What is Equity Theory of Job Motivation?John Stacey Adams, a workplace and behavioural psychologist, put forward his Equity Theory on job motivation in 1963. Show
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There are similarities with Charles Handy's 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 individual's assessment and perception of their relationship with their work, and thereby their employer. However, awareness and cognizance of the wider situation - and crucially comparison - feature more strongly in Equity Theory than in many other earlier motivational models.
The Role of Fairness in MotivationWhen people feel fairly or advantageously treated they are more likely to be motivated; when they feel unfairly treated they are highly prone to feelings of disaffection and demotivation. The way that people measure this sense of fairness is at the heart of Equity Theory.
The Role of Inputs and Outputs in Equity TheoryAdams called personal efforts and rewards and other similar 'give and take' issues at work respectively 'inputs' and 'outputs'.
These terms help emphasise that what people put into their work includes many factors besides working hours and that what people receive from their work includes many things aside from money. Adams used the term 'referent' others to describe the reference points or people with whom we compare our own situation, which is the pivotal part of the theory.
Practical Application of Equity TheoryEquity theory thus helps explain why pay and conditions alone do not determine motivation. In terms of how the theory applies to work and management, we each seek a fair balance between what we put into our job and what we get out of it. But how do we decide what a fair balance is?
Crucially this means that Equity does not depend on our input-to-output ratio alone - it depends on our comparison between our ratio and the ratio of others.
Adams' Equity Theory is, therefore, a far more complex and sophisticated motivational model than merely assessing effort (inputs) and reward (outputs).
This comparative aspect of Equity Theory provides a far more fluid and dynamic appreciation of motivation than typically arises in motivational theories and models based on individual circumstances alone.
The Importance of the Ratio in Equity TheoryNote also, importantly, that what matters is the ratio, not the amount of effort or reward per see.
Remember also that words like efforts and rewards, or work and pay, are an over-simplification - hence Adams' use of the terms inputs and outputs, which more aptly cover all aspects of what a person gives, sacrifices, tolerates, invests, etc., into their work situation, and all aspects of what a person receives and benefits from in their work and wider career, as they see it.
People respond to a feeling of inequity in different ways. Generally, the extent of demotivation is proportional to the perceived disparity with other people or inequity, but for some people, just the smallest indication of negative disparity between their situation and other people's is enough to cause massive disappointment and a feeling of considerable injustice, resulting in demotivation, or worse, open hostility. Some people reduce effort and application and become inwardly disgruntled, or outwardly difficult, or even disruptive. Other people seek to improve the outputs by making claims or demands for more rewards or seeking an alternative job. Summary
A Pdf diagram of Adam's Equity Theory can be found and downloaded here. Which motivation theory suggests that employees are motivated by fairness in the workplace?Adams' equity theory of motivation says that to be motivated, individuals need to perceive that the rewards they receive for their contributions are fair, and these rewards are similar to those received by their peers. Which theory of motivation discusses fair balance between employee's inputs and outputs?Balancing Employee Inputs and Outputs Adams' Equity Theory calls for a fair balance to be struck between an employee's "inputs" (hard work, skill level, acceptance, enthusiasm, and so on) and their "outputs" (salary, benefits, intangibles such as recognition, and more). What is equity theory of work motivation?The Equity Theory of Motivation deals with the way people compare the value of themselves to others in similar work situations based on their inputs and outputs. Inputs are what you bring to the situation, like your skills, time and education. What does equity theory suggest?Equity theory is a theory of motivation that suggests that employee motivation at work is driven largely by their sense of fairness. Employees create a mental ledger of the inputs and outcomes of their job and then use this ledger to compare the ratio of their inputs and outputs to others. Which motivation theory suggests that employees are motivated by fairness in the workplace?Adams' equity theory of motivation says that to be motivated, individuals need to perceive that the rewards they receive for their contributions are fair, and these rewards are similar to those received by their peers.
Which theory of motivation discusses fair balance between employee's inputs and outputs?Balancing Employee Inputs and Outputs
Adams' Equity Theory calls for a fair balance to be struck between an employee's "inputs" (hard work, skill level, acceptance, enthusiasm, and so on) and their "outputs" (salary, benefits, intangibles such as recognition, and more).
What is equity theory of job motivation?The equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation. 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.
What are the 4 theories of motivation explain?There are four major theories in the need-based category: Maslow's hierarchy of needs, ERG theory, Herzberg's dual factor theory, and McClelland's acquired needs theory.
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