1

2
Training, reward .Job analysis, selection and recruitment, employee relationship, social
support, and employee empowerment are factors that determine job satisfaction and eventually
the performance and productivity. The five are independent variables that determine whether
employees will be satisfied in the job, which eventually yield good performance at the
workplace. Adams theory of equity explains the need for equity between what an employee
offers against what he/she receives. According to the theory, employers should strike a balance
between what the employees brings in an organization with what he/she receive in return in order
to realize maximum performance of the employees (Rothmann, & Cooper, 2015). Since it deals
with inputs and outputs, the theory can be better understood as defining efforts and rewards.
Employees use inputs to improve their work and whatever they derive from their work is the
output (see fig 1 below).

3
Adams equity considers fair treatment of the employees after perceiving their ratio of
inputs to the outcomes and comparing it to the equivalent around him. Employees can only be
assessed with regard to their inputs by comparing them to those around him. An employee can be
dissatisfied when he or she realizes that a colleague is getting more rewards and recognition even
though they are doing the same type of work. It makes him feel unappreciated and worthless in
the company, consequently leading to poor performances. However, if all the employees are
rewarded the same, it makes them feel valued which in turn translates to higher performances at
the work places. The theory, therefore, attempts to explain the course of distress in a company
due to employees feeling unappreciated and how to mend the relationships. The underlying
factor in the theory is that the ratio between an individuals outcomes and his inputs should be
equal to the ratio of the relational partners outcomes and the corresponding inputs.
The inputs according to the theory are explained as the contribution by the employee to
the relational exchange. They are the bargaining power of the employee to the rewards and costs.
Inputs can either be assets or liabilities. Furthermore, they can also be grouped into relevant and
irrelevant inputs. Relevant inputs include capital and manual labor as they legitimately entitle
their contributor to the rewards. Irrelevant inputs, on the other hand, are considered in the social
setting and include kindness and honesty. Employee behavioral activities such as cruelty are
considered liabilities to the company. Outcomes are the consequences perceived to have been
earned as a result of a relationship with another person. They include salaries, extensions, praise,
reputation and recognition as seen in Jeddah Islamic Seaport.
Adams equity theory considers various propositions in its explanations. It highlights that
employees always seek to maximize their outputs in the case where the outcome is regarded as
rewards minus costs. It also explains that maximization of rewards by groups can be done by

4
coming up with accepted systems for apportionment of the rewards and costs among the
members. Therefore, groups may reward those who equitably treat others or punish those who do
not. The theory also considers the proposition of distress. Inequitable relationships always cause
distress. One who receives too much may feel guilty while one who receives too little may feel
humiliated. Finally, the employees in the inequitable relationship always try to restore equity.
The greater the inequity the more the people feel distressed the more they try to restore equity
(Garavan, Costine &Heraty, 2014).
Guerrero Laura and Peter Andersen studied the impact of the theory in the United States
and particularly Los Angeles. They attempted to find out whether the theory was implemented
perfectly and also whether the desired outcomes were achieved. The study focused on
communication between employers and the employees and how it affects the relationships
(Guerrero & Andersen, 2014). They realized that the independent variables in the study such as
selection and recruitment played a greater role in the relationship between the employer and the
workers. Consequently, it helped create an enabling environment for the workers which helped in
realization of the desired outcomes (Guerrero & Andersen, 2014).
The academy of management in the United Kingdom also carried out a test on the Adams
equity theory with regard to the variables involved in the process (Houseman, 2015). The study
focused on finding the possible assumptions made when coming up with the theory. They
realized that employees usually expect a fair return for their contribution of the jobs. They
explained this concept as equity norm. Furthermore, the management academy also found out
that determination of the returns by the employees is usually after comparison with other workers
in the same industry. They labeled this as social comparison. The study also focused on cognitive

5
distortion where employees in inequitable situations attempt to reduce inequity through
distorting inputs or alternatively leaving the organization (Houseman, 2015).
A study carried out in Taiwan aimed at investigating the role that deductible premiums
ratio played on insurance experience of customers (Tseng and Kuo, 2014). By using Adams
theory of equity, the researchers studied the impact that these deductible premium ratios had on
the overall attitude of customers towards insurance frauds. Moreover, the research relied on the
motivators of customers towards applying for claims and why they would accept insurance
frauds (Tseng and Kuo, 2014). It was evident that deductible premium rations related to the
perception of insurance frauds as revealed by the responders in Taiwan and this research was
important because for the first time, Adams equity theory was applied in customer insurance
fraud research (Tseng and Kuo, 2014).
A similar research was done in the Major Gulf Corporation Council countries that for a
long time had experienced work force imbalances (Ryan, 2016). Since workforce nationalization
had for a long time revealed poor results, the researchers tried to incorporate Adams equity
theory to help analyze the issues that affected emiratization so as to help achieve support and
developmental solutions (Ryan, 2016).
A recent study carried out in North Korea by Shin, Kang, Hyun and Kim (2015) was
aimed at determining the equity on executive employee pay disparity. Firms all over North Korea
provided information on the average pay of employees in the annual reports which were then
analyzed using cross country techniques to determine the executive pay multiple and its impact
on productivity and work turnover. Using Adams theory of equity, it was clearly revealed that
the performance of employees was greatly affected by motivation, work input as well as other

6
existing factors in the workplace (Shin, Kang, Hyun and Kim, 2015). Moreover, it was quite
clear that input and output were directly affected, especially when the first stage determinant
model was put into use. Again, the study was quite relevant in citing the importance of executive
multiple disclosure and how it generally affected the rest of the employees in the various firms
(Shin, Kang, Hyun and Kim, 2015). The satisfaction of employees was also a center of focus in
this study.
Adams theory of equity helps ensure employees are completely satisfied hence able to
undertake the duties assigned to them (Montana &Chino, 2014). The theory explains that the
level of training done by the company to its employees should be of high quality in order to
ensure high quality performances due to the satisfaction felt by the employees. The variables,
therefore, help in ensuring that the seaport achieves maximum impact of the training and
development activities on their employees. The theory behind the factors explains that the varied
behaviors of employees need to be considered when undertaking the training and development
activities. Jeddah seaport has over the years been successful in its summer training activities of
the employees through their keen interest in satisfying the needs of most if not all their
employees. The theory ascertains that a satisfied employee is more likely to increase his or her
productivity and performance in the field (Montana &Chanov, 2014). This is because the
employee feels appreciated and regarded since his needs are considered and taken care of by the
company.
The training and development activities should be adequate to ensure that the employees
are fully equipped with the desired skills. The factor includes ensuring that the equipment used
are enough for all the employees to avoid cases where employees are sharing equipment during
the training (Abdullah, Uli and Tari, 2014). Jeddah seaport, for instance, should be able to

7
provide adequate training materials for their workers during their summer training camp.
Adequacy, furthermore, involves ensuring that the training itself covers all areas of the particular
industry to avoid any doubts that the worker might have. The person responsible for the training,
therefore, needs to well inform in the given area of expertise and even capable of answering all
the questions which may be asked by the employees (Abdullah, Uri and Tari, 2015).
Furthermore, the expert should be able to explain perfectly concepts and trends to the employees
to ensure their satisfaction which impacts positively on their performances
However, a dissatisfied employee cannot produce maximum performance in the field
since his or her morale may be low (Tannenbaum and Yukl, 2015). The employee feels
unappreciated by the top management, hence unable to put in more effort. This employee lacks
reward obtained from his effort which makes it impossible for him to appreciate the duties and
exercise he has been tasked with. Such employees always end up expressing their intentions to
quit the company and also influence their colleagues to follow suit. The employee looks for a
different career opportunity which has considerable work-life policies that may make the
employee satisfied with the environment he works in as he may feel appreciated and valued,
therefore, able to put in enough effort (Montana &Chanov, 2014).
The nature of the reward is another independent variable in the case study. It greatly
determines the performance of the employee. The reward may either be intrinsic or extrinsic.
Intrinsic rewards come from within the employee as a result of the satisfaction derived from
working through a certain task (Abdulla et al., 2015). An employee motivated through reward
may value the challenge brought to him and ensure to complete it to a degree of Job-satisfaction.
The employee will be able to gain skills the growth and competence from within, hence, making
him have a driving force to complete the work. A reward program that is not able to motivate the

8
employee may be faced with a situation where the employee expresses his or her intention to quit
or pursue a different work opportunity. Therefore, the aspect may eventually cost the company its
employees due to lack of motivators (Abdulaziz, Cahn and Metcalfe, 2014).
Extrinsic rewards are tangible and are physically given to the employee for the work
done. A reward program should desire to impact such awards to the employee to assist in the
improvement of their job satisfaction which guide their to effort high performances. Jeddah
seaport, for instance, recognizes its employees for their good work done in various aspects of the
port and rewards them in various ways(remove it). The extrinsic and intrinsic rewards help in the
development of the employee through their knowledge of recognition by the company for the
good work done (Abrahman, Ali and Kwong, 2013).Therefore, Employee feel job satisfaction
and spend more in their performance
Job analysis is the first process that employers carry out in hiring and recruitment of
potential employees. It enables employers to identify and determine the details of a particular job
and the requirements they will be looking for in the possible employees. Job analysis is
important because it helps the human resource managers to quantify the duties a person is
expected to perform and also the salary that will be fair for them. Through the job analysis, the
employers understand what to expect from the employees and how to reward good performance.
Employees, on the other hand, know what is expected of them and the kind of compensation and
reward they will receive in return (Gatewood, Feild, and Barrick, 2015). According to Adams
equity theory, striking a fair balance is important in receiving good performance from
employees. The theory also explains that the needs of the employees should be considered by top
management. In this case, if employees perform in accordance with the job description,
employers should keep their part of bargain to ensure there is a fair balance, otherwise

9
employees may feel shortchanged and will not be satisfied at work. As far as there is a balance,
employees will be happy and satisfied in the job, which result to high performance.
The recruitment and selection process is critical in relation to the employees
performance and productivity. This process involves evaluating and determining the best fit for a
particular job (Bratton, 2015). Therefore, it is important to ensure that the person placed in a
particular position can deliver. During recruitment and selection, various issues concerning what
is expected of employees and what they should expect from the organization are discussed at
length (Bratton, 2015). The issue of equity comes in where employees need to perform in certain
way in order to receive certain benefits. On the other hand, employers need to be committed to
their end and provide employees with what they promised them for employees to keep working
and feel satisfied. This will create equity, which will make employees feel satisfied and hence
improve their performance at work. Adams theory of equity helps ensure employees are
completely satisfied hence able to undertake the duties assigned to them.
Employee relationship is another independent variable that can affect performance and
productivity. Adams equity theory advocate for a fair balance to be struck between what
employees put into the job (inputs) and what they get in return (output) both monetary and nonmonetary, tangible and intangible (Rothmann, & Cooper, 2015). Striking this balance, according
to this theory, ensures a firm and productive relationship is achieved between employers and
employees and the overall result is contented and motivated workforce. The result of a satisfied
and motivated workforce is increased productivity and high performance. The theory also
ascertains that a satisfied employee is more likely to increase his or her productivity and
performance in the field. This is because the employee feels appreciated and regarded since his
needs are considered and taken care of by the company.

10
Social support is also an independent variable that affects job satisfaction and eventually
job performance in an organization. Employees experience various stresses at the workplace and
employers must create ways of helping employees manage their work or family related stresses.
Adams theory of equity holds that the need of employees should be considered by the
management. As such, employers should create a conducive environment, where employees feel
free to express themselves and discuss the challenges and problems they may be facing. Support
groups and counseling programs are just but few ways of addressing this issue. Where employees
feel supported and cared for, they tend to get satisfied and work optimally (Odunayo, & Ayodeji,
2015).
Finally, employee empowerment is an important variable that determine job satisfaction
and employees performance. It refers to empowering employees to make decisions and take
actions at the workplace. Adams theory of equity helps in making sure that employees are fully
satisfied, as it advocates for fairness, hence able to execute their duties well. Empowering
employees helps them change their attitude and behavior. Empowered employees are likely to be
more satisfied and committed to their work, which eventually leads to high productivity and
performance (Odunayo, & Ayodeji, 2015).

Job analysis is the first process that employers carry out in hiring and recruitment of potential
employees. It enables employers to identify and determine the details of a particular job and the
requirements they will be looking for in the possible employees. Job analysis is important
because it helps the human resource managers to quantify the duties a person is expected to
perform and also the salary that will be fair for them. Through the job analysis, the employers
understand what to expect from the employees and how to reward good performance.

11
Employees, on the other hand, know what is expected of them and the kind of compensation and
reward they will receive in return (Gatewood, Feild, and Barrick, 2015). According to Adams
equity theory, striking a fair balance is important in receiving good performance from
employees. The theory also explains that the needs of the employees should be considered by top
management. In this case, if employees perform in accordance with the job description,
employers should keep their part of bargain to ensure there is a fair balance, otherwise
employees may feel shortchanged and will not be satisfied at work. As far as there is a balance,
employees will be happy and satisfied in the job, which result to high performance.
The recruitment and selection process is critical in relation to the employees
performance and productivity. This process involves evaluating and determining the best fit for a
particular job (Bratton, 2015). Therefore, it is important to ensure that the person placed in a
particular position can deliver. During recruitment and selection, various issues concerning what
is expected of employees and what they should expect from the organization are discussed at
length (Bratton, 2015). The issue of equity comes in where employees need to perform in certain
way in order to receive certain benefits. On the other hand, employers need to be committed to
their end and provide employees with what they promised them for employees to keep working
and feel satisfied. This will create equity, which will make employees feel satisfied and hence
improve their performance at work. Adams theory of equity helps ensure employees are
completely satisfied hence able to undertake the duties assigned to them.
Employee relationship is another independent variable that can affect performance and
productivity. Adams equity theory advocate for a fair balance to be struck between what
employees put into the job (inputs) and what they get in return (output) both monetary and nonmonetary, tangible and intangible (Rothmann, & Cooper, 2015). Striking this balance, according

12
to this theory, ensures a firm and productive relationship is achieved between employers and
employees and the overall result is contented and motivated workforce. The result of a satisfied
and motivated workforce is increased productivity and high performance. The theory also
ascertains that a satisfied employee is more likely to increase his or her productivity and
performance in the field. This is because the employee feels appreciated and regarded since his
needs are considered and taken care of by the company.
Social support is also an independent variable that affects job satisfaction and eventually
job performance in an organization. Employees experience various stresses at the workplace and
employers must create ways of helping employees manage their work or family related stresses.
Adams theory of equity holds that the need of employees should be considered by the
management. As such, employers should create a conducive environment, where employees feel
free to express themselves and discuss the challenges and problems they may be facing. Support
groups and counseling programs are just but few ways of addressing this issue. Where employees
feel supported and cared for, they tend to get satisfied and work optimally (Odunayo, & Ayodeji,
2015).
Finally, employee empowerment is an important variable that determine job satisfaction
and employees performance. It refers to empowering employees to make decisions and take
actions at the workplace. Adams theory of equity helps in making sure that employees are fully
satisfied, as it advocates for fairness, hence able to execute their duties well. Empowering
employees helps them change their attitude and behavior. Empowered employees are likely to be
more satisfied and committed to their work, which eventually leads to high productivity and
performance (Odunayo, & Ayodeji, 2015).

13

In summary, Adams theory of equity main proposition is ensuring there is a balance

between employees inputs and output in an organization in order to realize maximum
performance from employees. Job analysis, selection and recruitment, employee relationship,
social support and employee empowerment are all independent variable that directly affect job
satisfaction and consequently employees productivity. Employers must play their role to ensure
employees get all the outputs they deserve such as good salaries, rewards and benefits for them
to increase their input.

14

References
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Palgrave Macmillan
Gatewood, R. and Feild, H.S. and Barrick, M. (2015). Human Resource Selection. Boston, US:
Cengage Learning.
Odunayo, A. T., & Ayodeji, A. B. (2015). Psychological Empowerment in the Workplace:
Implications for Employees' Career Satisfaction. North American Journal of
Psychology, Vol. 17 Issue 1, p.27-36.
Rothmann, I., & Cooper, C.L. (2015). Work and Organizational Psychology. London:
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Garavan, T. N., Costine, D., and Heraty, N., (2015). Training and Development: Concepts,
Attitudes, and Issues: Training and Development in Ireland. Cengage Learning EMEA.
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Houseman, R. (2015). A New Perspective in Equity Theory. The Academy Of Management
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Tseng, L., & Kuo, C. (2014). Customers' attitudes toward insurance frauds: an application of

15
Adams' equity theory. International Journal of Social Economics, 41(11), 1038-1054.
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16
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