Academy of Management journal, 29 2 , 373-384. This despite the fact that employees are aware that different types of effort and skills are required for different levels and are therefore rewarded differently. This motivation or drive can be caused by intrinsic desires to succeed, or external factors such as recognition, status, or monetary gain. On the other hand, motivators such as recognition, achievement, and advancement can either have a positive or negative effect on individual attitudes. This is illustrated in the following equity theory equation.
The effort put into the relationship from one partner must be more or less equal to the effort the others expend. Stacy Adams, a and , 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, 1963. An input is the contribution made on the part of the employee. While equity theory is a significant step forward, the theory itself needs further specification. Input Output Adaptability Recognition Effort Praise Loyalty Commitment Hard Work Appreciation Flexibility Care Tolerance Understanding Love Security Suppor Gratitude Equity theory of relationships has pointed out some behavioral patterns of individuals to resolve relationship issues. Conversely, an individual will be demotivated if they perceive unfairness. Work is required, but the work is justified given the expected gain to the worker.
Thus, groups will generally reward members who treat others equitably and generally punish increase the cost for members who treat others inequitably. Essentially, an individual within an organization will always try to keep fairness equity in balance: How We Compare: Referent Groups A referent group is simply a collection of people a person uses for the purposes of comparison. If the ratios are unequal, inequity exists and they will view themselves as either under-rewarded or over-rewarded. This could be external in nature, such a money, and status, or internal, such as a desire to do a good job. Assumptions The assumption of equity theory is that people enter relationships for an expected utility, or an expected gain. Equity Theory states that the employees perceive what they get from a job situation outcomes in relation to what they put into it inputs and then compare their inputs- outcomes ratio with the inputs- outcomes ratios of others.
Many theorists such as Maslow, Herzberg, McGregor, and McClelland have contributed significant research on human behavior in efforts to gain better insight on the impact motivation has on human performance. How to cite this article: Mulder, P. That may lead to demotivated behaviour, recalcitrance, calling in sick, or finding other employment. Other people seek to improve the outputs by making claims or demands for more reward, or seeking an alternative job. How would you apply it? Like the other more prevalent theories of motivation mentioned above, the Adam's theory recognizes the variable factors that can affect employee's assessment and perception of their relationship with their work and the employer. Stacy Adams called this a negative tension state which motivates him to do something right to relieve this tension. Under a condition of positive inequity he may increase those inputs.
A relationship is unequal if the effort one partner gives is unrelated to the effort the other partner s give. The theory recognises the influence of social comparison processes on motivation. Individuals with greater and higher education are more informed. In other words, the benevolent prefers to be under-benefitted. Unpublished doctoral dissertation, University of Wisconsin.
Evaluation of the Theory: The equity theory has generated extensive research, with many of the results being supportive. They might start looking for other jobs. Brought to you by Concepts In any relationship, work is expended. The way that people measure this sense of fairness is at the heart of Equity Theory. Otherwise, the standard of work and services that your staff produce will drop. A reward and recognition plan will help in increasing good performance that is noticed and shared by employees.
Such companies also have high morale among employees, which also enhances the bottom line. Responsibility This ensures employees experience a sense of ownership and control in their work. Crucially this means that Equity does not depend on our input-to-output ratio alone - it depends on our comparison between our ratio and the ratio of others. Equity theory: A review and critique. A company's intellectual capital gains depth and breadth through diversity. The comparison of these two ratios acts as a reference point for the person's motivation and whether that motivation will continue or decrease.
When a manager is striving to achieve employee satisfaction, motivation levels, etc. This could mean that a person with children may accept flexible working hours in return for lower pay. Maslow put forward an argument that said the lower level needs of employees need to be satisfied before the next higher level need is fulfilled to motivate them. Substantially, part of this challenge is discovering what the motivators are for their employees and implementing an effective reward structure to accommodate everyone. A comparison has been made between 2 workers A and B to understand this point. Negative reinforcement by managers will lead to negative outcomes. An example of a hygiene factor is pay, which alone is not cause for satisfaction.
Employees in jobs that are not sex-segregated will make more cross-sex comparisons than those in jobs that are either male- or female-dominated. Regardless, employees should not be made to feel that they put in the same amount of effort as colleagues at higher levels without being paid the same salary. By recognizing the effort, loyalty, commitment, skill and enthusiasm that an exemplary employee displays, an effective manager acknowledges accomplishments, establishes trust and builds a productive workforce. In equity theory, people are happy when the effort expended in a relationship is equalized by a the reward earned from the effort and b the effort from other partners in the relationship, community or society. Other examples of personal qualities employees bring to an employer are loyalty and commitment, adaptability and flexibility, trustworthiness, dependability, tolerance and personal sacrifice.
People typically value fair treatment. These perceptions of inequity are perceptions of , or more specifically, injustice. The research supports equity predictions in the area of underpayment, but the overpayment effects have not been satisfactorily demonstrated. If they perceive an inequity then they will adjust their inputs to restore balance. The motivation was categorized into factors by Herzberg; motivators and hygiene. Applying this theory when conducting a company's performance appraisals involves balancing the assessment of an employee's contribution to his job with the compensation and other rewards associated with his success. This theory proposes that partners who feel neglected or rewarded will make efforts to regain equilibrium in the relationship.