Describe two motivation theories and their relationship with compensation.

Question

What will be an ideal response?

Answer 1

The expectancy theory of motivation was first introduced by Victor Vroom at Yale in 1964 and was later expanded by Porter and Lawler. Expectancy theory states that an employee's motivation is based on the probability that his or her efforts will lead to an expected level of performance that is linked to a valued reward. This theory emphasizes the importance of finding valued rewards for the employee. Rewards that are not appreciated by the employee have little power to motivate performance. Additionally, a break between the promise and delivery of the reward will decrease motivation. Managers who understand the key linkages in these expectations can better monitor employee motivation and adjust reward systems accordingly.The equity theory of motivation was first introduced by John Stacey Adams in 1963. This theory states that individuals judge fairness (equity) in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others. These referent others are workers whom the individual uses as a reference point to make these comparisons. Inputs include time, effort, loyalty, commitment, skill, knowledge, and enthusiasm. Outcomes include pay, job security, benefits, praise, recognition, and thanks.