Equity Theory Essay

Equity Theory of Motivation The equity theory of motivation is used to describe the relationship between the employees perception of how fairly is he being treated and how hard he is motivated to work Motivation is the activation of an energized goal-oriented behavior. Everyone takes up a job as they are motivated by some factor or the other. Some are motivated by the challenge they will face in carrying out their job, some are motivated by the level of fame they may earn, others and majority of people are motivated by the money they will earn.

The last factor plays a major role in making or breaking a company. People will work better when they are motivated enough with the pay scale, the incentives and the perks they are offered in return of a job well done. Introduction to Equity Theory There was a time when employers thought employees to be just another input required for production of output, that is, goods and services. This thinking was changed with the research conducted known as Hawthorne Studies, by Elton Mayo from 1924 to 1932. This study showed that employees are not just motivated by the money, but their attitudes as well.

We will write a custom essay sample on
Equity Theory Essay
or any similar topic only for you
Order now

Thus, the Hawthorne Studies initiated the human relations approach to management and the needs and motivation of employees was the primary concenter of managers. Equity Theory Examples As the main focus of the researchers moved towards employees and their motivation factors, following the Hawthorne Study results, there were many theories put forward to understand employee motivation. The following are the five major equity theory examples that have helped in understanding motivation. •Maslow’s Need-Hierarchy Theory: Maslow put forward five levels of needs of employees.

These needs included physiological, safety, ego and self-actualizing. Maslow put forward an argument that said the lower level needs of employees need to be satisfied before the next higher level need is fulfilled to motivate them. The motivation was categorized into factors by Herzberg; motivators and hygiene. The motivators including intrinsic factors like achievement and recognition help produce job satisfaction. The hygiene or extrinsic factors like pay and job security lead to job dissatisfaction. Vroom’s Theory: This theory was based on the belief that employee effort leads to performance and performance leads to rewards. These rewards can be positive or negative. The positive rewards lead to a more positive employee who is highly motivated. The negative rewards lead to obviously a less motivated employee. •Skinner’s Theory: This theory states that the positive outcomes will be repeated and behaviors that lead to negative outcome won’t be repeated. Thus, managers should try and reinforce the employee behaviors, such that it leads to positive outcomes.

Negative reinforcement by managers will lead to negative outcomes. •Adam’s Equity Theory Model: This theory shows that employees strive to achieve equity between themselves and their coworkers. This equity can be achieved when the ratio of employee outcomes over inputs is equal to other employee outcomes over inputs. VROOM’S THEORY Adams’ Equity Theory – Balancing Employee Inputs and Outputs Adams’ Equity Theory calls for a fair balance to be struck between an employee’s inputs (hard work, skill level, tolerance, enthusiasm, etc. and an employee’s outputs (salary, benefits, intangibles such as recognition, etc. ). According to the theory, finding this fair balance serves to ensure a strong and productive relationship is achieved with the employee, with the overall result being contented, motivated employees. Understanding the Theory The Adams Equity Theory is named for John Stacey Adams, a workplace and behavioral psychologist, who developed this job motivation theory in 1963. Much like many of the more prevalent theories of motivation (theories by Maslow’s Hierarchy of Needs, Herzberg’s Theory, etc. , Adams’ Equity Theory acknowledges that subtle and variable factors affect an employee’s assessment and perception of their relationship with their work and their employer. The theory is built-on the belief that employees become de-motivated, both in relation to their job and their employer, if they feel as though their inputs are greater than the outputs. Employees can be expected to respond to this is different ways, including de-motivation (generally to the extent the employee perceives the disparity between the inputs and the outputs exist), reduced effort, becoming disgruntled, or, in more extreme cases, perhaps even disruptive.

How to Apply the Adams Equity Theory It is important to also consider the Adams Equity Theory factors when striving to improve an employee’s job satisfaction, motivation level, etc. , and what can be done to promote higher levels of each. To do this, consider the balance or imbalance that currently exists between your employee’s inputs and outputs, as follows: Inputs typically include: •Effort •Loyalty •Hard Work •Commitment •Skill •Ability •Adaptability •Flexibility •Tolerance •Determination •Enthusiasm •Trust in superiors •Support of colleagues •Personal sacrifice, etc. Outputs typically include: Financial rewards (salary, benefits, perks, etc. ) •Intangibles that typically include: •Recognition •Reputation •Responsibility •Sense of Achievement •Praise •Stimulus •Sense of Advancement/Growth •Job Security Key Points Much like the five levels of needs determined by Maslow and the two factors of motivation as classified by Herzberg (intrinsic and extrinsic), the Adams Equity Theory of motivation states that positive outcomes and high levels of motivation can be expected only when employees perceive their treatment to be fair. An employee’s perception of this may include many factors (see outputs above).

The idea behind Adams’ Equity Theory is to strike a healthy balance here, with outputs on one side of the scale; inputs on the other – both weighing in a way that seems reasonably equal. If the balance lies too far in favor of the employer, some employees may work to bring balance between inputs and outputs on their own, by asking for more compensation or recognition. Others will be demotivated, and still others will seek alternative employment. ? ADDITIONAL INFO: In business, the Equity Theory of employee motivation describes the relationship between how fairly an employee perceives he is treated and how hard he is motivated to work.

Peter Drucker, an author who specialized in economics, first proposed the link between Equity Theory and employee motivation. The basic idea behind the Equity Theory is that workers, in an attempt to balance what they put in to their jobs and what they get from them, will unconsciously assign values to each of his various contributions. In addition to their time, workers contribute their experience, their qualifications, and their capability in addition to their personal strengths such as acumen and ambition.

Money, of course, is the primary motivating outcome for an employee, but it is not the only, and in some cases not even the most important, factor. Power and status are also prime motivators, as are flexibility, perquisites and variety. According to the Equity Theory, the most highly motivated employee is the one who perceives his rewards are equal to his contributions. If he feels that he is working and being rewarded at about the same rate as his peers, then he will judge that he is being treated fairly.

This doesn’t mean that every manager should treat every employee identically, because every worker does not measure his contributions in the same way. For example, flexible working hours might motivate a working mother even more than a pay raise. Conversely, though an across-the-board wage increase may delight most employees, the highest producers may become less motivated if they perceive that they are not being rewarded for their ambition. Research on Equity Theory and employee motivation has shown that, in general, over-rewarded employees will produce more and of a higher quality than will under-rewarded, less motivated employees.

×

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out