Question

1. Briefly explain goal-setting theory, reinforcement theory , expectancy theory, & equity theory.

2. What is the difference between transformational leadership and transactional leadership?

Answer 1

Goal Setting Theory: The basic tenet of the theory is that people with a target in mind are more efficient and productive as compared to someone with no target or expectation. This is fundamental human behavior. For example a student starting a day with a Goal of solving at least 10 question of a subject in a day would most of the times solve more questions as compared to a student who hasn’t set a goal at all.

Reinforcement theory: This is based upon Skinner’s Conditioning theory which basically says that a particular behavior can be formed based on the consequences of that behavior. A person would therefore be conditioned to a particular behavior if he receives a reward- Positive Reinforcement ( eg a praise, or monetary gain etc) and the same person will refrain from behaviors that would lead to a punishment- Negative Reinforcement ( Fine, Reprimand etc) . According to Reinforcement theory, Positive Reinforcement should be the preferable motivational technique. Therefore Positive reinforcement should be used to encourage desired behaviors.

Expectancy Theory: This theory can be used to understand how subjects choose from a set of available actions. This theory tries to define the process of motivation in a person that would lead to voluntary behavior. In a nutshell , it says that motivation comes from believing that taking a particular decision would lead to a desired outcome for that person.

It consists to three factors: 1) Expectancy - believing that effort will translate to result. 2) Instrumentality – Believing that the taken action is connect to that result. 3) Valence – Extent to which the person values the result/reward. According to the theory a multiplication of all these factors is a measure of motivation. If any one of these is Zero then there is no motivation.

Equity Theory: This theory states that treating people equally will motivate them more since they would think that they are getting a fair reward for their effort. In short people would be more motivated to work if they see that the out derived from their input effort is similar or equitable to other peoples’ input & Output.

2> The fundamental difference between transactional and transformational Leadership is the point of focus: A transactional leader would focus only on the outcome being achieved whereas a transformational leader focuses on enabling the people who are to achieve a said goal.

Therefore a transactional leader would be concerned more about supervision, group performance , organization etc whereas a transformational leader would work to towards engagement, development of his team and would be motivating his followers to achieve a shared vision.