MGCR 222 Lecture Notes - Lecture 20: Organizational Justice, Equity Theory, Expectancy Theory
12 Oct 2016
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Essay question: using equity theory and expectancy theory, discuss the potential advantages of massachusetts general. Orthopaedic associates" (mgoa) proposed pay-for-performance compensation system relative to the current base-pay compensation system: equity theory is a way you perceive equity based on the outcome/input equation by comparing yourself to others. Expectancy theory explains that motivation is primarily driven the the expected outcomes of an individual"s job. Essentially motivation is individual performance x organizational rewards x personal goals: in terms of equity theory, there will be greater feeling of organizational justice in the hospital. Organizational justice is the overall perception of what is fair in the workplace. Lower-level physicians will now be able earn more relative to the senior physicians. Furthermore, the pay-for- performance compensation system will reward the doctors who are efficient and productive, rather than seniority: with greater responsibilities given to physicians, expectancy, instrumentality and valence will improve.
