The Expectancy Theory, which is one of the process of motivation theory, indicates motivation of individual is determined by expectancy, instrumentality and valence that base on person’s perception of reality.(G.A.Cole&Kelly.P 2015) Management should analyze how these three factors influence people as processes towards motivation. Specifically, the expectancy means an individual belief of a especial action can result in especial performance through relative effort. Then people expect that good performance will contribute to a reward what they desire to, this is referred to Instrumentality. Finally, people will evaluate the rewards which is worthy and attractive to them, the evaluation known as Valence in The Expectancy Theory. Managers can set relative rewards for work or goal to enhance employee, through understanding employee’s expectancy. As a consequence, employee is motivated by obtaining satisfaction and rewards, their performances are improved that lead to positive development for firm or organization. In applying this section, to motivate employee by rewarding their well performance. On the one hand, managers can use some extrinsic reward into organization such as compensation systems. The extrinsic reward is particularly suited with people who need to be controlled, which mentioned in McGregor’s Theory X. As an instance in application, pay-for-performance plans (Berger, 2009) is a compensation system which reward employees directly due to the extent of well performance. To be more specific, the “commission plans” is designed for sales personnel, the “piece-rate systems” is suitable for factory workers, and in the part of executives, the “incentive stock option (ISO) plans” is used (Dunn, 2009; Mercer, Carpenter, & Wyman, 2010). …show more content…
By comparing with others treatments, the Equity Theory emphasizes to what extent that people feels the sense of fair from their treatment.(G.A.Cole&Kelly.P 2015) Generally, people will confront unequal situation in workplace, when people experience these unequal circumstance they might relatively adjust their behaviors. People might encouraged by the uneven conditions such as both of intrinsic and extrinsic rewards, and thus produce positive performance. For instance, an ordinary employees see a highly effective employee has better treatment than others including extra bonus and greater physical working condition, the ordinary employee may improve own efficiency to seek the same treatment. Therefore, because the uneven circumstance stimulate and motivate the employee to act positively, managers can using rewards and punishments in practice. Noticeably, management should not ignore that people’s social needs as important motivator as their physical needs. Nevertheless, people would perform negatively when they suffer the relative unfair circumstance. For instance, if employee on the extreme under-paid situation, the employee will work slowly because the employee cannot see the hope of future. Hence, managers need to be aware of the equality in work treatment, with a socially connected working environment. As an example, the Starbucks has done well based on the Equity Theory. In Starbucks’ management, managers despite the different status and treat each employee as their partner. Consequently, both of managers and workers in Starbucks collaborate well, the performance is enhanced. (Anon n.d.) In addition, the equal situation could lead to problems as well, such as people who has greater ability that will dissatisfied with treated same as the lower skilled people. In conclusion, management must concern the reality, then create a reasonable