Introduction to equity theory first developed in 1963 by john stacey adams employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. This theory postulates that a major share of individual behaviour is based on the perceived situation rather than on the actual set of circumstances. This equity theory term ecompasses the quality and quantity of the employees contributions to his or her work. The equity theory of motivation how to keep your team. While workplace equity holds clear advantages for employees, the employers win as well. When applied to the workplace, equity theory focuses on an employees work compensation relationship or exchange relationship as well as that employees attempt to minimize any sense of unfairness that might result. When applied to the workplace, equity theory focuses on an employees work compensation relationship or exchange relationship as well as that employees attempt to minimize any sense of unfairness that.
May 22, 2020 contemporary theories of motivation incorporate equity, control and agency theory, as well as goal setting, reinforcement, and job design theory. Applying adams equity theory to employee engagement. Developed by the behavioral and workplace psychologist, john stacy adams, equity theory of motivation is one of the justice theories explaining the correlation between input and outcome of performance of employee at a job with hisher perception of equitable or inequitable behavior from the employers. This quiz and worksheet will help you exercise your conceptual knowledge on the equity theory of motivation through questions about who first developed the theory and. The core of the equity theory is the principle of balance or equity. Theories of motivation and their application in organizations. Output can be things like salary, recognition, and responsibility. John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. According to the equity theory, a person will be motivated to work towards a goal if he is she feels that. Equity sensi tives are most content when their outcomeinput. The adams equity theory shows why salary and benefits alone dont determine an employees motivation. Motivation is assumed to be under the control of the workers 2ehavior that are.
Stacy adams, a workplace and behavioral psychologist, who asserted that. Jan 09, 2018 according to the theory, employee motivation is the result of the balance between what an employee attributes to the company against the recognition heshe receives as compared to what hisher coworkers receive for the same attribution. If workers draw the conclusion that conditions are inequitable, their motivation will change. Each link can be influenced by a variety of factors i. Equity theory of motivation, developed in the early 1960s by j. If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness. Adams equity theory how fairness affects employee motivation. The equity theory has generated extensive research, with many of the results being supportive. Mar 16, 2020 equity theory shows that inequities perceived or real harm employee motivation. The utility of equity theory in enhancing organizational effectiveness. According to equity theory, an employees perception of the fairness of his works input and outcome influences his motivation. The research question is to explore the effect pay outcome has on other outcome variables such as motivation, job satisfaction, and performance. Pdf the study examines equity theory of motivation and work performance in higher institutions with particular reference to nnamdiazikiwe.
This behavior is explained by equity theory, which links fairness to employee effort. Equity theory equity theory posits that an individual tends to apply a particular equation when determining if he or she is being treated fairly. Equity motive tends to be one of the important motives with the employees. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. Equity theory and employee motivation free download as word doc. The theory is also known as adams inequity theory of motivation. However, equity theory takes a less straightforward and more fluid approach than previous models. Sep 25, 2016 equity theory proposes that a persons motivation is based on what he or she considers to be fair when compared to others redmond, 2010. Motivating employees with limited pay incentives using equity. As an example of equity theory, if an employee learns that a peer doing. Many theories do not always work around the world e. Equity theory proposes that peoples motivation, performance and satisfaction depend on their subjective evaluation of the relationships between their effortreward ratio and the effort reward of others in similar situations. Even though equity theory has a lot of criticisms, it continues to be used in research examining job attitudes and employee behavior gill, d, and stone, r, 2010. When people receive bonuses, pay and promotions at a job that equitably rewards merit, the company ends up with the right people in the right places doing the right things.
Work motivation is a set of energetic forces dubious discuss that originate both within as well as beyond an individuals being, to initiate work related behavior, and to determine its form, direction, intensity, and duration understanding what motivates an organizations employees is central to the study of io psychology. The equity theory of motivation describes the relationship between the employees perception of how fairly is he being treated and how hard he is motivated to work. Equity theory is based in the idea that individuals are. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. In this assignment, we will know more details about equity theory and how to use it to motivate employee performance as a manager. This equation is a ratio of our inputs to outcomes and compares it with others inputoutput ratios the pennsylvania state university psu, 2014, p. Individuals are concerned not only with the amount of rewards they receive for their efforts but also with the relationship of this amount to what others receive. The theory helps explain why your employees motivation levels can go up and down at work. Equity theory most popularly known as equity theory of motivation was first developed by john stacey adams a workplace and behavioral psychologist in 1963. Equity sensitive individuals represent the tra ditional equity theory model, and thus, require little description. Expectancy theory published on march 29, 2016 march 29, 2016 43 likes 3 comments.
This employeefirst approach supposedly bodes well for the health of the company in accordance with social identity theory and equity theory. The equity theory of motivation directly relates a persons motivation to their perception of fairness, known as equity. Motivation is a process that starts with a physiological or psychological need that. Employees place great importance on being treated fairly and equally. When applied to the workplace, it means an individual will generally aim to create a balance between what they give to. According to carrell and dittrich 1978, employees who perceive inequity will seek to reduce it, either by distorting inputs andor outcomes in. An employee compares his or her job s inputs with an outcomes ratio. Motivation is a persons internal disposition to be. When applied to the workplace, it means an individual will generally aim to create a balance between what they give to the organization compared to what they get in return. Equity theory is based on a principle that peoples actions and motivations are guided by fairness and that discrepancies in this fairness in the workplace will spur them to try and redress it. Herzberg started the study of j ob satisfaction in the 1950s in pittsburg. It explains many of the phenomenon related to employee efforts, work performance, employee motivation etc. The equity theory of motivation how to keep your team motivated.
According to the theory, employee motivation is the result of the balance between what an. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. Therefore, equity theory will be helpful to management in perceiving what motivates employees berkowitz, 1965. Equity theory states that a persons motivation is based on what they believe is fair or not fair compared to others pennsylvania state university, 2016.
Stacey adams equity theory employee motivation theories. Currently, the work hard, play hard mentality is highly prevalent and is openly encouraged by the companies themselves through the forms of various perks. Predictions from equity theory about employee reactions to pay distinguish be. What is motivation motivation university of oklahoma. Retrived from supportfilesadamsequitymotivationtheory. Pdf motivation is an internal force that accounts for the level, direction, and persistence of effort expended at work. In simple terms, equity theory states that if an individual identifies an inequity between themselves and a peer, they will adjust the work they do to make the situation fair in their eyes. As weve talked about many times here at brighthr, your business needs motivated staff to operate at its full capacity. Another aspect of work motivation in the fast food industry is the low pay itself even if it is competitive.
Equity theory and performance applied social psychology. Equity theory of motivation equity theory was developed by james stacy adam. The theories of motivation maybe categorized according to their definitions and purpose but critical analysis reveal that they are all linked, they lead to serving satisfaction in employees. Equity theory was first developed in 1963 by jane stacy adams. The equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation. A principle of workplace equity dictates that employees be treated fairly in all employment decisions, without regard to their gender, color, race or other personal differences. When inequities persist, employees may do any of the following. The widest accepted explanation of the motivation was given by victor vroom 1964 with the theory most commonly known as the expectationvalue theory that tries to merge together the various elements of previous theories. There are similarities with charles handys extension and interpretation of previous simpler theories of maslow, herzberg and other pioneers of workplace psychology, in that the theory acknowledges that subtle and variable factors affect each individuals assessment and perception of their relationship with their work, and thereby their employer. The advantages of equity in the workplace bizfluent. One aspect of equity theory asserts that demotivation occurs if employees perceive their workplace inputs are greater than the outputs received for their work.
As an example of equity theory, if an employee learns that a peer doing exactly the same job as them is earning more money, then they may choose to do less. Motivation is a continuous process motivation can be positive or negative motivation is goal oriented motivation is complex in nature motivation is an art motivation is systemoriented motivation is different from job satisfaction motivational factors there are several factors that motivate a person to work. Employees who feel that they are receiving inequitable treatment will be emotionally motivated to gain equity. Pdf the utility of equity theory in enhancing organizational. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. Equity theory and job satisfaction in silicon valley scholarship. The theory recognises the influence of social comparison processes on motivation. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. Equity theory of motivation examples explained hrf. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. The theory is based on the idea that people are motivated by the ratio of inputs and outputs they receive in comparison to others. It combines perception aspects of the equity theory.
Equity theory in some sense is related to motivation hygiene theory, in that it considers both demotivators and motivators. Equity theory proposes that a persons motivation is based on what he or she considers to be fair when compared to others redmond, 2010. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. Equity theory why employee perceptions about fairness matter. We have appreciated earlier the importance of motivation in determining human behaviour.
It was published in the journal, experimental social psychology, 1965, new york titles inequality in social exchange. This theory of motivation states that positive outcomes and high levels of motivation can be expected only when employees perceive their treatment to be fair. Equity theory will help hrd explain employees behavior and provide them with. Adams equity theory leadership skills training from. The utility of equity theory in enhancing organizational. The equity theory of motivation suggested that human beings will be motivated to engage in an action or series of action if he or she perceives that the conditions of the situation are fair and just, ultimately benefitting the individual. Equity theory is used in parlance of human resource management. It is a cognitivecentered theory as it is basically concerned with the person himself, his beliefs, feelings or perceptions. Adams equity theory, a powerful theory of motivation.
Nov 20, 2018 the adams equity theory was developed by the american psychologist john stacey adams in 1963. Process theories of motivation equity theory business essay. Work motivation is come from different people and different work need. There are similarities with charles handys extension and interpretation of previous simpler theories of maslow, herzberg and other pioneers of workplace psychology, in that the theory acknowledges that subtle and variable factors affect each individuals. Equity theory and performance applied social psychology asp. The motivation always brings driving force to make people work hard. Equity theory of work motivation is based on the social exchange process. This means that your motivation is highly correlated to fairness and justice, both in the workplace as well as in the outside world. Individual rewardsindividual inputs others rewards others inputs.
If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. One aspect of equity theory asserts that demotivation occurs if employees perceive their workplace inputs are greater than the outputs received for their work efforts adams, 1963. When applied to the workplace, equity theory focuses on an employees workcompensation relationship or exchange relationship as well as that employees attempt to minimize any sense of unfairness that might result. The adams equity theory was developed by the american psychologist john stacey adams in 1963. Equity theory of motivation management study guide. The higher an individuals perception of equity, the more motivated they will be. Victor vrooms expectancy theory of motivation an evaluation. Higher is individuals perception of fairness, greater is the motivation level and vice versa.
Equity theory motivation is affected by ones perception accurate or inaccurate of the relative outcome rewards one receives and inputs efforts one exerts in comparison to others. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Typical inputs include time, effort, loyalty, hard work, commitment, ability, adaptability, flexibility, tolerance, determination, enthusiasm, personal sacrifice, trust in superiors, support from coworkers and colleagues, skill. Stacy adams in 1963 and fully developed in a chapter published 2 years later, equity theory draws on earlier social psychological concepts inspired by fritz heiders balance. According to equity theory, it is the perception of equitability and inequitability. In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. As per this motivation theory, an individuals motivation level is correlated to his perception of equity, fairness and justice practiced by the management. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. Adams equity theory, a powerful theory of motivation toolshero. Herzbergs motivation hygiene theory is a lso known as the twofactor theory. A funny way to understand equity theory is through the video below. The model reflects theory y assumptions about people as capable individuals and in this way values human dignity.
Equity theory further deals with this issue in which effort must be comparable to the perceived reward to be viewed as equitable adams, 1965. Equity theory is based on the idea that individuals are motivated by fairness. When applied to the workplace, equity theory focuses on an. Motivating employees with limited pay incentives using. Equity, then, sets the stage for a dynamic culture of achievement. Oct 07, 2019 the equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation.
In the video, sheldon is almost obsessed with the present that was given to him. Every person is unique and all the major theories of motivation allow for this uniqueness to be demonstrated in one way or the other. Lastly compared to the other theories, the equity theory adopts a realistic approach to motivation. Considered one of the justice theories, equity theory was first developed in the 1960s by j. Equity theory and employee motivation motivation self. Motivation is typified as an individual phenomenon. Briefly, they subscribe to the norm of equity and feel distress when either overrewarded or underrewarded. Equity theory proposes that individuals estimate the ratio of what has been contributed i. In other words, the goal of the employer is to get their employees to continually evaluate their aggregate work.
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