Comparing Management Theories of Motivation

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A major advantage of the equity theory - both as a characteristic of a company environment, and as a management theory of motivation - is that it can increase employee retention and loyalty. In a situation where the theory of equity is applied, fairness is linked to the amount of effort each employee invests in his work and the well being of the company. This can lead to a boost in employee motivation as well as their way of perceiving and performing their job. It generates an idea and feeling of community, which often inspires employees to work harder, which is thereby also beneficial to the organization. Equity increases employee retention in the way that if an employee believes they can have a bright future in a company they will want to stay longer than someone who is feeling unequal and unmotivated (Robbins, 2012). High employee retention is beneficial to the company as it relieves them of a “brain drain” and the expenses of training new employees. Thus, the advantages of the Equity theory are that it increases loyalty and employee retention, thereby benefitting the company in terms of performance.

The incentive theory also contains some disadvantages, such as its tendency to be misused in relation to a task. During the 1930’s, work motivation theorists suggested that the “importance of money as a motivator had been grossly overrated” and instead, social needs of an employee are more important and should be the focal points of managers. Theorists suggest that intrinsic motivators should be used more frequently (Mike Smith, 1991). Furthermore, a specific type of incentive is not universally desired. Naturally, some might prefer money whereas others prefer benefits or even a simple “Atta boy” from their boss (Mullins, 1999). As a token to this, the incentive theory contains the disadvantage of it being misused by managers.

Universality also relates to the Equity theory’s disadvantages. The craving for equity is not universal simply because some might give more importance to it than others. Evidently, the Business world contains narcissism and selfishness, and as a token to this, equality is not what every individual in a company strives for (McShane, 2008). Additionally, implementing a useful and fitting Equity theory is complex, as it is a complicated task to make every employee of the company feel equal in terms of their effort invested and their treatment in general (McGraw, 2004). Thus, the major disadvantage of the theory of Equity lies in its combined lack of universality, and difficulty for managers to apply.

In conclusion, a saying that could relate to an evaluation on which is the more effective method of motivation is: “The average depth of a river may be only four feet, but that doesn’t mean someone can walk across it” (Hunt, 2000). Managers tend to focus on the “motivation of the individual” while neglecting the formal structure of the organization as a whole (Osborn, 2000). Traditional managers often rely on “blanket motivation”, where the same method and approach is used to motivate the entire organization. However, subsequent to this comparative analysis, one can say that due to the various cultures and personalities lurking around in the world of business, there is no sure fire way to stimulate motivation in every individual within the organization and a variety of approaches is the ideal “approach”.

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