Expectancy theory:
This states that workers will only act when they have a reasonable expectation that their work will lead to the desired outcome. If they believe that they possess the ability and skill to achieve the goal, then their level of effort will be great and they will be motivated.
Equity theory:
This states that each worker will wish to receive a remuneration package (equal to their pay plus fringe benefits) in return for their efforts. Each worker will only be motivated if their remuneration package is seen to be fair (or equitable) in relation to the remuneration packages received by the other workers for their efforts.
• The importance of motivation for employees
The way your employees feel about their job and their workplace determines how motivated they are. There is a clear link between job satisfaction and productivity.
Job satisfaction depends partly on tangible rewards - for example, how much a person is paid and what benefits they receive. See our guides on how to set the right pay rates and implement staff incentive schemes.
However, job satisfaction also depends on the culture of an organisation. This means the things that make your business distinctive and make the people who work there proud to do so. You can motivate people with:
• varied and interesting work - perhaps giving the opportunity to travel
• high-quality training and development - eg encouragement to study for professional qualifications
• an "open door" culture in which managers are approachable
• respect for a good work-life balance - for example offering the opportunity for flexible working
• fairness at work, including equal opportunities
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