Needs-Goal Theory – Motivation begins with an individual feeling a need. This need is

then transformed into behavior directed at supporting, or allowing, the performance of

goal behavior to reduce that felt need. Theoretically, goal supportive behavior and goal

behavior itself continue until the felt need has been significantly reduced.

Vroom Expectancy Theory – Like the needs-goal theory, motivation strength is

determined by the perceived value of the result of performing a behavior and the

perceived probability that the behavior performed will cause the result to materialize. As

both of these factors increase, so does motivation strength, or the desire to perform the

behavior. People tend to perform the behaviors that maximize their rewards over the long

term.

Equity Theory – Equity theory looks at an individual’s perceived fairness of an

employment situation and finds that perceived inequalities can lead to changes in

behavior. When individuals believe that they have been treated unfailry in comparison

with their coworkers, they will react in one of four ways:

1. Changing their work inputs to better match the rewards they are receiving.

2. Ask for a raise or take legal action.

3. Change their own perception of the situation.

4. Quit.

Porter-Lawler Theory – The Porter-Lawler Theory accepts the premises that felt needs

cause human behavior and that the effort expended to accomplish a task is determined by

the perceived value of rewards that will result from finishing the task and the probability

that those rewards will materialize.

Vroom theory of motivation assumes that behavior results from conscious choices among

alternatives whose purpose it is to maximize pleasure and minimize pain. Together with

Edward Lawler and Lyman Porter, Victor Vroom suggested that the relationship between

people's behavior at work and their goals was not as simple as was first imagined by

other scientists. Vroom realized that an employee's performance is based on individuals

factors such as personality, skills, knowledge, experience and abilities.

The theory suggests that although individuals may have different sets of goals, they can be

motivated if they believe that:

There is a positive correlation between efforts and performance,

Favorable performance will result in a desirable reward,

The reward will satisfy an important need,

The desire to satisfy the need is strong enough to make the effort worthwhile.

The theory is based upon the following beliefs:

Valence

Valence refers to the emotional orientations people hold with respect to outcomes [rewards]. The

depth of the want of an employee for extrinsic [money, promotion, time-off, benefits] or intrinsic

[satisfaction] rewards). Management must discover what employees value.

Expectancy

Employees have different expectations and levels of confidence about what they are capable of

doing. Management must discover what resources, training, or supervision employees need.

Instrumentality

The perception of employees as to whether they will actually get what they desire even if it has

been promised by a manager. Management must ensure that promises of rewards are fulfilled

and that employees are aware of that.

Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and Valence

interact psychologically to create a motivational force such that the employee acts in ways that

bring pleasure and avoid pain.

Equity theory proposes that individuals who perceive themselves as either under-rewarded or

over-rewarded will experience distress, and that this distress leads to efforts to restore equity

within the relationship.

If an employee feels underpaid then it will result in the employee feeling hostile towards the

organization and perhaps their co-workers, which may result in the employee not performing

well at work anymore.

When individuals find themselves participating in inequitable relationships, they become

distressed.

DETAILED DISCUSSION

Equity theory is a theory that attempts to explain relational satisfaction in terms of perceptions of

fair/unfair distributions of resources within interpersonal relationships. Considered to be one of

the justice theories, equity theory was first developed in 1963 by John Stacey Adams. He was a

workplace and behavioral psychologist, who asserted that employees seek to maintain equity

between the inputs that they bring to a job and the outcomes that they receive from it against the

perceived inputs and outcomes of others. The belief is that people value fair treatment which

causes them to be motivated to keep the fairness maintained within the relationships of their co-

workers and the organization. The structure of equity in the workplace is based on the ratio of

inputs to outcomes. Inputs are the contributions made by the employee for the organization

Figure 1.

Equity theory proposes that individuals who perceive themselves as either under-rewarded or

over-rewarded will experience distress, and that this distress leads to efforts to restore equity

within the relationship. It focuses on determining whether the distribution of resources is fair to

both relational partners. Equity is measured by comparing the ratios of contributions and benefits

of each person within the relationship. Partners do not have to receive equal benefits (such as

receiving the same amount of love, care, and financial security) or make equal contributions

(such as investing the same amount of effort, time, and financial resources), as long as the ratio

between these benefits and contributions is similar. Much like other prevalent theories of

motivation, such as Maslow’s hierarchy of needs, equity theory acknowledges that subtle and

variable individual factors affect each person’s assessment and perception of their relationship

with their relational partners. According to Adams, anger is induced by underpayment inequity

and guilt is induced with overpayment equity. Payment whether hourly wage or salary, is the

main concern and therefore the cause of equity or inequity in most cases.

In any position, an employee wants to feel that their contributions and work performance are

being rewarded with their pay. If an employee feels underpaid then it will result in the employee

feeling hostile towards the organization and perhaps their co-workers, which may result in the

employee not performing well at work anymore. It is the subtle variables that also play an

important role in the feeling of equity. Just the idea of recognition for the job performance and

the mere act of thanking the employee will cause a feeling of satisfaction and therefore help the

employee feel worthwhile and have better outcomes.When individuals find themselves

participating in inequitable relationships, they become distressed. The more inequitable the

relationship, the more distress individuals feel. According to equity theory, both the person who

gets "too much" and the person who gets "too little" feel distressed. The person who gets too

much may feel guilt or shame. The person who gets too little may feel angry or humiliated.

Porter and Lawler used Victor Vroom’s expectancy theory as a foundation to develop their

expectancy model. Similar to Vroom’s theory Porter and Lawler concluded that an individual’s

motivation to complete a task is affected by the reward they expect to receive for completing the

task. However Porter and Lawler introduced additional aspects to the expectancy theory.

Intrinsic and Extrinsic Rewards

Porter and Lawler categorised the reward as intrinsic and extrinsic

Intrinsic rewards are the positive feelings that the individual experiences from completing the

task e.g. satisfaction, sense of achievement.

Extrinsic rewards are rewards emanating from outside the individual such as bonus, commission

and pay increases.

Porter and Lawler’s model suggested that an individual’s view regarding the attractiveness and

fairness of the rewards will affect motivation.