Equity theory of motivation[26]

Equity Theory
John Stacey Adams, a workplace behavioral psychologist, established Adam's
Equity Theory, often known as the Equity Theory of Motivation, in 1963.
The concept of equity theory is based on the idea that fairness motivates people.
Simply put, equity theory suggests that if a person notices an unfairness between
themselves and a peer, they will change their effort to make the situation more
equitable in their perspective. As an illustration of equity theory, if an employee
finds that a colleague doing the exact same job as them makes more money, they
may choose to work less, producing fairness in their view.
As a result of this, Adam's Equity Theory states that the higher a person's
perception of equity (fairness), the more motivated they will be. Individuals who
feel unfairness, on the other hand, will become demotivated.
Inequities
Emerges when an employee puts forth a lot of effort but receives little positive
feedback or appreciation. Internal and external salary disparities, unfair decision-
making, and poor career development chances are all examples of inequities that
arise as a result of perceived or actual unjust treatment in comparison to other

employees within the firm. Inequities, whether perceived or real, can range from
minor personality problems to criminal corporate activities.
Resolving Inequities
Identifying the underlying problem represents an essential step in resolving
workplace inequities. Once the problem has been identified, take steps to heal
the relationship. Depending on the severity, inequities can often be remedied
with open and honest communication. This can include providing disgruntled
employees with written company policies, such as the employee handbook, and
offering to discuss any instances of perceived unfair treatment. Serious
violations, such as ethnically disparaging treatment or sexual harassment,
should be handled by your organization's human resource and legal
departments. Communication and clear guidelines are the keys to preventing
perceived and actual inequities. For instance, clear policies on pay raises and
promotions can eliminate discourse related to pay and career development. In
addition, avoiding the perception of favoritism and following company policy in
the handling of all employee issues can effectively reduce the number of
complaints and concerns surrounding inequity in the workplace.

Employees will constantly seek to balance inputs (what an employee produces)
against outputs (what an employee receives in return, such as compensation,
benefits, praise and recognition, advancement opportunities, and so on) in order
to ensure fair and equitable treatment for themselves in comparison to what they
believe others receive. In theory, if an employee believes he or she does more
work, spends more time, and receives less recognition and compensation than
someone in a similar position, he or she will reduce effort, do only what is
required, produce less quality work in a shorter period of time, become resistant
or act out in more disruptive ways, or even quit to compensate for the inequity.
You can't control what your employees think, but you can lead by example to
establish a workplace that is fair, sensitive to real complaints, and geared to
eliminate any reason for employees to feel treated unfairly. Make an effort to
Keep consistency and fairness, make assignments, provide coaching and feed
back, make compensation recommendations and decisions, and provide
professional development and advancement opportunities in a fair manner to
reduce complaints of inequitable treatment. Of course, there will be reasons for
differing your expectations, opportunities, and rewards among employees based
on differences in experience, ability, performance, and job assignments. An
employee who does not appreciate your actions can always complain, but if you
have good grounds for your decisions, this should not be a concern. Another
suggestion is to get feedback from peers and specialists such as HR, employee
relations, and overall rewards professionals to ensure fairness and consistency.
In order to solve real issues an organization should Change the inputs or outputs
as needed, based on your observations or voiced concerns, to preserve fairness
and balance in the allocation of assignments, opportunities, and incentives.
Working with all team members to renegotiate assignments to establish a better
balance, for example, if you find that you have placed more demands on an
employee, resulting in higher stress, longer hours, and restricted compensation
compared to other team members with identical duties. In order to resolve this
problem Communicate your willingness to listen to employee problems on a
regular basis. When employees express concerns, acknowledge them and tell
them how much you agree or disagree with the charges of inequitable treatment,
and why. If your disagreement concerns an employee's performance, provide
coaching to assist them in achieving the level of performance that would earn the
sought consideration. If the employee's concerns are valid, but policy, fiscal, or
systemic constraints limit what you can do right now to address the unfairness, be
open about these realities and keep them informed about the measures you're
taking, especially if the process is taking longer than expected.

The following are examples of common inputs:
1-The amount of time spent working (effort).
2-The dedication that was demonstrated.
3-The enthusiasm shown.
4-The knowledge and experience that was brought to the role.
5-Any personal sacrifices that have been made.
6-The individual's obligations and tasks in the role.
7-The amount of loyalty an individual has shown to superiors or the organization.
8-The individual's ability to adapt to changing circumstances, such as accepting
assignments on short notice or with tight deadlines.

Outputs (also known as outcomes) are the results that an individual obtains as a
result of their contributions to the organization.
The following are examples of common outputs:
1-Salary\Bonus\Pension
2-Allowance for vacation each year
3-Stock options on a company automobile
4-Recognition
5-Promotion
Equity Ratios
The following are the three general comparison options for the output-to-input
ratio:
1. The first possibility is that your and others' output-to-input ratio comparisons are
same.
2. Another option is that your output-to-input ratio is lower than that of your
coworkers.
3. Your output-to-input ratio is larger than your peers, which is the third
possibility.
A team member knowing that a colleague doing the same job as him is making
more money might create a sense of inequality; in this case, he may decide to putin
less effort, justifying himself in his own eyes. Every team member's answer is
determined by the mentality of the individual employee and his level of happiness
with the organization. The ideal approach would be for businesses to increase
effective employee engagement by developing a strong culture.
PERCEPTION

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Equity theory of motivation[26]

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Equity Theory

John Stacey Adams, a workplace behavioral psychologist, established Adam's

Equity Theory, often known as the Equity Theory of Motivation, in 1963.

equitable in their perspective. As an illustration of equity theory, if an employee

may choose to work less, producing fairness in their view.

feel unfairness, on the other hand, will become demotivated.

feedback or appreciation. Internal and external salary disparities, unfair decision-

arise as a result of perceived or actual unjust treatment in comparison to other

minor personality problems to criminal corporate activities.

Identifying the underlying problem represents an essential step in resolving

the relationship. Depending on the severity, inequities can often be remedied

offering to discuss any instances of perceived unfair treatment. Serious

violations, such as ethnically disparaging treatment or sexual harassment,

should be handled by your organization's human resource and legal

departments. Communication and clear guidelines are the keys to preventing

promotions can eliminate discourse related to pay and career development. In

addition, avoiding the perception of favoritism and following company policy in

complaints and concerns surrounding inequity in the workplace.

against outputs (what an employee receives in return, such as compensation,

benefits, praise and recognition, advancement opportunities, and so on) in order

believe others receive. In theory, if an employee believes he or she does more

someone in a similar position, he or she will reduce effort, do only what is

establish a workplace that is fair, sensitive to real complaints, and geared to

back, make compensation recommendations and decisions, and provide

professional development and advancement opportunities in a fair manner to

reduce complaints of inequitable treatment. Of course, there will be reasons for

differing your expectations, opportunities, and rewards among employees based

on differences in experience, ability, performance, and job assignments. An

relations, and overall rewards professionals to ensure fairness and consistency.

as needed, based on your observations or voiced concerns, to preserve fairness

and balance in the allocation of assignments, opportunities, and incentives.

Working with all team members to renegotiate assignments to establish a better

employee, resulting in higher stress, longer hours, and restricted compensation

problem Communicate your willingness to listen to employee problems on a

and why. If your disagreement concerns an employee's performance, provide

taking, especially if the process is taking longer than expected.

1-The amount of time spent working (effort).

2-The dedication that was demonstrated.

3-The enthusiasm shown.

4-The knowledge and experience that was brought to the role.

5-Any personal sacrifices that have been made.

6-The individual's obligations and tasks in the role.

7-The amount of loyalty an individual has shown to superiors or the organization.

8-The individual's ability to adapt to changing circumstances, such as accepting

assignments on short notice or with tight deadlines.

result of their contributions to the organization.

The following are examples of common outputs:

2-Allowance for vacation each year

3-Stock options on a company automobile

effective employee engagement by developing a strong culture.

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