The third phase of Vroom’s Expectancy Theory is setting their rewards. This phase is also referred to as the valence phase. Managers in this phase need to take a look at different motivators that will help the salesperson achieve higher performance. The manager should take into consideration the different cultures, and groups that are within the organization. According to Schermerhorn, Osborn and Hunt, researchers have defined two separate types of rewards. They are extrinsic rewards and intrinsic rewards. (Schermerhorn, Hunt, & Osborn, 2005).
Extrinsic rewards are when the reward is of monetary value. The salesperson is motivated by a possible promotion, or an increase in salary. Intrinsic rewards are positive work outcomes that the individual receives directly as a result of their performance. They have a feeling of achievement or satisfaction. Sometimes this type of reward can be of monetary value, such as a trip or added time off. Whatever the reward, the manager should be sensitive to the different groups so that they are able to maintain high performance levels. (Schermerhorn, Hunt, & Osborn, 2005).
When combining all three aspects of Vroom’s Expectancy Theory, the outcome will be good if the manager takes into consideration each work effort. If any one of the three factors is low, then motivation in the team or group will be low. The manager needs to clearly define expectations, set standards, recognize individual differences, and allocate the rewards wisely once the desired outcome is given. The Expectancy Theory has shown to be successful for salespeople in an organization.
Production workers are different than salespeople and the administrative staff. The production worker has different responsibilities and objectives; therefore, motivation is also different. The Two-Factor Theory by Herzberg works well for this class of worker. Herzberg studied motivation and devised a way to conduct a survey to find out if workers were satisfied with his or her job, by simply asking workers when they felt good about their job and when they felt bad about their work environment. From this study he came up with the Two-Factor Theory that separated workers into two different categories: Hygiene factors and motivation factors. (Schermerhorn, Hunt, & Osborn, 2005).
Hygiene factors are sources that affect job dissatisfaction. These factors include: company policy and administration, wages, salaries and other financial remuneration, quality of supervision, quality of inter-personal relations, working conditions and feelings of job security. Motivation factors are sources that affect job satisfaction. These factors include: opportunity for advancement, gaining recognition, responsibility, challenging or stimulating work, sense of personal achievement & personal growth in a job. The Two-Factor Theory works well with the production worker due to the simplicity of applying these to a specific individual. (Schermerhorn, Hunt, & Osborn, 2005).
In light of recent events at Ford Motor Company and General Motors the Two-Factor Theory comes into effect. Many plants have been shutdown and jobs were cut. This is attributed to the flood of lower priced foreign cars coming into the United States. One of the main reasons for this cut is the fact that these auto makers have amazing benefits for its workers. When these companies started the benefits offered help them grow a very dedicated work force. Until recently, General Motors paid 100% of there employees insurance. In previous years this was a hiring tool for the company, but now it is a crutch. Last year GM announced they were cutting 25,000 jobs, and asking the remaining employees to pay for some of their insurance. Ford Motor Company is following suite by cutting 25,000 of their jobs this year. These events may cause their employees to become dissatisfied with there job and unsure about their future. In Hertzberg’s study he listed possible reactions to the hygiene factor: Low productivity, low service quality, strikes, industrial disputes, complaints about pay and breakdowns in employee communication and relationships. (Schermerhorn, Hunt, & Osborn, 2005).
The motivator factors are more on the positive side and according to Herzberg the techniques of job enrichment as a way of building satisfiers into job content. This means creating an environment that promotes productivity and job satisfaction. Because these motivators are tied to performance, it appears that production employees that strive to advance to a higher level are more motivated by these sources as opposed to the hygiene sources. These motivators promote achievement, recognition, responsibility, advancement, and growth. These are all sources that a developmental production worker will strive for. Herzberg summarizes the motivator factors well in this statement, “If you want people to do a good job, give them a good job to do,” (Schermerhorn, Hunt, & Osborn, 2005).
Administrative staff is responsible for various administrative and clerical duties to efficiently run the organization. Their primary duties are to provide information for an office, plan and schedule meetings and appointments and also organize projects. This group works well in an organization by utilizing the Equity Theory by J. Stacy Adams. The Equity Theory by J. Stacy Adams, clearly states that people such as administrative staff will be motivated to act in ways that remove the discomfort and restore a sense of equity. It is clear that the availability of job satisfaction is of great significance to both the employee and the employer. The Equity Theory is associated with fairness and justice so the administrative staff will want to believe they are treated fairly according to how they see others being treated.
Inequity occurs when the administrative staff believes they are unjustly rewarded in comparison to the reward of other workers. The comparison is between how creative and diligent the work is (outputs) versus what is gained in return (inputs). The outputs consist of what the employees get out of their jobs, which includes pay, respect, recognition, benefits, bonuses, and peace of mind. The inputs, on the other hand, are what are given such as loyalty, hours, skill, and patience. The Equity Theory states that employees strive for equity between themselves and other workers. Equity is achieved when the ratio of employee outcomes over inputs is equal to other employee outcomes over inputs. (Schermerhorn, Hunt, & Osborn, 2005).
A perspective on motivation which is goal-oriented leads to the view that being satisfied by achieving the goal will make the action rewarding on its own. Shermerhorn, Hunt & Osborn says, it is not the reward-giver’s intentions that count, but it is how the recipient perceives the reward that will determine actual motivational outcomes. It is evident that administrative staff that is not properly rewarded will seem uncomfortable versus those that are over-rewarded. Because of this, major attention and direction is given to provide the process and conditions that will eventually stimulate and structure the administrative staff involved in the negative inequity. People who feel they are overpaid increase the quantity or quality of their work while those who feel they are underpaid decrease the quantity or quality of their work. (Schermerhorn, Hunt, & Osborn, 2005).
As discussed in this paper all three employees have different theories that best motivates them. The salesperson is motivated by Vroom’s Expectancy Theory, which has three phases and extrinsic and intrinsic rewards. The production worker is best motivated by the Two-Factor Theory, which consists of hygiene and motivation. Finally, the administrative staff that plans and organizes the work is mostly motivated by the Equity Theory, which removes the discomfort and restores a sense of equity.
References
Shermerhorn, J.R., Hunt, J.G., & Osborn. R. N. (2005). Organizational Behavior. John Wiley & Sons, Inc. Chapter 6
