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. 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. He put forward his equity theory in 1963, during a watershed period for our understanding of organisational and employee behaviour. Applying adams equity theory to employee engagement.
Equity theory web resources equity theory print resources equity theory references 4 of up to 20 adams, s. John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. People compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents. A cognitive theory of motivation, based on the work of j. In short, adams equity theory means that employees will become demotivated if. 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. The theory proposes that the employee evaluates the outcomes from the job i. An employee compares his or her jobs inputs with an outcomes ratio. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Adams 1965 equity theory describes what equity is in relation to a system. Equity theory is based in the idea that individuals are. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. Stacey adams, which claims that employees will be motivated if they believe that they are fairly treated in the workplace.
If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness. Ebook or pdf edited book email encyclopedia article govt. Adam equity theory sociology bibliographies in harvard style. Equity theory equity theory john stacey adams1963 adams. Ppt equity theory adams, 1963 powerpoint presentation. Equity theory was first developed in 1963 by jane stacy adams. Considered one of the justice theories, equity theory was first developed in 1963 by j. 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. 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. 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.
Jun 16, 2014 equity theory is a measure of inputs and outcomes and comparison other is what those ratios are compared against. Equity can be measured by comparing the cost and the reward for each person. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. This paper begins with an introduction followed with the analysis of adams equity theory and latter the maslows need hierarchy theory is analyzed. Two wellknown theories of interpersonal behavior are em. 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 attempts to explain relational satisfaction in terms of perceptions of fairunfair distributions of resources within interpersonal relationships. 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.
Equity theory social psychology organizational behavior. Advances in experimental social psychology, 267299, academic press, new york. 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. Turnover intention among probation officers and direct care. Journal of management education leeds school of business. Download pdf equitytheory free online new books in. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. Regarding pay satisfaction, there are two theoretical grounds. According to equity theory, it is the perception of equitability and in. These are the sources and citations used to research equity theory of motivation. The adams equity theory was developed by the american psychologist john stacey adams in 1963. It is part of a broader set of social exchange theories. 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. 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 stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. Meaning of equity theory and it is prioritized by leaders. 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. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. Four propositions capture the objectives of the theory. Oct 29, 2010 equity theory is considered as one of the justice theories. The principal object of any system is equity or fairness. Equity theory adams, 1963 leeds school of business.
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. Individuals make contributions inputs for which they expect certain rewards outcomes. 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 theory was first developed in the year 1960 by j. View organizational commitmentdocx from human reso bhr 4202 at strathmore university.
Equity theory adams, 1963, 1965 takes a step toward placing motivation more squarely in a social context. 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. There is nothing wrong in this expectation by the employees. Equity theory and its applications in the various spheres. The journal of abnormal and social psychology, 675, pp. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. 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. Considered one of the justice theories, equity theory was first developed in the 1960s by j.
Every employee of an organisation expects that he should be treated with justice. The central assumption of equity theory is that employees are. The key to equity theory is the ratio of inputs to outcomes. Stacy adams, a workplace and behavioral psychologist, who. Adams, equity theory is concerned with defining and measuring the relational satisfaction of employees. Human resource management has the challenge of variations in the. The utility of equity theory in enhancing organizational effectiveness. Equity theories have been proposed by adams 1963a, 1965, homans 1961, jacques 1961, and patchen 1961.
In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others. Pdf the utility of equity theory in enhancing organizational. Equity theory project gutenberg selfpublishing ebooks. The relationship between employee perceptions of equity. 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. John stacey adams is a workplace, social, and behavioral psychologist who came up with the equity theory of motivation in 1963. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace. Equity theory based strategies for students on overcoming. 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. Pdf equity theory and interpersonal attraction researchgate. 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. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness.
Adams s 1965 equity theory is another form of motivation. Adams equity theory how a manager can motivate their. 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. 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. This paper concentrates on equity theory as it is conceived by adams 1963a, 1965. An attribute is only considered an input if it is perceived as relevant by the individual. Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963. For a business owner or manager, this is a particularly important lesson to learn with regard to employees. First developed in the early 1960s by behavioural psychologist john s. Adams equity theory, a powerful theory of motivation.
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. Adams equity theory, which stresses the importance of striking a balance. Equity theory is one of the major formulations relevant to financial compensation. 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. And equity theory effectively looked at an employee population to try and determine how far it was important for employees to feel equally treated. 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. 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. Herzbergs twofactor theory of motivation is opposite to the equity theory of motivation in that employee attitude and workplace motivation are not correlated. To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the inequality. Equity theory free download as powerpoint presentation.
Adams equity theory is based on a ratio consisting of inputs to outcomes. In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work. 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. Equity theory adams, 1963, 1965 focused on the role of employees perceptions of fairness in driving and explaining motivated behavior. The purpose of this paper is to examine one prominent theory of social ex change processes. Although lawlers discrepancy theory expanded adams equity theory by incorporating the concept of valence how much one values the reward, both. Pdf this paper will focus on examining equity theory. However, equity theory takes a less straightforward and more fluid approach than previous models. The adams equity theory was proposed by john stacey adams, and is based on the following assumptions. 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. Perceptions of the measurability, importance and effects.
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. 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. John stacey adams 1963, 1965, workplace and behavioral psychologist. Equity theory is considered as one of the justice theories. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. Stacy adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the. Equity theory was first developed in 1963 by jane stacy. Journal of abnormal and social psychology, 67, 422436. Equity works like a system with inputs and outputs. Adams equity theory leadership skills training from. Therefore, equity theory will be helpful to management in perceiving what motivates employees berkowitz, 1965. 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.
Output can be things like salary, recognition, and responsibility. Equity theory of motivation examples explained hrf. Based on the view of equity theory, this article divides salary transparency into four conditions through two arrangementsresult equity and process equity. The utility of equity theory in enhancing organizational. 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 equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist. This supports adams equity theory that people tend to us e a number of various. 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. 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 adams, 1963, 1965 draws from exchange, dissonance, and.
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. Adam equity theory sociology bibliographies cite this. Equity theory of motivation john stacey adams the united. The dynamics of proactivity at work wharton faculty platform. 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. Equity models are derived from the equity theory adams, 1963, inputoutput ratio, which plays a key role in satisfaction. 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. Equity theory is based on the idea that individuals are motivated by fairness.
The equity theory of motivation how to keep your team. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. The choice of salary transparency based on the value of. Adams equity theory introduction to equity theory adams equity was developed by john adams in 1963. According to equity theory, it is the perception of equitability and inequitability. Vecchio 1981, 1982, 1984 and the reinforcementaffect theory of interpersonal attraction.
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. Equity theory in some sense is related to motivationhygiene theory, in that it considers both demotivators and motivators. Equity theory of motivation, developed in the early 1960s by j. The higher an individuals perception of equity, the more motivated they will be. 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.
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