Motivating Employees

The case discussed a few key players using Forced Ranking as a way for organizations to differentiate talent. A few of these larger corporations thought they could identify their top employees and combat inflated performance ratings by reducing favoritisms, and promotions that would be based on factors other than performance. But, by using forced ranking, companies might fire someone who could later go on to be a star employee or by discouraging excellent employees by ranking them as mediocre. This system creates a competitive cutthroat environment that limits creativity and discourages workers from asking for help.

1.) What's your opinion regarding forced ranking performance appraisals? Do they motivate employees?

The source of the greatest strength may also be the greatest weakness. Peoples' own needs influence and drive their behavior. The two process theories of motivation are expectancy and equity theories.

The expectancy theory: one can encourage the team by linking effort with an expected outcome. With that, an employees' performance is based on factors such as personality, skills, knowledge, experience and abilities. The formula used for this theory is: motivation=valence x expectancy

Equity theory is based on what one considers to be fair when compared to others. An individual's perceived relationships between outcomes they receive from their organization. The formula for this is: Individual's outcome/individual's own input = rational partner's outcome/rational partner's input.

Both theories provide managers insight how to motivate their staff, but it also helps them to understand what has to be done or actions taken to motivate by way of the outcomes. When it comes to the expectancy theory, in order to motivate the employees, managers should tie rewards to performance, versus, the equity theory that says if the employees are to be