Topic > American Express: Employee Relationship Nurturing Strategy

There are many motivational theories believed to be the primary source of employee engagement. The expectancy theory of motivation ultimately suggests that humans are driven to achieve a goal not only because it is perceived as desirable, but also because the goal seems attainable. The goal-setting theory of motivation suggests that goals should be clear and measurable. Equity theory of motivation is “based on the idea that individuals are motivated by equity, and if they identify inequalities in the input/output ratios of themselves and their reference group, they will try to adapt their input to achieve perceived equity” (Falchi, n.d.). Finally, psychological empowerment suggests that all employees have some basic needs that must first be met to provide the framework for further motivation and empowerment. The pay-for-performance strategy used by American Express incorporates many of the motivational theories represented above. More importantly, expectancy theory, since this theory recognizes that employee behavior is directed toward a goal that is both desirable and