is the theory that an individual tends to act
in a certain way based on the expectation
that the act will be followed by a given outcome and on the
attractiveness of that outcome to the individual.
Three relationships are important to this theory.
1. Effort-performance linkage (expectancy) is the probability perceived
by the individual that exerting
a given amount of effort will lead to a certain level of performance.
2. Performance-reward linkage (instrumentality) is the degree to which
an individual believes that
performing at a particular level is instrumental in, or will lead to,
the attainment of a desired outcome.
3. Attractiveness of the reward (valence) is the importance that the
individual places on the potential
outcome or reward that can be achieved on the job.
4. There are four features inherent in the theory.
a. What perceived outcomes does the job offer the employee?
b. How attractive do employees consider these outcomes to be?
c. What kind of behavior must the employee exhibit to achieve these
d. How does the employee view his or her chance of doing what is asked?
5. The key to understanding expectancy theory is understanding an
individual’s goal and the linkage
between effort and performance, between performance and rewards, and
between rewards and individual
says that specific goals increase performance,
and difficult goals, when accepted,
result in higher performance than easy goals. What do we know about
goals as motivators?
1. Intention to work toward a goal is a major source of job motivation.
Specific and challenging goals
are superior motivating forces. Specific hard goals produce a higher
level of output than do generalized
2. Is there a contradiction between achievement motivation and goal
setting? No, and here’s why.
a. Goal-setting theory deals with people in general; achievement theory
is based only on people who
have a high need for achievement. Difficult goals are still recommended
for the majority of employees.
b. The conclusions of goal-setting theory apply to those who accept and
are committed to the goals.
Difficult goals will lead to higher performance only if they are
3. Will employees try harder if they participate in the setting of
a. We can’t say that participation is always desirable.
b. However, participation is probably preferable to assigning goals when
the manager expects
4. Will people do better when they get feedback on how well they’re
progressing toward their goals?
a. Feedback acts to guide behavior.
b. Self-generated feedback has been shown to be a more powerful
motivator than externally generated
5. What contingencies exist in goal-setting theory? There are four
contingencies we need to know
a. Feedback influences the goal-performance relationship.
b. Goal commitment is another contingency. Commitment is most likely to
occur when goals are
made public, when the individual has an internal locus of control, and
when the goals are self-set rather than
is another contingency and refers to an individual’s
belief that he or she is capable of
performing a task. The higher your self-efficacy, the more confidence
you have in your ability to succeed in
d. The last contingency that affects goal setting is national culture.
6. Our conclusion about motivation from goal-setting theory is that
intentions, as defined by hard and
specific goals, are a powerful motivating force.
a. In the proper conditions, they can lead to higher performance.
b. However, there’s no evidence that such goals are associated with
increased job satisfaction.
is counter to goal-setting theory. It proposes
that behavior is a function of its
1. Reinforcement theory argues that behavior is externally caused.
2. What controls behavior are
reinforcers, which are consequences
immediately following a response
that increase the probability that the behavior will be repeated.
3. Reinforcement theory ignores factors such as goals, expectations, and
4. It focuses solely on what happens when a person takes some action.
5. How can the concept of reinforcement be used to explain motivation?
a. People will most likely engage in a desired behavior if they are
rewarded for doing so.
b. These rewards are most effective if they immediately follow a desired
c. Behavior that isn’t rewarded or is punished is less likely to be
6. Managers can influence employees’ behavior by reinforcing the work
behaviors they desire.
Open Book Management
Open-book management is a motivational approach in which an
organization’s financial statements (the
“books”) are opened to and shared with all employees.
1. The goal of open-book management is to get employees to think like an
owner by seeing the
impact their decisions and actions have on financial results.
2. To be effective, employees have to be taught the fundamentals of
financial statement analysis and
what the numbers show.
3. The style of management demands for involvement of employees in all
decision making for
organization involving the transparency of financial statements.
4. Employees may be treated as business partners so productivity and
profitability is enhanced.
are compensation plans that pay employees on
the basis of some
1. Performance-based compensation is probably most compatible with
2. The increasing popularity of pay-for-performance programs can be
explained in terms of both
motivation and cost control.
3. Do pay-for-performance programs work? Studies seem to indicate that
Integrating Contemporary Theories of Motivation
1. The basic foundation is the simplified
2. The model also considers the achievement-need, reinforcement and
3. Rewards also play an important role in the model.