Equity theory is used in parlance of human resource management. 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. Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist. The core of the equity theory is the principle of balance or equity. Finally, there would be summary and recommendations for future research. 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. Equity theory of motivation the core of the equity theory is the principle of balance or equity. The theory is also known as adams inequity theory of motivation.
The research question is to explore the effect pay outcome has on other outcome variables such as motivation, job satisfaction, and performance. The theory is capable of contributing to both theory and practice of motivation. Inputs are what you bring to the situation, like your skills, time and education. Inequity exists for an individual when he or she perceives an imbalance in the ratio between outcomes reward for work. This paper will focus on examining equity theory, its propositions and underlying assumptions. The equity theory of motivation deals with the way people compare the value of themselves to others in similar work situations based on their inputs and outputs. 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. An employee compares his or her jobs inputs with an outcomes ratio. The relevance of scientific management and equity theory in everyday managerial communication situations reginald l. The theory is based on the idea that people are motivated by the ratio of inputs and outputs they receive in comparison to others. An employee compares his an employee compares his or her jobs inputs with an outcomes ratio. The utility of equity theory in enhancing organizational.
Equity theory, justice theory, and exchange theory all rely on the assumption that it is the perception of equity, fairness, or net gains over the course of a single or ongoing interaction that affect emotions, rather than the actual, obdurate conditions in which the individuals are actually embedded. The equity theory of motivation how to keep your team. And in motivation for employees, we have equity theory which is one of the most popular motivation theories in managing and motivating employee performance. When applied to the workplace, it means an individual will generally aim to create a balance between what they give to. In this lesson, youll learn the fundamental principles of john stacey adams equity theory and understand how it can affect the workplace. Worlds best powerpoint templates crystalgraphics offers more powerpoint templates than anyone else in the world, with over 4 million to choose from. I will follow a line of investigation on equity theory in regard to its fundamental importance to organizations since it is assumed to be one of. In this paper the focus will be on the expectancy theory of motivation which was propounded by victor vroom.
According to stephan robbins expectancy theory is a theory that says that the strength of a tendency. Martin university of mississippi in this article, we take a look at why and how managers should communicate with their employees the. Instead of focusing on money alone, adams equity theory looks at compensation in relation to our social environment, and its subsequent effect on motivation. Motivation is essential to almost any aspect of life. Stacey adams equity theory employee motivation theories. Abstract this study examines the concept of equity theory, its intention, and core hypothesis.
This paper discusses and describes the equity theory of motivation with its implications to managers in the light of a real organizational example. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. 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. Therefore, equity theory will be helpful to management in perceiving what motivates employees berkowitz, 1965. It is a cognitivecentered theory as it is basically concerned with the person himself, his. Equity theory international journal of business and social science. The equity theory of motivation states a persons motivation is directly related to their perception of equity or level of fairness.
Equity theory is used in parlance of human resource. According to the theory, employee motivation is the result of the balance between what an. 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. It was published in the journal, experimental social psychology, 1965, new york titles inequality in social exchange. The equity theory of motivation, developed by workplace and behavioral psychologist john stacey adams in 1963, is grounded on the concept that employees tend to seek equity or balance in the amount of input they give to their job or relationship with their bosses, and the output they receive. Process theories of motivation equity theory business essay. John stacey adams equity theory helps explain why pay and conditions alone do not determine motivation. And in motivation for employees, we have equity theory which is one of the most popular motivation theories in managing and motivating.
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. 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. Miles university of georgia equity theory proposes that individuals who perceive themselves as either underrewarded or overrewarded will experience distress, and that this distress leads to efforts to restore equity. In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others.
Theyll give your presentations a professional, memorable appearance the kind of sophisticated look that todays audiences expect. In essence, the equity theory of motivation proposes that high levels of employee motivation in the workplace can only be achieved when each employee perceives their treatment to be fair relative to others. Equity theory and its effect on performance outcome sultan gashgari. Get the complete knowledge about equity theory of motivation. If the employee perceives inequality, he or she he will act to correct the inequity. Equity theory of motivation examples explained hrf. Motivating employees with limited pay incentives using equity theory and the fast. In this assignment, we will know more details about equity theory and how to use it to motivate employee performance as a manager. Pdf theories of motivation acheles karungi academia. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. According to equity theory of motivation, an individuals motivation level is correlated to his perception of equity, fairness and justice practiced by the.
If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness. Employees will compare themselves to other groups both inside and outside of the organization. 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. The relevance of scientific management and equity theory. The core of equity is the principle of balance or equity. Equity theory predictions of behavior in organizations. According to equity theory, it is the perception of equitability and inequitability.
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. Motivation is assumed to be under the control of the workers 2ehavior that are influenced by motivation, such as effort expended, are seen as choices of action. Nature has an intrinsic motivation that is it does what it does in and out of itself,without further reflection. The equity theory of motivation how to keep your team motivated. Equity theory of motivation equity theory was developed by james stacy adam.
Equity theory and performance applied social psychology. The presentation on equity theory of motivation starting with history, the. Higher is individuals perception of fairness, greater is the motivation level and vice versa. I will examine the research on equity theory in regard to pay since it is assumed to be one of the. This theory shows that you become more motivated when your perceived fairness is high and demotivated when you perceive unfairness. Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963. Much like many of the more prevalent theories of motivation such as maslows hierarchy of needs and herzbergs twofactor theory, adams equity theory acknowledges that subtle and variable factors affect an employees assessment and perception of their relationship with their work and their employer. Adams equity theory, a powerful theory of motivation. Outputs are everything you get in return, like your salary, bonuses, raises and promotions. Much like other prevalent theories of motivation, such as maslows hierarchy of needs, equity theory acknowledges that subtle and variable individual factors affect each persons assessment and perception of their relationship with their relational partners guerrero et al. A very simplistic yet logical theory of workplace motivation was developed by john stacey adams, a workplace and behavioral psychologist, in 1963. A motivation is the force that energizes, directs and sustains behavior. The higher an individuals perception of equity, the more motivated they will be. Equity theory and performance applied social psychology asp.
The theory makes managers realize that equity motivate tends to be one of the most important motives of the people in the organization. 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 of motivation management study guide. Increase motivation by lyndsay swinton john stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. Ppt equity theory powerpoint presentation free to view. It also explains why giving one person a promotion or payrise can have a demotivating effect on others. Equity theory andsiliconvalley 2 abstract silicon valley is known for its amazing workspace and perks. Jan 09, 2018 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. Adams equity theory, a powerful theory of motivation toolshero. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. This paper describes a new construct, equity sensitivity, and proposes that reactions to. According to this theory of motivation, an individuals motivation level is connected with his perception of equity, fairness and justice practised by management.
If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. Equity theory in some sense is related to motivation hygiene theory, in that it considers both demotivators and motivators. The equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation. However, studies have found that theres a higher rate of jobhopping, which seems like a contradiction fallick et al, 2006. Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and. High performance is achieved by well motivated people who are prepared to exercise discretionary effort. Pdf the utility of equity theory in enhancing organizational. 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. Expectancy theory published on march 29, 2016 march 29, 2016 40 likes 3 comments. Equity theory proposes that individuals who perceive themselves as either underrewarded or overrewarded will experience distress, and that this distress leads to efforts to restore equity. In the 1960s and 1970s, scholars generally concentrated on testing equity theory s applicability to romantic, social, and business relationships. Read this article to learn about the equity theory of motivation and its evaluation. Adams equity theory how fairness affects employee motivation. The equity theory owes its origin to several prominent theorists.
This article explains the adams equity theory, developed by john stacey adams in a practical way. The adams equity theory was developed by the american psychologist john stacey adams in 1963. Victor vrooms expectancy theory of motivation an evaluation. The equity theory of motivation employee motivation. I will examine the research on equity theory in regard to pay since it is assumed to be one of the essential and most important outcomes. Individual rewardsindividual inputs others rewards others inputs. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. After reading it, you will understand the basics of this powerful motivation theory what is the adams equity theory. Stacey adams formulation of the theory which is most highly developed and researched statement on the topic. Stacey adams, which claims that employees will be motivated if they believe that they are fairly treated in the workplace. Its about the balance between the effort an employee puts. Equity theory of motivation tries to address this problem of unequal treatment among employees in a company and its effect on the overall motivation of the employees because slight unequal treatment is present everywhere but when this unequal treatment becomes excessive than it hampers the motivation of the employees in a negative way which can. The theory proposes that employees form an estimate of how the total benefits they receive from a job pay, status, interest compare with their total input effort, skill, experience.
After reading it, you will understand the basics of this powerful motivation theory. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. Due to equity theory and twofactor theory, employees should be content and stay longer. The equity theory of motivation deals with the way people. Equity theory is based in the idea that individuals are.
Mar 25, 2020 the equity theory of motivation states a persons motivation is directly related to their perception of equity or level of fairness. Equity theory is frequently identified as a vital theory for understanding employee motivation. Equity theory is a concept in industrialorganizational psychology that focuses on an individuals perceptions of how equitably they are being treated in their work organization. Equity theory was first developed in 1963 by jane stacy adams. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. Adams equity theory leadership skills training from. Winner of the standing ovation award for best powerpoint templates from presentations magazine.
Based on the maslows theory and equity theory, according to their characters, the questionnaire aim to find the limitation of these two theories, check whether the two theories follow the real situation. Get the complete knowledge about equity theory of motivation from myassignmenthelp experts. Motivational theories a critical analysis 67 efforttoperformance expectancy is the starting point in the implementation of the expectancy theory. Equity theory comes under process theory which gives the perception whether the individual is going to work hard or not depending upon the rewards and possible outcomes. 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. Pdf the study examines equity theory of motivation and work performance in higher institutions with particular reference to nnamdiazikiwe. A cognitive theory of motivation, based on the work of j. A critique will follow to determine the falsibility and utility of the theory.
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