Equity theory is a social psychological concept that explains how individuals perceive and respond to perceived unfairness in social exchanges. It suggests that individuals strive for fairness in their relationships and that when they perceive an imbalance in the distribution of resources or rewards, they will attempt to restore equity.
The theory was first proposed by John Stacey Adams in 1963, and it has since been widely studied in the fields of psychology, sociology, and management. According to equity theory, individuals compare their own outcomes and inputs (such as effort, time, and resources) to those of others in order to determine whether they are being treated fairly. If they perceive an imbalance, they may respond in a number of ways, including adjusting their own inputs or outcomes, seeking additional resources or rewards, or terminating the relationship.
There are several key principles that underlie equity theory. One is the idea that individuals have different perceptions of what is fair and that these perceptions may vary based on personal values, cultural norms, and past experiences. Another is the idea that individuals are motivated to maintain a sense of fairness and balance in their relationships, and that this motivation can be a powerful force in shaping behavior.
There are several different types of equity that have been identified in the literature. These include distributive equity, which refers to the distribution of resources and rewards among individuals; procedural equity, which refers to the fairness of the processes used to make decisions and allocate resources; and interactional equity, which refers to the fairness of the interactions between individuals.
There are a number of implications of equity theory for organizations and individuals. For organizations, it can be important to ensure that resources and rewards are distributed fairly among employees in order to maintain a positive and productive work environment. For individuals, understanding and applying equity theory can help them to navigate conflicts and to build more satisfying and fair relationships with others.
Overall, equity theory is a valuable framework for understanding how individuals perceive and respond to fairness in social exchanges. It highlights the importance of fairness in relationships and provides insight into how individuals can work to maintain balance and equity in their interactions with others.
Equity Theory and its Applications in the Various Spheres of Life
They found that men and women from non-Western cultures Jamaicans were most satisfied when over-benefitting. If one of your team feels like their contributions, time, and effort are not earning the rewards they should be—especially when they think that colleague X, who earns a higher salary despite doing a similar job, does less work—you can expect a reaction. Thus, inequity as a motivation force will act as follows: It is not that the person feeling inequity alone gets motivated to restore equity. For example, if someone in your organization needs to show greater effort in order to achieve their desired goal, point out times when they display positive effort and reward them for it. But, what an employee thinks of their current input-output balance can change day-to-day if they think one of their colleagues currently has a better balance between what they give and what they get back. Therefore, equity is not a universal hallmark of happy relationships as it cannot explain relationships in all cultures. Incentives motivated the earliest frameworks for persuasive communication Hovland, Janis, and Kelley , as well as more recent principles of compliance involving scarcity Cialdini as a threat to control over outcomes.
Equity Theory of Relationships
Advantages include research support for equitable relationships rating highest in terms of satisfaction. For others, it is about doing their best and becoming the Many business leaders have invested their time to understand employee perception and theories of motivation. Furthermore, Mobbs and Raheja 2012 point to the amount of firm-specific human capital, and the availability of external candidates, as two critical factors affecting decisions on the adoption of possible promotion plans tournament or selection of an heir. Their research suggests the need for benefits in a relationship is evolutionary. Rather than worrying about your own motivation, you worry about the motivation of others in your organization - specifically the people who you work with and who work for you. Regardless, the approach is to identify the inputs and desired outputs, and figure out what references people are using to gauge fairness.
Adam's Equity Theory of Motivation Explained
The Importance of Fairness This theory of motivation suggests that employees who feel like they are putting more into their job than they are receiving will be less motivated. However, while these two factors don't motivate people, the absence of these factors, other things known as "hygiene factors" like compensation or job security can cause dissatisfaction in the workplace. Carried to extremes, this perception of being the lesser contributor to the relationship might actually give rise to feelings of resentment, inadequacy and can be the first sparks towards fueling a break-up. Unlike equity theory in psychology suggests successful relationships rely on balance. Applying equity theory in the workplace Equity theory can be a model for measuring how satisfied an employee is in their job. How To Compare: Referent Groups A referent group is a group of people a person uses for comparison. The other potential endogeneity concern could stem from reverse causality, whereby the outcome variable could determine the pay gap, or the causality could run both ways.
Equity and Inclusion: The Roots of Organizational Well
In an intimate relationship, if a person in putting in time and effort, then that person will expect a certain output for this effort. Equity theory suggests realignment of any new or continuing costs and benefits. It is also complicated by the fact that, as mentioned, an individual may have as a point of reference someone outside as well as inside the organization doing the same or similar work. Its structure and beliefs are based on PERCEIVED, and not established, equity. And we know that the referent is an employee in a similar or identical role. We need to feel significant.
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John Stacey Adams is a workplace, social, and behavioral psychologist who came up with the equity theory of motivation in 1963. In psychology, what is the equity theory? Introduction to the Theory: The Equity theory owes its origin to several prominent theorists. Speak up if your boss mistreats you. Discussions in these environments yield the best results when an unbiased facilitator leads the conversations. Rather than becoming demotivated when we feel like we're dealt a bad hand, we should instead focus on the things in life we appreciate. Still, since equity is not just about pay, other considerations may be made.
Equity Theory: The Recent Literature, Methodological Considerations, and New Directions on JSTOR
As individuals, each person is motivated by different things, and understanding what we are motivated by is an incredible way to improve motivation and inspire others. There have been some studies, such as Kale et al. If their effort results in higher salary in relation to someone else's salary then the person is motivated. Likewise, all creations of Nature have inherited this trait. For example, a librarian may place a greater value on a flexible work schedule in order to spend time with family, as opposed to higher pay. There are many commonalities between leaders and managers in all organizations.
