Expectancy Theory

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New United Motor Manufacturing, Inc (NUMMI) is a joint venture from both Generals Motors and Toyota vehicles which formed after the closure of General Motors in 1982. General Motors closed due to the conflict between labourers and managers amongst it organisation. But due to the new management team and the new ideology, NUMMI set out and won both a Silver and Bronze Plant Award from the J.D.D Powered. The change in the management structure and how they engaged and motivated their employees has left promising results. However looking at the company, there is always room improvement. By looking at the organisation, its management structure and how it is preforming, there are components that are done well, and others that can be improved on, and …show more content…

How goals can be used to influence an individual and well as they handle it, as well as how people are motivated differently depending on their satisfaction at work. Expectancy theory of motivation was thought up by Vroom in 1963 and expanded upon by Porter and Lawler in 1968 and Pinder in 1987. The theory is heavily based and influence by individuals driving force and motivation in completing the task (Vroom, 1963) and the performance behind it, these driving forces are valence, instrumental and the expectancy (Pinder, 1987). Valence is based on one’s perception of rewards for the outcome; this can be influenced by ones values, goals, needs and preference of rewards, which can be intrinsic or extrinsic satisfaction. The instrumental refers to the rewards when expectation are met, depending on the individual this can be an increase in pay, promotions or recognition, this depends on the individual’s need which may result in greater motivation (Herzberg, 1968). Expectancy is influenced by ones improved efforts leading to increase performance, the belief of if one works …show more content…

Goal setting is mainly used for short terms as it is easier to plan for the shorter run while compared to unpredictability of the long term future. Goal setting keys principles state that goals should be clear, challenging, involve team commitment, constructed feedback and complexity and use a S.M.A.R.T (Specific, Measurable, Attainable, Relevant, Time-Bounds) framework (Latham, 2003). However, it is not without limits, goal-setting theory is dependent on the individual’s commitment towards the task (Locke & Latham, 2002). Goal setting theory is recognised into an organisation success, by applying their principles and looking at their SMART framework into achieving goals. NUMMI does not actual take advantage of the S.M.A.R.T framework set out by Goal-Setting theory, while they do employee workers to do such task that meets both skills and unskilled classifications, they have chosen to abandoned specialized job classification in general. Instead NUMMI has allowed more flexibility for workers and given them the authority to decide upon the work standard and layout which has proven to have a positive effect on the performance of the individual (VandeWalle, Brown, Cron, & Slocum, 1999); it can be argued however this is not the most productive action NUMMI can take. As the lack of a specific goal

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