Theory of equity on motivation

The Theory of Equity, proposed by J. Stacy Adams, suggests that individuals are motivated when they perceive that they are being treated fairly in comparison to others. According to this theory, people are motivated to maintain a fair balance between their inputs (effort, skills, and contributions) and outputs (rewards, recognition, and benefits) in relation to others.

Equity theory assumes that individuals seek fairness not only in their own outcomes but also in the comparison with others. When people perceive an inequity, such as being over-rewarded or under-rewarded compared to others, they may experience feelings of unfairness and dissatisfaction. This inequity can lead to a decrease in motivation and effort.

To maintain equity, individuals may engage in various behaviors, such as reducing their effort, seeking more rewards, or changing their comparison points (choosing different individuals for comparison). For example, if an employee perceives that they are putting in more effort than their colleagues but receiving fewer rewards, they may become demotivated and may either decrease their effort or request additional rewards.

On the other hand, if individuals perceive that they are being treated fairly in comparison to others, they are more likely to feel motivated and satisfied. This is because they believe that their inputs and outputs are in balance and that their contributions are valued and recognized.

Overall, the theory of equity highlights the importance of fairness and balance in the workplace, and how perceived inequities can impact an individual's motivation and behavior. Organizations need to ensure that their reward systems and policies are perceived as equitable to maintain positive motivation and job satisfaction among their employees.

The theory of equity, also known as equity theory, is a motivational theory that explains how people's perceptions of fairness and equity in social exchanges influence their motivation and behavior. The theory was developed by J. Stacy Adams in 1963.

According to equity theory, individuals strive to maintain a sense of fairness in their relationships and interactions with others. They compare the ratio of their inputs (effort, contribution, etc.) to outputs (rewards, recognition, etc.) in relation to others. The theory suggests that people are motivated when they perceive their inputs and outputs to be equitable or fair compared to others.

Here are the key components and steps of the equity theory:

1. Inputs: These refer to an individual's effort, skills, experience, time, and other resources they contribute to a task or job.

2. Outputs: These represent the rewards, benefits, recognition, and other outcomes an individual receives from their efforts, such as salary, promotions, praise, and job security.

3. Comparison: Individuals make social comparisons by comparing their own inputs and outputs with those of others. They assess the ratio of their inputs to outputs and compare it to the ratios of others in similar positions.

4. Equity: If the individual perceives the ratio of their inputs to outputs as being equal or similar to that of others, they will perceive equity and fairness. This perception promotes motivation and satisfaction.

5. Overpayment and Underpayment: If individuals perceive that their ratio of inputs to outputs is better than that of others (overpayment), they may experience guilt or discomfort. Similarly, if they perceive their ratio to be worse than others (underpayment), they may become demotivated or choose to restore equity through various actions.

6. Restoration of Equity: Individuals may restore equity by altering their inputs (reducing effort or seeking additional resources) or outputs (seeking more rewards or recognition) to achieve a fair balance. They may also engage in social comparison processes, such as seeking information about others' inputs and outputs.

Overall, the theory of equity suggests that people are motivated when they perceive fairness and balance in their relationships and exchanges. When individuals feel that their inputs and outcomes are fair compared to others, they are more likely to be motivated and satisfied. Conversely, perceived inequity can lead to a range of negative outcomes, such as reduced motivation, dissatisfaction, and potentially even turnover.