which assets have been funded by the owner (Kew, Mettler, Walker & Watson, 2007, p.32). While this
definition seems far-fetched in Organizational Behaviour, the relevance of the concept should be
understood from the perspective of the equity theory which focuses on fairness and justice. The Equity
theory is based on the view that employees should receive their fair share for input – aggregated as
skills and effort – for the attainment of organizational outcomes (Drafke & Kossen, 1998). Equity
focuses on equivalence of [the owner’s] input and [the organization’s] output. While Vroom used the
term valence to refer to positive or negative values people place on outcomes (Kew et al., 2007,
p.249), Porter and Lawler used the term value of reward to indicate that people desire a combination of
outcomes and rewards for what they put into their jobs (Werner, 2002, p.336). It is noted that
incongruence and imbalances between the input the output provides ground for inequity and de-
motivation. In the same vein, Kew et al. (2007, p.243) contend that feelings of inequity revolve around a
person’s evaluation of whether he or she receives adequate rewards to compensate for his or
contributive inputs. Striking a balance or maintaining a state of equilibrium between input and output is
essential for enhancing performance.
5 Performance
Commitment and engagement are critical components for performance. According to Coetsee (2003,
p.139), performance is the realisation of goals and meeting of expectations. On the other hand, Kew et
al. (2007, p.243) define performance management as a continuous cycle of improving job performance
with goal-setting, feedback, coaching, rewards and positive reinforcement. The significance of goal-
setting for improving employees’ performance has been discussed. According to Kew et al. (2007,
p.139), the following points are necessary for feedback in a high-performance institution: focus on
performance not personalities; give specific feedback linked to learning goals and performance
outcome goals; give feedback as soon as possible; give feedback for improvement, not just results;
and pair feedback with clear expectations for improvement.
Performance feedback should be based on accurate and credible data. In this fashion, employees will
understand criteria used for performance evaluation and be more prepared to accept
recommendations for improvement of performance. Elements of the Peak Performance Model such as
capacity to perform, commitment to performance, and motivating climate (Coetsee, 2003, p.140) are
therefore critical for enhancing performance. Additionally, managers play an important role in
sustaining employees’ commitment to perform their jobs because alienation to products of production,
low morale and lack of commitment which are indicators of job dissatisfaction, may set in if the
elements Coetsee alludes to are neglected. The following discussion focuses on the link between
forces in an individual and organizational forces in motivation.
The link between the individual forces and the organizational forces [Assumption 1] and its implications
on motivation
Just as Lawler and Porter focused on value of outcomes in the form of rewards, Charlton (2000) notes
that extrinsic and intrinsic rewards have reciprocal motivational effects since they represent effective
methods of energising, promoting and maintaining employees’ behaviour. Schultz (2004, p.277) also
notes that a reward is first and foremost a people issue: it is about motivating them, reshaping and
refocusing their behaviours, and inducing them to accept organizational values. Nevertheless, one
should be cognisant of the fact that rewards may or may not have a motivating effect on the basis of
their attractiveness to the individual. For this reason, Mayo’s conclusions in the Hawthorne Experiments