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The annual performance review had a demotivating effect on Vijay Menon. Briefly discuss the motivational theory that best describes Menon's response to the appraisal.
Equity Theory
Individuals compare their job inputs and outcomes with those with those of others and then respond to eliminate any inequities.
Equity Theory
Ratio Comparisons
Perception
O/IA=O/IB
Equity
The six choices that employee makes when they perceive inequity
Change their input Change their outcomes Distort perception of self Distort perception of others Choose a different referent Leave the field
Referent is the person with whom the comparison is made. The referent in this case is Rahul Kapoor which is an example of Other-inside referent. As Menon was under rewarded this negative tension provided him with the motivation to do something to correct it. Due to which he decided to put in less effort so as to bring about a perceived equity of pay between Kapoor and himself which is a combination of 1st and the 3rd choices mentioned above.
Explain in what other ways Menon could have reacted to the outcome of the performance appraisal.
What are the moderating variables that affect individual when they choose their referent?
Some of the variables are: Gender Length of tenure Level in the organization Amount of education or professionalism Dedication towards the work So, in our case Menon has every variable in common with Kapoor so the level of inequity is elevated.