Equity theory adams, 1963 leeds school of business. Winner of the standing ovation award for best powerpoint templates from presentations magazine. Equity theory is one of the major formulations relevant to financial compensation. 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. The key to equity theory is the ratio of inputs to outcomes. 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. Adams equity theory how fairness affects employee motivation. Stacey adams equity theory employee motivation theories. Human resource educatn has a variety of administrative responsibilities for a number of outcomes that employees receive as part. Equity theory proposes that employees who perceive themselves as overrewarded or underrewarded will experience distress.
I, the outcomes and inputs in each of the ratios are conceived as being the sum of such outcomes and inputs as are perceived to be relevant to a particular exchange. Jan 18, 2012 equity theory helps us understand work motivation by looking at peoples values. A very simplistic yet logical theory of workplace motivation was developed by john stacey adams, a workplace and behavioral psychologist, in 1963. Journal of abnormal and social psychology, 67, 422436. Stacey adams, a workplace and behavioral psychologist, in 1963. The expectancy theory also called valenceinstrumentalityexpectancy vie and value theory is based on the assumptions. Mar 25, 2020 john stacey adams is a workplace, social, and behavioral psychologist who came up with the equity theory of motivation in 1963. Equity theory is based on the idea that individuals are motivated by fairness. To support everybody during quarantine, the 1st month membership will temporarily be free of charge. Equity theory term paper free college essays, term. The utility of equity theory in enhancing organizational. The adams equity theory was developed by the american psychologist john stacey adams in 1963. The advantages of equity in the workplace bizfluent. Thus, if youre a manager or business owner, workplace equity is a principle.
The utility of equity theory in enhancing organizational effectiveness. First, they may restrict their inputs to a level they believe is. An individualdifferences interpretation of the conflicting predictions generated by equity theory and expectancy theory. John stacey adams proposed that an employees motivation is affected by whether the employee believes that their employment benefitsrewards are at least equal to the amount of the. This book chapter is brought to you for free and open access by the english at iowa state university digital repository. Herzbergs twofactor theory of motivation is opposite to the equity theory of motivation in that employee attitude and workplace motivation are not correlated. It 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. John stacey adamss equity theory has been a part of classical management literature since 1963. Equity theory adams, 1963 1 equity theory adams, 1963 people develop beliefs about what is a fair reward for one job contribution an exchange. John stacy adams introduced equity theory in 1963, and addressed our tendency to compare ourselves to others. Equity theory posits that if the person perceives that there is inequality, where either their outputinput ratio is less than or greater than what they perceive as the outputinput ratio of the other person in the relationship, then the person is likely to be distressed.
The motivation for the fair wageeffort hypothesis is a simple observation concerning human behavior. Scribd is the worlds largest social reading and publishing site. People compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents. John stacey adams proposed that an employees motivation is affected by whether the employee believes that their employment benefitsrewards are at least equal to the amount of the effort that they put into their work. Although adams 1963,1965 proposed a number of ways that employees. Worlds best powerpoint templates crystalgraphics offers more powerpoint templates than anyone else in the world, with over 4 million to choose from. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities.
Oct 29, 2010 equity theory is considered as one of the justice theories. Considered one of the justice theories, equity theory was first developed in the 1960s by j. This theory is based on social comparisons and the notion that unequity is a motivating state. In fact, the expectancy theory vroom, 1982, the goal theory locke, 1969, the attribution theory, the behavior theory, and the equity theory adams, 1963 are the classical examples of process theories. These are the sources and citations used to research equity theory of motivation. The relevance of scientific management and equity theory.
Theyll give your presentations a professional, memorable appearance the kind of sophisticated look that todays audiences expect. If ratios are not equal, and the difference is beyond some individual threshold level, emotional responses occur and the desire to restore equity manifests itself schultz et al. Adam equity theory sociology bibliographies cite this. Equity theory states that people desire the ratio of their outcomes and investments to be roughly equivalent to the ratio for some other referent person or group.
This paper studied how the equity theory applies to consumerretailer exchanges and effects consumer behavior. Adams equity and maslows need hierarchy theoretical implications mohamed msoroka term paper pedagogy job education, occupational training, further education publish your bachelors or masters thesis, dissertation, term paper or essay. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. Equity theory of motivation free training guide for. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. And equity theory effectively looked at an employee population to try and determine how far it was important for employees to feel equally treated. Download our free ebook a summary of motivation theories to get an overview and brief practical analysis all the theories in one handy document. According to adams, there are several cognitive and behavioral mechanisms available to.
Advances in experimental social psychology, 267299, academic press, new york. Motivating employees with limited pay incentives using equity. Adams equity theory adams 1963, 1965 focuses on the issue of fairness and equal treatment in organizations and the effects of perceptions of equities and inequities in inputs and outputs on specific workplace behaviour. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. And that meant leading to an expectation as part of this theory that an employee would feel motivated if they were known to be doing a similar type of. Adams equity theory how a manager can motivate their team. Management 40 motivation theories equity theory adams, 1963 people develop beliefs about what is a fair reward for one job contribution an exchange people compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents if an employee believes his treatment is inequitable, compared to. If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness. Higher is individuals perception of fairness, greater is the motivation level and vice versa.
Stacy adams equity theory is based selection from the little book of big management theories book. Adams asserted that when people feel distress from inequity they may react in one or all of the following ways. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. In this clip, i discuss the five key parts of equity theory, an example of how it may operate at work, and some of. Equity theories have been proposed by adams 1963a, 1965, homans 1961, jacques 1961, and patchen 1961. 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. Pdf the utility of equity theory in enhancing organizational. For a business owner or manager, this is a particularly important lesson to learn with regard to employees. I i inequity in social exchange 28 1 or 0, pk 0, where 0 so, z zoi and p and a are subscripts denoting person and other, respectively. Difference between expectancy theory and equity theory. Like most motivational theories, equity theory pertains to the inputs and outputs of individuals. This paper concentrates on equity theory as it is conceived by adams 1963a, 1965. Perceptions of the measurability, importance and effects. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work.
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. Advances in experimental social psychology, 2, 267299. Journal of management education leeds school of business. Adams proposed that when a person is in an exchange relationship with another person, he will be concerned about the outcomes and inputs of each. Yet, this theory stresses a belief of fairness, wherein people value fair treatment amongst their coworkers by comparing ratios of contributions and. The equity theory of motivation how to keep your team motivated. Equity theory of motivation examples explained hrf. Adams equity theory, a powerful theory of motivation. Ppt equity theory powerpoint presentation free to view.
The equity theory of motivation how to keep your team. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. This distress persuades them to restore equity at the workplace. Over the past several decades, equity theory adams, 1963, 1965which predicts that members of organizations will strive to be rewarded. Toward an understanding of inequity 1963 journal of abnormal and social psychology. Free riders as a blind spot of equity theory brunel university. The paper was sent to me before my deadline and i was very impressed with the quality.
Adams 1965 developed a theory on motivation to attempt to explain behavior influenced by the norm of equity. Equity theory adams, 1963, 1965 draws from exchange, dissonance, and social comparison theories in making predictions about how indi viduals manage their. Equity theory was first developed in 1963 by jane stacy adams. Beehr, 1996 equity theory a version of discrepancy theory of job satisfaction focusing on the discrepancies between what one has on the job and what one thinks is fair what one should have equity theory social comparison takes place perceived discrepancies between ratios may produce tension or dissonance amount of discrepancy corresponds to the. Equity theory adams, 1963, 1965 continues to be a major model stimulat. One aspect of equity theory asserts that demotivation occurs if employees. Homans 1958 advocated that scholars return to what he described as the oldest. John stacey adams equity theory helps explain why pay and conditions alone do not determine motivation. An attribute is only considered an input if it is perceived as relevant by the individual. Output can be things like salary, recognition, and responsibility. Equity, or more precisely, inequity is a major concern of industry. 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. In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work.
According to equity theory, it is the perception of equitability and inequitability. Adams equity theory how a manager can motivate their. While workplace equity holds clear advantages for employees, the employers win as well. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. Equity theory of motivation businessmarketing bibliographies in harvard style. He also proposes that the social comparison process begins with the individuals assessment of what he or she need to puts into the job relative to what is. Equity theory will help hrd explain employees behavior and provide them with the. Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist.
Adams s 1965 equity theory is another form of motivation. 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. As per this motivation theory, an individuals motivation level is correlated to his perception of equity, fairness and justice practiced by the management. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. However, equity theory takes a less straightforward and more fluid approach than previous models. Equity theory has elements of exchange input and output, dissonance lack of agreement and social comparison in.
The study observed how a free sample given to a customer in a frozen yogurt shop affects the ultimate purchase amount. Ppt equity theory adams, 1963 powerpoint presentation. Pdf this paper will focus on examining equity theory. These are the sources and citations used to research adam equity theory. Theory 27 adams equity theory use this to understand how people act when they perceive they are treated differently from another member of staff. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. Adams equity theory, which stresses the importance of striking a balance. Adam equity theory sociology bibliographies in harvard style. Pdf a role for equity theory in the turnover process. Adams equity theory leadership skills training from. Equity theory is considered as one of the justice theories.
The core of the equity theory is the principle of balance or equity. Equity theory is based in the idea that individuals are. The construct is delineated through a series of propositions, and implications for equity research in organizations are discussed. Adams equity theory is based on a ratio consisting of inputs to outcomes. Equity theory and its applications in the various spheres. Equity theory has received more attention lately from human resource professionals especially regarding the fairness of outcomes. Applying adams equity theory to employee engagement. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners.
Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. Adams equity theory adams, 1963, 1965 is a prevalent theory of distributive justice that is introduced in most management and nearly all organizational behavior textbooks as a major theory of work motivation. Instead of focusing on money alone, adams equity theory looks at compensation in relation to our social environment, and its subsequent effect on motivation. Inequity theory adams 1963, 1965 has presented a theory of inequity which might at first seem to be inconsistent with the predictions of the cognitive evaluation theory. Adams equity theory, a powerful theory of motivation toolshero. Dec 09, 2015 adams proposed the equity theory in 1963. An employee compares his or her jobs inputs with an outcomes ratio. The higher an individuals perception of equity, the more motivated they will be. It also explains why giving one person a promotion or payrise can have a demotivating effect on others. This handy quiz and worksheet combo will check your knowledge of the equity theory of motivation that was developed in 1963. Equity theory web resources equity theory print resources equity theory references 4 of up to 20 adams, s. When an individual feels that he or she has been treated unfairly compared to others, the individual will be motivated to remove the discomfort and would develop some sort equity to the.
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