Defined generally, equity theory is a model of motivation that explains how people strive for fairness and justice in social exchanges or give and take relationships (Kicking & Grittier, 2003, p. 90)” Motivation through goal setting “And the only way to do that is to focus on getting these new products out and using them to increase productivity. The new come plan should help motivate my team to work even harder, because the higher they go above target, the better their bonuses will be (University of Phoenix 2007). ” Motivation is essential to employee productivity. In the scenario, the employer recognizes this importance and constructs the employee compensation plan around the motivation to work harder and exceed the goals because the higher they achieve the better their bonus/financial reward. The motivational impact of performance goals and goal-based reward plans has been recognized for a long time (Grittier-Clinic, 2003, p. 305). ” External Forces for change “Since September 1 1, 2001, the financial services industry has been in a constant state of flux, never certain, always chaotic. The volatile climate has left many financial firms struggling to keep both their clients’ trust and Wall Street’s credibility. To succeed, investment companies need to offer an ever-expanding array of up to the minute products coupled with expert advice (University of Phoenix 2007). In the scenario, the external force of market change has forced the company, Intersect Investment, to take a new direction and a new approach to market their product and service their customers. External forces for change originate outside the organization. Because these forces have global effects. They may cause an organization to question the essence of what business it is in and the process by which products and services are produced (Kicking & Grittier, 2003, p. 674). ” Behavior shaping “You all raise great points.
Hank, if we confuse our employees with mixed messages, they will leave. I have to own fixing that and focus on sending a single, clear directive, because I agree with Nancy; this is a model that works. But it will only work if we work together (University of Phoenix 2007). This example shows that Intersect Investment realizes that employees will model their behavior and attitudes about the change. Sending mixed messages from management will create confusion and will not help reach the goal.
Therefore, sending clear direction based on management behavior will promote the attitude and behavior management is hoping the employees will adopt. “Shaping is defined as the process of reinforcing closer and closer approximations to a target behavior (Grittier & Kicking, 2003, p. 351 Organizational change (Internal forces for change-human resource problems/prospects) But recently, Frank was forced to let go the Executive Vice President of Sales and Marketing, who continually failed to meet Franks objectives (University of Organization change is necessary and evident in every organization.
Intersect Investment experienced an organization change in upper management based on the new company directives and goals. “Internal forces for change come from inside the organization.