External equity
fairness of the organisation’s pay in comparison with the payments made to similar jobs outside the organisation.
Internal equity
fairness of what is paid for one job in the organisation, compared to that of other jobs
The reinforcement process
-Stimulus
-Response
-Consequence
-Future
Stimulus
Situation
Response
Behaviour
Consequence
Rewards or punishments
Future
Behaviour
Behaviour can be changed in the following ways
-Through positive reinforcement
-Through punishment
-Through negative reinforcement
-Through extinction.
Positive reinforcement
creates a pleasant consequence by using rewards to increase the likelihood that a behaviour will be repeated
Punishment
It is an attempt to discourage a behaviour by the application of negative outcomes whenever it does occur
Negative reinforcement
engaging in behaviour to avoid unpleasant consequences
Extinction
there is an absence of any reinforcement, either positive or negative, following the occurrence of a behaviour
Five guidelines for using reinforcement theory
-Do not reward all individuals equally
-Failure to respond can also modify behaviour
-Tell individuals what they can do receive a reward
-Tell individuals what they are doing wrong
-Do not punish in front of others
Goal-setting theory
It states that managers can direct the performance of their employees by assigning specific, challenging goals that employees accept and to which they are willing to commit
Basic expectancy theory
It states that people tend to choose behaviour that they believe will help them achieve their goals and avoid behaviour that they believe will lead to undesirable consequences
Three questions that employees consider when making behavioural choices
-The expectancy question
-The instrumentality question
-The valence question
The valence question
How much do I value the outcome associated with the intended behaviour?
-The valence of an outcome associated with performance is the importance or value that a particular employee attaches to the outcome
The instrumentality question
If I perform the intended behaviour, what will the outcome be?
-Instrumentality is the perceived usefulness of performance as a means for obtaining desired outcomes.
The expectancy question
If I make an effort, will I be able to perform the intended behaviour
-Expectancy is the belief that a certain level of effort will lead to improved performance
The integrated expectancy model
The model suggests that employees who perform well will feel more satisfied, assuming that their performance is rewarded appropriately.