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Adams equity theory

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This document discusses equity theory and how it relates to employee motivation. Equity theory proposes that employees are motivated when they perceive their work contributions are fairly rewarded in relation to others. If an employee feels underpaid compared to coworkers, their work motivation will decrease as they seek pay equity. The document outlines three cases of equity/inequity and how it impacts motivation. It also lists strategies employees may use to reduce inequity, such as reducing work effort. Finally, it provides recommendations for organizations to develop equitable pay systems and monitor internal pay consistency.

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Adams equity theory
 This theory simply means that all the workers in the organization should be treated equally, then only they will be motivated& thereby work efficiently & effectively for attaining organizational goals.
 People develop beliefs about what is a fair reward for one’ job contribution - an exchange  People compare their exchanges with their employer to exchanges with others-insiders and outsiders called referents  If an employee believes his treatment is inequitable, compared to others, he or she will be motivated to do something about it -- that is, seek justice.
Is versus Ir Os Or I = Inputs - employee’s contribution to employer R = Referent - comparison person O = Outcomes – employers’ reward to employees
Adams equity theory
 Case 1: Equity -- pay allocation is perceived to be to be fair - motivation is sustained  Case 2: Inequity -- Underpayment. Employee is motivated to seek justice. Work motivation is disrupted.  Case 3: Inequity - Overpayment. Could be problem. Inefficient. In other words, employees lose their working mentality.
 The employee is motivated to have an equitable exchange with the employer.  To reduce inequity, employee may…  Reduce inputs (reduce effort)  Try to influence manager to increase outcomes (complain, file grievance, etc.)  Try to influence co-workers’ inputs (criticize others outcomes or inputs)  Withdraw emotionally - or physically (engage in absenteeism, tardiness, or quit)
 Develop tools to pay people in proportion to their contributions  Let employees know who their pay referents are in the pay system: identify pay competitors and internal pay comparators.  Strive for consistent pay allocations  Monitor internal pay structure and position in the labor market for consistency.

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Adams equity theory

  • 2.  This theory simply means that all the workers in the organization should be treated equally, then only they will be motivated& thereby work efficiently & effectively for attaining organizational goals.
  • 3.  People develop beliefs about what is a fair reward for one’ job contribution - an exchange  People compare their exchanges with their employer to exchanges with others-insiders and outsiders called referents  If an employee believes his treatment is inequitable, compared to others, he or she will be motivated to do something about it -- that is, seek justice.
  • 4. Is versus Ir Os Or I = Inputs - employee’s contribution to employer R = Referent - comparison person O = Outcomes – employers’ reward to employees
  • 6.  Case 1: Equity -- pay allocation is perceived to be to be fair - motivation is sustained  Case 2: Inequity -- Underpayment. Employee is motivated to seek justice. Work motivation is disrupted.  Case 3: Inequity - Overpayment. Could be problem. Inefficient. In other words, employees lose their working mentality.
  • 7.  The employee is motivated to have an equitable exchange with the employer.  To reduce inequity, employee may…  Reduce inputs (reduce effort)  Try to influence manager to increase outcomes (complain, file grievance, etc.)  Try to influence co-workers’ inputs (criticize others outcomes or inputs)  Withdraw emotionally - or physically (engage in absenteeism, tardiness, or quit)
  • 8.  Develop tools to pay people in proportion to their contributions  Let employees know who their pay referents are in the pay system: identify pay competitors and internal pay comparators.  Strive for consistent pay allocations  Monitor internal pay structure and position in the labor market for consistency.