The Three Motivational Theories Motivational theories help to determine the factors that employees consider for maintaining a desired organizational behavior. Agency theory is a principal theory in microeconomics which deals with principal and agent and other relationships in organization. Usually, agents are self motivated and principals can avoid conflicts through controlling the variable pay of the agents (Linda et al 1996). When the relationship is long and risks taken are less, the pay package usually diminishes according to Agency theory. Equity theory, on the other hand, measures the subjective pattern used by employees to judge the fairness between their inputs and received outputs.
For every contribution, they expect certain rewards and compare the exchange with others. If found unsatisfactory, the employees tend to get de-motivated. This perceived inequity leads to tensions and negative outputs. The implications of this theory compel the managers to devise “equal pay for equal work” structure which will result in lesser perceived inequality and consequently lesser compensation dissatisfaction. The Expectancy theory proposed by Victor Vroom uses three variables of expectancy, instrumentality and valence to link the efforts, performance and motivation of an employee.
The theory states that if employees believe that more efforts, better performance and predicted outcome will lead to better rewards and compensations packages, the motivation level of employees goes up. Thus, the management has to fulfill all the three criteria to motivate the employees and good pay, salaries, incentives and benefits form the core. Case of Dissatisfaction Clearly the case 2 of Richelle corresponds to dissatisfaction in equity theory because both Richelle and Robert share the same job position, yet Richelle handles additional job responsibilities. Definitely when compared with her inputs (job responsibilities and extra work hours), her outputs (pay and rewards) seem inequitable to her which leads to dissatisfaction. Total Compensation System Compensation system depends upon the process fairness and strategic policies devised by the management.
Strategic policies entail comparative payment system within industry and incorporating fair labor and pay standards in the overall compensation program. Process issues involve equality in pay for equal work and benchmarking the jobs for performance appraisal and incentives plan. Practical methods Absenteeism is an employee act which results in loss of productivity to the business.
Some practical methods which can be used to reduce the instances are discussed below. Company rule setting a definite number of absents allowed per year and employees having more than set absents directly terminated. Placing good attendance record in the previous year as a criterion to be eligible for job promotion or securing additional incentive. Creating a paid time off system where employees are given a certain number of days which are paid for off work and employees can choose it for any reason of leave. However, after finishing this limit, every absent is counted towards unpaid leave. Reasons for Absenteeism Expectancy theory states that employees tend to analyze the possible outcome of a desired behavior before actually practicing it.
If they expect that better attendance record will be a first level factor in achieving superior performance and then to promotion, absenteeism instances will go down. Thus, lack of proper valence and instrumentality factors put in place by the organization lead to negative motivation about employee attendance. Work cited Linda K. Stroh, Jeanne M. Brett, Joseph P. Baumann and Anne H. Reilly. The Academy of Management Journal, Vol.
39, No. 3 (Jun. , 1996), pp. 7517