Pdf the utility of equity theory in enhancing organizational. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. The equity theory owes its origin to several prominent theorists. When compared to other people, individuals want to be compensated fairly for their contributions the outcomes they experience match their inputs. Equity theory defined in 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. Equitytheoryandsiliconvalley 2 abstract silicon valley is known for its amazing workspace and perks. Equity sensi tives are most content when their outcomeinput. This supports adams equity theory that people tend to us e a. Equity theory is based in the idea that individuals are motivated by fairness, and if they identify inequiti.
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. Higher is individuals perception of fairness, greater is the motivation level and vice versa. Employees place great importance on being treated fairly and equally. Equity theory of motivation management study guide. 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. Motivational theories a critical analysis 67 efforttoperformance expectancy is the starting point in the implementation of the expectancy theory. John stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. Get the complete knowledge about equity theory of motivation from myassignmenthelp experts. 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. Due to equity theory and twofactor theory, employees should be content and stay longer. According to this theory a persons motivation depends on the degree of equity that people perceive in their work situation.
John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. Equity theory helps us understand work motivation by looking at peoples values. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. This theory shows that you become more motivated when your perceived fairness is high and demotivated when you perceive unfairness. The theory is also known as adams inequity theory of motivation.
It can even undermine the motivation of other employees. It was published in the journal, experimental social psychology, 1965, new york titles inequality in social exchange. Adams equity theory calls for a fair balance to be struck between an employees inputs hard work, skill level, tolerance, enthusiasm, and so on and an employees. According to this theory of motivation, an individuals motivation level is connected with his perception of equity, fairness and justice practised by management. 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. 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. The equity can be expressed as thus, adams equity theory shows the level of motivation among the individuals in the working environment. When applied to place of employment, equity theory can be seen as a way that an employee attempts to minimize any and all sense of unfairness that may arise. Jan 18, 2012 equity theory helps us understand work motivation by looking at peoples values. Sep 25, 2016 equity theory of motivation, developed in the early 1960s by j. Equity theory is based in the idea that individuals are. The equity theory of motivation states a persons motivation is directly related to their perception of equity or level of fairness. Adams 1965 defines inequity as inequity exists for person whenever he perceives that.
Stacey adams, proposes that employees perceive and assess a ratio of jobs inputs related to the outcomes they received for their performance to seek either equity or inequity in their situation and then corrects any. Stacey adams formulation of the theory which is most highly developed and researched statement on the topic. Read this article to learn about the equity theory of motivation and its evaluation. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Therefore, equity theory will be helpful to management in perceiving what motivates employees berkowitz, 1965. Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist. 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 theory was developed in the early 1960s by j. This video will show you how to apply adams equity theory to workplace motivation. Improving motivation with adams equity theory youtube.
Mar 12, 2019 the equity theory of motivation has been developed by social psychologist stacy adams. 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 the motivation theories highlighted in the case which are equity theory and vrooms expectancy theory. Stacy adams focusing on social justice and the fairness of social exchange. Adams equity theory, a powerful theory of motivation toolshero. For a business owner or manager, this is a particularly important lesson to learn with regard to employees. If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness. Equity theory thus helps explain why pay and conditions alone do not determine motivation. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963.
Adams equity theory how a manager can motivate their team. An individual is said to be highly motivated if he perceives to be treated fairly. Briefly, they subscribe to the norm of equity and feel distress when either overrewarded or underrewarded. Equity theory further deals with this issue in which effort must be comparable to the perceived reward to be viewed as equitable adams, 1965. The higher an individuals perception of equity, the more motivated they will be. Difference between expectancy theory and equity theory. However, studies have found that theres a higher rate of jobhopping, which seems like a contradiction fallick et al, 2006. The equity theory of motivation has been developed by social psychologist stacy adams. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. Theories such as john stacy adams equity theory and victor vrooms expectancy theory have substantial relevance in understanding motivation in todays complex work environment.
Equity theory explains how employees determine what is fair and how they act upon their perceptions. Applying adams equity theory to employee engagement. The theory helps explain why your employees motivation levels can go up and down at work. Instead of focusing on money alone, adams equity theory looks at compensation in relation to our social environment, and its subsequent effect on motivation. Adams equity theory goes beyond and is quite different from merely assessing effort and reward. Stacey adams equity theory john stacey adams equity theory helps explain why pay and conditions alone do not determine motivation. Mar 29, 2016 theories such as john stacy adams equity theory and victor vrooms expectancy theory have substantial relevance in understanding motivation in todays complex work environment. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. The main mechanisms of a motivated person were fairness and equity was established in 1963 by john stacey adams. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963. 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. Equity sensitive individuals represent the tra ditional equity theory model, and thus, require little description.
This specific theory is anchored in the design that people are motivated by fairness and if they recognize unfairness in the relations of inputoutput of themselves and their group they will search out their input to get that. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace. In this clip, i discuss the five key parts of equity theory, an example of how it may operate at work, and some of. However, equity theory takes a less straightforward and more fluid approach than previous models. 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. Expectancy theory vs equity theory essay 872 words bartleby.
In equity theory, motivation is affected by the individual perception of. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. 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. In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others.
Equity theory adds a crucial additional perspective of comparison with referent others people we consider in a similar situation. Equity theory of motivation businessmarketing bibliographies in harvard style. Equity theory adams, 1963, 1965 draws from exchange. 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. This handy quiz and worksheet combo will check your knowledge of the equity theory of motivation that was developed in 1963. Motivation provides reasons for peoples action, desires, and needs. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. Adams equity theory leadership skills training from. Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job. Motivating employees with limited pay incentives using equity. The core of the equity theory is the principle of balance or equity. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. John adams put forward his theory on motivation in 1963 which extends beyond.
The adams equity theory shows why salary and benefits alone dont determine an employees motivation. Pdf this paper will focus on examining equity theory, its propositions. As noted by gogia 2010, 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. Considered one of the justice theories, equity theory was first developed in the 1960s by j.
Motivation is the theoretical concept, which attempts to explain human behavior. Equity theory proposes that a persons motivation is based on what he or she considers being fair when compared to others redmond, 2010. Equity theory is based on the idea that individuals are motivated by fairness. Equity theory of motivation examples explained hrf. As per this motivation theory, an individuals motivation level is correlated to his perception of equity, fairness and justice practiced by the management. Nov 20, 2018 the adams equity theory shows why salary and benefits alone dont determine an employees motivation. The core of equity is the principle of balance or equity. Individual rewardsindividual inputs others rewards others inputs. If the employee perceives inequality, he or she he will act to correct the inequity. The equity theory of motivation employee motivation. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. Adams 1965 defines inequity as inequity exists for person whenever.
The difference between expectancy theory and equity theory needs substantial analysis as both explain how employees relationships evolve in a working environment. The utility of equity theory in enhancing organizational effectiveness. Stacey adams, recognized that motivation can be affected through an individuals perception of fair treatment in social exchanges. 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. John stacey adams equity theory helps explain why pay and conditions alone do not determine motivation. John stacy adams introduced equity theory in 1963, and addressed our tendency to compare ourselves to others.
Adams equity motivation theory business management articles by. An employee compares his or her jobs inputs with an outcomes ratio. Process theories of motivation equity theory business essay. It explains why a promotion or raise rarely has the desired effect. 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. Stacey adams equity theory employee motivation theories. This theory focuses on peoples sense of justice and fairness. While the feelings of demotivation arise, if an individual perceives to be treated unfairly in the organization. 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. Adams equity theory how fairness affects employee motivation. Equity theory of motivation, developed in the early 1960s by j. Adams equity theory, a powerful theory of motivation.
Equity theory was first developed in 1963 by jane stacy adams. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. In short, adams equity theory means that employees will become demotivated if. Adams equity theory of motivation in management paper tyari. It also explains why giving one person a promotion. As weve talked about many times here at brighthr, your business needs motivated staff to operate at its full capacity. The equity theory of motivation how to keep your team motivated. And equity theory effectively looked at an employee population to try and determine how far it was important for employees to feel equally treated.
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