The theory has three factors:
Equity Theory -- Stated that a person compares their outcomes and inputs with others. Sarah has a meeting to discuss the salary of the whole entire organization. They realized that women were low paid in comparison to the men. Sarah started comparing herself with one of her colleagues saying that she worked harder than him and she has been there longer than him.
Satisfaction performance theory -- Porter and Lawler (1968a) state that it is not a motivational model that had dealt with the relationship between satisfaction and performance. Sometimes any reward that an employee may get is not related and how well he/she performs their job. Although this case does not tell us what type of reward Sarah was getting for her job we can see that her level of satisfaction she had when doing her job. She perceived that a higher degree of effort on her part will lead to a reward.
Goal Setting Theory -- Latham and Locke (1983) suggested three steps to follow on this theory:
Setting the goal: In every meeting Sarah had to attend us observe that she was well organized. She has a goal to attend a meeting to discuss overall payroll, discuss issues with her assistant Maria, and deal with one of her new employees. In all of the meetings she knew exactly the issue and analyzes...
It is very important for a manager to set their own goals as well as employee goals. If this does not happen the reputation on the manager may look suspicious or destruct. We need to give the example first.
Obtaining goal commitment -- Sarah has a meeting with Maria to discuss the performance. Maria was not the greatest employee but Sarah wants her to be more involved with others in her department since she is not a people person. Sarah can handle putting together a reward system to compensate her for obtaining the agreed-upon goals. Making Maria commit to her job will probably fix the situation.
Providing support elements- Sarah has a new employee, Janine who she has to tell her how to do everything and worries about her changing the rules. Sarah as the manager needs to apply this support element and has to provide an action plan of agreed-upon goals and rewards so it not to have any ambiguities in the processes. This is not a solution that will avoid the situation but can prevent the changing of process or rules. One thing that Sarah could avoid in order for her not to feel bad about Jenine's personal situation was to consult with her about the overtime hours.
Reinforcement Theory -- To avoid the situation Sarah has with Maria and Jenine she could follow the Reinforcement theory. This theory will help Sarah understand the changes. It is my opinion that Sarah should use positive reinforcement and negative reinforcement. As an example make Maria or Jeanine change their attitude with their job has given them a positive reward in order to see if they change, also sometimes a negative reinforcement will be helpful in order to eliminate some overtime.
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