Equity theory of motivation
The equity theory of motivation, developed by J. Stacy Adams in 1963, suggests that people are motivated by fairness in the workplace. According to this theory, individuals compare their own outcomes and inputs (contributions) with those of their peers or colleagues to determine if they are being treated fairly.
The theory proposes that motivation can be influenced by the perception of inequity. Inequity occurs when an individual perceives a lack of balance between their inputs (effort, skills, time, etc.) and outcomes (salary, recognition, benefits, etc.) in comparison to others. Inequity can manifest in two ways:
1. Underpayment inequity: When an individual believes they are not receiving adequate rewards for their efforts compared to others who are in similar positions.
2. Overpayment inequity: When an individual believes they are receiving more rewards than they deserve in comparison to others.
According to the equity theory, individuals strive to restore equity by adjusting their inputs or outcomes. They may do this by seeking a raise or promotion, reducing their effort, or even leaving the organization if they feel they are being treated unfairly.
The theory suggests that individuals assess equity by considering the following factors:
1. Inputs: These are the contributions individuals make to their work, such as effort, skills, experience, and time.
2. Outputs: Outputs refer to the rewards individuals receive for their work, including salary, benefits, recognition, and job satisfaction.
3. Referent: A referent is the person or group with whom an individual compares their own inputs and outputs. This could be a coworker, a friend, or even oneself at a different time.
Overall, the equity theory of motivation emphasizes the importance of perceiving fairness and equality in the workplace to maintain motivation and job satisfaction. It suggests that individuals are motivated to restore equity when they perceive inequity in their work relationships.
The Equity theory of motivation, developed by J. Stacy Adams, suggests that employees are motivated when they perceive fairness and equality in the workplace. According to this theory, individuals compare their input (efforts, contributions, skills) and output (rewards, salary, recognition) ratios with those of others to determine if they are being treated fairly.
Here are the steps involved in the Equity theory of motivation:
1. Comparison: Individuals compare their own input-output ratios with the ratios of others in similar positions. Inputs refer to what individuals contribute to their job, such as effort, skills, experience, and commitment. Outputs are the rewards they receive, such as salary, benefits, recognition, and job satisfaction.
2. Equity: If individuals perceive that their input-output ratio is equal to that of others, they perceive fairness or equity. They believe that they are being treated fairly and are motivated to maintain their current level of effort and performance.
3. Underpayment and Overpayment: If individuals perceive that their input-output ratio is inferior to that of others, they experience feelings of underpayment inequity. This perceived injustice can decrease motivation and lead to behaviors aimed at restoring equity, such as requesting a raise, reducing effort, or seeking alternative job opportunities.
On the other hand, if individuals perceive that their input-output ratio is superior to that of others, they experience feelings of overpayment inequity. In this case, they may feel guilty or uncomfortable and may be motivated to restore equity by increasing their effort, sharing rewards, or seeking additional responsibilities.
4. Cognitive Dissonance: When individuals experience inequity, they may undergo cognitive dissonance, a psychological discomfort caused by holding conflicting beliefs or values. This discomfort motivates individuals to resolve the inequity by either changing their perception of inputs or outputs, or by taking action to restore equity.
5. Restoring Equity: To restore equity, individuals can take various actions. They might negotiate for a higher salary or better working conditions, seek additional responsibilities or opportunities for growth, or even reduce their effort and commitment if they feel their inputs are not valued.
In summary, the Equity theory of motivation proposes that people are motivated when they perceive fairness and equality in the workplace. When employees feel they are being treated equitably, they are more likely to be satisfied, motivated, and engaged in their work. However, if they perceive inequity, it can lead to demotivation, dissatisfaction, and various efforts to restore fairness and equity.