Theoretical Foundations - Equity Theory and Expectancy Theory
5HR03 – Reward for performance and contribution
This CIPD Level 5 video on Theoretical Foundations—Equity Theory and Expectancy Theory forms part of unit 5HR03, Reward for Performance and Contribution. The content directly addresses assessment criteria 1.2, exploring how extrinsic and intrinsic rewards drive employee contribution and sustained organisational performance. By examining equity and expectancy theories, you'll understand the psychological mechanisms behind motivation, how to link behaviours and achievement measures to reward systems, and the role of senior management support in reinforcing these connections. Watching this video will equip you with the theoretical knowledge needed to assess reward strategies' effectiveness and design performance-related compensation that genuinely improves employee engagement and organisational outcomes.
Assessment Criteria 1.2
Assess the contribution of extrinsic and intrinsic rewards to improving employee contribution and sustained organisational performance.
Indicative Content
Measurement, equity, expectancy, teamworking, intrinsic orientation, senior management support, impact on motivation and results; linking behaviours and achievement measures directly to rewards.
What You'll Learn
Video covering: Theoretical Foundations - Equity Theory and Expectancy Theory
About 5HR03 – Reward for performance and contribution
This unit focuses on how internal and external business factors influence reward strategies and policies, the financial drivers of the organisation and the impact of reward costs and rewarding performance
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