Last Name 1

[Student Name] [Instructor Name] [Course Name] [Date] Am I Paid Fairly? Working with optimal motivation requires lots of factors to work in the background. Financial rewards and incentives are regarded as the most important factor that determines the quality of the work, behavior and expected output in a person, is level of motivation. Financial rewards increase the satisfaction level of any individual and groups. However, a vast majority of people are still not satisfied with their income and financial rewards at the end of a given interval. Theorist and management experts have defined this as a serious problem and proposed different measures for individuals as well as organizations to assess, whether the person is actually being underpaid or it is merely a psychological issue. Expectancy and Equity theory were coined for the same purpose as they are part of motivational and behavioral analysis. According to American Psychological Association, Equity and expectancy theories are used to predict different performance outcomes of an underrewarded and underpaid individual. A synthesis of the theories can be as follows: equity performance impacts are dependent upon the potential of performance-output anticipation (Harder, 460). In this regard, the theories are taken more seriously than ever before with their relation to the performance analysis of the individual as well as groups and organizations. Victor H.Vroom (1964) is understood to be the father of this theory, who while defining motivation as a mental process of making the best of available choices, came up with the idea of motivation behind decision making and presented this theory. He elaborated the concept by

Last Name 2

saying, Individual make estimates of expected results of a given behavior and then makes the best of available choices or in more clearer words, how the choice will help the individual achieve the desired results (Montana and Charnove, 76). In short, the theory has three key elements in it that provides the base for understanding the core concept, background and its philosophy in a fair manner (Wigfield and Klauda, 60). The factors are expected effort - effort performance expectancy, expected result- performance outcomes expectancy and finally individual value (Valence). The expectancy theory emphasizes on the importance of linking the rewards and incentives to the performance. Additionally, the theory also highlights the individual value and eligibility for receiving the rewards that can play a vital role in developing motivation in the individual and group (Montana and Charnove, 100). While, the equity theory primarily deals with motivation and studies the individual/groups behavior. The concept given by John Stacey Adams in 1963 linked the satisfaction with equitable distribution of resources. According to Adams, In any interpersonal relationship, the relational satisfaction will be judged by the individual perception of resource distribution being fair or unfair (Adams, 270). In simple words, the equity theory asserts that every individual working in an organization perceives his reward against the output he brings for the employer. Basic pays and salary that one receives in always seen by the employee as an alternative to his time/efforts that he gets in return. Additionally, the bonuses, incentives and other professional rewards increase the motivation level according to the theory. The motivation level of an employee will be proportional to the level of equity between his efforts and rewards. If the received rewards are higher than his perception of output, the motivation level will increase phenomenally; however, if his rewards are not matching the level of efforts that he is

Last Name 3

putting, the motivation is entitled to go down. The application perspective of the theory says that the employee has certain types of input (time, effort, ability, trust) and produces output (salary, recognition, responsibility, job security) and he compares both on the constant basis to determine the equity between efforts and rewards (Yum and Canary, 390). Look at the case of Russell, a healthcare center administrator. Background Russell is a pharmacy professional and works as an administrator of a Health Care Center. He is getting a handsome salary, indeed more than what his other fellows are getting in the same field. Russell is also entitled to receive 6 bonus salaries per year (18 in total), free lot, home loan and service award along with many other promised rewards. Now, Russell wants to look as if he is being paid fairly or not? Application of Equity and Expectancy Theories In order to analyze the listed case in the light of Expectancy and Equity theories, we need to look at the incentives and rewards that the person is getting against the services. As he is getting fairly good amount in terms of salary as compared to his peers in the same industry, so the motivation level of the individual is expected to be on the peak as the distribution of wealth here is quite equitable for him. Additionally, being an administrator, he is getting more against the added responsibility, so his expectations are also being met fairly. Therefore, owing to 6 additional salaries, house rent and other incentives, Russell must recognize that as compared to the people in the same industry and position, he is getting a fairly good pay. Moreover, he must think about the performance and the service outcomes that he is producing for the organization. In order to build and develop a perfect match and equity between his performance and rewards, he needs to pay heed to his performance outcomes to justify the

Last Name 4

additional sum and incentives that he is getting. He is not only getting a handsome amount of basic pay but also receiving certain rewards and incentives after a given interval. Therefore, his motivation level is to boom up for sure. Additionally, there is no visible reason that could demotivate Russell to perform better at the designated position. Therefore, on the basis of equity and expectancy theories, he is expected to perform accordingly in the near future as well because drivers of efforts are quite stronger here.

Last Name 5

Works Cited Adams, J S. Inequity in social exchange. Advances in Experimental Social Psychology. Ed. L Berkowitz. Academic Press, 1965. 267-299. Print. Harder, Joseph W. Equity theory versus expectancy theory: The case of major league baseball free agents. Journal of Applied Psychology 76.3 (1991): 458-464. Print. Montana, Patrick J and Bruce H Charnove. Management. 4th. NY: Barron's Educational Series, 2008. Print. Wigfield, A, S Tonks, and S Lutz Klauda. Expectancy-value theory. Ed. K R Wentzel & A Wigfield. Handbook of motivation at school (2009): 55-75. Print. Yum, Young-ok, and Daniel J Canary. Cultural Differences in Equity Theory Predictions of Relational Maintenance Strategies. Human Communication Research 35.3 (2009): 384406. Print.