10-3a Equity Theory: is based on the premise that people are motivated to obtain and preserve equitable treatment. According to this theory, we conceive of equity in the following way. First, we develop our own input-to-outcome ratio.Inputs are the time, effort, skills, education, experience, ans so on that we contribute to the organization. Outcomes are the rewards we get from the organization, such as pay, benefits, recognition, and promotion. Next, we compare this ratio to what we perceive as the input-to-outcome ratio for some other person. If the two ratios are roughly the same we feel that the organization is treating us equitable. However, if our ratio is higher of the two, we feel under-rewarded are motivated to make changes. We may (1) decrease our own inputs by not working as hard, (2) try to increase our outcome by asking for raise to pay, (3) try to get the comparison other to increase some inputs or receive decreased outcomes, (4) leave the work station, or (5) conduct a new comparison with a different comparison other.
10-3b Expectancy Theory: developed by Victor Vroom, a Canadian business professor, is very complex model of motivation based on a simple assumption. According to expectancy theory, motivation depends on how much we want something on how likely we think we are to get it. Expectancy theory is difficult to apply, but does provide several useful guidelines for managers. It suggests that managers must recognize (1) employees work for variety of reasons, (2) there reasons, or expected outcomes, may change over time, and (3) it is necessary to show employees how they can attain the outcomes they desire.
10-3c Goal-Setting Theory: states that employees are motivated to achieve goals that they and their managers establish together. The goal should be very specific, moderately difficult, and one that the employee will be committed to achieve.