equity theory case study presentation

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Page 1: Equity Theory Case Study Presentation
Page 2: Equity Theory Case Study Presentation

Rahul Agrawal

Santosh Choudhary

Navodita Upadhayay

Swati Gupta

Navin Bhattarai

Page 3: Equity Theory Case Study Presentation

Part 1

Concept of Motivation Simple model of motivation. Types of Rewards

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Motivation

Definition:

“ The forces either internal or external to

a person that stimulate enthusiasm & persistence to accomplish a certain action

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NEED-Creates desire to fulfill needs (food, friendship, recognition, achievement).

BEHAVIOR-Results in actions to fulfill needs.

REWARDS-Satisfy needs; intrinsic or extrinsic rewards.

FEEDBACK-Reward informs person whether behavior was appropriate and should be used again.

Simple model of motivation

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1. Intrinsic rewards:

satisfactions a person receives in the process of performing a particular action.

2. Extrinsic rewards: given by another person.

Types of Rewards

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Intrinsic reward: from working on challenging technical problems.

Extrinsic reward: from beneficial global impact of their work

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Part 2

Process Perspectives of Motivation Equity Theory

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Process Perspectives Focus on why people choose certain behavioral

options to satisfy their needs and how they evaluate their satisfaction after they have attained their goals.

Process Perspectives of Motivation Equity Theory Expectancy Theory Goal-Setting Theory

Process Perspectives on Motivation

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1.Equity Theory People are motivated to seek social equity in

the rewards they receive for performance. Equity is an individual’s belief that the

treatment he or she receives is fair relative to the treatment received by others.

Individuals view the value of rewards (outcomes) and inputs of effort as ratios and make subjective comparisons of themselves to other people.

outcomes (self)

inputs (self) =outcomes (other)

inputs (other)

Process Perspectives on Motivation

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A. An Equitable Situation

Self Other

$2

1 hour

= $2 per hour$4

2 hours

= $2 per hour

1.Equity Theory

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B. Negative Inequity

Self Other

$2

1 hour

= $2 per hour$3

1 hour

= $3 per hour

1.Equity Theory

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C. Positive Inequity

Self Other

$3

1 hour

= $3 per hour$2

1 hour

= $2 per hour

1.Equity Theory

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Source: Van Fleet, David D., and Tim Peterson, Contemporary Management, Third Edition. Copyright © 1994 by Houghton Mifflin Company.

The Equity Process

1.Equity Theory

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Equity Theory (cont’d)Conditions of and reactions to equity comparisons: Feeling equitably rewarded.

Maintain performance and accept comparison as fair estimate.

Feeling under-rewarded - try to reduce inequity.

Change inputs by trying harder or slacking off. Change outcomes by demanding a raise. Distort the ratios by altering perceptions of self or of

others. Leave situation by quitting the job. Change comparisons by choosing another object

person.

1.Equity Theory

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Part 3

• Case Study• Layout Of The Case Study• Questions To Be Answered

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• School Dean Raises The Salary of 7 Management

Teachers.

• This Creates uproar among the Non- Management

Teachers.

• The situation occurred during financial crisis so raising the

pays for all employees was not possible.

• The problem is exaggerated by the lack of a clear pay

policy .

• The President of the university and the Board of Directors

are faced with the enormous challenge of creating

cohesiveness among the faculty despite their irreconcilable

differences.

• Their actions and decisions will shape the fate of the

university.

Layout Of The Case

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• Using the equity theory, discuss and rationalize the non-

management faculty members' and the Management

Professors actions toward the salary adjustments for The

University?

• During the current stage of conflict aftermath, what can

the administration do to rebuild trust and reunite the

academic areas to allow them to work together as a team?

• Should the administration try to externally or internally

align the compensation plan?

Questions To Be Answered

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What you believe, you can achieve.

Say THANK YOU ----The easiest, least expensive way to motivate workers is often overlooked

"When you come to the end of your rope, tie a knot and hang on. "

Franklin D. Roosevelt

People often say that motivation doesn't last. Well, neither does bathing - that's why we recommend it daily.Zig Ziglar

MotivationSaying & Quotes

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Thank you for listening