Introduction to Equity Theory on Job Motivation Mini Lesson

Equity Theory on Job Motivation

In this lesson, you will identify what Equity Theory is and how it relates to job motivation.

 Equity Theory in a Nut Shell

A workplace and behavior psychologist, named John Stacey Adams, first developed the Equity Theory in 1965. The focus of the theory calls for a healthy balance between employee inputs and outputs. Inputs are what we give or put into our work. Outputs are everything we take out in return. Equity Theory of Motivation looks at individual perception of how fairly they believe they are treated compared to their co-workers.  

 Employee Inputs (examples: hard work, skills, dedication, enthusiasm, tolerance, loyalty)

to be balanced with

Employee Outputs (examples: salary, benefits, recognition, job security, responsibility)

 

 

Fair Balance = Creating a Working Productive Relationship = Motivated Employees

 

Example of Equity Theory of Motivation

John is a dedicated employee by coming to work on time, stays late when needed and brings in the highest profits. He has a $50,000 salary. John just became aware that other co-workers have larger salaries in the same position, and do not work late and make as much profits. As a result, John stops staying late and is enthusiasm is low towards clients.

 According to Equity Theory, employees lose job motivation when their inputs become greater than the outputs.It is a comparison between one’s own ratio and that of a reference group, such as John’s co-workers. Think about your workplace or one you have worked at.

In Summary

The important thing to remember is that this theory deals with one's own perceptions. Adam’s Equity Theory of Motivation illustrates that positive outcomes and high levels of motivation are expected only when employees perceive they are being treated fair. Finding this fair balance in employees’ inputs and the outputs they receive serves to ensure content and motivated employees.

Look forward for more lessons in leadership . - Jennifer