Equity theory is one of the major formulations relevant to financial compensation. Stacy adams, a workplace and behavioral psychologist, who asserted that. Ppt equity theory adams, 1963 powerpoint presentation. People compare their exchanges with their employer to exchanges with othersinsiders and outsiders called referents.
Equity theory is based on the idea that individuals are motivated by fairness. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. The equity theory of motivation how to keep your team. The relationship between employee perceptions of equity. Equity theory and its applications in the various spheres of. Equity theory of motivation businessmarketing bibliographies in harvard style. 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. Adams equity theory is named for john stacey adams, a workplace and behavioral psychologist, who developed his job motivation theory in 1963. The relevance of scientific management and equity theory.
Adams equity theory how a manager can motivate their. After reading it, you will understand the basics of this powerful motivation theory what is the adams equity theory. The adams equity theory was developed by the american psychologist john stacey adams in 1963. Equity theory has received more attention lately from human resource professionals especially regarding the fairness of outcomes. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. Equity theory of motivation examples explained hrf. Jan 17, 2018 adam equity theory sociology bibliographies in harvard style. In 1963, john stacey adams introduced the idea that fairness and equity are key components of a motivated individual. Equity theory is based in the idea that individuals are. John stacy adams introduced equity theory in 1963, and addressed our tendency to compare ourselves to others. Adams asserted that when people feel distress from inequity they may react in one or all of the following ways. Human resource educatn has a variety of administrative.
Equity theory in some sense is related to motivationhygiene theory, in that it considers both demotivators and motivators. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. This study combines equity theory as a classic job satisfaction theory with socioemotional selectivity theory as a lifespan aging theory to explain younger versus older employees job satisfaction. High performance is achieved by well motivated people who are prepared to exercise discretionary effort. John stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. The study observed how a free sample given to a customer in a frozen yogurt shop affects the ultimate purchase amount. 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.
The hypotheses in the study were based off of adams 1963 methods of reducing cognitive dissonance. These are the sources and citations used to research equity theory of motivation. Inputs can include abilities, effort, performance, age, seniority, education, and other attributes. 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 adams, 1963 leeds school of business. Equity, or more precisely, inequity is a major concern of industry. Adams equity theory how fairness affects employee 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. The theory developed in 1963 by john stacey adams says if an employee finds hisher balance between what they put in and what they get in return for their work it would make them motivated and help develop a more productive relationship with the management. Adams equity theory, a powerful theory of motivation toolshero. Adams equity theory leadership skills training from. After reading it, you will understand the basics of this powerful motivation theory. To better understand the equity theory we need to understand what inputs and outputs are. Adams equity theory is based on a ratio consisting of inputs to outcomes.
No matter what avenue of life is in question, fair treatment is something that everyone appreciates and demands. The adams equity theory posits that people maintain a fair relationship between the performance and rewards in comparison to others. John adams put forward his theory on motivation in 1963 which extends beyond. Teori ini berasumsi bahwa pada dasarnya manusia menyenangi perlakuan yang adilsebanding, berhubungan dengan kepuasan relasional dalam hal persepsi distribusi yang adiltidak adil dari sumber daya dalam hubungan interpersonal. Considered one of the justice theories, equity theory was first developed in the 1960s by j. 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 will help hrd explain employees behavior and provide them with the possible factors that might decrease efficiency and performance.
The relationship between employee perceptions of equity and job satisfaction in the. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. This does not work well as they are trying to trade shortterm value money for longterm value emotion. Pdf the utility of equity theory in enhancing organizational. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. In short, adams equity theory means that employees will become demotivated if. A cognitive theory of motivation, based on the work of j. 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 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. According to equity theory adams, 1963, 1965, employees job satisfaction depends on the ratio between outcomes received for and. Equity theories have been proposed by adams 1963a, 1965, homans 1961, jacques 1961, and patchen 1961. In short, adams equity theory means that employees will become demotivated if their perceived input is greater than the output from the company.
Adams equity theory calls for a fair balance to be struck between an employees inputs hard work, skill level, acceptance, enthusiasm, and so on and an employees outputs salary, benefits, intangibles such as recognition, and so on. These are the sources and citations used to research adam equity theory. This is the case frequently when an individual exchanges his services for pay adams, 1963. The journal of abnormal and social psychology, 675, pp.
It also explains why giving one person a promotion or payrise can have a demotivating effect on others. Equity theory was first developed in 1963 by jane stacy adams. The utility of equity theory in enhancing organizational effectiveness. Adam equity theory sociology bibliographies in harvard style. Men who have been pulled away from their family by their work sometimes try to even the scales with expensive holidays. The higher an individuals perception of equity, the more motivated they will be. Teori keseimbangan atau equity theory dikemukakan oleh john stacey adams, seorang psikolog kerja dan perilaku pada tahun 1963. 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. 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. Stacey adams, which claims that employees will be motivated if they believe that they are fairly treated in the workplace. 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. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. John stacey adams equity theory helps explain why pay and conditions alone do not determine motivation.
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. Equity theory adams, 1963, 1965 draws from exchange, dissonance, and social comparison theories in making predictions about how indi viduals manage their. Journal of abnormal and social psychology, 67, 422436. The construct is delineated through a series of propositions, and implications for equity research in organizations are discussed. First, they may restrict their inputs to a level they believe is consistent with the outcomes they receive. Adam equity theory sociology bibliographies cite this. This paper concentrates on equity theory as it is conceived by adams 1963a, 1965. 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. A motivation is the force that energizes, directs and sustains behavior. Adams, equity theory is concerned with defining and measuring the relational satisfaction of employees. John stacey adamss equity theory has been a part of classical management literature since 1963. And in motivation for employees, we have equity theory which is one of the most popular motivation theories in managing and motivating employee performance. Adams s 1965 equity theory is another form of motivation.
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. Its about the balance between the effort an employee puts. What satisfies younger versus older employees, and why. According to equity theory, it is the perception of equitability and inequitability. In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work. And equity theory effectively looked at an employee population to try and determine how far it was important for employees to feel equally treated. An employee compares his or her jobs inputs with an outcomes ratio. Predictions from equity theory about employee reactions to pay distinguish be.
Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963. 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. It is only in connection with the premises of equity theory. The utility of equity theory in enhancing organizational. According to the theory, finding this fair balance serves to. Pdf this paper will focus on examining equity theory, its propositions.
For a business owner or manager, this is a particularly important lesson to learn with regard to employees. Equity theory is considered as one of the justice theories. Toward an understanding of inequity 1963 journal of abnormal and social psychology. Equity theory is also called inequity theory as it is the unequal difference that is often the area of interest. Stacey adams equity theory employee motivation theories. Adam equity theory sociology bibliographies cite this for me. Equity theory definition first developed in the early 1960s by behavioural psychologist john s.
Adams equity theory, a powerful theory of motivation. First, they may restrict their inputs to a level they believe is. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness. Ejbe 2010, 35 page 9 outputs include all of the consequences of a. The relevance of scientific management and equity theory in. 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 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. 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 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. An attribute is only considered an input if it is perceived as relevant by the individual. This article explains the adams equity theory, developed by john stacey adams in a practical way. In other words, an employee gets demotivated by the job and his employer in case his inputs are more than the outputs.
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