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. This paper concentrates on equity theory as it is conceived by adams 1963a, 1965. Equity theory adams, 1963 1 equity theory adams, 1963 people develop beliefs about what is a fair reward for one job contribution an exchange. The equity theory of motivation how to keep your team motivated. The utility of equity theory in enhancing organizational. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Adams equity theory, a powerful theory of motivation. This does not work well as they are trying to trade shortterm value money for longterm value emotion. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. According to equity theory adams, 1963, if an employee experiences. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. Ebook or pdf edited book email encyclopedia article govt. According to the theory, employee motivation is the result of the balance between what an.
Equity theory is also called inequity theory as it is the unequal difference that is often the area of interest. 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. Perceptions of the measurability, importance and effects of. Equity theory adams, 1963, 1965 draws from exchange, dissonance, and social comparison theories in making predictions about how indi viduals manage their.
Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963. Equity theory is based on the idea that individuals are motivated by fairness. John stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. The higher an individuals perception of equity, the more motivated they will be. Adams asserted that when people feel distress from inequity they may react in one or all of the following ways. Every employee of an organisation expects that he should be treated with justice.
Equity theory is one of the major formulations relevant to financial compensation. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others. An employee compares his or her jobs inputs with an outcomes ratio. Equity theory could be applied to any social situation in which an exchange takes place e. Vecchio 1981, 1982, 1984 and the reinforcementaffect theory of interpersonal attraction.
Discover strengths and weakness of the theory and implementation advice on the two main processes an individual can use to restore equity. Equity theories have been proposed by adams 1963a, 1965, homans 1961, jacques 1961, and patchen 1961. The equity theory of motivation how to keep your team. In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work. Equity theory of motivation examples explained hrf. In this article i aim to fulfill two projects simultaneously. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes.
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. Equity theory is considered as one of the justice theories. The key to equity theory is the ratio of inputs to outcomes. The theory of equity has been highlighted in the literature after the seminal. Combining equity theory with an aging perspective, we propose that due to. According to equity theory, it is the perception of equitability and inequitability. The journal of abnormal and social psychology, 675, pp. Men who have been pulled away from their family by their work sometimes try to even the scales with expensive holidays. How employees combine and weigh their inputs and outcomes to derive. Process theories of motivation equity theory business essay. 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.
This theory is based on social comparisons and the notion that unequity is a motivating state. This supports adams equity theory that people tend to us e a number of various. Meaning of equity theory and it is prioritized by leaders. These are the sources and citations used to research equity theory of motivation. Equity theory based strategies for students on overcoming.
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. 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. Price brunel university over the past several decades, equity theory adams, 1963, 1965which predicts that members of organizations will strive to be rewarded equitably, rather than under or overrewardedhas established itself as a. Adams equity theory adams 1963, 1965 focuses on the issue of fairness and equal. What satisfies younger versus older employees, and why. The first project is the scholarly one of presenting a more satisfactory account of aristotles theory of. 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 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. Adams equity theory is named for john stacey adams, a workplace and behavioral psychologist, who developed his job motivation theory in 1963.
Equity theory equity theory john stacey adams1963 adams. In short, adams equity theory means that employees will become demotivated if. 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. Individuals make contributions inputs for which they expect certain rewards outcomes. First, they may restrict their inputs to a level they believe is. Ppt equity theory adams, 1963 powerpoint presentation.
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. Adams equity theory adams, 1963, 1965 is a prevalent theory of distributive justice that is introduced in most management and nearly all organizational behavior textbooks as a major theory of work motivation. 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. 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. First, they may restrict their inputs to a level they believe is consistent with the outcomes they receive. For a business owner or manager, this is a particularly important lesson to learn with regard to employees.
Equity theory and its applications in the various spheres. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. To further illustrate equity theory considerations, a. According to adams, there are several cognitive and behavioral mechanisms available to. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. The earliest account of the nature of equity and equitable judgment is found in the writings of aristotle. Stacy adams in 1969, equity theory is a theory of justice. Underpayment inequity bob jane referent other types of inequity why. Adams equity theory introduction to equity theory adams equity was developed by john adams in 1963. The relevance of scientific management and equity theory in. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. The adams equity theory was developed by the american psychologist john stacey adams in 1963. The adams equity theory was proposed by john stacey adams, and is based on the following assumptions. Equity theory and its applications in the various spheres of.
The principal object of any system is equity or fairness. If an employee feels that there is an unfair balance between inputs and outputs, the following behaviours may occur. According to equity theory adams, 1963, 1965, employees job. Adams equity theory leadership skills training from. Adams, equity theory is concerned with defining and measuring the relational satisfaction of employees. From the term, we can instantly deduce that the nature of the theory is about balance and ethics. Coined and developed by workplace and behavioral psychologist j. Lee 2009, by combining the transaction cost and the theory of social change. Equity theory is based in the idea that individuals are. Adams equity theory how fairness affects employee motivation. The utility of equity theory in enhancing organizational effectiveness. Managerial accountants, the equity theory, job satisfaction, and.
An examination of adams theory of inequity this paper examines the empirical evidence for adams theory of inequity. Equity theory was first developed in 1963 by jane stacy adams. An attribute is only considered an input if it is perceived as relevant by the individual. Adamss equity and justice theory states that employees strive for equity between themselves and other employees adams, 1963, 1965. Equity theory 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. 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. The theory proposes that the employee evaluates the outcomes from the job i. 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. Perceptions of the measurability, importance and effects. Adams s 1965 equity theory is another form of motivation. Process theories of motivation stars university of. Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist. Two wellknown theories of interpersonal behavior are em.
Stacy adams, a workplace and behavioral psychologist, who asserted that. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. Four propositions capture the objectives of the theory. 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. First developed in the early 1960s by behavioural psychologist john s. Understanding employee motivation and organizational.
In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. Adams equity theory is based on a ratio consisting of inputs to outcomes. Equity theory adams, 1963 leeds school of business. 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.
No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. 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. There is nothing wrong in this expectation by the employees. Journal of management education leeds school of business. Human resource management has the challenge of variations in the. People compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents. This paper proposes equity theory as a guiding aid in ph. 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. 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. 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. Studies testing propositions concerning the effects of inequity on performance and on allocation of rewards, and concerning the determinants and the psychological state of inequity are analyzed. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. 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.
Oct 29, 2010 equity theory is considered as one of the justice theories. Pdf equity theory and interpersonal attraction researchgate. Equity theory, when applied to the workplace, focuses on an employees work compensation relationship and an employees attempt to reduce any perceived unfairness. The relevance of scientific management and equity theory. This handy quiz and worksheet combo will check your knowledge of the equity theory of motivation that was developed in 1963. 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 was developed in the 1960s by stacy adams. 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. To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the inequality. Individual rewardsindividual inputs others rewards others inputs.
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