Ejbe 2010, 35 page 9 outputs include all of the consequences of a. Equity theory adams, 1963, 1965 draws from exchange, dissonance, and social comparison theories in making predictions about how indi viduals manage their. 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. To better understand the equity theory we need to understand what inputs and outputs are. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. Adams equity theory how fairness affects employee motivation. Equity theory adams, 1963, 1965 draws from exchange, dissonance, and social comparison theories in making predictions about how indi viduals manage their relationships with others. 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.
Adams equity theory is named for john stacey adams, a workplace and behavioral psychologist, who developed his job motivation theory in 1963. The equity theory of motivation how to keep your team motivated. Equity theory adams, 1963 leeds school of business. Equity theory in some sense is related to motivationhygiene theory, in that it considers both demotivators and motivators. Adams equity theory is based on a ratio consisting of inputs to outcomes. This theory shows that employees strive to achieve equity between themselves and their coworkers. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. Pdf this paper will focus on examining equity theory, its propositions.
Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963. Pdf the utility of equity theory in enhancing organizational. Motivating employees with limited pay incentives using equity. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. John stacey adams equity theory helps explain why pay and conditions alone do not determine motivation. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. Equity theory will help hrd explain employees behavior and provide them with the possible factors that might decrease efficiency and performance. Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist. Expectancy theory published on march 29, 2016 march 29, 2016 40 likes 3 comments. 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. Observational field studies supporting the theory and laboratory experiments designed to test certain aspects of it are. The construct is delineated through a series of propositions, and implications for equity research in organizations are discussed.
An employee compares his or her jobs inputs with an outcomes ratio. This equity can be achieved when the ratio of employee outcomes over inputs is equal to other employee outcomes over inputs baxamusa, 2012. Adams s 1965 equity theory is another form of motivation. Its about the balance between the effort an employee puts. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. Adam equity theory sociology bibliographies cite this for me. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Equity theory and its applications in the various spheres of. 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. In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others.
Considered one of the justice theories, equity theory was first developed in the 1960s by j. People compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents. Stacy adams associated with the behavioral reserch service, general electric company, crotonville, new york, and adjunct associate professor, department of social psychology, columbia university. According to equity theory, it is the perception of equitability and inequitability. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. Equity theory definition first developed in the early 1960s by behavioural psychologist john s. There are similarities with charles handys extension and interpretation of previous simpler theories of maslow, herzberg and other pioneers of workplace psychology, in that the theory acknowledges that subtle and. Adams equity theory, a powerful theory of motivation toolshero. Equity theory equity theory john stacey adams1963 adams. The relationship between employee perceptions of equity.
Therefore, equity theory will be helpful to management in perceiving what motivates employees berkowitz, 1965. Predictions from equity theory about employee reactions to pay distinguish be. The theory developed in 1963 by john stacey adams says if an employee finds hisher balance between what they put in and what they get in return for their work it would make them motivated and help develop a more productive relationship with the management. The adams equity theory posits that people maintain a fair relationship between the performance and rewards in comparison to others. Adams equity theory, a powerful theory of motivation. After reading it, you will understand the basics of this powerful motivation theory. 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. The higher an individuals perception of equity, the more motivated they will be. John stacy adams introduced equity theory in 1963, and addressed our tendency to compare ourselves to others. Equity, or more precisely, inequity is a major concern of industry. Whenever two individuals exchange anything, there is the possibility that one or both of them will feel that the exchange was inequitable. These are the sources and citations used to research adam equity theory. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963.
Stacey adams equity theory employee motivation theories. It also explains why giving one person a promotion or payrise can have a demotivating effect on others. Adams equity theory calls for a fair balance to be struck between an employees inputs hard work, skill level, acceptance, enthusiasm, and so on and an employees outputs salary, benefits, intangibles such as recognition, and so on. A special case of festingers cognitive dissonance, the theory specifies the conditions under which inequity will arise and the means by which it may be reduced or eliminated. The utility of equity theory in enhancing organizational effectiveness. Adams equity theory leadership skills training from. John stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. In short, adams equity theory means that employees will become demotivated if.
One aspect of equity theory asserts that demotivation occurs if employees. The utility of equity theory in enhancing organizational. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. Equity theory adams, 1963 1 equity theory adams, 1963 people develop beliefs about what is a fair reward for one job contribution an exchange. An attribute is only considered an input if it is perceived as relevant by the individual. This article explains the adams equity theory, developed by john stacey adams in a practical way. 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. The relationship between employee perceptions of equity and job satisfaction in the. Equity theory of motivation businessmarketing bibliographies in harvard style. John adams put forward his theory on motivation in 1963 which extends beyond the individual self and incorporates influence and comparison of other peoples situation.
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. A theory of social inequity, with special consideration given to wage inequities is presented. Equity theory was first developed in 1963 by jane stacy adams. Jan 17, 2018 adam equity theory sociology bibliographies in harvard style. The adams equity theory was developed by the american psychologist john stacey adams in 1963. 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. Adams, equity theory is concerned with defining and measuring the relational satisfaction of employees. 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. The relationship between employee perceptions of equity and. 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.
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. Wage inequities, productivity and work quality adams 1963. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. 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.
Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. According to the theory, finding this fair balance serves to. It is only in connection with the premises of equity theory. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. 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 others, he or she will be motivated to do something about it that is, seek justice. Instead of focusing on money alone, adams equity theory looks at compensation in relation to our social environment, and its subsequent effect on motivation. In the theory of inequity that has been developed in this chapter, both the antecedents and consequences of perceived injustice have been inequity in social exchange 297 stated i terms that permit quite specific predictions to be made about n the behavior of persons entering social exchanges. Equity theory is used in parlance of human resource. Ppt equity theory adams, 1963 powerpoint presentation. John adams put forward his theory on motivation in 1963 which extends beyond. 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.
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