What is equity theory. Equity Theory and Performance 2022-10-24
What is equity theory Rating:
8,6/10
1416
reviews
Equity theory is a social psychological concept that explains how individuals perceive and respond to perceived unfairness in social exchanges. It was first proposed by John Stacey Adams in 1963 and has since been widely studied and applied in a variety of fields, including psychology, sociology, and management.
According to equity theory, individuals seek to maintain a balance of equity in their social relationships. This means that they want to feel that their contributions and outcomes are equal to those of others in similar situations. When an individual perceives that this balance is not maintained, they may experience feelings of inequity and may attempt to restore equity through various means.
There are two types of equity that individuals may seek to maintain: distributive equity and procedural equity. Distributive equity refers to the balance of outcomes, or the fair distribution of resources and rewards. Procedural equity, on the other hand, refers to the fairness of the processes and procedures used to determine outcomes.
When individuals perceive that they are receiving less than they deserve in terms of outcomes or that the processes leading to these outcomes are unfair, they may experience feelings of inequity. In response to this, they may try to restore equity in a number of ways. One way is through social comparison, where individuals compare their outcomes and inputs to those of others in similar situations. This can lead to either upward or downward social comparison, where individuals either seek to improve their own outcomes or reduce the outcomes of others in order to achieve equity.
Another way that individuals may try to restore equity is through negotiation or communication with others involved in the social exchange. This can involve discussing and trying to resolve any perceived inequities or seeking to establish new terms for the exchange that are more equitable.
Equity theory has important implications for organizations and management. By understanding how employees perceive and respond to equity, managers can take steps to create a more equitable workplace, which can lead to increased motivation, satisfaction, and productivity among employees. This may involve ensuring that rewards and resources are fairly distributed, or that processes and procedures for determining outcomes are fair and transparent.
Overall, equity theory helps to explain how individuals perceive and respond to perceived unfairness in social exchanges. By understanding and addressing inequities, individuals and organizations can work to create more harmonious and productive relationships.
Equity Theory
Accordingly, equity structure in the workplace is based on the ratio of inputs to outcomes. Inputs include time, effort, commitment, and a host of other variables. Equity Theory definition First developed in the early 1960s by behavioural psychologist John S. For example, if two individuals have been married for years and one partner is constantly taking care of housework, grocery lists, the kids, and other responsibilities while the other partner does not contribute a thing, then evidently the relationship is imbalanced. Inequity can result from getting fewer outcomes or more outcomes than relevant others. As well as writing for websites and magazines, he also runs his own sites and has published several books and apps on these topics.
What is equity theory in relationships? Social equity theory proposes that individuals in a relationship, whether that be a platonic relationship, a familial relationship, or a romantic relationship, are comforted by an equal distribution between what is given and what is taken in a relationship. Results are consistent across different measures within and across studies. What Should Be Done with Equity Theory? Finally, we come to the comparison other. In contrast, Equity theory posits that individuals seek to find balance between their inputs and outcomes. How do managers use equity theory? Receiving recognition and being thanked for strong job performance can help employees feel valued and satisfied with their jobs, resulting in better outcomes for both the individual and the organization. What are the types of equality? Long-term relationships don't necessarily come with an instant need for reciprocation, given the fact that there is a more holistic bartering system in place for the longevity of a relationship.
What are the different types of equality explain? An employee who feels underpaid may experience feelings of hostility toward the organization and perhaps coworkers. If you come at the bottom then this can simply tell you that you could have more, and might also make you question your accomplishments and your success. The Academy of Management Journal. Equity-Theory in Longer-Term Relationships When a longer-term relationship is in place, it may no longer feel tit-for-tat. The most obvious example is someone who becomes dissatisfied after realizing that a peer is paid more money to do the same amount of work.
What is Equity Theory? Definition of Equity Theory, Equity Theory Meaning
Description: Equity theory is used in parlance of human resource management. For example, if an employee knows that their colleague is getting a higher salary than them for the same amount of work, this might create dissatisfaction. She may be motivated to end the relationship given this imbalance and inequity. What is equity theory and example? Journal of Applied Psychology. Equity is about giving people what they need, in order to make things fair.
Equity Theory: Definition, Meaning & Examples, Components
Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. As such, mo Cyclical unemployment is a type of unemployment which is related to the cyclical trends in the industry or the business cycle. If a partner takes care of their loved one when they, for example, just had surgery, they most likely are not feeling like they need to return the favor, given the length of the relationship and the established satisfaction that comes with their mutual affection. Successful organizations have bright and skilled people who are motivated to be productive. The only way groups can induce members to equitably behave is by making it more profitable to behave equitably than inequitably. Components of Equity Theory Based on equity theory, how distribution of costs and benefits. Equity theory implies successful It is an extension from Walster et al.
Fairness arises from an equitable The interaction of inputs and outputs can also be explained in three types of exchange relationships: Overpaid inequity When an employee perceives that their outcomes are above what is fair when compared to co-workers. Equity theory predicts that one's inputs and outcomes are evaluated in relation to the inputs and outcomes of others. Outputs are what the employee receives from the employer and can also be tangible or intangible. The key elements of equity theory are input, outcome, and comparison levels. During their senior year, Lucy has a set plan for post-graduation while Jessie is stressed and feeling down that she cannot figure out what she wants to do after they graduate.
This may cause the friend who feels unequal in the friendship to leave it entirely. This is based on a ratio of inputs and outputs. New Approaches to the Study of Fairness in Social Relationships SO 010 146. What are the advantages of equity theory? The 'inputs,' or what the employee gives to an organisation, can be broken down to many metrics including time, loyalty, effort, tolerance, flexibility, enthusiasm, personal sacrifice, skill and trust in superiors. Inequity in social exchange, In L.
Inequality in relationships creates this feeling of one party contributing unequally to the other. For example, advocates of social equality believe in equality before the law for all individuals regardless of sex, gender, ethnicity, age, sexual orientation, origin, caste or class, income or property, language, religion, convictions, opinions, health, disability or species. It is also the most heavily relied on approach, as it incorporates all aspects of a business and is, therefore, considered the most accurate and complete measure. Communication Privacy management theory. Stacy Adams in the 1960s.
Finally, an employee may just decide to leave the job, and seek a more equitable situation. Thus a teacher from Vancouver, Washington, may accept lower compensation than his colleague in Seattle if his cost of living is different, while a teacher in a remote African village may accept a totally different pay structure. Equity theory was first developed by John Stacey Adams in 1963 who was a workplace psychologist, and it may just hold the answers to some of the big questions regarding happiness and life satisfaction. Similarly, friendships can be affected by the lack of equity between two parties. Description: Equity theory is used in parlance of human resource management. A longitudinal study of equity in intimate relationships. When employees believe a situation is fair, they are more likely to act in a way that rewards or benefits themselves and the Employees who identify a situation that is not equitable, on the other hand, may feel stressed or demotivated.
This hostility may cause the employee to underperform and breed job dissatisfaction among others. In the second method, an analyst builds a It is very common for this market approach to produce a higher value than the book value. 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. Examples of equity theory relationships regarding a bartering system model may be if two friends who just met are establishing an equal balance between the newness of their relationship. Outcomes include 'hard' factors, such as salary, job security and Equity theory is based on a principle that peoples' actions and motivations are guided by fairness and that discrepancies in this fairness in the workplace will spur them to try and redress it.
