The equity theory
John stacy adams introduced equity theory in 1963, and addressed our tendency to compare ourselves to others instead of focusing on money alone, adams’ equity theory looks at compensation in relation to our social environment, and its subsequent effect on motivation. The original research performed concerning equity theory gradually contributed to the tenet described as sensitivity, which had to do with how workers viewed their personal judgments of how. Start studying equity theory learn vocabulary, terms, and more with flashcards, games, and other study tools.
Equity theory was first developed in 1963 by john stacey 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. Equity theory was either effectively applied or ineffectively applied yeah, i mean there's two specific examples from previous roles where you hear specifically what people are earning and stuff like that. Published: mon, 5 dec 2016 equity theory proposes that peoples motivation, performance and satisfaction depend on their subjective evaluation of the relationships between their effort/reward ratio and the effort /reward of others in similar situations.
Equity theory focuses on determining whether the distribution of resources is fair to both relational partners equity is measured by comparing the ratio of contributions (or costs) and benefits (or rewards) for each person. 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. The equity theory of motivation is used to describe the relationship between the employees perception of how fairly is he being treated and how hard he is motivated to work this article will help you know more on equity theory, the principle of balance or equity. Equity theory is based on the premise that employees will put forth a particular level of effort that they feel compares to the potential reward it comes down to a straightforward formula of. Equity theory, predicts that a good relationship is one in which a person's ratio of costs and rewards is equal to that of a person's partner based on the adams notion of distributed justice.
A theory of justice dealing with the fair return from activities we do output is related to the input into the activity output is related to the input into the activity see external inequity - internal inequity - overpayment inequity - underpayment inequity. 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. This is key to equity theory, as it suggests that a relationship doesn't have to be equal to be equitable it is possible for each partner to receive/ give very different amounts and for the perception of equity to still be present. Equity theory is based in the idea that individuals are motivated by fairness john stacey adams suggests that the higher an individual's perception of equity, the more motivated they will be and. The equity theory of motivation describes the relationship between the employee’s perception of how fairly is he being treated and how hard he is motivated to work j stacy adams developed equity theory.
Equity theory comes under process theory which gives the perception whether the individual is going to work hard or not depending upon the rewards and possible outcomes this paper discusses and describes the equity theory of motivation with its implications to managers in the light of a real organizational example. An application of equity theory to buyer-seller exchange situations 1047 words | 5 pages an application of equity theory to buyer-seller exchange situations the theory of cognitive dissonance posits that when an individual 's cognitive elements are inconsistent with each other, a state of cognitive dissonance exists [15, 27. Adam’s equity theory definition: the adam’s equity theory posits that people maintain a fair relationship between the performance and rewards in comparison to others in other words, an employee gets de-motivated by the job and his employer in case his inputs are more than the outputs.
The equity theory
The expectancy theory states that employee’s motivation is an outcome of how much an individual wants a reward (valence), the assessment that the likelihood that the effort will lead to expected performance (expectancy) and the belief that the performance will lead to reward (instrumentality. Equity, in the context of microeconomic theory, is both normative and specific for each aspect of an employee's labor that can be translated into wealth for the firm some kind of equal, but different, reward should be given to the employee. While expectancy theory emphasizes self interest in the alignment of rewards with employee's wants, equity theory also considers the equity or inequity within a group.
- The theoretical precision and research related to equity theory, as it is conceived by adams, are reviewed while equity theory is a significant step forward, the theory itself needs further specification.
- Equity theory • this process theory focuses on workers' perceptions of the fairness of their work outcomes and inputs specifically they strive to maintain ratios of their own rewards to contributions which are equal to others' ratios.
Equity theory is known as one of the general theory, which is very efficient in predicting employee behavior equity also defined as justice, inequity-injustice. Equity theory is based on a ratio consisting of inputs to outcomes inputs consist of contributions by an individual an attribute is only considered an input if it is perceived as relevant by the individual. Equity theory posits that if the person perceives that there is inequality, where either their output/input ratio is less than or greater than what they perceive as the output/input ratio of the other person in the relationship, then the person is likely to be distressed. Equity theory is a moral theory in that it seeks to understand the causes of happiness and satisfaction conflict can be explained given the differences in the relationship between work and reward, since conflict occurs when one partner in the relationship feels exploited.