Adams equity theory, a powerful theory of motivation toolshero. 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. Every employee of an organisation expects that he should be treated with justice. Applying adams equity theory to employee engagement. Adams s 1965 equity theory is another form of motivation. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. Adams equity theory, a powerful theory of motivation. 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 will help hrd explain employees behavior and provide them with the possible factors that might decrease efficiency and performance. An examination of adams theory of inequity this paper examines the empirical evidence for adams theory of inequity. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Process theories of motivation equity theory business essay. John stacey adams psychological concepts psychology.
John stacey adamss equity theory has been a part of classical management literature since 1963. Miles university of georgia 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. For a business owner or manager, this is a particularly important lesson to learn with regard to employees. Recipient carolina psychology distinguished alumnus award university north carolina, 1977, rendleman doctoral teaching award, 1980. Equity theory is based in the idea that individuals are. Adams equity theory how fairness affects employee motivation. Individuals make contributions inputs for which they expect certain rewards outcomes. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. 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. The research supports equity predictions in the area of underpayment, but the overpayment effects have not been satisfactorily demonstrated.
John stacy adams built a simple yet exceptionally powerful motivation model around a simple fact. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. An examination of adams theory of inequity 1971 administrative science quarterly. Adams equity theory john stacey adams learn management. The utility of equity theory in enhancing organizational. Adams equity theory is based on a ratio consisting of inputs to outcomes. In industrial settings, assets such as capital and manual labor are seen as. First, they may restrict their inputs to a level they believe is. Organizational behavior i essential theories of motivation and leadership 2005, m. The utility of equity theory in enhancing organizational effectiveness. Workers possess certain inputs that they bring to the job, like skills, time, and effort. The equity theory of motivation employee motivation. There are similarities with previous theories of maslow and herzberg in that the theory acknowledges that subtle and variable factors affect each individuals assessment and perception of their. John stacey adams john stacey adams, workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963.
According to equity theory, in order to maximize individuals. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. The equity theory of motivation how to keep your team. The principal object of any system is equity or fairness. Adams equity theory is named for john stacey adams, a workplace and behavioral psychologist, who developed his job motivation. The adams equity theory was developed by the american psychologist john stacey adams in 1963.
Toward a resolution of the negativeinputs controversy article pdf available in personality and social psychology bulletin 32. Fortunately, there are theories that help us understand how people can become unsatisfied when they perceived inequality at work. These are the sources and citations used to research equity theory of motivation. 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. Adams equity theory of motivation inequity negative inequity positive inequity organizational justice strength of equity theory predicts the effects of negative and positive inequity distributive justice procedural justice interactional justice equity theory equity theory holds. 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. Equity theory adams equity theory explains the thought process an employee uses to determine the fairness of management decision making. John stacy adams introduced equity theory in 1963, and addressed our tendency to compare ourselves to others. Teori keseimbangan atau equity theory dikemukakan oleh john stacey adams, seorang psikolog kerja dan perilaku pada tahun 1963.
The theory can be a way of unifying an organization, saying essentially that everyone is treated equally, everyone is valuable in the. Stacey adams equity theory employee motivation theories. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace. John stacey adams s equity theory has been a part of classical management literature since 1963. View assessment equity theory by john stacey adams from mgmt 591 mgmt 591 at devry university, keller graduate school of management. Equity theory based strategies for students on overcoming. The higher an individuals perception of equity, the more motivated they will be. If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness. 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. Stacy adams focusing on social justice and the fairness of social exchange. Adams equity theory of motivation by wole olasanoye on prezi. This theory is based on social comparisons and the notion that unequity is a motivating state. It also explains why giving one person a promotion.
Equity theory has received more attention lately from human resource professionals especially regarding the fairness of outcomes. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. The adams equity theory was proposed by john stacey adams, and is based on the following assumptions. Adams categorised employment benefits and rewards as outputs and an employees work. This theory at least addresses a more philosophical concern of a leader the issue of fairness. 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. What is equity theory and why should i be applying it. Equity works like a system with inputs and outputs. Stacy adams, equity theory focused on social justice or the fairness of social exchanges. Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist.
Equity theory by john stacey adams equity theory john. Inequity exists for an individual when he or she perceives an imbalance in the ratio between outcomes reward for work and inputs efforts at work as other workers outputs and incomes according to. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. This means that when employees are treated unfairly distributive justice, more punishment or. While equity theory is a significant step forward, the theory itself needs further specification. John stacey adams, a workplace and behavioural psychologist, put forward his. John stacey adams equity theory pdf northern territory. 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. In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work. 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. This means that when employees are treated unfairly distributive justice, more punishment or fewer rewards. Equity theory why employee perceptions about fairness matter.
Stacy was born on march 16, 1925 in brussels, belgium. To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the inequality. Here, i am discussing about john stacy adams equity theory. Teori ini berasumsi bahwa pada dasarnya manusia menyenangi perlakuan yang adilsebanding, berhubungan dengan kepuasan relasional dalam hal persepsi distribusi yang adiltidak adil dari sumber daya dalam hubungan interpersonal.
First, they may restrict their inputs to a level they believe is consistent with the outcomes they receive. Equity theory of motivation in the equity theory of motivation, employees motivation depends on their perception of how fair is the compensation and treatment for their work input. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with 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.
Its about the balance between the effort an employee puts. Stacy 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 adams. However, equity theory takes a less straightforward and more fluid approach than previous models. 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. Oct 29, 2010 equity theory is considered as one of the justice theories. Stacey adams equity theory john stacey adams equity theory helps explain why pay and conditions alone do not determine motivation. Equity theory of motivation businessmarketing bibliographies in harvard style. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. An employee compares his or her jobs inputs with an outcomes ratio. How to be productive at home from a remote work veteran. These natural reactions are precisely what behavioural psychologist john stacy adams sought to explain when he developed adams equity theory.
The relevance of scientific management and equity theory in. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. Equity theory was first developed in 1963 by jane stacy adams. An attribute is only considered an input if it is perceived as relevant by the individual. John stacey adams, a workplace and behavioural psychologist, articulated a construct of equity theory on job motivation and job satisfaction in 1965 okpara, 2006, p. Theories such as john stacy adams equity theory and victor vrooms expectancy theory have substantial relevance in understanding motivation in todays complex work environment. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. The behavioral psychologist, john stacey adams, developed a useful model for explaining why employee perceptions about fairness matters. Considered one of the justice theories, equity theory was first developed in the 1960s by j. 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. Meaning of equity theory and it is prioritized by leaders in. Adams equity theory calls for a fair balance to be struck between an employees inputs hard work, skill level, tolerance, enthusiasm, and so on and an employees outputs salary, benefits. John stacey adams equity theory by charlyn nguyen on prezi.
The general idea is that how hard a person is willing to work is determining, in part, by the thoughts about what is fair or just as compared to others courses. The theory proposes that the employee evaluates the outcomes from the job i. The core of equity is the principle of balance or equity. Implications of equity theory pay and conditions alone do not determine motivation equity does not depend on our inputtooutput 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 what matters is the ratio, not. According to this theory of motivation, an individuals motivation level is connected with his perception of equity, fairness and justice practised by management. John adams put forward his theory on motivation in 1963 which extends beyond. John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. There is nothing wrong in this expectation by the employees. When applied to place of employment, equity theory can be seen as a way that an employee attempts to minimize any and all sense of unfairness that may arise. Another theory relevant to the goals of this study is equity theory, which asserts that workers are motivated by a desire to be treated fairly, which is measured by the ratio of their inputs and outcomes adams, 1965. Equity theory of motivation examples explained hrf. The relevance of scientific management and equity theory.
John stacey adams equity theory helps explain why pay and conditions alone do not determine motivation. 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 adams proposed that an employees motivation is affected by whether the employee believes that their employment benefits are at least equal to the amount of the effort that they put into their work. Jan 09, 2018 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. This handy quiz and worksheet combo will check your knowledge of the equity theory of motivation that was. Pdf the utility of equity theory in enhancing organizational. Studies testing propositions concerning the effects of inequity on performance and on allocation of rewards, and concerning the determinants and the psychological state of inequity are analyzed.
Equity theory is based on the idea that individuals are motivated by fairness. In the four decades since john stacey adams pioneered the equity theory of motivation, an extensive amount of research has been conducted testing the validity of this theory. Stacy 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 adams, 1963. Equity theory has been used to test several types of dyadic relationships like marriages, teacherstudent and employeeemployer relationships. Adams asserted that when people feel distress from inequity they may react in one or all of the following ways.
The equity theory of motivation how to keep your team motivated. Adams equity theory leadership skills training from. Equity theory states that the employees perceive what they get from a job situation outcomes about what they put into it inputs and then compare their inputs. According to equity theory, it is the perception of equitability and inequitability. Equity theory was developed in the early 1960s by j. The construct is delineated through a series of propositions, and implications for equity research in organizations are discussed. Equity theory and its applications in the various spheres. This paper discusses and describes the equity theory of motivation with its implications to managers in the light of a real organizational example. 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.
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