Question

1. Summerize goal-setting theory, reinforcement theory , expectancy theory, and equity theory. And also what is the difference between transformational leadership and transactional leadership?

Answer 1

Goal setting theory: According to this theory, specific and difficult goals with feedback lead to higher performance. According to Edwin Locke intentions to work towards a goal are major source of work motivation. Goals dictate what exactly employees need to do and how much effort is required. Goals that are specific and that which gives feedback are high motivators than goals that does not give feedback.

Reinforcement Theory: According to this theory, behaviour is a function of its consequence. Operant Conditioning theory is one of the proponents of reinforcement theory. According to B.F Skinner one of the most prominent advocates of operant conditioning theory, people tend to perform or engage in desired behaviour because of rewards and punishments. They expect some reward when they perform as desired and the behaviour which is not likely to be rewarded or likely to be punished is avoided.

Expectancy Theory: Expectancy theory given by Victor Vroom is one of the widely accepted explanations of motivation. According to this theory strength of performing a certain act is derived from the expectation that certain will result in positive outcome. According to this theory, employees will be motivated to perform and put high level of efforts if they believe that it will lead to good performance appraisal and a good performance appraisal will lead to rewards like bonus, salary increases and promotions.

Equity Theory: According to this theory employees compare their jobs with their counterparts within and outside the organization An employee compares his output-input ratio with that of relevant others, if the ratio is perceived to be equal, then equity occurs and situation of fair and justice prevails. Under this situation an employee is motivated. If this ratio is perceived as under rewarded, equity tension is experienced and anger is created. If this ratio is seen as over rewarded, tension creates guilt.

What is the difference between transformational leadership and transactional leadership?

Transactional leadership is concerned with maintenance of existing rules and regulations. Transactional leaders try to get their work done through use of rewards and punishments. The approach adopted by transactional leaders is management by exception.

Transformational leaders are charismatic; they encourage their employees through ideals and values. Their leadership style is proactive. They do not use rewards and punishments; rather they transform the behavior of the employees through individualized consideration and intellectual stimulation.