Stacey adams equity theory employee motivation theories. Herzbergs twofactor theory of motivation is opposite to the equity theory of motivation in that employee attitude and workplace motivation are not correlated. Equity theory in some sense is related to motivationhygiene theory, in that it considers both demotivators and motivators. Equity theory is considered as one of the justice theories. The utility of equity theory in enhancing organizational effectiveness.
Stacy adams focusing on social justice and the fairness of social exchange. The journal of abnormal and social psychology, 675, pp. It explains why a promotion or raise rarely has the desired effect. For a business owner or manager, this is a particularly important lesson to learn with regard to employees. 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. That is, equity theory is based on inequity from the employees perspective, and in many cases, the inequity is not real. Therefore, equity theory will be helpful to management in perceiving what motivates employees berkowitz, 1965. According to adams, equity theory is based on the simple assumption that people want to be treated fairly. 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. Applying adams equity theory to employee engagement.
Adams, equity theory is concerned with defining and measuring the relational satisfaction of employees. John stacey adams suggests that the higher an individuals perception of equity, the more motivated they will be and. The equity theory of motivation employee motivation. 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 equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others. 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. As weve talked about many times here at brighthr, your business needs motivated staff to operate at its full capacity. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. Underpayment inequity in comparison to a series of referents others in your. In short, adams equity theory means that employees will become demotivated if their perceived input is greater than the output from the company. Pdf the utility of equity theory in enhancing organizational. The dictionary meaning of the word equity is the quality of being fair and impartial. Equity theory and performance applied social psychology. 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.
According to the theory, employee motivation is the result of the balance between what an. Stacey adams, which claims that employees will be motivated if they believe that they are fairly treated in the workplace. Adams 1965 defines inequity as inequity exists for person whenever he perceives. The equity theory of motivation how to keep your team. Pdf this paper will focus on examining equity theory. John stacey adams is a workplace, social, and behavioral psychologist who came up with the equity theory of motivation in 1963. Stacy adams, a workplace and behavioral psychologist, who asserted that. Equity theory and its applications in the various spheres. 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. Equity theory of motivation examples explained hrf. When that sense of equity is lacking, dissonance arises within the employee. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. Adams equity theory leadership skills training from. In short, adams equity theory means that employees will become demotivated if.
Based on the view of equity theory, this article divides salary transparency into four conditions through two arrangementsresult equity and process equity. It is this concept of fair treatment which is the basis for adams equity theory. Nov 20, 2018 the adams equity theory was developed by the american psychologist john stacey adams in 1963. While this theory was developed more than 50 years ago, it remains very much relevant today. The core of equity is the principle of balance or equity. It was published in the journal, experimental social psychology, 1965, new york titles inequality in social exchange. 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. 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.
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 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. Every business owner or manager should have a clear understanding of the equity theory and how it can help to create a business structure which encourages employees to. A cognitive theory of motivation, based on the work of j. 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 theory and performance applied social psychology asp. Equity theory is based in the idea that individuals are motivated by fairness. People in inequitable relationships will attempt to reduce their distress via a variety of techniques. John adams put forward his theory on motivation in 1963 which extends beyond. This supports adams equity theory that people tend to us e a number of various referents simultaneously. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. Equity theory attempts to explain relational satisfaction in terms of perceptions of fairunfair distributions of resources within interpersonal relationships. 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.
Stacy adams statement of equity theory, in dividuals seek to maximize equity in relationships rather than to maximize raw outcomes. The adams equity theory model, therefore, extends beyond the individual self and incorporates influence and comparison of other peoples situations for example, colleagues and friends in forming a comparative view and awareness of equity, which commonly manifests as a sense of what is fair. The adams equity theory was proposed by john stacey adams, and is based on the following assumptions. According to this theory of motivation, an individuals motivation level is connected with his perception of equity, fairness and justice practised by management. Employees place great importance on being treated fairly and equally. It explores the perceptions of humans regarding their inputs in the relationship and the outcomes they get. The adams equity theory was developed by the american psychologist john stacey adams in 1963. Adams 1965 defines inequity as inequity exists for person whenever he perceives that the ratio of his outcomes to inputs and the ratio of others outcomes to. The equity theory of motivation how to keep your team motivated.
Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. 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. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace.
To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the inequality. However, equity theory takes a less straightforward and more fluid approach than previous models. The equity formulas shown in figure 1 are simple adaptations of adams original formula. The utility of equity theory in enhancing organizational. Equity theory proposes that individuals estimate the ratio of what has been contributed i. Its about the balance between the effort an employee puts into their work input, and the result they get in return output.
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. Adam equity theory sociology bibliographies cite this. Adams equity theory equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace. First developed in the early 1960s by behavioural psychologist john s. 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. An attribute is only considered an input if it is perceived as relevant by the individual. What is equity theory and why should i be applying it.
It can even undermine the motivation of other employees. Adams equity theory how a manager can motivate their team. Equity theory is used in parlance of human resource management. The major components of exchange relationships in adams theory are inputs and outcomes. Equity theory states that employees need a sense of equity in the workplace in order to maintain psychological balance. The construct is delineated through a series of propositions, and implications for equity research in organizations are discussed. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. The equity theory of relationships is based on a theory developed by workplace and behavioral psychologist john stacey adams. An employee compares his or her jobs inputs with an outcomes ratio. 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. Adams equity theory is based on a ratio consisting of inputs to outcomes. If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness.
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. People compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents. The adams equity theory shows why salary and benefits alone dont determine an employees motivation. Adams equity motivation theory business management articles by. John stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. 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 is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. 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 was developed in the early 1960s by j. 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. The theory helps explain why your employees motivation levels can go up and down at work. Stacey adams formulation of the theory which is most highly developed and researched statement on the topic.
Adams equity theory how fairness affects employee motivation. Regarded as one of many theories of justice, equity theory was first developed in 1963 by john stacey adams. Equity theory of motivation tries to address this problem of unequal treatment among employees in a company and its effect on the overall motivation of the employees because slight unequal treatment is present everywhere but when this unequal treatment becomes excessive than it hampers the motivation of the employees in a negative way which can. 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. Adams equity theory, a powerful theory of motivation.
Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. 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. Equity theory adds a crucial additional perspective of comparison with referent others people we consider in a similar situation. 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. The theory is also known as adams inequity theory of motivation. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. Equity theory proposes that a persons motivation is based on what. According to equity theory, it is the perception of equitability and inequitability. Equity theory attempts to explain relational satisfaction in terms of perceived fairness. Adams equity theory, a powerful theory of motivation toolshero.
Ppt equity theory adams, 1963 powerpoint presentation. Equity theory and its applications in the various spheres of. But adams equity theory is a far more complex and sophisticated motivational model than merely assessing effort inputs and reward outputs. 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 its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. Considered one of the justice theories, equity theory was first developed in the 1960s by j. Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963. Equity theory adams, 1963, 1965 draws from exchange, dissonance, and social comparison theories in making predictions about how indi viduals manage their. 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. Equity theory is based on the idea that individuals are motivated by fairness. The equity theory owes its origin to several prominent theorists. Individuals make contributions inputs for which they expect certain rewards outcomes. 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.