Four propositions capture the objectives of the theory. Adams equity theory is based on a ratio consisting of inputs to outcomes. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. Adams equity theory on job motivation 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. The adams equity theory was developed by the american psychologist john stacey adams in 1963. 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. An employee compares his or her jobs inputs with an outcomes ratio. Stacey adams equity theory employee motivation theories. Advances in experimental social psychology, 2, 267299. Warning and disclaimer every effort has been made to make this book as complete and as accurate as possible, but no warranty or fitness is implied. 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. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. 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.
Adams equity theory, also known as the equity theory of motivation, was developed in 1963 by john stacey adams, a workplace behavioral psychologist. Nov 20, 2018 the adams equity theory was developed by the american psychologist john stacey adams in 1963. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. Human resource educatn has a variety of administrative responsibilities for a number of outcomes that employees receive as part. Equity theory equity theory john stacey adams1963 adams. Adams equity theory how fairness affects employee motivation.
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 theory is considered as one of the justice theories. Stacy adams and explore their bibliography from s j. Adams, equity theory is concerned with defining and measuring the relational satisfaction of employees. This paper concentrates on equity theory as it is conceived by adams 1963a, 1965. To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the inequality. Whenever two individuals exchange anything, there is the possibility that one or both of them will feel that the exchange was inequitable. The equity theory of motivation how to keep your team motivated. The utility of equity theory in enhancing organizational. Equity theory is one of the major formulations relevant to financial compensation.
This chapter argues that there is a basis for rethinking equity theory and that such an enterprise is a worthwhile. 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. Debate about these issues inevitably centers on the question of whether the solution is fair. Adam equity theory sociology bibliographies cite this. 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. The adams equity theory was proposed by john stacey adams, and is based on the following assumptions. They make the crucial choices about who pays the taxes, who gets into college, who gets medical care, who gets drafted, where the hazardous waste dump is sited, and how much we pay for public services. Adams argues that the more intense the perceived inequity, the higher the tension, and the stronger the motivation to act. The journal of abnormal and social psychology, 675, pp. 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. Output can be things like salary, recognition, and responsibility. Pdf the utility of equity theory in enhancing organizational. Adam equity theory sociology bibliographies in harvard style. In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work.
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 proposes that individuals who perceive themselves as. 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. John stacey adams proposed that an employees motivation is affected by whether the employee believes that their employment benefits are at least equal to the amount of the effort that they put into their work.
The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. Adams equity theory leadership skills training from. 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, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. Equity theory has received more attention lately from human resource professionals especially regarding the fairness of outcomes.
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. But adams equity theory is a far more complex and sophisticated motivational model than merely assessing effort inputs and reward outputs. 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. Instead of focusing on money alone, adams equity theory looks at compensation in relation to our social environment, and its subsequent effect on motivation.
Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. Journal of abnormal and social psychology, 3110, pp. Equity theory is based in the idea that individuals are. This paper begins with an introduction followed with the analysis of adams equity theory and latter the maslows need hierarchy theory is analyzed. 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. Adams 1963 points out that the catch 22 of this approach is that individuals then. Adams equity theory is named for john stacey adams, a workplace and behavioral psychologist, who developed his job motivation theory in 1963. Equity theories have been proposed by adams 1963a, 1965, homans 1961, jacques 1961, and patchen 1961. An attribute is only considered an input if it is perceived as relevant by the individual. 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. First developed in the early 1960s by behavioural psychologist john s.
The diagram below illustrates the components making up adams equity theory and why they need to be balanced against each other input employees work contributions examples the list below provides examples of things that could be categorised as examples of things that are work inputs. Equity theory is based on the idea that individuals are motivated by fairness. Equity theory is used in parlance of human resource. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. This handy quiz and worksheet combo will check your knowledge of the equity theory of motivation that was developed in 1963. In essence, adams equity theory is about perceptions of fairness, something that every leader needs to regulate in order to maintain a. Equity theory and its applications in the various spheres. No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. Adams s 1965 equity theory is another form of motivation.
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. Equity theory of motivation examples explained hrf. Stacy adams equity theory is based on the principle that people are motivated to act in situations where they perceive they have been treated inequitably or unfairly. 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 equity theory of motivation how to keep your team. He put forward his equity theory in 1963, during a watershed period for our understanding of organisational and employee behaviour. Stacey adams, which claims that employees will be motivated if they believe that they are fairly treated in the workplace.
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. Adams equity theory, a powerful theory of motivation. A cognitive theory of motivation, based on the work of j. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. Equity, or more precisely, inequity is a major concern of industry.
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 in some sense is related to motivationhygiene theory, in that it considers both demotivators and motivators. 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. John stacy adams introduced equity theory in 1963, and addressed our tendency to compare ourselves to others. John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. Equity theory is used in parlance of human resource management. 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 adds a crucial additional perspective of comparison with referent others people we consider in a similar situation. Journal of abnormal and social psychology, 67, 422436. Individuals make contributions inputs for which they expect certain rewards outcomes. 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. According to equity theory, it is the perception of equitability and inequitability. Adams equity theory, a powerful theory of motivation toolshero.
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