Valenzi bowling green sate university three recent studies have suggested the possibility that when the percep tion of overpay inequity is induced by challenging the workers qualifications for the. Equity theory states that employees need a sense of equity in the workplace in order to maintain psychological balance. She is very good at what she does, she comes up with creative ways to make things easier in the workplace, and she is a good colleague who is willing to help others. Basically, the theory assumes that an individual addresses hisher inequity feeling after comparison to others, and remains at the level where equity is achieved. Dec 05, 2014 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. Overpayment inequity what would you do if you felt you. 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. Equity and inequity as a source of reward and punishment, psychonomic science, vol. Sep 25, 2016 equity theory deals with social relationships and fairnessunfairness, it is also known as the social comparisons theory or inequity theory gogia, 2010. As per this motivation theory, an individuals motivation level is correlated to his perception of equity, fairness and justice practiced by the management. Several ways a person does in reaching equity include altering hisher inputs, altering hisher outputs, distorting his inputs and outputs cognitively, finding a new job, or changing. The performance effects predicted by equity theory for overpayment and underpayment in a piecerate compensation scheme will be replicated i. More than this, equity should be embedded in decisionmaking tools and procedures.
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. The equity theory of motivation has received strong support within sport settings. A condition that occurs when an employee believes his or her remuneration and recognition are less than his or her contribution merits, compared with other employees. Most criticisms on equity theory concern the artificial laboratory conditions in which the theory has been tested. For managers it is better to effectively address these concerns than ignore them. As a result, employee perceptions about fairness do matterwhether they are real or misguided. Employees feel satisfied or dissatisfied with comparative observations of their friends, neighbours and colleagues. Our new crystalgraphics chart and diagram slides for powerpoint is a collection of over impressively designed datadriven chart and editable diagram s guaranteed to impress any audience. Next time we look at some common applications of motivational theory to the workplace. Equity theory focuses on determining whether the distribution of resources is fair to both. Equity theory based strategies for students on overcoming.
Mar 16, 2020 equity theory explains how employees determine what is fair and how they act upon their perceptions. Apr 07, 20 this can generate dissatisfaction, stressed situations with coemployees, and attempts to return equity. Specifically, relative to those workers reassigned to equalstatus offices, those reassigned to higher status offices raised their performance a response to overpayment inequity and those reassigne d to lower status offices lowered their performance a respons e to underpayment inequity. Equity theory equity is a subjective evaluation, not an objective one. Stanley iowa state university johns hopkins university over the past three decades, the achievement of waves of american students with high intellectual potential has declined as a result of inequity in educational treatment. The research supports equity predictions in the area of underpayment, but the overpayment effects. Equity theory predicts that ones inputs and outcomes are evaluated in relation to. In industrial settings, assets such as capital and manual labor are seen as relevant inputs. However, equity theory sometimes has difficulty predicting behaviors, especially when people act nonrationally.
Case 1 equity pay allocation is perceived to be to be fair motivation is sustained. Jaime put a lot of time and effort into achieving a good grade in the class while her roommate did not. Simon says that while all people are different, equity theory outlines three distinct reactions to perceived pay equality inequality. Stronger support has been found for underpayment inequity than has for overpayment inequity. Equity theory the motivation theories highlighted in the case which are equity theory and vrooms expectancy theory. The resultant feelings of resentment can lead to employees reducing their efforts in an attempt to redress the balance. 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. The equity theory of motivation how to keep your team. A theory of motivation that focuses on peoples perceptions of the fairness of their work outcomes relative to their work inputs. Case study equity theory behavioral strategies for.
This can generate dissatisfaction, stressed situations with coemployees, and attempts to return equity. There are two types of inequity underpayment inequity and. The overpayment inequity in favor of justin not only outraged his coworkers, but also seemed to make justin less motivated to excel at work like he once did. Its about the balance between the effort an employee puts into their work input, and the result they get in return output. After inner drives, needs and motives have stimulated the motivation process and the individual has chosen an action that he she expects will lead to attainment of a certain goal, the individual assesses the fairness or equity outcomes associated with that goal in light of the effort that will be expended to. A key element of equity theory is the workers perception of. These studies involving overpayment conditions challenged the subjects work qualifications to cre. According to the theory, employee motivation is the result of the balance between what an.
The employee may lower productivity or reduce the quality of their job. Equity is present when a person feels that they are receiving the appropriate amount of outcomes from their inputs, when compared to their chosen comparison other. Now, imagine a subject who is intrinsically motivated to perform an activity and has received substantial overpayment. Stacey adams, recognized that motivation can be affected through an individuals perception of fair treatment in social. Equity theory and performance applied social psychology. John stacey adams, a workplace and behavioural psychologist, put forward his equity theory on job motivation in 1963. Learn equity theory with free interactive flashcards. Equity theory is based on the idea that individuals are motivated by fairness.
Elaborations of the theory are presented in the areas of 1 determinants of inequity, 2 dissatisfaction resulting from inequity, and 3 responses to dissatisfaction. This paper describes a new construct, equity sensitivity, and proposes that reactions to. Based on the comparison that individuals use, each individual is likely to develop different perceptions of equity. How equity can lead to inequity for highpotential students camilla persson benbow julian c. 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. 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. Equity theory proposes that a persons motivation is based on what he or she considers to be fair when compared to others redmond, 2010. Predictions from equity theory about employee reactions to pay distinguish be tween two conditions of inequity underpayment versus overpayment and two. In contrast, overpayment inequity tips the scales in the other direction. Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job.
Equity theory this process theory focuses on workers perceptions of the fairness of their work outcomes and inputs. 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. Output can be things like salary, recognition, and responsibility. In other words, employees lose their working mentality.
Applying adams equity theory to employee engagement. Ways to restore equity according to equity theory, both underpayment inequity and overpayment inequity create tension that motivates most people to restore equity by bringing the ratios back into balance. In equity theory, motivation is affected by the individual perception of. It is a cognitivecentered theory as it is basically concerned with the person himself, his. An employee compares his or her jobs inputs with an outcomes ratio. Although the underpaid hypothesis has received a good. While equity theory is a significant step forward, the theory itself needs further specification. The theory that distinguishes between needs related to the work itself from those related to the context of the work is. A critical examination of an experimental induction procedure i. Stacy adams, a workplace and behavioral psychologist, who asserted that. If a worker were experiencing overpayment inequity, he or she may.
The utility of equity theory in enhancing organizational. Equity pay allocation is perceived to be to be fair motivation is sustained case 2. Equity is measured by comparing the ratio of contributions or costs and benefits or rewards for each person. Scholl, 2000 when individuals look at the equity model on the job scale, they compare their contributions and rewards to that of those around them associates, coworkers, management, etc. Equity theory is supported by research over the years. Higher is individuals perception of fairness, greater is the motivation level and vice versa. Equity theory of motivation management study guide. These effects have been demonstrated in the laboratory and, to a lesser extent, in field settings. That is, equity theory is based on inequity from the employees perspective, and in many cases, the inequity is not real.
Equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. Application of the equity theory of motivation to sport. The most commonly used formulation of equity theory reties on a static view of the process. Stacey adams, recognized that motivation can be affected through an individuals perception of fair treatment in social exchanges. The theory defines equity as the belief that we are being treated fairly in relation to others and inequity as the belief that we are treated unfairly in relation to others. Research on situations of overpayment conditions has been more controversial. Choose from 331 different sets of equity theory flashcards on quizlet. Inputs include all factors that are perceived as necessary. However, equity theory takes a less straightforward and more fluid approach than previous models. Equity theory suggests that overpaid workers avoid any inequity reduction techniques that result in a negative consequences to selfesteem or phys ical well being or b devaluation of a good. Winner of the standing ovation award for best powerpoint templates from presentations magazine. Equity theory of motivation essay sample new york essays.
The theory is also known as adams inequity theory of motivation. This theory is based on social comparisons and the notion that unequity is a motivating state. In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others. Therefore, equity theory will be helpful to management in perceiving what motivates employees berkowitz, 1965. Worlds best powerpoint templates crystalgraphics offers more powerpoint templates than anyone else in the world, with over 4 million to choose from. Theyll give your presentations a professional, memorable appearance the kind of sophisticated look that todays audiences expect. If after the specified period ended he were allowed to continue to work for a short period for no pay, equity theory would predict that he. The fairness model thus allows for the perceived equityinequity of the overarching system to be incorporated into individuals evaluations of their relationships carrell and dittrich, 1978.
Chart and diagram slides for powerpoint beautifully designed chart and diagram s for powerpoint with visually stunning graphics and animation effects. Stacey adams, proposes that employees perceive and assess a ratio of jobs inputs related to the outcomes they received for their performance to seek either equity or inequity in their situation and then corrects any. Equity theory proposes that a persons motivation is based on what he or she. Considered one of the justice theories, equity theory was first developed in the 1960s by j. This is strong support for the underpayment aspect of equity theory, since perceived inputoutcome ratios seemed to be discrepant. A model is presented that specifically illustrates the potential time tagged effects of prior. The adams equity theory was developed by the american psychologist john stacey adams in 1963. Pdf the utility of equity theory in enhancing organizational.
It was published in the journal, experimental social psychology, 1965, new york titles inequality in social exchange. Ratings 78% 18 14 out of 18 people found this document helpful. Most experiments on equity theory have supported the predictions made by equity theory. Equity theory and job satisfaction in silicon valley scholarship. Organizational bettaor and hu1vian performance 5, 266276 1970 overpay inequity or selfimage as a worker. According to mcclelland, the tat can be used to determine. According to adams 1965, anger is induced by underpayment inequity and guilt is induced with overpayment equity spector 2008. Equity theory of motivation equity theory was developed by james stacy adam. Behavioral economics has recently started to apply game theory to the study equity theory. Equity theory why employee perceptions about fairness matter.
For instance, valenzi and andrews 1971 study found that, contrary to inequity theory predictions and to previous inequity theory experiments, there were no. Underpayment inequity the inequity that exists when a person perceives that his or her own outcomeinput ratio is less than the ratio of a referent. Ppt equity theory adams, 1963 powerpoint presentation. The importance of tying performance to outcomes was the heart of expectancy theory. Thus, it is possible for people to feel overpaid relative to some individuals, underpaid relative to others, and equitably paid relative to still another group. Looking back over our series, adams equity theory ties in closely with those of maslow and herzberg. As an example of equity theory, if an employee learns that a peer doing.
For example, workers may feel dissatisfied with their wages if they are either overpaid or underpaid relative to their coworkers. According to equity theory, feelings of equity or inequity are based on the specific referent comparisons made. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. In simple terms, equity theory states that if an individual identifies an inequity between themselves and a peer, they will adjust the work they do to make the situation fair in their eyes.
Equity theory deals with social relationships and fairnessunfairness, it is also known as the social comparisons theory or inequity theory gogia, 2010. Inequity can result from getting fewer outcomes or more outcomes than relevant others. Equity theory predicts that ones inputs and outcomes are evaluated in relation to the inputs and outcomes of others. He might be expected to experience inequity because of his internal standard. Yet, an even more pertinent issue is whether the theory as suggested by adams 1965 really holds. Equity theory of motivation, developed in the early 1960s by j. Ppt equity theory powerpoint presentation free to view. When that sense of equity is lacking, dissonance arises within the employee. If the employee perceives inequality, he or she he will act to correct the inequity. When an individual feels that he or she has been treated unfairly compared to others, the individual will be motivated to remove the discomfort and would develop some sort equity to the. In all of our cases, we will denote equity and inequity in the context of fair or unfair actions in treating other fellow human beings, rather than equity or inequity in the philosophical aspect of equal in terms of qualifications, status, andor rank.
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