Show In the equity theory of motivation, employee’s motivation depends on their perception of how fair is the compensation and treatment for their work input. Equity Theory states that the employees perceive what they get from a job situation (outcomes) about what they put into it( inputs) and then compare their inputs- outcomes ratio with the inputs- outcomes ratios of others. The equity theory of motivation describes the relationship between the employee’s perception of how fairly is he being treated and how hard he is motivated to work. J. Stacy Adams developed equity theory. This theory show-
This theory is based on the following two assumptions about human behavior:
The essential aspects of the equity theory may be shown by an equation; There should be a balance of the outcomes/inputs relationship for one person in comparison with that for another person. If the person thinks that the rewards are greater than what is considered, he/she may work harder. If the person perceives the rewards as equitable, he/she probably will continue at the same level of output. If the person feels that he/she is inequitably rewarded, he/she may be dissatisfied, reduce the quantity or quality of output, or even leave the organization. The three situations of equity theory are illustrated in the following figure: An employee with several years’ experience can be frustrated to find out that a recent college grad hired at a salary level higher than he or she is current earnings, causing motivation levels to drop. Why? Roles played by the equity in motivation;
Equity theory demonstrates that, for most employees, motivation is influenced significantly by relative rewards as well as by absolute rewards, but some key issues are still unclear. Why is equity theory important in organization?It matters because equity theory illustrates the balance between how employees feel about their work, and how hard they should work as a result. In the workplace, the first place where can test this surrounds fair pay. Employers have a responsibility to pay employees fairly.
What is the main idea of equity theory?Equity theory is a theory of motivation that suggests that employee motivation at work is driven largely by their sense of fairness. Employees create a mental ledger of the inputs and outcomes of their job and then use this ledger to compare the ratio of their inputs and outputs to others.
How can equity theory model be effectively applied in an organization?Applying equity theory in the workplace. Equity theory can be a model for measuring how satisfied an employee is in their job. According to John S. Adams, your staff try to keep a balance between how much they give to you (inputs), and what they receive from your business in return (outputs).
How does equity theory apply to the employees in the workplace?Equity theory says that employees view a situation as equitable when employees who give similar inputs receive similar outcomes. When the rewards differ for the same degree of effort, employees view the situation as inequitable.
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