Problem Solution: Riordan Manufacturing
Employee motivation is an issue that does not discriminate (UoP, 2008). “Motivation is the willingness to exert effort in a particular way” (Dreher & Dougherty, 2001, p.28). Two theories can be reviewed when examining motivation. The first is expectancy theory. Expectancy theory holds that people are motivated to behave in ways that produce desired combinations of expected outcomes (Kreitner & Kinicki, 2004). Vroom’s expectancy theory is a mathematical model that looks at motivation. Employee motivation is influenced by expectation. If I get a raise at the end of the year for all my hard work I will work harder next year. If I work hard and don’t get a raise then my effort level will decrease. Porter & Lawler’s extension expectancy model identified people’s valences and expectancies and how effort connected to performance. “Valence refers to the positive or negative value people place on outcomes’ (Kreitner & Kinicki, 2004, p. 300). This theory showed that job satisfaction was directly linked with how employees perceived their reward. Employees will alter their mind-sets only if they see the point of the change and agree with it – at least enough to give it a try (Lawson & Price, 2003).
The second theory is equity theory. “Equity theory is a model that explains how people strive for fairness and justice in social exchanges or give-and-take relationships” (Kreitner & Kinicki, 2004, p. 290). Adam’s equity theory of motivation looks at inputs and outcomes of employee-employer exchange. Employees expect a return action for their input effort. This return could be rewards and training.
Riordan Manufacturing is a global plastics manufacturer with annual earnings of $46 million (UoP, 2008). However, the company has been faced with declining profits. In response to this the company has made changes to its sales, manufacturing and