If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness. Motivating employees with limited pay incentives using. An employee compares his or her job s inputs with an outcomes ratio. Typical inputs include time, effort, loyalty, hard work, commitment, ability, adaptability, flexibility, tolerance, determination, enthusiasm, personal sacrifice, trust in superiors, support from coworkers and colleagues, skill. Lastly compared to the other theories, the equity theory adopts a realistic approach to motivation. Equity theory will help hrd explain employees behavior and provide them with. The theory recognises the influence of social comparison processes on motivation. Victor vrooms expectancy theory of motivation an evaluation. John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. This equity theory term ecompasses the quality and quantity of the employees contributions to his or her work. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. Equity theory of motivation management study guide.
This equation is a ratio of our inputs to outcomes and compares it with others inputoutput ratios the pennsylvania state university psu, 2014, p. 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. Predictions from equity theory about employee reactions to pay distinguish be. Retrived from supportfilesadamsequitymotivationtheory. What is motivation motivation university of oklahoma. Work motivation is come from different people and different work need. Oct 07, 2019 the equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation. 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. 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. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. Equity theory of motivation, developed in the early 1960s by j. The widest accepted explanation of the motivation was given by victor vroom 1964 with the theory most commonly known as the expectationvalue theory that tries to merge together the various elements of previous theories. Equity theory proposes that individuals estimate the ratio of what has been contributed i.
When inequities persist, employees may do any of the following. 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. Theories of motivation and their application in organizations. The equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation. Equity theory was first developed in 1963 by jane stacy adams. The equity theory of motivation how to keep your team. The equity theory of motivation suggested that human beings will be motivated to engage in an action or series of action if he or she perceives that the conditions of the situation are fair and just, ultimately benefitting the individual. One aspect of equity theory asserts that demotivation occurs if employees perceive their workplace inputs are greater than the outputs received for their work efforts adams, 1963.
Equity theory is a concept in industrialorganizational psychology that focuses on an individuals perceptions of how equitably they are being treated in their work organization. Adams equity theory, a powerful theory of motivation. 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. Equity theory of work motivation is based on the social exchange process.
Pdf motivation is an internal force that accounts for the level, direction, and persistence of effort expended at work. Equity theory of motivation examples explained hrf. The theories of motivation maybe categorized according to their definitions and purpose but critical analysis reveal that they are all linked, they lead to serving satisfaction in employees. When applied to the workplace, it means an individual will generally aim to create a balance between what they give to. Equity theory states that a persons motivation is based on what they believe is fair or not fair compared to others pennsylvania state university, 2016. It combines perception aspects of the equity theory. The higher an individuals perception of equity, the more motivated they will be. Every person is unique and all the major theories of motivation allow for this uniqueness to be demonstrated in one way or the other. 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. Motivation is a continuous process motivation can be positive or negative motivation is goal oriented motivation is complex in nature motivation is an art motivation is systemoriented motivation is different from job satisfaction motivational factors there are several factors that motivate a person to work. 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 result. Motivation is a persons internal disposition to be. Equity theory and employee motivation motivation self.
Equity theory and job satisfaction in silicon valley scholarship. Individual rewardsindividual inputs others rewards others inputs. Employees who feel that they are receiving inequitable treatment will be emotionally motivated to gain equity. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. The research question is to explore the effect pay outcome has on other outcome variables such as motivation, job satisfaction, and performance. Briefly, they subscribe to the norm of equity and feel distress when either overrewarded or underrewarded. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. Therefore, equity theory will be helpful to management in perceiving what motivates employees berkowitz, 1965. Applying adams equity theory to employee engagement. As weve talked about many times here at brighthr, your business needs motivated staff to operate at its full capacity. Equity theory and employee motivation free download as word doc. The theory helps explain why your employees motivation levels can go up and down at work. Herzbergs motivation hygiene theory is a lso known as the twofactor theory. Equity theory and performance applied social psychology asp.
Equity theory further deals with this issue in which effort must be comparable to the perceived reward to be viewed as equitable adams, 1965. 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 assessment and perception of their relationship with their work, and thereby their employer. Motivation is typified as an individual phenomenon. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. It can even undermine the motivation of other employees. In this assignment, we will know more details about equity theory and how to use it to motivate employee performance as a manager. When people receive bonuses, pay and promotions at a job that equitably rewards merit, the company ends up with the right people in the right places doing the right things. If workers draw the conclusion that conditions are inequitable, their motivation will change.
Equity theory in some sense is related to motivation hygiene theory, in that it considers both demotivators and motivators. Considered one of the justice theories, equity theory was first developed in the 1960s by j. 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. Process theories of motivation equity theory business essay. Employees place great importance on being treated fairly and equally.
In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. While workplace equity holds clear advantages for employees, the employers win as well. According to the theory, employee motivation is the result of the balance between what an. Currently, the work hard, play hard mentality is highly prevalent and is openly encouraged by the companies themselves through the forms of various perks. According to carrell and dittrich 1978, employees who perceive inequity will seek to reduce it, either by distorting inputs andor outcomes in. According to equity theory, it is the perception of equitability and inequitability. 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. Equity theory why employee perceptions about fairness matter. Equity sensi tives are most content when their outcomeinput.
According to the equity theory, a person will be motivated to work towards a goal if he is she feels that. May 03, 2018 the theory is also known as adams inequity theory of motivation. Stacy adams, a workplace and behavioral psychologist, who asserted that. We have appreciated earlier the importance of motivation in determining human behaviour. The motivation always brings driving force to make people work hard. This quiz and worksheet will help you exercise your conceptual knowledge on the equity theory of motivation through questions about who first developed the theory and. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners.
According to equity theory, an employees perception of the fairness of his works input and outcome influences his motivation. However, equity theory takes a less straightforward and more fluid approach than previous models. 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. The equity theory of motivation directly relates a persons motivation to their perception of fairness, known as equity. In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others. Each link can be influenced by a variety of factors i.
The utility of equity theory in enhancing organizational effectiveness. The theory is also known as adams inequity theory of motivation. Equity theory and performance applied social psychology. Equity theory of motivation equity theory was developed by james stacy adam. In the video, sheldon is almost obsessed with the present that was given to him. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. Another aspect of work motivation in the fast food industry is the low pay itself even if it is competitive. Adams equity theory leadership skills training from. Pdf the utility of equity theory in enhancing organizational.
Many theories do not always work around the world e. Adams equity theory how fairness affects employee motivation. May 22, 2020 contemporary theories of motivation incorporate equity, control and agency theory, as well as goal setting, reinforcement, and job design theory. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person.
As an example of equity theory, if an employee learns that a peer doing. It was published in the journal, experimental social psychology, 1965, new york titles inequality in social exchange. This behavior is explained by equity theory, which links fairness to employee effort. The equity theory has generated extensive research, with many of the results being supportive. The equity theory of motivation how to keep your team motivated. Equity, then, sets the stage for a dynamic culture of achievement. Equity theory most popularly known as equity theory of motivation was first developed by john stacey adams a workplace and behavioral psychologist in 1963.
Expectancy theory published on march 29, 2016 march 29, 2016 43 likes 3 comments. Output can be things like salary, recognition, and responsibility. Higher is individuals perception of fairness, greater is the motivation level and vice versa. Sep 25, 2016 equity theory proposes that a persons motivation is based on what he or she considers to be fair when compared to others redmond, 2010. Even though equity theory has a lot of criticisms, it continues to be used in research examining job attitudes and employee behavior gill, d, and stone, r, 2010. 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. The advantages of equity in the workplace bizfluent. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. The core of the equity theory is the principle of balance or equity.
Herzberg started the study of j ob satisfaction in the 1950s in pittsburg. 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. Work motivation is a set of energetic forces dubious discuss that originate both within as well as beyond an individuals being, to initiate work related behavior, and to determine its form, direction, intensity, and duration understanding what motivates an organizations employees is central to the study of io psychology. Equity theory equity theory posits that an individual tends to apply a particular equation when determining if he or she is being treated fairly.
Equity sensitive individuals represent the tra ditional equity theory model, and thus, require little description. Motivation is assumed to be under the control of the workers 2ehavior that are. This employeefirst approach supposedly bodes well for the health of the company in accordance with social identity theory and equity theory. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. Pdf the study examines equity theory of motivation and work performance in higher institutions with particular reference to nnamdiazikiwe. When applied to the workplace, equity theory focuses on an. It explains why a promotion or raise rarely has the desired effect. Motivating employees with limited pay incentives using equity. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. A funny way to understand equity theory is through the video below. Equity theory proposes that a persons motivation is based on what he or she considers to be fair when compared to others redmond, 2010. 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.
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. 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. Stacey adams equity theory employee motivation theories. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. The adams equity theory shows why salary and benefits alone dont determine an employees motivation. It explains many of the phenomenon related to employee efforts, work performance, employee motivation etc. Adams equity theory, a powerful theory of motivation toolshero. One aspect of equity theory asserts that demotivation occurs if employees perceive their workplace inputs are greater than the outputs received for their work. Equity theory is used in parlance of human resource management. It is a cognitivecentered theory as it is basically concerned with the person himself, his. Equity theory is based on the idea that individuals are motivated by fairness. Equity motive tends to be one of the important motives with the employees.
Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job. This theory postulates that a major share of individual behaviour is based on the perceived situation rather than on the actual set of circumstances. As an example of equity theory, if an employee learns that a peer doing exactly the same job as them is earning more money, then they may choose to do less. The utility of equity theory in enhancing organizational. The model reflects theory y assumptions about people as capable individuals and in this way values human dignity. 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.
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