OB THEORIES Flashcards
Expectancy theory
- Effort : employee believes effort results in acceptable performance
valence: (Is the reward enough for me) - Performance : the employee believes that acceptable performance will produce the desired reward
Instrumentality
- reward : the employee values the reward
Expectancy
Lessons for managers based on expectancy theory
Set clear, challenging goals
Keep promises
Communicate regarding goals and rewards (what is performance ? What is reward ?)
Psychological contract theory
Relationship between employer and employee is more complex than as described in formal contracts
Core notions ; psychological contract -> legal contract, expectations and obligations, violations ; small and large
Consequences of contract violation ; lowered trust, dissatisfaction, lowered commitment and productivity, less organisational citizenship behaviour, heightened turnover, heightened absenteeism
Violations unavoidable ?; fast changing,dynamic and unprediactble business environment due to :
Law,competition, globalisation
Social exchange theory (TD)
Mutual dependence and obligations :
-social exchange concerns a series of interactions between independent parties that create obligations towards eachother
Norm of reciprocity :
Support for a universal norm of reciprocity (differs across cultures (exchange of resources )
Backward + forward
- Social exchanges have motivational potential because of shared resources (economic and social)
- can be backward (obtained resources) and forward (future resources )
Conclusion - social exchange relationships are important for (de) motivation; match of expectations between parties is important
Self determination theory (TD)
Hybrid theory of needs & process
- Three basic human needs - autonomy, competence and relatedness
- people motivated to satisfy needs -> development and well being outcome
- Needs satisfaction and Motivation
- unique motivational value of indicators (each need predicts outcomes)
- relative importance of three needs across cultures ??
Conservation of resources theory
Stress theory (job burn out) based on two principles :
Primary of resource loss
Resource investment
The steps :
Peeps with higher resources will be set up for gains in resources vice versa
Initial resource loss will lead to resource loss in future
Initial gains lead to future gains
Lack of resources will invariable lead to defensive attempts to conserve remaining resources
Employability paradox
If HR invest in employees employability then
Employees more committed
Employees will remain as committed as before
Person organisation fit (TD)
The compatibility between people and organisations occurs when
A) at least one entity provides what the other needs
B) they both share similar fundamental characteristics
Or
C) both
Distinction between
Supplementary fit : possessing similar characteristics to the org
Complementary fit :
Demands abilities fit - employees ability satisfies orgs demand
Needs supplies - employees need and preferences are fulfilled
Person job fit (TD)
Relationship between a persons characteristics and those of the job or tasks that are performed at work
Effects on
Job satisfaction
Organisational commitment
Efficiency wage theory
- Deciding how much to pay
- Personnel = a resource
-Reasoning : higher costs will pay off because of higher performance Higher productivity Lower turnover Costs of recruitment and selection Costs of TD Selection benefits
Equity theory
Fairness
People compare their ratios of inputs/outcomes to others in order to judge whether their exchange relationship is acceptable
If my colleague gets more returns for his / her investments than me , I’m unhappy
Equity - Individual output / input = that of others
Negative inequity - “ < that of others
Positive inequity - “ > “
But not in isolation
-Single employee consistency : different HRM practices that an individual employee experiences should be consistent
-signals should be consistent
-synergy v deadly combinations :
Synergy: combined practices effect more than a single practice
