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Shared Capitalism

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Submitted By bigjman
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With the rising popularity of shared capitalism in the United States, it is worthwhile to analyze the effects this trend and the workplace theories that correspond to it. The purpose of the paper is to show not only how forms of shared capitalism in the workplace can increase overall employee compensation, but how several labor theories relate and support the outcomes of shared capitalism. More specifically, three theories will be extrapolated and the outcomes of shared capitalism will follow each theory. First, expectancy theory will be explained and followed by its correlation to motivation and increased compensation. Second, equity theory will be explained and followed by the results of ESOPs. Finally, an explanation of efficiency wage theory will be provided and followed by the outcome of pay on shirking.
Expectancy theory hypothesizes that a person decides to act in a certain way due to their motivation to choose a certain behavior rather than another behavior because of what they expect the outcome of their chosen behavior will be. Hence, an individual will choose the behavior with the most desirable result. Expectancy theory is a type of pay-for-performance theory that focuses on the needs for institutions to reward employees based off of their performance and to ensure that those rewards are desired by the employees. The motivational force of the employee is theorized to be a function that is multiple of three factors: expectancy (the perceived link between effort and behaviors), instrumentality (the perceived link between behaviors and outcomes), and valence (the value the person expects to derive from those outcomes) (p. 124). Additionally, pay is likely to be a good motivator if an individual has a strong correlation between the three functions. Expectancy theory correlates to shared capitalism in that shared capitalism tends to increase pay

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