Adams used the term referent others to describe the reference points or people with whom we compare our own situation, which is the pivotal part of the theory. Stacey adams equity theory employee motivation theories. An employee compares his or her jobs inputs with an outcomes ratio. Equity theory and its applications in the various spheres. Equity theory is based in the idea that individuals are motivated by fairness. 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. Equity theory is based on the idea that individuals are motivated by fairness. In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work. In the four decades since john stacey adams pioneered the equity theory of motivation, an extensive amount of research has been conducted testing the validity of this theory. The utility of equity theory in enhancing organizational effectiveness.
An examination of adams theory of inequity 1971 administrative science quarterly. Pdf this paper will focus on examining equity theory. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. Herzbergs twofactor theory of motivation is opposite to the equity theory of motivation in that employee attitude and workplace motivation are not correlated.
John stacey adams equity motivation theory allows you to put workplace psychology into action and increase your own or your teams motivation. The adams equity theory was proposed by john stacey adams, and is based on the following assumptions. Equity theory by john stacey adams equity theory attempts to explain relational satisfaction in terms of perceptions of fairunfair distributions of resources within interpersonal relationships. The utility of equity theory in enhancing organizational effectiveness article pdf available in european journal of economics, finance and administrative sciences march 2012 with 17,394 reads. 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. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of fairness. Pdf the utility of equity theory in enhancing organizational. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. It explores the perceptions of humans regarding their inputs in the relationship and the outcomes they get. 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.
It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. Equity theory is considered as one of the justice theories. Equity theory was first developed in 1963 by jane stacy adams. According to the theory, employee motivation is the result of the balance between what an. The utility of equity theory in enhancing organizational effectiveness introduction what motivates people to work. Toward a resolution of the negativeinputs controversy article pdf available in personality and social psychology bulletin 32. According to the theory, finding this fair balance serves to. These are the sources and citations used to research equity theory of motivation. Equity theories have been proposed by adams 1963a, 1965, homans 1961, jacques 1961, and patchen 1961. The research supports equity predictions in the area of underpayment, but the overpayment effects have not been satisfactorily demonstrated. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. Equity theory of motivation businessmarketing bibliographies in harvard style. Perception is a relative term and differs from person to person. Every employee of an organisation expects that he should be treated with justice.
Equity theory of motivation examples explained hrf. This behavior is explained by equity theory, which links fairness to employee effort. This article explains the adams equity theory, developed by john stacey adams in a practical way. This paper concentrates on equity theory as it is conceived by adams 1963a, 1965. Equity theory and its applications in the various spheres of life. Adams equity theory builds on maslows hierarchy of needs and herzbergs two factor theory, and was first presented in 1963.
As weve talked about many times here at brighthr, your business needs motivated staff to operate at its full capacity. The dictionary meaning of the word equity is the quality of being fair and impartial. To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the inequality. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace and behavioral psychologist, in 1963. The construct is delineated through a series of propositions, and implications for equity research in organizations are discussed. John stacey adams suggests that the higher an individuals perception of equity, the more motivated they will be and.
Equity theory is a study of human perception in terms of proportionate equivalence of the ratio of one persons inputs to the results. The equity theory of motivation how to keep your team. Adams categorised employment benefits and rewards as outputs and an employees work. Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job. The theory proposes that the employee evaluates the outcomes from the job i. Adams equity theory leadership skills training from. Equity theory has been used to test several types of dyadic relationships like marriages, teacherstudent and employeeemployer relationships. Adams 1965 defines inequity as inequity exists for person whenever he perceives. It also explains why giving one person a promotion or payrise can have a demotivating effect on others. Teori keseimbangan atau equity theory dikemukakan oleh john stacey adams, seorang psikolog kerja dan perilaku pada tahun 1963.
John stacey adams equity theory helps explain why pay and conditions alone do not determine motivation. Adams asserted that when people feel distress from inequity they may react in one or all of the following ways. 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. Equity theory, most popularly known as equity theory of motivation, was first developed by john stacey adams, a workplace. 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 is used in parlance of human resource management. John stacey adamss equity theory has been a part of classical management literature since 1963. 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. Its about the balance between the effort an employee puts. The equity theory of relationships is based on a theory developed by workplace and behavioral psychologist john stacey adams. 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. Adams equity theory, which stresses the importance of striking a balance between employee inputs and outputs. The principal object of any system is equity or fairness. According to equity theory, it is the perception of equitability and inequitability.
Theories such as john stacy adams equity theory and victor vrooms expectancy theory have substantial relevance in understanding motivation in todays complex work environment. There is nothing wrong in this expectation by the employees. 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 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. When people receive bonuses, pay and promotions at a job that equitably rewards merit, the company ends up with the right people in the right places doing the right things. This handy quiz and worksheet combo will check your knowledge of the equity theory of motivation that was. Adams equity theory, a powerful theory of motivation. The theory helps explain why your employees motivation levels can go up and down at work. After reading it, you will understand the basics of this powerful motivation theory what is the adams equity theory. Adams s 1965 equity theory is another form of motivation. Adams, equity theory is concerned with defining and measuring the relational satisfaction of employees.
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. Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. The relevance of scientific management and equity theory. Adams equity theory goes beyond and is quite different from merely assessing effort and reward. The major components of exchange relationships in adams theory are inputs and outcomes. Adams equity theory, a powerful theory of motivation toolshero. Adams equity motivation theory business management articles by. While equity theory is a significant step forward, the theory itself needs further specification. Stacy was born on march 16, 1925 in brussels, belgium. This means that when employees are treated unfairly distributive justice, more punishment or fewer rewards.
The adams equity theory was developed by the american psychologist john stacey adams in 1963. 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. Scribd is the worlds largest social reading and publishing site. 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. John adams put forward his theory on motivation in 1963 which extends beyond. John stacey adams is a workplace, social, and behavioral psychologist who came up with the equity theory of motivation in 1963. Recipient carolina psychology distinguished alumnus award university north carolina, 1977, rendleman doctoral teaching award, 1980.
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. John stacy adams introduced equity theory in 1963, and addressed our tendency to compare ourselves to others. Equity theory is one of the major formulations relevant to financial compensation. Equity theory, as developed by adams 1965, considers motivation and job satisfaction as the result of a comparison of a. Adams equity theory is named for john stacey adams, a workplace and behavioral psychologist, who developed his job motivation. The higher an individuals perception of equity, the more motivated they will be.
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