Motivation | Describe Expectancy Theory & Equity Theory

Describe expectancy theory and equity theory.

Possible Answer: The expectancy theory suggests that people are motivated to work toward rewards that they want and that they believe they have a reasonable chance of obtaining. A reward that seems out of reach is likely to be undesirable even if it is intrinsically positive. Equity theory focuses on social comparisons—people evaluating their treatment by the organization relative to the treatment of others. This approach holds that people begin by analyzing inputs—what they contribute to their jobs—relative to outputs they receive; outputs include salary, benefits, recognition, and security. The comparison made in equity theory is very similar to the psychological contract in which an employee views the ratio of contribution to return.

Source: Business Essentials, 8e (Ebert/Griffin) – Global Edition