The equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation. The utility of equity theory in enhancing organizational. Workplace productivity varies depending on a plethora of factors. Equity theory states that employees need a sense of equity in the workplace in order to maintain psychological balance. In conclusion, the relationship between the equity theory and distributive justice can be seen through the application of ones personal analysis of equal work distribution within a workplace that matches outcomes received. If you want them to be motivated to achieve your outcomes, youll have to address the expectancy theory factors.
It explores the perceptions of humans regarding their inputs in the relationship and the outcomes they get. 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. The equity theory is very hard to gauge because there are several different inputs and outputs to a job. Most recent discussions focus on the benefits of equality in the workplace. Importance of equity theory in the workplace prezi. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs.
Motivating employees with limited pay incentives using equity. 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. How to apply vrooms expectancy theory in the workplace. 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. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. Theres room for vrooms theory in employee motivation. Equity theory is based on a principle that peoples actions and motivations are guided by fairness and that discrepancies in this fairness in the workplace will spur them to try and redress it. Equity theory explains how employees determine what is fair and how they act upon their perceptions. When equity exists, people have equal access to opportunities. According to this theory of motivation, an individuals motivation level is connected with his perception of equity, fairness and justice practised by management.
As noted by gogia 2010, when applied to the workplace, equity theory focuses on an employees workcompensation relationship or. Equity theory of motivation examples explained hrf. Higher is individuals perception of fairness, greater is. For managers it is better to effectively address these concerns than ignore them. The adams equity theory was developed by the american psychologist john stacey adams in 1963. Pdf the utility of equity theory in enhancing organizational. 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. Equity theory proposes that a persons motivation is based on what he. Equity theory is supported by research over the years.
Equity theory and its effect on performance outcome sultan gashgari. 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. As per this motivation theory, an individuals motivation level is correlated to his perception of equity, fairness and justice practiced by the management. It was published in the journal, experimental social psychology, 1965, new york titles inequality in social exchange. According to equity theory, it is the perception of equitability and inequitability. Pdf managing diversity and equality in the workplace. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. The change in diversity of workforce because of demographic changes like women in the workplace. This paper will focus on examining equity theory, its propositions and underlying assumptions. One of the more important features of workplace equity lies in expectations. Equity theory and job satisfaction in silicon valley scholarship.
Currently, there is an intense fascination about the workplace culture of the united states hub of technological prowess. But, in reality, the concept of fairness is not appreciated by all. 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. When that sense of equity is lacking, dissonance arises within the employee. A principle of workplace equity dictates that employees be treated fairly in all employment decisions, without regard to their gender, color, race or other personal differences. In the sections that follow, adams equity theory will be briefly summarized. This paper presents a logical critique to elucidate the central theme of workplace equity, as a conscious phenomenon that directs workers sense of commitment in organizations. The dictionary meaning of the word equity is the quality of being fair and impartial.
The understanding produced thus become the logical framework upon. There are some practical difficulties also in applying equity theory e. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. It is centered around a costbenefit analysis of any given relationship. 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. 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, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist.
Applying equity theory in the workplace equity theory can be a model for measuring how satisfied an employee is in their job. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. Adams, your staff try to keep a balance between how much they give to you inputs, and what they receive from your business in return outputs. According to equity theory, an employees work space may be recognized as an element of equitable treatment insofar as it is perceived as a reward that reflects. Output can be things like salary, recognition, and responsibility. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. Equity theory and its effect on performance outcome ijser. While workplace equity holds clear advantages for employees, the employers win as well. A critique will follow to determine the falsibility and utility of the theory.
Equity theory of motivation management study guide. Equity theory is based on the idea that individuals are motivated by fairness. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person concept of equity theory in. The central theme of the theory is the judgment of fair treatment. Equity theory and performance applied social psychology. Equity theory is a concept of human relations based on utility, or the amount of happiness and satisfaction one gets out of any given relationship. That is, equity theory is based on inequity from the employees perspective, and in many cases, the inequity is not real. Biblical views and equity theory motivation in the workplace. Althoughtheselenseshavebeen instrumental for examining a number of research questions, justice scholars also draw on theories in other realms of organizational psychology and organizational behavior. This means clearly defining the outcome that will be the focus of your reformchange effort over the coming months and years. As an example of equity theory, if an employee learns that a peer doing. The core of the equity theory is the principle of balance or equity. It is a cognitivecentered theory as it is basically concerned with the person himself, his.
It can be used in personal life, government or business. The core of equity is the principle of balance or equity. John stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. The theory is also known as adams inequity theory of motivation. Equity theory proposes that a persons motivation is based on what he or she considers to be fair when compared to others redmond, 2010. Applying adams equity theory to employee engagement. According to carrell and dittrich 1978, employees who perceive inequity will seek to reduce it, either by distorting inputs andor outcomes in. The equity theory of relationships is based on a theory developed by workplace and behavioral psychologist john stacey adams. Stacy adams, a workplace and behavioral psychologist, who. As the number of minority groups in the ranks of organizations grows, there is a need to. However, equity theory takes a less straightforward and more fluid approach than previous models. Equity theory and its applications in the various spheres. Definition of equity theory equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Equity theory is used in parlance of human resource management.
According to the theory, employee motivation is the. Equity theory will help hrd explain employees behavior and. It sets up an advantageous environment for both the employees and the employer. The equity theory of motivation directly relates a persons motivation to their perception of fairness, known as equity.
Its about the balance between the effort an employee puts into their work input, and the result they get in return output. 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. Equity theory states that peoples behavior correlates to the fairness with which theyre treated, according to warren plunkett, raymond attner and gemmy allen, authors of management. The first step in the racial equity theory of change retoc process is the most important. When applied to the workplace, equity theory focuses on an employees work compensation relationship or exchange relationship as well as that employees attempt to minimize any sense of unfairness that might result. 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. It has been accepted for inclusion in scripps senior theses by an authorized administrator of scholarship. In short, adams equity theory means that employees will become demotivated if. 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 leadership skills training from. Theres a transparency to cause and effect, and everyone knows what to expect in terms of consequences and rewards. The theory helps explain why your employees motivation levels can go up and down at work. The utility of equity theory in enhancing organizational effectiveness article pdf available in european journal of economics, finance and administrative sciences.
In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. The individual will look at the treatment of their peers or coworkers and see if the y a re being treated as fairly. As weve talked about many times here at brighthr, your business needs motivated staff to operate at its full capacity. Are you trying to achieve something that your employees do not want. Considered one of the justice theories, equity theory was first developed in the 1960s by j.
One aspect of equity theory asserts that demotivation occurs if employees perceive their workplace inputs are greater than the outputs received for their work. The issues of equity and access are becoming increasingly important as the workforce becomes diversified. If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness. John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963.
The equity theory of motivation employee motivation. The case for promoting equity in developing countries 19 4. An employee compares his or her jobs inputs with an outcomes ratio. Abstract this study examines the concept of equity theory, its intention, and core hypothesis. Equity theory of motivation equity theory was developed by james stacy adam. In short, the perceptions of equity and inequity is derived from social interactions and varies due to individuality.
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. The advantages of equity in the workplace bizfluent. But equity is arguably a fairer principle for rewarding employees. Finally, there would be summary and recommendations for future research. Equity in a workplace means everyone receives fair treatment. Thus, if youre a manager or business owner, workplace equity is a principle. Adams equity theory, a powerful theory of motivation. The equity theory of motivation how to keep your team. The utility of equity theory in enhancing organizational effectiveness. Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job. 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. When applied to the workplace, equity theory focuses on an. Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963.
Equity predictions are more likely to apply to people who are morally mature. Get the complete knowledge about equity theory of motivation from myassignmenthelp experts. Pdf this paper will focus on examining equity theory. In simple terms, equity theory states that if an individual identifies an inequity between themselves and a peer, they will adjust the work they do to make the situation fair in their eyes. This means that your motivation is highly correlated to fairness and justice, both in. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. As a result, employee perceptions about fairness do matterwhether they are real or misguided. Vroom explains the importance of your employees perceptions of the outcomes you want to meet. Equity theory why employee perceptions about fairness matter.