Adams Theory of Motivation

Question # 7: Explain the Adams Equity Theory of Motivation?

Answer:
Definition of Equity Theory
In 1963, John Stacey Adams introduced the idea that fairness and equity are
key components of a motivated individual. Equity theory is based in the idea
that individuals are motivated by fairness, and if they identify inequities in
the input/output ratios of themselves and their referent group, they will seek
to adjust their input to reach their perceived equity. Adams' suggested that
the higher an individual's perception of equity, the more motivated they will
be, and vice versa - if someone perceives an unfair environment, they will be
demotivated.
Examples of Equity Theory
The easiest way to see the equity theory at work, and probably the most
common way it does impact employees, is when colleagues compare the
work they do to someone else that gets paid more than them. Equity theory
is at play anytime employees say things like 'John gets paid a lot more than
me, but doesn't do nearly as much work' or 'I get paid a lot less than Jane,
but this place couldn't operate without me!' In each of those situations,
someone is comparing their own effort-to-compensation ratio to someone
else's and is losing motivation in the process.

Shabbir Ahmad

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Adams Theory of Motivation

Equity Theory

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the equity theory

Stacey Adams,
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about the reward
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or migrate to some
are rewarded higher,

feel that
not equally
the quantity or quality of work
other organization. However, if people perceive that they
they may be motivated to work harder.

How to Apply the

Adams' Equity Theory

It is important to
also consider the Adams' Equity Theory
factors when striving to improve an employee's job satisfaction, motivation
level, etc., and what can be done to promote higher levels of each.
To do this, consider the balance or imbalance that currently exists between
your employee's inputs and outputs, as follows:
Inputs typically include:

Effort.
Loyalty.
Hard work.
Commitment.
Skill.
Ability.
Adaptability.
Flexibility.
Tolerance.
Determination.

Shabbir Ahmad

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Adams Theory of Motivation

Enthusiasm.
Trust in superiors.
Support of colleagues.
Personal sacrifice.

Outputs typically include:

Financial rewards (such as salary, benefits, perks).

Intangibles that typically include:
Recognition.
Reputation.
Responsibility.
Sense of achievement.
Praise.
Sense of advancement/growth.

Job security.
While obviously many of these points can't be quantified and perfectly
compared, the theory argues that managers should seek to find a fair
balance between the inputs that an employee gives, and the outputs
received.

Shabbir Ahmad

Page 3