kinicki A, 2010). People seek to maintain equity between the inputs brought into a job or a project and the outcome attained against the perceived inputs and outcomes of relevant others. In equity theory, individual behavior towards a situation or action is fueled by feeling of equity or inequity. Meaning, a person's reaction to the outcome of their inputs depend on the perception of whether or not they were treated fairing compared to others in the same situation. Negative inequity is perceived by an individual when a relevant person receives greater rewards for the same amount of work. Positive inequity is perceived by an employee when a relevant worker receives lesser rewards for the same amount of work (Kreiter R., Kinicki A., 2010).
There were a few issues of fairness presented in Michael Simpson’s case that happens in in real world work places that prevents employees from working to their full potential or causing them to leave the work place all together. In this case study Michael Simpson is faced with the dilemma of whether or not he should leave Avery McNeil, the accounting at which he is currently working at. Simpson had interviewed with many consulting firms before graduating college, and had chosen Avery McNeil because it had the potential to allow him the most rapid advancement in his career. Within two years of working their he was promoted to manager and he received a great pay raise. However, a few days later Simpson came upon a sheet with pay grades of other
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
When employees were asked, what factors could be changed at USAA to help maintain employee motivation levels, a couple of them answered with, “higher wages” and “more money”. This response corroborates other studies regarding pay which state surveys will more likely under emphasize the importance of pay relative to other motivational factors. (Rynes, Gerhart & Minette, 2004). “Financial incentives had by far the largest effect on productivity of all interventions. For example, pay was four times more effective than interventions designed to make work more interesting.” (Rynes, 2004). One reason for this phenomenon is social desirable responding. It should be noted, that although pay may be under reported, the results indicate other factors are also important for employee
The above examples of pay show that the more skills, experience employees are with the organization the more they are compensated. Organizations would benefit by utilizing the same practice’s Disney extends to their workforces. For those businesses whose primary purpose of their plan is to only meet compliance requirements could greatly benefit by developing a comprehensive benefit plan. This could help increase their return on investment. The value I believe a business may gain from Disney’s compensation plan is to appeal to competent workers, to maintain those workers, and to motivate workers to direct their energies towards achieving the goals of the organization. Companies can set up policies to conduct a market study on a regular basis to implement a real performance appraisal system and then work on retaining good employees and elimination of poor performing workers. By following Disney’s lead of in obtaining those who best fit their company’s culture and supporting the company’s Mission. To guarantee that the pay structure is externally competitive, a pay survey should be shown. The results of a survey to be valid, the market pay data must be from the relevant labor market for each benchmark job. I would advise that a survey of regional and global pay data should be collected from the company, because for example, most of the office support, HR and operations jobs will be filled by local applicants. A job analysis is the procedure of reviewing jobs in an alike business. The result of this process is a job description “that includes the job title, a summary of the job tasks, a list of the essential tasks and responsibilities, and a description of the work context “(Burke, 2008). A job description consists of the knowledge, skills and aptitudes necessary to do the job. A job evaluation is the process of adjudicating the comparative value of job within a company
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
...dditionally, the merger can take place in smaller phases. For instance the first phase may include change of the physical look of the branches and the signage - – so as to convey a consistent view and experience for its customers. This phase may also include effective communication to the employees to educate them about the merger, ensure them of their positions and encourage them to participate in the merger. Second, the firm can totally combine the bank’s technology and the information systems which will allow the merged firm to operate as a single entity and to become fully operational. The management should implement the merger with care and prudence, aiming for minimal disruption for the customers and should communicate extensively to ensure all its stakeholders are kept fully informed as they make changes.
Bill Bailey, chairman of the board of the Utah Opera Organization, could use McClelland’s need theory to support the merger with the Utah symphony based on the three principles that are entailed in the theory; need for achievement, need for affiliation, and need for power (Kreitner & Kinicki, 2010, p. 215).
The Expectancy Theory of Motivation states that motivation is a result of a rational calculation; people do what they want. Expectancy is the probability that work effort will be followed by performance accomplishment, instrumentality is the probability that performance will lead to various work outcomes, and valence is the value to the individual of various work outcomes. When any of these categories are diminished, then overall motivation will decrease. In this case, Mary may not feel self-confident that she has the skills and education to complete the job given by her manager. Although she was given a ten percent increase in pay, her salary was still lower than the average co-worker. Therefore, she is still lacking a difference in pay between herself and Sue after the raise. Therefore, since she is low, motivation will be significantly also lower. The Expectancy Theory Predication explains Vroom process which employees undergo when making personal choices. The theory suggests that motivation is the result of a rational calculation people will so what they want to do. Individuals may have different sets of goals, they can be motivated if they believe that there is a positive link between efforts and performance, favorable performance will result in a desirable reward, the reward will satisfy an important need or/and the desire to
When developing an effective RM procedure as part of organisational strategy many considerations must be addressed. O’Neil (1998) suggests the following key methods of linking pay to performance; ascerta...
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
The idea is that those who have invested money into their education and acquiring skills should be rewarded. However, this doesn’t create a bid difference in wages, as it would be discriminating to those who could possibly not afford it. However, this is a very tame example of discrimination. Most cases of discrimination deal with gender or ethnicity. Even though it is hard to prove racism and sexism, there have been several cases where women or ethnic minorities have claimed that they are being paid less and treated worse that their ‘normal’ counterparts. Even though some would say that it is a very sceptical standing point, some claims have been backed up in court settlements. In the case of gender pay gap, people would argue that there are a variety of factors explaining the reasons for the difference in wage such as part-time working, geographical mobility and less human capital. However, you cannot dismiss the evidence that women and ethnic minorities do earn less money on average then the male majority so it cannot be dismissed as a factor affecting wage
The effective Human Resource Management in an organization requires an exceptional standard set for motivation, job design, reward system and equity. Nowadays, people are more willing to avoid unfair treatment in the workplace than any other aspect. The fundamental concept behind Equity is an attempt to balance what has been put in and taken out at the workplace with a feeling of justice being served. Unconsciously, values are assigned to many various contributions made to the organization, hence causing an air of misbalance in the environment. There has always been a disparity in the view on the desirability or the cost effectiveness of policy measures. The importance of equity or reducing discrimination has gained a lot of attention in the labour market (Milkovich, Newman & Ratnam, 2009).
If part or all of the one’s salary is contingent on how well you actually perform your job, one will go the extra mile. The individual will attack his/her work with vigor and revel in the rewards. And...
An important part of the retention of staff, reducing staff turnover and minimising absenteeism at work is ensuring that staff are properly motivated. This is not as easy as it sounds. At first glance, you might be tempted to think that merely increasing wages is the way to motivate! Not so. Most thinkers on the subject would argue that motivation is a far more complex issue than merely 'money'.