The basic principles of equity theory boil down to how employees compare themselves with others in terms of two things: input (effort) and outcomes (rewards).
Expectancy theory holds that individuals seek to maximize their positive outcomes. In contrast, Equity theory posits that individuals seek to find balance between their inputs and outcomes.Mar 29, 2016
J. Stacey Adams' equity theory is a process model of motivation. It says that the level of reward we receive, compared to our own sense of our contribution, affects our motivation. The theory considers the concept of equality and fairness, as well as the importance of comparison to others.Jul 21, 2021
Equity theory explains how employees determine what is fair and how they act upon their perceptions. Equity theory is supported by research over the years. As a result, employee perceptions about fairness do matter–whether they are real or misguided.Dec 20, 2020
The basic components of equity theory are outcomes, instrumentality, and valence.
Expectancy theory has three components:Expectancy: effort → performance (E→P)Instrumentality: performance → outcome (P→O)Valence: V(R) outcome → reward.
Components of the equity theory of motivationInputs. An input is a contribution one makes to receive a reward. ... Outcomes. ... Referent groups. ... Moderating variables. ... Ensure a fair balance among team members. ... Make sure you offer comparable compensation. ... Know what your team values.Dec 29, 2020
Equity Theory comes into existence when you hear things like: “Miranda earns more than me, but I don't see her doing much work.” “I get less salary compared to Miranda, but this place needs me more than her.”Jul 19, 2021
The Equity Theory of Motivation deals with the way people compare the value of themselves to others in similar work situations based on their inputs and outputs. Inputs are what you bring to the situation, like your skills, time and education.
Managers can use equity theory to improve worker satisfaction. Knowing that every employee seeks equitable and fair treatment, managers can make an effort to understand an employee's perceptions of fairness and take steps to reduce concerns about inequity.Nov 23, 2020
If this issue lays at the root, there are things you can do to remedy the problem.Focus on avoiding favoritism from the start. ... Speak to employees who appear to feel that they have been treated unfairly. ... Praise those who appear to lack motivation. ... Change job requirements to allow for all employees to succeed.