1. Equity Theory Of Motivation Pdf Sample
2. Equity Theory Of Motivation Pdf
3. Equity Theory Of Motivation Pdf Ppt
4. Stacy Adams Equity Theory Of Motivation Pdf

John Stacey Adams' Equity Motivation Theory allows you to put workplace psychology into action and increase your own or your team's motivation. Adams' equity theory builds on Maslow's Hierarchy of Needs and Herzberg's Two Factor Theory, and was first presented in 1963. In short, Adam's Equity Theory means that employees will become de-motivated if. Keys, Henry, Bryant, 1998). One aspect of equity theory asserts that de-motivation occurs if employees perceive their workplace inputs are greater than the outputs received for their work efforts (Adams, 1963; Adams, 1965). In other words, the goal of the employer is to get their employees to continually evaluate their aggregate work. The expectancy theory places an emphasis on the process and on the content of motivation as well, and it integrates needs, equity and reinforcement theories. Victor Vroom's (1964) expectancy theory aims to explain how people choose from the available actions. 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 his/her perception of equitable or inequitable behavior from the employers. The core of equity is the principle of balance or equity. According to this theory of motivation, an individual’s motivation level is connected with his perception of equity, fairness and justice practised by management. Get the complete knowledge about Equity Theory of motivation from MyAssignmentHelp experts.

Read this article to learn about the equity theory of motivation and its evaluation.

Introduction to the Theory:

• The advantages of equity theory are as follows. Implementation of the equity theory in a workplace offers numerous opportunities to the employees, and this motivates them to achieve by grabbing viable chances. The workforce is sure of the fact that the rewards will be per the effort and hence, they try to make a distinguishing mark.
• In the equity theory of motivation, employee’s motivation depends on their perception of how fair is the compensation and treatment for their work input. Equity Theory states that the employees perceive what they get from a job situation (outcomes) about what they put into it( inputs) and then compare their inputs- outcomes ratio with the.

The Equity theory owes its origin to several prominent theorists. However, it is J. Stacey Adam’s formulation of the theory which is most highly developed and researched statement on the topic. According to Adams, equity theory is based on the simple assumption that people want to be treated fairly. Many employees are concerned not only with satisfying their own needs but also compare what others receive.

The theory defines equity as the belief that we are being treated fairly in relation to others and inequity as the belief that we are treated unfairly in relation to others. Employees feel satisfied or dissatisfied with comparative observations of their friends, neighbours and colleagues. Whenever the employee feels that he is lacking in some way in comparison to others, he tends to work hard to reach the level of others.

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People are motivated by the inequity they note with others. The equity theory helps in understanding both the causes and likely consequences of feelings of un-equitable treatment among organisation members. Adams has defined two specific words viz. person and other. Person is any individual for whom equity or un-equity exists. Other is defined as any individual with whom a person is in relevant exchange relationship or with whom a person compares himself. Adams describes the equity comparison process in terms of input/output ratios. Inputs are an individual’s contribution to the organisation.

Such as the person’s training, education, skills, experience, ethnic background, effort and loyalty. Outputs are what he receives in return. An individual can receive many positive and negative outcomes from the organisation. The outcomes which an individual receive are in the form of pay, working conditions, recognition, social relationships, level of supervision etc. The individual alone decides whether an outcome is positive or negative.

People assess the ratio between their outcomes and their relevant inputs. Each person compares this ratio with the ratio of another person or group of people. Let us call the person making the comparison one person and the object of comparison other.

The following figure shows the results of comparisons:

A feeling of equity results when an individual perceives the ratios as equal. The situation happens in a’ work environment where a person feels that he and his co-worker are paid the same amount and that their relevant inputs are also the same. A feeling of equity can also occur when other’s outcomes are higher (or lower) than the person’s and when other’s inputs are also higher (or lower). This form of equity is common in organisations. A person does not feel inequitably treated if his superior is getting a higher salary than him.

In case, there is inequality in the ratios of outcomes and inputs, people can experience two types of inequity-positive and negative. In negative inequity people feel that they are under paid for what they give the organisation and in positive inequity they feel that they are paid more than their work is worth. The amount of inequity is proportional to the size of the perceived discrepancy in the two ratios. The basic equity theory assumes that upon feeling inequity, the person is motivated to reduce it. Further the greater the inequity the greater the motivation to reduce it.

Thus, inequity as a motivation force will act as follows:

It is not that the person feeling inequity alone gets motivated to restore equity. The person with a feeling of equity also gets motivated but to maintain the current situation. The person with a feeling of inequity can try a number of alternatives viz.:-

Responses to Inequity:

(i) Change Inputs:

A person can change his inputs depending upon whether the perceived inequity is positive or negative. Under a condition of negative inequity, he may reduce his efforts, productivity or quality of work. Under a condition of positive inequity he may increase those inputs.

(ii) Change Outcomes:

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A person may attempt to change his outcomes by requesting a salary increase or asking for a bigger office. Anything perceived to be an outcome important to the individual can shift his ratio of inputs to outcomes.

(iii) Alter Perceptions of Self:

Rather than actually changing the inputs and outcomes, people may change their perceptions of their inputs or out-comer. If they feel overpaid, they may begin to ‘See’ more responsibility and duty in their job. If they feel underpaid they may reduce the perceived importance of the job by suggesting to themselves that ‘it is just another job’.

(iv) Alter Perception of Other:

People may change their perceptions of the inputs and outcomes of the comparison other. A person who feels overpaid may impute more importance to the task of the other party than in the past.

(v) Change Comparisons:

If comparing oneself with a specific person creates feelings of inequity, choosing someone else for comparison purposes may result in less uncomfortable feelings.

(vi) Leave Situation:

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A person may withdraw from the situation that produced the feeling of inequity. The withdrawal can be permanent such as leaving the organisation for some other organisation or it can be temporary such as increased absences or tardiness.

Evaluation of the Theory:

The equity theory has generated extensive research, with many of the results being supportive. The theory recognises the influence of social comparison processes on motivation. Individuals are concerned not only with the amount of rewards they receive for their efforts but also with the relationship of this amount to what others receive. Equity motive tends to be one of the important motives with the employees.

Lastly compared to the other theories, the equity theory adopts a realistic approach to motivation. This theory postulates that a major share of individual behaviour is based on the perceived situation rather than on the actual set of circumstances. Such a hypothesis is proved correct by several findings which indicate that it is the perceived equity or inequity of the situation that stimulates motivation and satisfaction.

The equity theory is not free from criticism. The central theme of the theory is the judgment of fair treatment. But, in reality, the concept of fairness is not appreciated by all. Equity predictions are more likely to apply to people who are morally mature.

There are some practical difficulties also in applying equity theory e.g.:

(i) How does a person choose the comparison other?

(ii) How to assess the perception of people about inputs/outcomes relationships?

(iii) Is a given factor an input or an outcome e.g. responsibility?

(iv) Under what circumstances will each method of inequity resolution be used?

Regardless of these problems, the equity theory continues to offer us some important insights into employees’ motivation. The managers find it very useful in managing and motivating people through equitable rewards.

Equity Theory of Motivation

Equity Theory was developed by James Stacy Adam. It was published in the journal, Experimental Social Psychology, 1965, New York titles ‘Inequality in Social Exchange’. The theory is also known as Adam’s Inequity Theory of Motivation. It is a cognitive-centered theory as it is basically concerned with the person himself, his beliefs, feelings or perceptions. Equity theory of work motivation is based on the social exchange process. Basically, he theory points out that people are motivated to maintain far relationship between their performance and reward in comparison to others.

Exchange relationship between a person’s inputs/outcomes in relation to those of other persons may be of three types:

1. Overpaid Inequity

In this case, the person perceives that his outcomes are more as compared to his inputs in relation to others. This relationship can be expressed by :

Person’s outcomes/Person’s inputs > Other’s outcomes/ Other’s inputs

In this case, the person might feel guilty

2. Underpaid Inequity

In this case, the person perceives that his outcomes are lower as compared to his inputs in relation to others. This relationship can be expressed as:

Person’s outcomes / Person’s inputs < Other’s outcomes /Other’s inputs

In this case, the person experience dissonance.

3. Equity

In this case, the person perceives that his outcomes in relation to his inputs are equal to those of others. This relationship can be expressed by :

Person’s outcomes / Person’s inputs = Other’s outcomes/ Other’s inputs

In this case person experiences satisfaction.

Assumptions of Equity Theory

1. An individual is concerned with his achievements (rewards and recognition) as well as with achievements of others.

2. Employees expect a fair and equitable return for their contribution to their jobs

Equity Theory Of Motivation Pdf Sample

3. Employees determine what return (equitable) they should receive after comparing their inputs with the outcomes their relational workers have received.

4. Employees who perceive themselves as being in an inequitable scenario will attempt to reduce the inequity either by distorting inputs and/or outcomes psychologically, by directly altering inputs and/or outputs, or by quitting the organization.

Merits of Equity Theory

1. The theory makes managers realize that equity motivate tends to be one of the most important motives of the people in the organization.

2. The theory is capable of contributing to both theory and practice of motivation.

Demerits of Equity Theory

1. Practically it is difficult to measure perception of people about output-input ratios.

2. The theory does not show clearly the specific actions a person should take to re-establish equity hen inequity is perceived.

Equity Theory Of Motivation Pdf

3. The theory does not consider all motivation factors. Only personal perception is the basic consideration.

Equity Theory Of Motivation Pdf Ppt

4. There is no standard measurement for efforts (inputs) and rewards, so, exact comparison with others is not possible.

Stacy Adams Equity Theory Of Motivation Pdf

5. An individual hardly accepts that he is getting more rewards than others. Most problems are of low return, the negative inequality.