Job Motivation

Adams' equity theory

j Stacey Adams - equity theory on job motivation

John Stacey Adams, a workplace and behavioural psychologist, put forward his Equity Theory on job motivation in 1963. There are similarities with Charles Handy's extension and interpretation of previous simpler theories of Maslow, Herzberg and other pioneers of workplace psychology, in that the theory acknowledges that subtle and variable factors affect each individual's assessment and perception of their relationship with their work, and thereby their employer. However, awareness and cognizance of the wider situation - and crucially comparison - feature more strongly in Equity Theory than in many other earlier motivational models.

The Adams' Equity Theory model therefore extends beyond the individual self, and incorporates influence and comparison of other people's situations - for example colleagues and friends - in forming a comparative view and awareness of Equity, which commonly manifests as a sense of what is fair.

When people feel fairly or advantageously treated they are more likely to be motivated; when they feel unfairly treated they are highly prone to feelings of disaffection and demotivation. The way that people measure this sense of fairness is at the heart of Equity Theory.

Equity, and thereby the motivational situation we might seek to assess using the model, is not dependent on the extent to which a person believes reward exceeds effort, nor even necessarily on the belief that reward exceeds effort at all. Rather, Equity, and the sense of fairness which commonly underpins motivation, is dependent on the comparison a person makes between his or here reward/investment ratio with the ratio enjoyed (or suffered) by others considered to be in a similar situation.

Adams' equity theory

Adams called personal efforts and rewards and other similar 'give and take' issues at work respectively 'inputs' and 'outputs'.

Inputs are logically what we give or put into our work. Outputs are everything we take out in return.

These terms help emphasise that what people put into their work includes many factors besides working hours, and that what people receive from their work includes many things aside from money.

Adams used the term 'referent' others to describe the reference points or people with whom we compare our own situation, which is the pivotal part of the theory.

Adams Equity Theory goes beyond - and is quite different from merely assessing effort and reward. Equity Theory adds a crucial additional perspective of comparison with 'referent' others (people we consider in a similar situation).

Equity theory thus helps explain why pay and conditions alone do not determine motivation.

In terms of how the theory applies to work and management, we each seek a fair balance between what we put into our job and what we get out of it. But how do we decide what is afair balance?

The answer lies in Equity Theory. Importantly we arrive at our measure of fairness - Equity - by comparing our balance of effort and reward, and other factors of give and take - the ratio of input and output - with the balance or ratio enjoyed by other people, whom we deem to be relevant reference points or examples ('referent' others).

Crucially this means that Equity does not depend on our input-to-output ratio alone - it depends on our comparison between our ratio and the ratio of others.

We form perceptions of what constitutes a fair ratio (a balance or trade) of inputs and outputs by comparing our own situation with other 'referents' (reference points or examples) in the market place as we see it.

In practice this helps to explain why people are so strongly affected by the situations (and views and gossip) of colleagues, friends, partners etc., in establishing their own personal sense of fairness or equity in their work situations.

Adams' Equity Theory is therefore a far more complex and sophisticated motivational model than merely assessing effort (inputs) and reward (outputs).

The actual sense of equity or fairness (or inequity or unfairness) within Equity Theory is arrived at only after incorporating a comparison between our own input and output ratio with the input and output ratios that we see or believe to be experienced or enjoyed by others in similar situations.

This comparative aspect of Equity Theory provides a far more fluid and dynamic appreciation of motivation than typically arises in motivational theories and models based on individual circumstance alone.

For example, Equity Theory explains why people can be happy and motivated by their situation one day, and yet with no change to their terms and working conditions can be made very unhappy and demotivated, if they learn for example that a colleague (or worse an entire group) is enjoying a better reward-to-effort ratio.

It also explains why giving one person a promotion or pay-rise can have a demotivating effect on others.

Note also, importantly, that what matters is the ratio, not the amount of effort or reward per se. This explains for example why and how full-time employees will compare their situations and input-to-output ratios with part-time colleagues, who very probably earn less, however it is the ratio of input-to-output - reward-to-effort - which counts, and if the part-timer is perceived to enjoy a more advantageous ratio, then so this will have a negative effect on the full-timer's sense of Equity, and with it, their personal motivation.

Remember also that words like efforts and rewards, or work and pay, are an over-simplification - hence Adams' use of the terms inputs and outputs, which more aptly cover all aspects of what a person gives, sacrifices, tolerates, invests, etc., into their work situation, and all aspects of what a person receives and benefits from in their work and wider career, as they see it.

Marketing

A fundamental aspect of modern marketing

First, here's something that is fast becoming the most fundamental aspects of marketing to get right, especially if you want to build a truly sustainable high quality organisation (of any size) in the modern age:

Ensure the ethics and philosophy of your organisation are good and sound. This might seem a bit tangential to marketing and business, and rather difficult to measure, nevertheless...

Price is no longer the king, if it ever was. Value no longer rules, if ever it did. Quality of service and product is not the deciding factor.

Today what truly matters is ethical and philosophical quality - from the bottom to the top - in every respect - across every dimension of the organisation.

Modern consumers, business buyers, staff and suppliers too, are today more interested than ever before in corporate integrity, which is defined by the organisation's ethics and philosophy.

Good sound ethics and philosophy enable and encourage people to make 'right and good' decisions, and to do right and good things. It's about humanity and morality; care and compassion; being good and fair.

Profit is okay, but not greed; reward is fine, but not avarice; trade is obviously essential, but exploitation is not.

Psychological Contract theory is helpful towards understanding and developing fair balanced philosophy, especially in meeting the complex needs of staff, customers and the organization.

People naturally identify and align with these philosophical values. The best staff, suppliers, and customers naturally gravitate towards organisations with strong philosophical qualities.

Putting a good clear ethical philosophy in place, and communicating it wide and far lets people know that your organisation always strives to do the right thing. It's powerful because it appeals to people's deepest feelings. Corporate integrity, based on right and good ethical philosophy, transcends all else.

And so, strong ethics and good philosophy are the fundamentals on which all good organisations and businesses are now built.

People might not ask or talk about this much: the terminology is after all not fashionable 'marketing-speak', nor does it correlate obviously to financial performance, but be assured; everyone is becoming more aware of the deeper responsibilities of corporations and businesses in relation to humanity, and morality, the natural world, the weak and the poor, and the future of the planet.

Witness the antagonism growing towards certain multi-nationals. People don't rail against successful corporations - they rail against corporations which put profit ahead of people; growth ahead of of society and communities; technology and production ahead of the natural world; market domination ahead of compassion for humankind. None of this is right and good, and these organisations are on borrowed time.

People increasingly prefer to buy from, deal with, and work for, ethical, right-minded organisations. And whether an organisation is ethical and right-minded is becoming increasingly transparent for all to see.

So be one.

Aside from which - when you get your philosophy right, everything else naturally anchors to it. Strategies, processes, attitudes, relationships, trading arrangements, all sorts of difficult decisions - even directors salaries and share options dare we suggest.

And it need not be complicated. The ultimate corporate reference point is: "Is it right and good?... How does this (idea, initiative, decision, etc) stack up against our ethical philosophy?"

Organisations are complex things, and they become more and more complicated every day. A good ethical philosophy provides everyone with a natural, reliable reference point, for the tiniest detail up to the biggest strategic decision.

So as you start to write your marketing plan, be it for a new start-up, a huge corporation, or a little department within one, make sure you put a 'right and good' ethical philosophy in place before you do anything else, and watch everything grow from there.

Strategy Realisation

How effective is your Strategy Realisation?

There are simple ways to judge whether your strategy realisation process is working:

Obviously look for business results and progress on the delivery of targets and KPI's (Key Performance Indicators).

You need also to look for signs that your people have really got the corporate message and have taken it to heart.

A well known story illustrates the point:

A group of US Senators were visiting NASA at the time when funding was under threat. One Senator asked a man cleaning the floor "So what are you doing here?" The man answered, "I'm here putting a man on the Moon!"

How closely do your people identify and associate their own roles with your organizational purpose?

Do your people really know what your corporate aims are, and if so do they see and agree with how they fit into the scheme?

Sadly in many organizations the vast majority of staff do not understand the corporate aims, let alone see themselves as an integral part of the effort.

Strategy realisation will not happen without the people being an enthusiastic part of the effort. All to easy to say; another thing entirely to make happen.

The 'Man on the Moon' statement is a real benchmark of the process quality for turning any strategy into action - whether for a team, a department or a corporation.

Every single person must know what they are doing, why they are doing it, and above all, must be fully committed to doing what they are doing.

If your methods enable every single person to know what they are doing, and why, and to be emotionally committed to it, then the process of turning strategy into action is probably working.

Ask yourself some of these questions and you will begin to see how to make your own strategies happen.

Context.........it changes everything!

The outdoors tea-break exercise (different perspectives, context, relativity, perception vs 'reality', and how most things change according to situation)

The nature of anything - especially feelings, relationships and communications - changes according to situation and context.

This is vitally important in understanding ourselves, others, and the way that human systems operate, in which subjective views are commonly more dominant than objective facts, figures and evidence.

Perceptions among people, especially given group effects, has a huge effect on systemic and organizational behaviour.

Here is a simple and pleasing demonstration of how something can change when experienced in a new context, particularly when the warmer spring season approaches

When next facilitating or teaching a group, take your tea/coffee break outside, and ask people if their tea/coffee tastes different, compared to how it normally tastes indoors.

The demonstration is clearest if first people pour the drink and take a few sips indoors, and then walk outside, so as to compare the indoor and outdoor taste.

Strangely the taste is quite different, sometimes remarkably different. This is probably due to the fresh air being smelled and tasted along with the drink. I am open to better explanations. The effect also works with cold drinks. And picnic lunches, if you've time.

In some situations the exercise will work better by not warning people of the reason for going outside, other than to get some fresh air and a leg-stretch, both of which are good for groups anyway.

Taste is not the only characteristic altered, for example, in cold weather the drink cools far quicker. Small and insignificant though it is, the drink experience and memory is altered by the different outside environment. The indoor cup of tea or coffee is perceived to be different because of the outdoor context and situation.

Everything in life - especially concerning human attitude - alters according to context.

Meeting Agendas a must !

4 Elements of a Top Notch Meeting Agenda

Meetings run better with a plan. Everyone knows a meeting agenda should have a subject and list the topics to discuss. This is a good starting point, but a great agenda will also establish a goal, keep the meeting on track on help you plan next steps.

Here are 4 must-have elements of a top-notch meeting agenda:

1 Objective

What do you want to accomplish? Is it to make a decision? Plan a project? Assign tasks? Make a clear goal and state it at the beginning of your agenda. From the moment they arrive, people have a clear idea of what’s going to be done.

2 Space for action items

List each topic you’ll discuss in the meeting. After each topic, leave a bit of blank space with the title “Action Items”. This gives each attendee space to organization their responsibilities, and encourages them to seek out tasks to fill their space.

3 Time allotted

Include the time allotted to each topic. When calculating, allow time for questions and delegating related tasks. An allotted time gives attendees an idea of how the meeting with flow, and gives you a reason to steer people back if the conversation goes off topic.

4 Review period

Allow for a short review period at the end of the meeting. Use this time to assess if the objective was achieved and review assigned tasks. This is a good way to end the meeting, make sure everyone is clear on their tasks and let people ask final questions.

Meetings

5 Ways to Boost Meeting Efficiency

1. Make the boardroom a No Surfing zone.

Smartphones (iPhones, BlackBerries, etc) are amazing efficiency tools, allowing busy people to get things done on the go.

However, they also contribute to inefficiency during meetings. With people surfing the web, replying to emails, and engaged in any number of things other than the meeting, it’s difficult to hold their attention, which results in a lot of repetition.

Solution? Designate the boardroom a no-surfing zone. If you have to, make everyone surrender their phones at the door. With focus taken off of phones and put back on the meeting, you’ll get more accomplished in less time.

2. Schedule discussion time.

Open discussions bring out great ideas and solutions. They can also run away on you. Arguments start, people go off on tangents, you lose focus, and you waste time.

Avoid this by factoring discussion time for each topic into your meeting agenda.

Set a time limit and stick to it. This will encourage everyone to stay focused on the topic at hand. If time is almost up and the discussion is far from over, table the matter for another time and continue the meeting.

3. Invite key players only.

Key players means only the people directly implicated in the topics on the agenda.

Every additional voice adds time to the meeting, and decreases efficiency. True, everyone has an opinion, and those opinions can certainly add value. However, too many voices in a room add up to a lot of noise.

Resist the urge to invite more. If you want company or department-wide opinions, ask for them in advance and discuss with your key players at the meeting.

4. Keep it short.

Lengthy meetings are exhausting. Especially when covering a variety of topics, it’s common for energy and attention to drop off.

If your meeting outline is starting to look like a small manifesto, consider breaking it up into a series of smaller meetings.

Because it’s easier to maintain energy for shorter periods of time, you will actually get more accomplished by having more meetings, but making each one shorter, smaller (see #3) and more focused.

5. Open and close with action.

Close each meeting or topic with action items: What will be done, by whom and when. Follow up the meeting with a quick email summary of what was decided.

For regular team meetings, a great kick-off is to review the previous meeting’s action items. This encourages accountability, and keeps the team’s focus on productivity. It’s also a nice morale booster to start each meeting by acknowledging accomplishments.

Negotiation cont'd

Negotiation tips, techniques and principles

First and most importantly, positioning is everything in negotiation. The way that the situation is initially approached, and when, are more influential on outcomes than all of the other negotiating tactics and techniques combined.

Rules 1 and 2 are absolutely critical even before you start a negotiation.

1. Have an alternative - negotiate with freedom of choice

If selling be unique, and have lots of other potential customers, and so be able to walk away; if buying definitely be able to walk away.

Whether you are buying or selling, if you can't walk away because you need the deal so badly or because the other side is the only game in town, then you are at a serious disadvantage. If the other side believes you are the only game in town then you have the advantage. No other factor is so important: the more you need to secure the deal, the weaker your position, so avoid negotiating when you need the business badly (for the same reason, never find a new house and fall in love with it before you sell your own). The same will apply to your customer, which is why buyers almost always give you the impression that they can go somewhere else - even if they can't or don't want to.

This also means that when selling you must create an impression that there is no alternative comparable supplier. You have to create the impression that your product or service is unique, and that the other person has nowhere else to go. The way you sell yourself and your product must convince the other person that he has nowhere else to go, and that he cannot afford to walk away.

This positioning of uniqueness is the most important tactic, and it comes into play before you even start to negotiate.

If your product offer is not unique remember that you are part of it. You can still create a unique position for yourself by the way that you conduct yourself, build trust, rapport, and empathy with the other person.

Establishing a position (or impression) of uniqueness is the singlemost effective technique when you are selling, whereas denying uniqueness is the most powerful tactic of the buyer.

2. Negotiate when the sale is conditionally agreed, not before (if buying the opposite applies)

Negotiate when the sale is conditionally agreed, and no sooner (buyers tend to try to negotiate before giving you any commitment - don't let them)

Or, put another way, don't get drawn into negotiating until you've got agreement in principle to do business.

If you start to negotiate before receiving this commitment you'll concede ground and the customer will attain a better starting point. This would put pressure on you to find more concessions later, and ensure a better finishing point for the customer.

If you are not sure that the customer is conditionally committed to the sale, then ask (a conditional closing question), eg "If we can agree the details will you go ahead?"

If you're buying, then the opposite applies: start to negotiate for concessions before agreeing you want to buy (try this when you next buy something - you'll be amazed at what you can secure without giving any commitment in return).

3. Aim high

Aim for the best outcome (buyers aim low, and they tend not to go first either)

(If you're buying, aim very - even ridiculously - low - but do it politely.) Whatever you're doing, your first stake in the sand sets the limit on your best possible outcome. There's no moving it closer to where you want to go; it'll only move the other way. Your opening position also fixes the other person's minimum expectation, and the closer your start point is to the eventual finishing point the more difficult it is to give the other person concessions along the way and ultimately arrive at a win-win outcome.

Many negotiations are little more than a split-the-difference exercise. They shouldn't be, but that's often the underlying psychology and expectation. So it's logical that to achieve the best possible finishing position you should start as ambitiously as you can (without losing credibility of course).

If you have the option to hear the other person's offer first, then do so. It's a fact that whoever makes the opening offer is at a disadvantage. If you go first, the other person can choose to disregard it and ask for a better offer. And the other person avoids the risk of making an offer themselves that is more beneficial than you would have been prepared to accept. It's amazing how often a buyer is prepared to pay more than an asking price, but avoids having to do so because they keep quiet and let the seller go first.

Vice-versa, the seller can often achieve a higher selling price than he anticipates if he hears what the buyer is prepared to offer first.

4. Let the other side go first

Try to avoid 'going first' on price if you can. (Buyers will often be trying the same tactic.)

If you know the other person's starting point before you have to give your own, then this is clearly an advantage to you. For example, if selling, ask the other side if they have an 'outline budget'.

Sometimes you will be pleasantly surprised at what the other side expects to pay (or sell at), which obviously enables you to adjust your aim. Letting the other side go first is a simple and effective tactic that is often overlooked.

Letting the other side go first on price or cost also enables you to use another tactic, whereby you refuse to even accept the invitation to start negotiating, which you should do if the price or cost point is completely unacceptable or a 'silly offer'. This then forces the other side to 'go again' or at least re-think their expectations or stance, which can amount to a huge movement in your favour, before you have even started.

5. List all of the other side's requirements before negotiating

Get the other person's full 'shopping list' before you start to negotiate (buyers usually do the opposite - they like to pick concessions up one by one - indefinitely)

Establish in your own mind what the other person needs, including personal and emotional aspects. Everything that is part of or related to a deal has a value. Everything has a cost to you or your organization, even if it's not on the price list. Negotiation isn't just about price and discount. It's about everything that forms the deal. It's about specification, colour, size, lead-time, consumables, contract length, penalty payments, get-out clauses, delivery dates, stock-holding, re-order lead-times, after-sales support product, product training, technical back-up, breakdown service, call-out costs, parts costs, parts availability, payment type, payment date, payment terms. All these and more are called variables, and each one affects the cost. Some affect the cost more than others, and buyers and sellers nearly always place a different value on each. It's critical therefore to know exactly what your buyer wants before you start to negotiate. Get the full list of issues written down and commit him to it. This is vital if you are to keep a track on the values of the deal and the eventual outcome. You also avoid your position being eroded bit by bit by the late introduction of concessions required.

Your buyer's personal and political requirements are important too, and the bigger the deal the more significant these factors are. You need to understand what they are, particularly the political and procedural needs within the other person's organization or situation that affect the deal. These issues will concern the way that the organizations relate to each other; who talks to whom; how justifications and reports are prepared; arrangements for future reviews; provision of information; product development collaboration; issues involving intellectual property, future mutual business opportunities, etc.

Remember that when you sell to someone in an organization or group, your buyer is staking his personal reputation within his situation on you, and will not do so lightly, so you need to understand all of his needs and concerns.

Only then you can begin to understand what the implications, costs and perceived values are.