This paper will focus on examining equity theory, its propositions and underlying assumptions. In the sections that follow, adams equity theory will be briefly summarized and the. A critique of equity theory and its major constructs will be examined. 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. In this video, youll learn what equity theory is, how to spot equity theory at play in the.
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. High productivity is a long term benefits of employee motivation. Its underlying principle is that employees perform in work situations because they expect to receive a direct reward, a. Equity theory is one of the major formulations relevant to financial compensation. Equity theories have been proposed by adams 1963a, 1965, homans 1961, jacques 1961, and patchen 1961.
Process theories of motivation equity theory business essay. The relevance of scientific management and equity theory. Individuals seek to maximize their outcomes where outcomes are defined as rewards minus costs. Stacey adams equity theory employee motivation theories. This will result in improving organizational performance.
The relevance of scientific management and equity theory in everyday managerial communication situations reginald l. John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. This theory shows that you become more motivated when your perceived fairness is high and demotivated when you perceive unfairness. 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, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. And in the end, it ensures the betterment of the overall economic condition of a county. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. Individual rewardsindividual inputs others rewards others inputs. 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. Migrating before winter ensures the survival of the flock, so the behavior has become instinctive. Core of equity is the principle of balance or equity. Archived from the original pdf on 23 september 2015. The core of equity is the principle of balance or equity. Equity theory proposes that a persons motivation is based on what he or she considers to be fair when compared to others redmond, 2010.
Motivation varies over time and depending up on the circumstances. He argues that motivation is determined by individual belief about effort and performance. However, modern revisions including contingency theorists argue that theory y is not essentially a progressive alternative to a dull theory x. Equity theory of work motivation is based on the social exchange process. Criticism to equity theory directed towards both the assumptions and practical application of equity theory 22. E xpectation theory was proposed by victor vroom in 1964, and relates to how people choose their actions. Equity theory and its applications in the various spheres of life. Equity theory criticisms and related theories equity sensitivity construct equity sensitivity construct the equity sensitivity construct proposes that individuals have different preferences for equity and thus react differently to perceived equity and inequity.
Individuals are concerned not only with the amount of rewards they receive for their efforts but also with the relationship of this amount to what others receive. And in motivation for employees, we have equity theory which is one of the most. I will examine the research on equity theory in regard to pay since it is assumed to be one of the. Based on the maslows theory and equity theory, according to their characters, the questionnaire aim to find the limitation of these two theories, check whether the two theories follow the real situation. Challenges and limitations of theory x and theory y. Towards understanding controversy on herzberg theory of. Equity theory of motivation management study guide. The theory recognises the influence of social comparison processes on motivation. Equity theory criticisms a number of demographic and psychological variables affect peoples perception of fairness and interactions with others people might perceive equity inequity not only in terms of the specific inputs and outcomes of a relationship, but also in terms of the system that determines those inputs and outputs not everyone will perceive the compensation system. The equity theory of motivation how to keep your team. They are composed of equity theory, expectancy theory and goalsetting theory. According to this theory of motivation, an individuals motivation level is connected with his perception of equity, fairness and justice practised by management. Abstract motivational factors play an important role in increasing employee job satisfaction. In essence, the equity theory of motivation proposes that high levels of employee motivation in the workplace can only be achieved when each employee perceives their treatment to be fair relative to others.
The research question is to explore the effect pay outcome has on other outcome variables such as motivation, job satisfaction. Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job. Equity theory proposes that individuals who perceive themselves as. The theory is also known as adams inequity theory of motivation. Employees will compare themselves to other groups both inside and outside of the organization. The instinct theory suggests that motivation is primarily biologically based. Motivation can change the profit figure of the or ganization such as its improving produc tivity.
Equity theory of motivation the equity theory of motivation is used to describe the relationship between the employees perception of how fairly is he being treated and how hard he is motivated to work motivation is the activation of an energized goaloriented behavior. The equity theory has generated extensive research, with many of the results being supportive. 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. Equity theory of motivation equity theory was developed by james stacy adam.
We engage in certain behaviors because they aid in survival. Read this article to learn about the merits and criticisms of maslows theory of motivation. Applying adams equity theory to employee engagement. Equity theory and its applications in the various spheres. In contrast to the principles of conventional management mentioned as theory x, the advocated theory y illuminated a cluster of new or redefined concepts such as selffulfilling prophecy and responsibility. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. The major distinct disadvantage of theory x and theory y is that they are put forward as challenging sets of assumptions a supervisor is either motivated by theory x or by theory y. If the employee perceives inequality, he or she he will act to correct the inequity. An employee compares his or her jobs inputs with an outcomes ratio. Equity theory is a study of human perception in terms of proportionate equivalence of the ratio of one persons inputs to the results. Many theorists support that mcgregors theory considers the field of management from a new angle, indicating a strong influential value.
Birds who migrated were more likely to survive and therefore more likely to pass down their genes to future. According to the theory, employee motivation is the result of the balance between what an. 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. Dunnettethe role of financial compensation in industrial motivation.
A critique will follow to determine the falsibility and utility of the theory. Their criticisms of the theory were based upon the expectancy model being too simplistic in nature. His first assumption is that behaviour is voluntary. It is a cognitivecentered theory as it is basically concerned with the person himself, his beliefs, feelings or perceptions. Faisal almadi department of business administration, the hashemite university, jordan abstract this paper will focus on examining equity theory, its propositions and underlying assumptions. The adams equity theory was developed by the american psychologist john stacey adams in 1963. After reading it, you will understand the basics of this powerful motivation theory what is the adams equity theory. The equity theory of motivation employee motivation. Critics have also argued that people might perceive equity inequity not only in terms of. The theoretical precision and research related to equity theory, as it is. So motivation is one of the vital factors for development of an or ganization. It is because of the complexity of motivation and the fact that there is no single answer to what motivates people to work well, that these different theories are important for the managers to guide them. Applications and criticisms avneet kaur jesus and mary college, university of delhi. Groups can maximize collective rewards by developing accepted systems for equitably apportioning rewards and costs among members.
According to equity theory, it is the perception of equitability and inequitability. Equity theory is used in parlance of human resource management. Equity theory criticisms a number of demographic and psychological variables affect peoples perception of fairness and interactions with others people might perceive equity inequity not only in terms of the specific inputs and. Motivational theories a critical analysis 67 efforttoperformance expectancy is the starting point in the implementation of the expectancy theory. Victor vrooms expectancy theory of motivation an evaluation. Most criticisms on equity theory concern the artificial laboratory conditions in. Finally, there would be summary and recommendations for future research.
The core of the equity theory is the principle of balance or equity. Much like other prevalent theories of motivation, such as maslows hierarchy of needs. Pdf the utility of equity theory in enhancing organizational. When applied to the workplace, equity theory focuses on an employees workcompensation relationship or exchange relationship as well as that employees attempt to minimize any sense of unfairness that might result. It is a cognitivecentered theory as it is basically concerned with the person himself, his.
The equity theory of motivation, developed by workplace and behavioral psychologist john stacey adams in 1963, is grounded on the concept that employees tend to seek equity or balance in the amount of input they give to their job or relationship with their bosses, and the output they receive. Everyone takes up a job as they are motivated by some factor or the other. Adams equity theory leadership skills training from. This article explains the adams equity theory, developed by john stacey adams in a practical way. Equity can be measured by comparing the cost and the reward for each person.
The equity theory of motivation states a persons motivation is directly related to their perception of equity or level of fairness. According to stephan robbins expectancy theory is a theory that says that the strength of a tendency. Martin university of mississippi in this article, we take a look at why and how managers should communicate with their employees the. Equity theory focuses on determining whether the distribution of resources is fair to both. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Equity theory can be used to help explain the motivation and behavior of employees in the organization. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. Equity theory criticisms and related theories equity. The utility of equity theory in enhancing organizational. Equity theory is frequently identified as a vital theory for understanding employee motivation. First developed by yale school of management professor victor vroom in 1964, the expectancy theory of motivation attempts to explain what keeps employees working. The utility of equity theory in enhancing organizational effectiveness dr. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. 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 each individuals.
According to this theory of motivation, an individuals motivation level is connected with his perception of equity, fairness and justice practiced by management. It was published in the journal, experimental social psychology, 1965, new york titles inequality in social exchange. This paper concentrates on equity theory as it is conceived by adams 1963a, 1965. Equity theory criticisms a number of demographic and. While equity theory is a significant step forward, the theory itself needs further specification.
Introduction job satisfaction is extensively reported to exert enormous influence on performance, retention and turnover rates of the employees 1, 2. As per this motivation theory, an individuals motivation level is correlated to his perception of equity, fairness and justice practiced by the management. Pdf this paper will focus on examining equity theory, its propositions. The equity theory of motivation describes the relationship between the employees perception of how fairly is he being treated and how hard he is motivated to work.
It has been accepted for inclusion in scripps senior theses by an authorized administrator of scholarship. Higher is individuals perception of fairness, greater is the motivation level and vice versa. The utility of equity theory in enhancing organizational effectiveness. Equity theory, as developed by adams 1965, considers motivation and job satisfaction as the result of a comparison of a workers perceived. Recent exchanges in the bulletin have attempted to resolve difficulties in the possibility of negative inputs in the defini tions of equity formulae. Some of the critics of the expectancy model were graen 1969 lawler 1971, lawler and porter 1967, and porter and lawler 1968. Considered one of the justice theories, equity theory was first developed in the 1960s by j. In this paper the focus will be on the expectancy theory of motivation which was propounded by victor vroom. Expectancy theory proposes a causal relationship between expectancy attitudes and motivation. Equity theory, as developed by adams 1965, considers motivation and job. 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. However, equity theory takes a less straightforward and more fluid approach than previous models. Perception is a relative term and differs from person to person. The research supports equity predictions in the area of underpayment, but the overpayment effects have not been satisfactorily demonstrated.
The present discussion suggests that the difficulties can be resolved if the range of application of equity formulations is restricted to relationships in which members out comes add up to a fixed value. Adams equity theory, a powerful theory of motivation. In an analysis of reward allocation in small groups. 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.
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