The equity theory of motivation how to keep your team. Stacey adams, a workplace and behavioral psychologist, in 1963. This assumption of the existence of relative justice in a process of exchange has important implications for how employees may feel and act in an. Equity theory equity theory john stacey adams1963 adams. Management 40 motivation theories equity theory adams, 1963 people develop beliefs about what is a fair reward for one job contribution an exchange people compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents if an employee believes his treatment is inequitable, compared to. Stacy adams, a workplace and behavioral psychologist, who asserted that. An employee compares his or her jobs inputs with an outcomes ratio. Perceptions of the measurability, importance and effects of. According to equity theory, it is the perception of equitability and inequitability.
Equity theory is based in the idea that individuals are. The equity theory of motivation how to keep your team motivated. First developed in the early 1960s by behavioural psychologist john s. John stacey adams proposed that an employees motivation is affected by whether the employee believes that their employment benefitsrewards are at least equal to the amount of the effort that they put into their work. Underpayment inequity bob jane referent other types of inequity why. Pdf the utility of equity theory in enhancing organizational. These are the sources and citations used to research equity theory of motivation. Four propositions capture the objectives of the theory. Equity theory social psychology organizational behavior. Adams equity theory introduction to equity theory adams equity was developed by john adams in 1963. John adams put forward his theory on motivation in 1963 which extends beyond. Adams s 1965 equity theory is another form of motivation.
Equity theory is used in parlance of human resource management. Equity theory adams 1963 hypothesized that in social exchange between two agents the ratio of the perceived value of the inputs to the. For a business owner or manager, this is a particularly important lesson to learn with regard to employees. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. This supports adams equity theory that people tend to us e a number of various. This handy quiz and worksheet combo will check your knowledge of the equity theory of motivation that was developed in 1963.
In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. When an individual feels that he or she has been treated unfairly compared to others, the individual will be motivated to remove the discomfort and would develop some sort equity to the. Pdf equity theory and interpersonal attraction researchgate. This chapter argues that there is a basis for rethinking equity theory and that such an enterprise is a worthwhile precursor to further research on the psychology of injustice. Referent others is used to describe the reference points or people with whom we compare our own situation, which is the pivotal part of the. He also proposes that the social comparison process begins with the individuals assessment of what he or she need to puts into the job relative to what is. And that meant leading to an expectation as part of this theory that an employee would feel motivated if they were known to be doing a similar type of. Another theory relevant to the goals of this study is equity theory, which asserts that workers are motivated by a desire to be treated fairly, which is measured by the. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Adams equity theory adams 1963, 1965 focuses on the issue of fairness and equal treatment in organizations and the effects of perceptions of equities and inequities in inputs and outputs on specific workplace behaviour. Equity theory adds a crucial additional perspective of comparison with referent others people we consider in a similar situation. The journal of abnormal and social psychology, 675, pp. Equity theory adams, 1963 leeds school of business.
Equity theory is considered as one of the justice theories. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. The adams equity theory was proposed by john stacey adams, and is based on the following assumptions. Equity theory is based on the idea that individuals are motivated by fairness. Pdf this paper will focus on examining equity theory, its propositions and underlying. Adams equity theory how a manager can motivate their. Human resource educatn has a variety of administrative responsibilities for a number of outcomes that employees receive as part. Adams 1963 points out that the catch 22 of this approach is that individuals then. Equity theory and its applications in the various spheres.
Equity theory has received more attention lately from human resource professionals especially regarding the fairness of outcomes. An attribute is only considered an input if it is perceived as relevant by the individual. Equity, or more precisely, inequity is a major concern of industry. But adams equity theory is a far more complex and sophisticated motivational model than merely assessing effort inputs and reward outputs. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. Whenever two individuals exchange anything, there is the possibility that one or both of them will feel that the exchange was inequitable. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. The equity theory of adams 1963, 1965 predicts that people pursue a balance between their investments in and the rewards gained from their work, such that their own investmentreward ratio is the same as that of similar others.
In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work. The utility of equity theory in enhancing organizational effectiveness. It was first developed in 1963 by john stacey adams, a workplace and behavioral psychologist, who asserted that 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. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. In such cases, equity theory posits that the person will seek to modify inputs, outputs, or the comparison other referent, with obvious consequences for workplace behavior adams, 1963. If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness.
Beehr, 1996 equity theory a version of discrepancy theory of job satisfaction focusing on the discrepancies between what one has on the job and what one thinks is fair what one should have equity theory social comparison takes place perceived discrepancies between ratios may produce tension or dissonance amount of discrepancy corresponds to the. Oct 29, 2010 equity theory is considered as one of the justice theories. Equity theory was first developed in 1963 by jane stacy adams. Equity theory thus helps explain why pay and conditions alone do not determine motivation. The major components of exchange relationships in adams theory are inputs.
Equity theory in some sense is related to motivationhygiene theory, in that it considers both. Equity theory adams, 1963, 1965 draws from exchange, dissonance, and social comparison theories in making predictions about how indi viduals manage their relationships with others. Equity theory in some sense is related to motivationhygiene theory, in that it considers both demotivators and motivators. Equity theory based strategies for students on overcoming. 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. Adams equity and maslows need hierarchy theoretical implications mohamed msoroka term paper pedagogy job education, occupational training, further education publish your bachelors or masters thesis, dissertation, term paper or essay. Equity theory john stacey adams 1963 adams equity theory personal efforts and rewards and other similar give and take issues at work are called inputs and outputs respectively. Equity theory posits that if the person perceives that there is inequality, where either their outputinput ratio is less than or greater than what they perceive as the outputinput ratio of the other person in the relationship, then the person is likely to be distressed. Considered one of the justice theories, equity theory was first developed in the 1960s by j. Disturbance of this balance is expected to result in a range of negative outcomes, even if people are comparatively well off. The utility of equity theory in enhancing organizational. He put forward his equity theory in 1963, during a watershed period for our understanding of organisational and employee behaviour.
To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the inequality. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. Individuals make contributions inputs for which they expect certain rewards outcomes. Adams equity theory how a manager can motivate their team. Perceptions of the measurability, importance and effects. Equity theory of motivation examples explained hrf. Adams argues that the more intense the perceived inequity, the higher the tension, and the stronger the motivation to act. Adams equity theory leadership skills training from. This theory is based on social comparisons and the notion that unequity is a motivating state.
Wage inequities, productivity and work quality adams 1963. The higher an individuals perception of equity, the more motivated they will be. Adams suggested that employees try to maintain a balance between what they give to an organisation against what they receive, and base satisfaction with their own balance. Two wellknown theories of interpersonal behavior are em. This chapter argues that there is a basis for rethinking equity theory and that such an enterprise is a worthwhile. Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist. Wage inequities, productivity and work quality adams. Adams equity theory goes beyond and is quite different from merely assessing effort and reward. Equity theory, most popularly known as the equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. If an employee feels that there is an unfair balance between inputs and outputs, the following behaviours may occur. This paper proposes equity theory as a guiding aid in ph.
The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. In essence, adams equity theory is about perceptions of fairness, something that every leader needs to regulate in order to maintain a. Equity theory and its applications in the various spheres of. Pdf a role for equity theory in the turnover process. To further illustrate equity theory considerations, a.
And equity theory effectively looked at an employee population to try and determine how far it was important for employees to feel equally treated. Adams, equity theory is concerned with defining and measuring the relational satisfaction of employees. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. Adams equity theory is based on a ratio consisting of inputs to outcomes. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. Another theory relevant to the goals of this study is equity theory, which asserts that workers are motivated by a desire to be treated fairly, which is measured by the ratio of their inputs and outcomes adams, 1965. Adams theory of equity is based on the premises of the belief in fair treatment by the organization in terms of equally rewarding all employees doing equal amount and equal level. 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. The key to equity theory is the ratio of inputs to outcomes. Equity theory free download as powerpoint presentation. According to equity theory adams, 1963, if an employee experiences equity between input and outcome on. Stacey adams equity theory employee motivation theories. Equity theory adams, 1963, 1965 continues to be a major model stimulat ing considerable research. Stacy adams equity theory is based on the principle that people are motivated to act in situations where they perceive they have been treated inequitably or unfairly.
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