Equity theory of motivation, developed in the early 1960s by j. John stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. The key to equity theory is the ratio of inputs to outcomes. The journal of abnormal and social psychology, 675, pp. Adams 1963 also states that an employee will seek to maintain equity between the perceived inputs that he contributes to a job and the perceived outcomes that he receives from it against the perceived inputs and outcomes of others. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. John stacey adams 1963, 1965, workplace and behavioral psychologist.
Equity theory of motivation john stacey adams the united. Equity can be measured by comparing the cost and the reward for each person. Adams equity theory how a manager can motivate their. Equity theory and its applications in the various spheres. Price brunel university over the past several decades, equity theory adams, 1963, 1965which predicts that members of organizations will strive to be rewarded equitably, rather than under or overrewardedhas established itself as a. Human resource management has the challenge of variations in the. Equity theory states that employees assess their inputs and outcomes and judge fairness by comparing them to the inputs and outcomes of a comparison other adams, 1963. 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 equity theory of motivation, was first developed by john stacey adams, a workplace. The equity theory of motivation how to keep your team. Equity theory adams, 1963 1 equity theory adams, 1963 people develop beliefs about what is a fair reward for one job contribution an exchange. 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 variable factors affect.
Adam equity theory sociology bibliographies cite this. Four propositions capture the objectives of the theory. Pdf the utility of equity theory in enhancing organizational. Stacy adams, a workplace and behavioral psychologist, who. Equity theory web resources equity theory print resources equity theory references 4 of up to 20 adams, s. An attribute is only considered an input if it is perceived as relevant by the individual. Jan 09, 2018 according to the theory, employee motivation is the result of the balance between what an employee attributes to the company against the recognition heshe receives as compared to what hisher coworkers receive for the same attribution.
The e quity theory adams, 1963 holds that in the workplace person s are constantly comparing their contributions performance, responsibilities and their compensations wage, acknowledgement with their work peers. Advances in experimental social psychology, 267299, academic press, new york. Adams equity theory, which stresses the importance of striking a balance. Equity theory adams, 1963, 1965 takes a step toward placing motivation more squarely in a social context. Adams equity theory diagram job motivation scales calibrated and measured agamst comparable references the market place i get from my job pay, bonus, perks, benefits, security, recognition interest, development, reputation, pmise, responsibility, enjoyment etc outputs vaiat i put into my gob. 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. There is nothing wrong in this expectation by the employees. Equity theory was first developed in 1963 by jane stacy adams.
Equity theory is one of the major formulations relevant to financial compensation. Adams suggested that employees try to maintain a balance between what they give to an organisation against what they receive, and base satisfaction with their own balance. Equity theories have been proposed by adams 1963a, 1965, homans 1961, jacques 1961, and patchen 1961. The relationship between employee perceptions of equity. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. The central assumption of equity theory is that employees are. According to this theory, parties to an exchange will feel equitably treated thus, satisfied, if in their minds, the ratio of their outcomes to inputs is fair. Equity theory was first developed in 1963 by jane stacy.
Equity theory of motivation examples explained hrf. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. It is part of a broader set of social exchange theories. 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 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. John stacey adams is a workplace, social, and behavioral psychologist who came up with the equity theory of motivation in 1963. The paper draws a conclusion that the effect of salary transparency on staffs sense of fairness will vary with enterprise actual situation and then it discusses the key factors of the influence of choosing the salary. Jun 16, 2014 equity theory is a measure of inputs and outcomes and comparison other is what those ratios are compared against. Journal of abnormal and social psychology, 67, 422436.
In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. For a business owner or manager, this is a particularly important lesson to learn with regard to employees. Adams, equity theory is concerned with defining and measuring the relational satisfaction of employees. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. Stacy adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the. Considered one of the justice theories, equity theory was first developed in the 1960s by j. Equity theory social psychology organizational behavior. The choice of salary transparency based on the value of. Two wellknown theories of interpersonal behavior are em. To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the inequality. Based on the view of equity theory, this article divides salary transparency into four conditions through two arrangementsresult equity and process equity. The theory proposes that the employee evaluates the outcomes from the job i.
The utility of equity theory in enhancing organizational effectiveness. The utility of equity theory in enhancing organizational. Equity theory john stacey adams 1963 adams equity theory personal efforts and rewards and other similar give and take issues at work are called inputs and outputs respectively. This paper concentrates on equity theory as it is conceived by adams 1963a, 1965. These are the sources and citations used to research equity theory of motivation. Equity models are derived from the equity theory adams, 1963, inputoutput ratio, which plays a key role in satisfaction. Equity theory based strategies for students on overcoming. Ebook or pdf edited book email encyclopedia article govt. Equity theory is based on the idea that individuals are motivated by fairness. Journal of management education leeds school of business. Equity theory attempts to explain relational satisfaction in terms of perceptions of fairunfair distributions of resources within interpersonal relationships. Equity theory project gutenberg selfpublishing ebooks. Every employee of an organisation expects that he should be treated with justice. Equity theory was introduced in the study of organizational settings to examine justice in the workplace environment adams, 1963, but was soon formulated as a general theory of interpersonal relationships walster et al.
Pdf this paper will focus on examining equity 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. Pdf equity theory and interpersonal attraction researchgate. 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, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. Vecchio 1981, 1982, 1984 and the reinforcementaffect theory of interpersonal attraction. However, equity theory takes a less straightforward and more fluid approach than previous models.
Herzbergs twofactor theory of motivation is opposite to the equity theory of motivation in that employee attitude and workplace motivation are not correlated. He put forward his equity theory in 1963, during a watershed period for our understanding of organisational and employee behaviour. 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. Meaning of equity theory and it is prioritized by leaders. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. Although lawlers discrepancy theory expanded adams equity theory by incorporating the concept of valence how much one values the reward, both. Equity theory is based in the idea that individuals are. Download pdf equitytheory free online new books in. Equity theory in some sense is related to motivationhygiene theory, in that it considers both demotivators and motivators.
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. People compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents. 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. And equity theory effectively looked at an employee population to try and determine how far it was important for employees to feel equally treated. In short, adams equity theory means that employees will become demotivated if. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. Equity theory free download as powerpoint presentation. The dynamics of proactivity at work wharton faculty platform. 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. Ppt equity theory adams, 1963 powerpoint presentation. The adams equity theory was proposed by john stacey adams, and is based on the following assumptions. This supports adams equity theory that people tend to us e a number of various. In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others.
This theory was first developed in the year 1960 by j. 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. The adams equity theory was developed by the american psychologist john stacey adams in 1963. The principal object of any system is equity or fairness. In the analysis of both theories the main focus is the applicability of the theory in the motivation of teachers in schools so as to maximize their efficiency and effectiveness in teaching.
Adams equity theory, a powerful theory of motivation. Equity theory is considered as one of the justice theories. Perceptions of the measurability, importance and effects. Equity theory adams, 1963 leeds school of business. Output can be things like salary, recognition, and responsibility.
Adams equity theory leadership skills training from. Adam equity theory sociology bibliographies in harvard style. Oct 29, 2010 equity theory is considered as one of the justice theories. The theory proposes that employees form an estimate of how the total benefits they receive from a job pay, status, interest compare with their total input effort, skill, experience. View organizational commitmentdocx from human reso bhr 4202 at strathmore university. 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 core premise of equity theory is that employees make comparative judgments to evaluate the fairness of the rewards and compensation that they receive from managers, and. 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. 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. An employee compares his or her jobs inputs with an outcomes ratio. Adams equity theory introduction to equity theory adams equity was developed by john adams in 1963.
Equity theory adams, 1963, 1965 draws from exchange, dissonance, and. 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. Turnover intention among probation officers and direct care. Adams s 1965 equity theory is another form of motivation. Equity theory lecture and reading material on equity theory is provided to familiarize students with the outcometoinput ratio comparison process, referents used for comparisons, and the cognitive and behavioral mechanisms suggested by adams 1963, 1965 to be available to individuals to restore perceptions of equity. Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist. Therefore, equity theory will be helpful to management in perceiving what motivates employees berkowitz, 1965.
In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. Adams equity theory is based on a ratio consisting of inputs to 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. According to equity theory, it is the perception of equitability and inequitability. Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963. Equity works like a system with inputs and outputs.
Applying adams equity theory to employee engagement. The purpose of this paper is to examine one prominent theory of social ex change processes. 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. The higher an individuals perception of equity, the more motivated they will be. This chapter argues that there is a basis for rethinking equity theory and that such an enterprise is a worthwhile precursor to further research on the psychology of injustice. 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.
Stacey adams, which claims that employees will be motivated if they believe that they are fairly treated in the workplace. In essence, adams equity theory is about perceptions of fairness, something that every leader needs to regulate in order to maintain a functional business environment. A cognitive theory of motivation, based on the work of j. Individuals make contributions inputs for which they expect certain rewards outcomes. Adams 1965 equity theory describes what equity is in relation to a system. This paper begins with an introduction followed with the analysis of adams equity theory and latter the maslows need hierarchy theory is analyzed. Considered one of the justice theories, equity theory was first developed in 1963 by j. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. Equity theory equity theory john stacey adams1963 adams. Equity theory adams, 1963, 1965 focused on the role of employees perceptions of fairness in driving and explaining motivated behavior. Referent others is used to describe the reference points or people with whom we compare our own situation, which is the pivotal part of the. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs.
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