# Process Theories

Process or cognitive theories deal with the thought processes that underlie individual responses to work situations.

### Equity theory

People do not work in a vacuum. They make comparisons. If we see that somebody else is paid more for similar work, we feel that the situation is unfair.

Equity theory suggests that we prefer situations of balance, or equity. Balance exists when you feel your inputs relative to outcomes are similar to the inputs relative to outcomes of other people. In considering pay equity, for example, you might compare your work and pay with the work and pay of somebody who does something similar in another organisation. If there is an imbalance, a situation of inequity exists. Similarly, if you perform well but receive no pay rise, while another person cruises and does get a rise, you could feel that the situation is inequitable.

The motivational aspect of this theory is that inequity creates a tension, which motivates you to reduce or eliminate the inequity. You ask for more pay. You feel you have a right to more pay. Research suggests that people who feel overpaid (positive inequity) tend to increase the quantity or quality of their work. People who feel underpaid (negative inequity) tend to reduce their work efforts to compensate for the missing rewards.

Some years ago, several public figures advocated 'equal pay for equal work.' The issue was one of comparable worth. For example, when nurses' pay was compared with what was paid to the police, it seemed that nurses suffered major inequities.

### Goal-setting theory

This theory suggests that intentions, expressed as goals, can be a major source of work motivation. Evidence that supports this theory indicates that specific goals lead to increased performance. The evidence also indicates that difficult goals, when accepted, result in higher performance than easy goals. Thus, a specific, difficult goal leads to better performance than a generalised goal like 'do your best'.

#### How to make goal-setting work for you

You will get better results if you set specific goals.

Challenging goals that are realistic and attainable will get you better results than easy goals.

Communicate goals effectively and enrol staff in the goals. People work harder toward goals that they accept and believe in. People may resist goals that they feel have been forced on them.

Make sure that expectations about which goals should be accomplished first - and why - are clear.

Reward people when they achieve goals. Don't let positive accomplishments pass unnoticed.

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