Homework #8 for MGT3000

Organization Management
HW # 8
Chapters 12
Matthew Henderson


1. Briefly explain equity theory?

Equity theory is the theory that individuals seek equality in rewards for performance as compared to others.  People who feel they are treated equally believe that their treatment is fair and equitable.

These comparisons are made with an input-to-outcome ratio.  Input is education, experience, effort and ability.  Outcome is pay, recognition, benefits and experience.

If the input-to-outcome ratio of an individual is similar in comparison to another’s, that individual will feel fairly treated.

If the input-to-outcome ratio of an individual is not-similar in comparison to another’s, that individual will feel unfairly treated.  If two employees are paid the same, yet one is experienced and one is not, the input-to-outcome ratio is unbalanced and one or both employees will feel unfairly treated.  The more experienced employee may decide they do not need to work as hard to balance the ratio.  Or the less experienced employee may decide they need to work harder to balance the ratio.

2. Briefly explain expectancy theory?

Expectancy theory is the theory that motivation is due to an individuals’ perception of outcomes from their actions or inactions.  The theory is broken down into three steps; effort, performance and outcomes.

If an individual expects that putting effort into a task will create higher personal performance (E -> P Expectancy), they will be more highly motivated to put effort into that task.  However, if an individual expects the extra effort will not enhance performance, they will likely have little motivation to exert the effort.

If an individual expects that high performance will attain desirable outcomes (P -> O Expectancy), they will be more highly motivated to perform at a higher level.  However, if an individual expects high performance will not enhance outcomes, that individual will likely have little or low motivation to perform.

Valence is the value of or attraction to outcomes for an individual.  If an outcome has little valence, the individual will be less motivated to achieve that outcome.  However, if the outcome has high valence, the individual will be more motivated to achieve that outcome.

3. Explain employee growth-need strength and its relationship to the job characteristics model?

Employee growth-need strength is one of the three major parts of the job characteristic model which consists of: core job dimensions, critical psychological states, and employee growth-need strength.

Employee growth-need strength is the idea that individuals have different levels of need for personal growth and development.  Someone with low-level need for growth will see little impact from the job characteristic model.  Someone with high-level need for growth and development will likely excel with the job characteristic model.  These people will likely improve the quality of the core job dimension of the model (skill variety, task identity, task significance, autonomy and feedback) and find satisfaction in doing so.


4. Describe the four elements that enable employees to become empowered?

The four employee empowering elements are: information, knowledge, power and rewards.

Information about a company’s performance can greatly empower employees.  This information can include financial and operational information.

Knowledge and skills help an employee to contribute to the company.  Company provided training programs help develop the employee and in turn, help develop the company.

Power to make substantial decisions empower employees to directly influence work procedures and organizational performance.

Rewards based on company performance tie employee efforts to company performance.