Page 170 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes 8.9 Organizational Distress

Participation problems, Performance decrements, and compensation awards all have the ability
to have very opposite affects upon an organization. Participation problems such as absenteeism,
tardiness, strikes and work stoppages, and turnover bring serious costs to a company. Turnover,
for example, can help or costs a company in a big way. An employee is not performing up to par.
As a result he is fired and replaced with a more productive employee. Unfortunately, the new
employee was hired on at a higher pay rate than the previous. The company has the productivity
it needs, but at a cost.
8.10 Motivation

8.10.1 Expectancy Theory of Motivation

The basis of the expectancy theory of motivation is that people desire certain outcomes of
behavior and performance, and that they believe there are relationships between the effort,
performance and outcomes. The key points in the expectancy theory of motivation are the
valence which is the value or importance someone places on a reward. The expectancy which is
the belief that effort leads to performance and instrumentality which is the belief that
performance is related to rewards. These are all important to a person’s motivation. Motivation
problems came from the expectancy theory. The causes are a disbelief in a relationship between
effort and performance, a disbelief in a relationship between performance and rewards and an
overall lack of desire for the offered rewards. If a problem is with the person’s effort or
performance, the persons belief should be changed. If the problem is with the reward, then the
value of the reward or the reward itself should be changed. “The Expectancy theory has held a
major position in the study of work motivation.” (Van Eerde)
8.10.2 Theory Social Exchange and Equity

This takes a look at what is behind our behavior, why are we motivated and why do we act the
way we act. When studying behavior, it is important to study exchange. There are three types of
exchange relationships that people have with organizations.

The first type is a committed relationship, such as a club or a religious gathering. It is a relationship
held together by moral obligation. A committed relationship is a high positive intensity. The
second type of relationship, calculated, is a low positive intensity. These are relationships based
on demands and contributions. A prime example would be business corporations who have a
relationship based on their commercial and financial agreements. Each organization in this type
of relationships makes demands. Demands are placed on the other organization in order to
achieve an desired result. However, in most cases, a demanding organization must also contribute,
therefore intertwining the responsibilities, thus making it a team effort. Finally, the third type
of relationship, alienated, is of high negative intensity.
Within these relationships is inequity. Inequity is roughly defined as a situation when a person
thinks that they are receiving less than they are giving or vise versa. According to Adams’
theory of Inequity, there are seven approaches to restore equity. (1) alter the person’s outcomes,
(2) alter the person’s inputs, (3) alter the comparison other’s outcomes, (4) alter the comparison
other’s inputs, (5) change who is used as a comparison other, (6) rationalize the inequity, and
(7) leave the organizational situation.
There are three types of people when categorizing them into their preferences for equity. Equity
sensitive people prefer an equity ratio equal to their own comparison other. A benevolent
person is content when the equity ration that is less than that of their comparison other. Lastly,
an entitled person is content with a ration that is more than that of their comparison other.

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