Finally, there would be summary and recommendations for future research. 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. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. Winner of the standing ovation award for best powerpoint templates from presentations magazine. 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. Vecchio 1981, 1982, 1984 and the reinforcementaffect theory of interpersonal attraction.
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. 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. 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. Considered one of the justice theories, equity theory was first developed in the 1960s by j. In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work. 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. Equity theory adds a crucial additional perspective of comparison with referent others people we consider in a similar situation. A critique will follow to determine the falsibility and utility of the theory. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. Equity theory adams, 1963 1 equity theory adams, 1963 people develop beliefs about what is a fair reward for one job contribution an exchange. 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. However, equity theory takes a less straightforward and more fluid approach than previous models.
Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. According to adams, equity theory is based on the simple assumption that people want to be treated fairly. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. This handy quiz and worksheet combo will check your knowledge of the equity theory of motivation that was developed in 1963. The equity theory of motivation employee motivation. Adams s 1965 equity theory is another form of 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. Stacy adams focusing on social justice and the fairness of social exchange.
This paper studied how the equity theory applies to consumerretailer exchanges and effects consumer behavior. Equity theory is based in the idea that individuals are. Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist. Equity theory and its applications in the various spheres. But adams equity theory is a far more complex and sophisticated motivational model than merely assessing effort inputs and reward outputs. The equity theory of motivation how to keep your team.
The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. Workers possess certain inputs that they bring to the job, like skills, time, and effort. Stacy adams, a workplace and behavioral psychologist, who asserted that. The pros and cons associated with the equity theory the equity theory is always dependent on the basis of that the group members should be rewarded on the basis of the contribution that they make to the group. Adams equity theory how a manager can motivate their. Cons it may lead to under rewarding and these members. People compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents. An attribute is only considered an input if it is perceived as relevant by the individual.
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. Adams equity theory is based on a ratio consisting of inputs to outcomes. The equity theory of motivation episode 47 youtube. Adams equity theory leadership skills training from.
Equity theory is based on the idea that individuals are motivated by fairness. The equity theory of motivation how to keep your team motivated. Equity theory by john stacey adams equity theory attempts to explain relational satisfaction in terms of perceptions of fairunfair distributions of resources within interpersonal relationships. If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness.
Process theories of motivation equity theory business essay. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. People develop beliefs about what is a fair reward for one job contribution an exchange people compare their. For a business owner or manager, this is a particularly important lesson to learn with regard to employees. Adams equity theory on job motivation and free diagram, plus more free online training materials. Stacey adams equity theory employee motivation theories. 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. According to the theory, employee motivation is the result of the balance between what an. The members will be rewarded according to their effort, which will be fair. Theyll give your presentations a professional, memorable appearance the kind of sophisticated look that todays audiences expect. According to this theory of motivation, an individuals motivation level is connected with his perception of equity, fairness and justice practised by management. John stacey adams proposed that an employees motivation is affected by whether the employee believes that their employment benefitsrewards are at least equal. Ppt equity theory adams, 1963 powerpoint presentation. Its about the balance between the effort an employee puts into their work input, and the result they get in return output.
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. Worlds best powerpoint templates crystalgraphics offers more powerpoint templates than anyone else in the world, with over 4 million to choose from. An employee compares his or her jobs inputs with an outcomes ratio. Equity theory is considered as one of the justice theories. Equity theory the motivation theories highlighted in the case which are equity theory and vrooms expectancy theory. Inequity exists for an individual when he or she perceives an imbalance in the ratio between outcomes reward for work and inputs efforts at work as other workers outputs and incomes according to. Adams equity theory how a manager can motivate their team. 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.
The equity theory owes its origin to several prominent theorists. 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. 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. The equity formulas shown in figure 1 are simple adaptations of adams original formula. Equity theory of motivation management study guide. And equity theory effectively looked at an employee population to try and determine how far it was important for employees to feel equally treated. The study observed how a free sample given to a customer in a frozen yogurt shop affects the ultimate purchase amount. Equity theory is used in parlance of human resource management. 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. Output can be things like salary, recognition, and responsibility. Oct 16, 2012 in this video ill explain equity theory along with how it impacts employee and organizational behavior.
Adams equity theory how fairness affects employee motivation. Individual rewardsindividual inputs others rewards others inputs. The theory helps explain why your employees motivation levels can go up and down at work. Stacey adams formulation of the theory which is most highly developed and researched statement on the topic. Adams equity theory, a powerful theory of motivation. 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. Equity theory and its applications in the various spheres of. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. As weve talked about many times here at brighthr, your business needs motivated staff to operate at its full capacity.
Equity theory of motivation examples explained hrf. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. 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 adams equity theory was proposed by john stacey adams, and is based on the following assumptions. Stacy 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 adams. This paper will focus on examining equity theory, its propositions and underlying assumptions. Perception is a relative term and differs from person to person. Equity theory is a study of human perception in terms of proportionate equivalence of the ratio of one persons inputs to the results.
Equity theory and its applications in the various spheres of life. Get the complete knowledge about equity theory of motivation from myassignmenthelp experts. Strengths and weaknesses of adams equity theory free essays. Ppt equity theory powerpoint presentation free to view. Ppt equity theory adams, 1963 powerpoint presentation free to download id. The pros and cons associated with the equity theory the. Equity theory was developed in the early 1960s by j. To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the inequality. The core of equity is the principle of balance or equity. Adams argues that the more intense the perceived inequity, the higher the tension, and the stronger the motivation to act. Higher is individuals perception of fairness, greater is the motivation level and vice versa. Equity theory could be applied to any social situation in which an exchange takes place e. The adams equity theory was developed by the american psychologist john stacey adams in 1963.