How Can Equity Theory Explain the Motivation of Employees Working at Diaco - Assignment Example

Name Instructor’s Name Course Date 1. How can equity theory explain the motivation of employees working at Diaco? Introduction The equity theory of motivation was developed by John Adams in 1963. This theory extends beyond focusing on the self, that is the employee as a person, to focusing the other persons in the organization such as fellow colleagues and friends within or even outside the organization but who may be involved in similar work. This creates a comparative effect for the employee, thus incorporating the aspect of equity as employees begin to focus on what is fair and what may be unfair in the course of their work and aspects related to work such as pay and remuneration. The underlying aspects about the equity theory is that when people are, and feel that they are fairly treated, they get easily motivated to work better and even harder. When they feel or are treated unfairly, on the other hand, they get de-motivated and their productivity depreciates accordingly (Messick &. Cook 189). The way that people measure the sense of fairness in an organization, therefore, is what constitutes the equity theory. Equity Theory and Diaco Diaco seems to be performing excellently in applying the equity theory in, managing its employees. The company ensures that all employees are treated fairly and equally amongst them, and that none of them benefits unfairly at the advantages of others, thus explaining the high rate of motivation among the employees in the company. First, the company pays medical insurance cover for all its employees, including those engaged on casual basis. This also includes day care services. This is a great step for the company in increasing the amount of motivation among its employees, making all employees feel equally important and useful to the company. Extending day care services to all employees will make those with children work with the same zeal as those without children, as they do not have to waste time sneaking to check on their children at home during lunch breaks or arriving to work late. Besides, they do not spend their mental energy worrying on the safety of their children, because they can easily check on them while at work. According all employees medical insurance cover means that the company values all its employees, including those on casual basis just as importantly as the rest. This will make the employees on casual get motivated to work just as hard as those on contracts or permanent basis, because the company views and appreciates them all equally. The company makes the same expectation for all employees equally, just the same way it accords them leisure and recreation equally. While it allows all employees to take some time at the beach, it expects them to work equally hard and deliver for the company. Those who do not achieve this for the company fall out with management. This makes employees feel equal with one another, irrespective of the departments they work in and their level of employment. This acts as a motivation, where they know that they have equal chances of keeping or losing their jobs, all based on merit. Employees will, therefore, be motivated to work hard knowing that this is the only way they can keep or lose their jobs and not on favoritism or any criteria (Carrell & Dittrich 205). Lastly, the company motivates its employees by treating the equally with other employees in the industry through pay. It pays them equally with the employees in the industry, or slightly higher to ensure that they are more motivated than the others. When such is the case, employees will consider rather non-monetary aspects and benefits that the company offers. In the case of Diaco, because the pay for the employees is equal to that of other employees, the employees will consider the non-monetary benefits such as paid leave of up to six months and the study leave, of which the company will pay up to 50% of the tuition fees. Because these benefits are extended to all employees, the employees get encouraged to work harder and better so as to appreciate the efforts of the company as well in enabling them to advance their career and education. The greatest strategy for Diaco in keeping its employees motivated is the application of equity in the manner that it regards its employees (Porter & Lawler 144). All employees, including those of the lowest ranks feel encouraged to work for the company, knowing that they will be accorded benefits just like the rest of the employees, and a chance to advance through education and their merit and hard work. The employees, therefore, draw their motivation from the fact that they are appreciated and considered important to the company in an equal measure, and that their efforts are all important and appreciated in equal measure with the rest. 2. To what extent is Diaco’s approach to employee motivation consistent with expectancy theory? Discuss. Introduction The expectancy theory of motivation was developed by Victor Vroom in 1964. This theory focuses on the outcome of an undertaking, and as such, the amount and intensity of expectation placed on an undertaking is what determines the type of outcome from the undertaking as well as the amount of effort the performer will put in the undertaking to ensure the success of the undertaking. As such, an employee is motivated to work depending on how much he wants the reward as a result of the outcome, the extent that the effort of the employee will lead to the expected outcome, and the belief that the effort will lead to the expected outcome. Expectancy, therefore, is the belief in the employee that better effort will lead to better performance and thus, reward. Diaco and The Expectancy Theory Diaco’s approach to employee motivation is quite consistent with the expectancy theory. Management has taken measures of motivating the employees, which it believes that will lead to increase improve the performance of the employees. The company believes that treating employees equally and with dignity will serve to motivate them by making them feel equal and fairly treated important to the company. This serves to fulfill their personal needs of adequacy and respect as well as dignity, thus increasing their motivation to work harder and smarter for the company (Higgins 341). Diaco has not shied away from letting its employees know its expectation of them; hard work, creativity, and success. The company has made it known to all employees how much these outcomes are important to the company through the amount of efforts it has put to ensure that all its employees are comfortable enough to execute their duties in the most effective manner possible. This is clear through benefits such as day care services, medical cover for all employees, leisure and breaks to rest and bask at the beach, providing them paid leave, and supporting the employees in their education so asto increase their academic and competency skills. All these are geared to improve their performance through acquisition of skills and increasing their motivation so that they can achieve the outlined outcomes. As such, the employees realize the importance of achieving the expected outcomes, of which failure is lass of the job at the company. This ensures that employees carry out their tasks in the company with a clear agenda of what they are supposed to achieve for the company. They know that all the benefits they are accorded by the company are in an effort to enable them achieve the expected outcomes. The third concept of this theory as applied in the company is the extent to which the employee wants the reward as a result of the outcome (Bandura 129). As we have seen in the company’s background, the company offers a highly competitive opportunity for prospective employees as well as comfort for those already working in the organization. For those already working for the company, they would like to continue working for Diaco because of the many benefits and highly conducive atmosphere they are accorded in the company. Because the pay in other companies is similar to that of the company, many of them would like to keep their jobs and enjoy the non-monetary benefits as well as the satisfactory working atmosphere they are entitled. For prospective employees, we have seen that the company attracts up to 500 applicants for every vacancy advertised. As such, the existing employees know how much at stake their positions are from outside competition for employees who would be eager to take up their places if they left. The existing employees must, therefore, work hard in order to meet the expectations set for them so that they can keep their jobs with the company. Because of the many benefits they are entitled, many of them would want to continue working for the company and enjoy the rewards. As such, one would describe the extent to which the employees want the reward of continuing to work in the company as high, considering the amount of competition there is for places in the company. Based on outcomes, the employees are adequately motivated to work hard, foster team work, and employ creativity in their work so that they can achieve the ultimate reward of working for the company. Works Cited Bandura Albert. Self-Efficacy Mechanism in Human Agency. American Psychologist, 37: 122- 147. 1982. Print. Carrell Michael and Dittrich John. Equity Theory: The Recent Literature, Methodological Considerations, and New Directions. The Academy of Management Review, 3(2): 202-210. 1978. Print. Higgins Christopher. A Self-Efficacy Theory Explanation for the Management of Remote Workers in Virtual Organizations. Journal of Computer-Mediated Communication, 3(4). 1998. Print Messick David and Cook Karen. Equity Theory: Psychological and Sociological Perspectives. Connecticut: Praeger. 1983. Print. Porter Lyman and Lawler Edward. Managerial Attitudes and Performance. Homewood, IL: Richard, D. Irwin Inc. 1968. Print. Read More