PROCESSED-BASED PERSPECTIVE ON MOTIVATION Process-Based perspective focus on how people behave in their efforts to satisfy their needs.

The Equity Theory of Motivation Focuses on people s desire to be treated with what they perceive as equity and to avoid perceived inequity. *Equity is the belief that we are being treated fairly in relation to others *Inequity is the belief that we are being treated unfairly in relatiion to othe rs. Forming Equity Perceptiions 4 Step Process 1. They evaluate how they are being treated by the firm. 2. They form a perception of how a comparison-other is being treated. 3. They compare their own circumtances with those of the comparison-other a nd then use this comparison as the basis for forming an impression of either equ ity or inequity. 4. The person may choose to pursue one or more of the alternartives discus sed in the next section. Outcomes (self) compared with Outcomes (other) Inputs (self) Inputs (other) Responses to Equity and Inequity The Expectancy Theory of Motivation This theory suggests that people are motivated by how much they want som ething and the likelihood they perceive of getting it. General Components ? Efforts-to-Performance expectancy is a person s perception of the profitab ility that effort will lead to performance. ? Performance-to-Outcome Expectancy is the individual s perception of the pr ofitability that performance will lead to certain outcomes. ? Outcome is anything that might potentially result from performance. *High-level performance conceivably might produce such outcomes as pay raise, a promotion, recognition from the boss, fatigue, stress, or less t ime to rest, among others.* ? Valence is the degree of attractiveness or unattractiveness a particular outcome has for a person. The Porter-Lawler Model This expectancy model provides interesting insights into the relationshi ps between satisfaction and performance. It predicts that satisfaction is determ ined by the perceived equity of intrinsic and extrinsic rewards for employee. Th at is, rather than satisfaction causing performance, which many people might pre dict, this model argues that it is actually performance that eventually leads to satisfaction.

*Intrinsic Rewards are intangible a feeling of accomplishment, a sense of achievement... *Extrinsic Rewards are tangible outcomes such as pay and promotion. Fundamental Guidelines in Expectancy Theory 1. Determine the primary outcomes each employee wants. 2. Decide what levels and kinds of performance are needed to meet organizat

ional goals. 3. Make sure the desired 4. Link desired outcomes 5. Analyze the situation 6. Make sure the rewards 7. Make sure the overall

levels of performance are possible. and desired performance. for conflicting expectancies. are large enough. system is equitable for everyone.