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