2. The idea behind goal-setting theory is the process
of setting attainable goals to motivate employees
and improve performance. The key to goal-
setting theory is that the goals must be accepted
and accompanied by feedback to truly be effec-
tive.
3. Victor Vroom created the expectancy theory. His
central premise was that the amount of effort
employees exert on a specific task depends on
their expectations of the outcome. He contends
that employees will ask three specific questions
before committing maximum effort: Can I ac-
complish the task? If I do accomplish it, what’s
my reward? Is the reward worth the effort? Like
goal-setting theory the key to expectancy theory
is setting attainable goals. If the goal is not at-
tainable employees will simply give up, thus re-
ducing motivation.
4. Equity theory looks at how employees’ percep-
tions of fairness affect their willingness to per-
form. Employees will try to balance or maintain
equity between what they put into the job and
what they get out of it, comparing those inputs
and outputs to those of others in similar posi-
tions.
Herzberg argued that factors such as responsibility,
achievement, and recognition were more important moti-
vational factors in the long run than pay. He believed that
if you wanted to motivate employees you should focus on
enriching the job.