...Equity theory proposes that individuals who perceive themselves as either under rewarded or over rewarded will experience distress, and that this distress leads to efforts to restore equity. (Huseman, 1987). John Stacey Adams, a workplace and behavioral psychologist, asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others. (Adams, 1965) When people feel fairly or advantageously treated compared to their peers, they are more likely to be motivated; when they feel unfairly treated they are highly prone to feelings of disaffection and de-motivation. The way that people measure this sense of fairness is at the heart of Equity Theory. (Champman, 1995-2010) In my organization, many feel like they are underpaid when compared to co-workers who have similar job functions. Many also have the impression that co-workers in our Foster City office only 20 miles away are paid much more (output) for the same positions (inputs). When speaking with these employees I gather a sense of hostility and regressed performance based on the perceived feeling of unfairness. A proposed solution is to link each job title to a specific salary code which will have a specific associated salary pay range within each geographical region. I think this will work because it takes away from often false assumptions that certain individuals make more than others which cause employees to...
Words: 520 - Pages: 3
...The Application of Equity Theory in Business Today Research Paper Marcy Adams Organizational Behavior and Theory, Bus 7000 Professor Bryan Forsythe October 15, 2012 “That’s why you get paid the big bucks!” A phrase often head in all levels of management may actually hold theoretical meaning as opposed to what was often thought as simply an excuse to get out of performing a task. Unfortunately, implications of such could be the demonstration of a much deeper feeling in inequity that could ultimately damage the motivation of an entire organization. As defined, an organization is a collection of people who work together to achieve a variety of goals (Understanding & Managing Organizational Behavior, p 1). Organizational behavior is the actions and attitudes of those people within the organization (Understanding & Managing Organizational Behavior, p 1). The attitude of an individual determines the job satisfaction or dissatisfaction, commitment to the organization and overall involvement. Attitude can be influenced by internal factors, external factors and perception. First developed by John Stacey Adams in 1963, Equity theory attempts to explain the relationship between how fairness and unfairness correspond to a persons satisfaction. It asserts that employees seek a need to maintain balance between their inputs and outputs, all in comparison to that of a “referent” other (McShane & Von Gilnow p.151)...
Words: 3727 - Pages: 15
...Equity Theory by John Stacey Adams Equity Theory attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of resources within interpersonal relationships. Equity theory is considered as one of the justice theories; it was first developed in 1962 by John Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others (Adams, 1965). The belief is that people value fair treatment which causes them to be motivated to keep the fairness maintained within the relationships of their co-workers and the organization. The structure of equity in the workplace is based on the ratio of inputs to outcomes. Inputs are the contributions made by the employee for the organization; this includes the work done by the employees and the behavior brought by the employee as well as their skills and other useful experiences the employee may contribute for the good of the company. Background Equity theory proposes that individuals who perceive themselves as either under-rewarded or over-rewarded will experience distress, and that this distress leads to efforts to restore equity within the relationship. It focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratios of contributions and benefits of each...
Words: 672 - Pages: 3
...The Theory Of Equity The theory of equity is to motivate people to seek social equity in the rewards they receive for their performance. This relates to The Parlor in several different ways. The Parlor was developed as a restaurant aimed at providing service and atmosphere from the roaring twenties. The service aspect of the restaurant consisted of accents from the twenties like an old time piano mechanically driven to play music. They specialized in old time fountain sodas and ice cream sundaes. Overall they had a high quality of food and service. Owned and managed by Richard Purvis in San Francisco, The Parlor has grown steadily during the last seven years. With such an incline in business, Purvis decided to hire a manager. Purvis also wanted to try to devote more time to developing additional business ideas. With new business ideas in mind, Purvis went through a month of recruitment and interviewing. After careful selection he chose Paul McCarthy, an experienced supervisor at a local establishment. A downfall to the hiring process was that Purvis decided to complete this function without any of the employees knowing. On McCarthy’s first day, Purvis was out of town. McCarthy entered the establishment and introduced himself to the employees as their new boss. The arrangement between Purvis and McCarthy consisted of being paid a straight salary along with a percentage of the amount he saves the business per month. This percentage of savings...
Words: 327 - Pages: 2
...EQUITY THEORY Adams' Equity Theory calls for a fair balance to be struck between an employee's inputs (hard work, skill level, tolerance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition (and so on). 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. HISTORY Equity theory proposes that individuals who perceive themselves as either under-rewarded or over-rewarded will experience distress, and that this distress leads to efforts to restore equity within the relationship. It focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratios of contributions and benefits of each person within the relationship. Partners do not have to receive equal benefits (such as receiving the same amount of love, care, and financial security) or make equal contributions (such as investing the same amount of effort, time, and financial resources), as long as the ratio between these benefits and contributions is similar. Much like other prevalent theories of motivation, such as Maslow’s hierarchy of needs, equity theory acknowledges that subtle and variable individual factors affect each person’s assessment and perception of their relationship with their relational partners (Guerrero et al., 2007). According to Adams (1965), anger...
Words: 1559 - Pages: 7
...The theory of equity is to motivate people to seek social equity in the rewards they receive for their performance. This relates to The Parlor in several different ways. The Parlor was developed as a restaurant aimed at providing service and atmosphere from the roaring twenties. The service aspect of the restaurant consisted of accents from the twenties like an old time piano mechanically driven to play music. They specialized in old time fountain sodas and ice cream sundaes. Overall they had a high quality of food and service. Owned and managed by Richard Purvis in San Francisco, The Parlor has grown steadily during the last seven years. With such an incline in business, Purvis decided to hire a manager. Purvis also wanted to try to devote more time to developing additional business ideas. With new business ideas in mind, Purvis went through a month of recruitment and interviewing. After careful selection he chose Paul McCarthy, an experienced supervisor at a local establishment. A downfall to the hiring process was that Purvis decided to complete this function without any of the employees knowing. On McCarthy’s first day, Purvis was out of town. McCarthy entered the establishment and introduced himself to the employees as their new boss. The arrangement between Purvis and McCarthy consisted of being paid a straight salary along with a percentage of the amount he saves the business per month. This percentage of savings is based off of the previous month’s...
Words: 1638 - Pages: 7
...Equity-Theorie = Theorie zum Gleichheitsprinzip der Gerechtigkeit ist eine Prozesstheorie von John Stacey Adams in der Sozialpsychologie versucht zu erklären, wie der Entstehungsprozess der Motivation verläuft Definition Motivation Motivation betrifft die Begründung des Verhaltens. Sie bestimmt die Intensität, Richtung, und Form des Handelns. Motivation entsteht immer dann, wenn eine Person in einer bestimmten Situation Anreize wahrnimmt, wodurch Motive aktiviert werden und zu einem bestimmten Verhalten führen. Motivation wird somit als Wechselwirkung zwischen motivierter Person und motivierender Situation verstanden. Für die BWL ist von Interesse festzustellen, welche Motive bei den Mitarbeitern zu bestimmten Arbeitsleistungen führen und wie diese Motive beeinflusst werden können. Das Motivationsphänomen hilft also bei Beantwortung der Frage, warum Menschen ein bestimmtes Verhalten in konkreten Situationen aufweisen. Ausgangspunkt sind dabei die Motive. Man unterscheidet zwischen - extrinsischen Motiven (z.B. Bezahlung) - intrinsischen Motiven (z.B. Erfolgswille) Definition Motiv Mangel, der den Organismus veranlasst, nach Mitteln und Wegen zu suchen, die geeignet erscheinen, diesen Zustand zu beseitigen. Man unterscheidet primäre (physiologische) Motive, wie z.B. Hunger, Durst, Furcht und Sexualität, sowie sekundäre (soziale) Motive, wie z.B. die Bedürfnisse nach Anerkennung, Macht oder Selbstverwirklichung. Es gibt 2 Motivationstheorien:...
Words: 1265 - Pages: 6
...Leadership qualities: Equity theory I. Relevant facts * Equity theory was coined by John Stacey Adams in 1963 on job motivation * It does not concentrate on the “individual self,” but includes the other employees * The “self” compares him or herself with other employees in the organization * When people feel well treated and appreciated in the job place, they get motivated to perform. * When they are not appreciated, they are demotivated and grow a feeling of disaffection * The equity theory measures the level of fairness in the workplace by comparing an employee to the others * The theory does not look at how the rewards exceed the efforts, but looks at the fairness that a person is getting in the workplace compared to his or her fellow workers * A worker compares the reward/investment ratio and how he or she enjoys being in the workplace * According to the theory, the input to work is not hours only, and the reward is not money only * Employees look at what they put into work, and what they get in return * An employee compares these with the other employees (referents) to determine the fairness * In our case, some employees feel that their counterparts are being favoured. * They feel that their contributions are not equal, and their efforts are not recognized II. Identification of the problems 1. Morgan is failing to perform his duties properly due to lack of motivation and negative influence from co-workers ...
Words: 861 - Pages: 4
...board of the Utah Opera Organization might use the Adams Equity Theory to support the merger. The Adams Equity Theory falls under the process theories of motivation. These theories focus on explaining the process by which internal factors and congnitions influence employee motivation. This theory focuses on the balance or imbalance that exists between an employee's inputs and outputs. Equity exists for employees when they feel their ratio of perceived outcomes to inputs is equal to the ration of outcomes to inputs for a similar coworker. The employee wishes to see employer returns or outputs based on what they input to their job performance. Interactional justice is the last component to this theory and is the extent to which people feel fairly treated when procedures are implemented. This is achieved by managers communicating truthfully and by treating people with courtesy and respect. By recognizing that people have varying sensitivities to perceived equity and inequity and by noting that inequity can be reduced in various ways Bailey can help support the merger. He needs to highlight the mergers ability to showcase a climate for justice therefore he will be able to influence the employee's organizational commitment and job satisfaction. (2)Scott Parker might use Vrooms Expectancy Theory, which also falls under the category of process theories of motivation to convince Mrs. Abravanel to support the merger. This theory states that the motivation of the behavior selection...
Words: 1013 - Pages: 5
...attribution theory, Adams equity theory of motivation and notes that the dilemma is a result of dysfunctional conflict. An informed ethical decision making that incorporates ethical theories is most effective. Management must avoid participating in any activities that compromise the ability to maintain a culture of ethics. Management must lead by example in order to promote ethics in the organization. Ethical leadership and decision making Introduction: Ethical leadership that embraces moral standards is crucial for every organization’s success. Ethical leadership enables an organization to overcome a storm of ethical dilemmas with sound decisions (Toor & Ofori, 2009). Almost each and every organization has been faced with an ethical dilemma to a certain degree. It is therefore management’s duty to lessen the occurrence of ethical dilemmas in the workplace to the extent possible in order to promote employee morale and job performance (Bruhn, 2009). The aim of this paper is to analyze a familiar workplace situation that presented an ethical dilemma and identify possible solutions to the situation followed by recommendations. This paper advocates that management decisions should be advantageous to the organization, sustainable and yet ethical while promoting the right tone in the organization (Bruhn, 2009). Followed by a brief explanation of the situation, the concepts of motivation, perception, conflict and ethical decision making, along with the associated theories and ideas...
Words: 282 - Pages: 2
...adams' equity theory j stacey adams - equity theory on job motivation John Stacey Adams, workplace and behavioural psychologist, put forward his Equity Theory on job motivation in 1963. There are similarities with Charles Handy's extension and interpretation of previous simpler theories of Maslow, Herzberg and other pioneers of workplace psychology, in that the theory acknowledges that subtle and variable factors affect each individual's assessment and perception of their relationship with their work, and thereby their employer. Awareness and cognizance feature more strongly than in earlier models, as does the influence of colleagues and friends, etc, in forming cognizance, and in this particular model, 'a sense of what is fair and reasonable'. adams' equity theory We each seek a fair balance between what we put into our job and what we get out of it. Adams calls these inputs and outputs. We form perceptions of what constitutes a fair balance or trade of inputs and outputs by comparing our own situation with other 'referents' (reference points or examples) in the market place. We are also influenced by colleagues, friends, partners in establishing these benchmarks and our own responses to them in relation to our own ratio of inputs to outputs. Inputs are typically: effort, loyalty, hard work, commitment, skill, ability, adaptability, flexibility, tolerance, determination, heart and soul, enthusiasm, trust in our boss and superiors, support of colleagues and subordinates...
Words: 453 - Pages: 2
...Management 314 Exam 3: Essay Question Due: 11 December 2014 Essay 1: Equity theory is based on the notion that individuals compare their inputs and outcomes with those of relevant others. If inequity is apparent based on the ratios, tension is created amongst individuals and one individual will be motivated to reduce the inequity by working less hard. One of the most important types of equity for compensation is internal equity, which refers to comparisons among jobs inside an organization. Internal equity is determined by comparing the pay rates of each job, bearing in mind the relative net worth of each job to the organization. The compensation committee for an IT company, who is a pay leader, is in the process of creating a pay structure for the company using a point job evaluation system. The job that is currently in question is an entry-level computer engineer. The compensable factors are weighted out of 1000 points and those that have been selected for this job are education (200 pts), experience (200 pts), complexity (250 pts), and responsibility (350 pts). Education is divided into five degrees: Doctorate (200), Masters (150), Bachelors (100), Associates/ Some College (50), High School or less (0). Experience is divided into five degrees: 10+ years of experience (200), 6-9 years of experience (150), 3-5 years of experience (100), 1-2 years of experience (50), little to no experience (0). Complexity is divided into four degrees: very complex (250), complex (150)...
Words: 664 - Pages: 3
...believe that Equal Pay Act plays an indispensable role in designing the salary program and the reasons are as fellows. First and foremost, the importance of Equal Pay Act largely lies in that it plays a part in eliminating discrimination by law. Equal Pay Act, which was issued in 1963, takes the lead in advocating the concept of equal pay for equal work in the Unite States. Therefore, we should conform to the law in the progress of making compensation program. In other words, we should attach importance to regulate the internal alignment piece of compensation program according to law. Secondly, there is no denying that equal pay for equal work persists in maintaining the internal equity, which is one of the most important object of pay management. According to Adams’s equity theory, when employees get paid, they care about not only the absolute amount of the salary but also the relative pay. They will use many kinds of methods to judge whether the salary is reasonable and the result will affect the enthusiasm of employees. Last but not least, equal pay has its great values for improving the company performance in the long run. On the one hand, equal pay can reduce the conflict with employees. On the other hand, equal pay can create a healthy competitive atmosphere. In this case, the pay program can help the company attract, develop, and retain talent. And equal pay will finally increase organizational loyalty and improve work performance. In the light of...
Words: 350 - Pages: 2
...Motivation Theory and Practice Analyze, compare, and contrast the two contemporary theories of motivation (a) equity theory and, (b) expectancy theory. Include in your discussion, an evaluation of each theory and the implications to managers in a global work environment. Your analysis should include identification of the strengths and weaknesses of each theory using scholarly references to defend your arguments. by Tassos Pericleous Student’s Number: 20153386 American College Semester 1 November 2015 Abstract The purpose of this paper was to analyze, compare, and contrast the two contemporary theories of motivation equity theory and, expectancy theory. Evaluate each theory and the implications of the theories to managers in a global work environment. Analysis should include identification of the strengths and weaknesses of each theory using scholarly references to defend your arguments. Motivation is the answer to the question “Why we do what we do?”. The motivation theories try to figure out what the “M” is in the equation: “M motivates P” (Motivator motivates the Person). It is one of most important duty of an entrepreneur to motivate people. Motivation theories can be classified broadly into two different perspectives: Content and Process theories. This paper explores the two contemporary theories of motivation process theories, equity (Adam’s) theory and expectancy (Vroom’s) theory. Analysis of equity theory (a) Equity Theory Equity Theory proposes...
Words: 1700 - Pages: 7
........ 8! A MIDDLE COURSE IN PETRELLA ......................................... 17! CONCLUSION ....................................................................... 18! I. INTRODUCTION The famous Martin Scorsese movie Raging Bull and an ancient doctrine of equity will make a joint appearance later this month at the U.S. Supreme Court. On January 21, 2014, the Court will hear arguments in Petrella v. Metro:Goldwyn:Mayer, Inc.1 The case involves copyright infringement claims about the movie, and about the extent to which those claims are barred by the doctrine of laches. Laches is a defense that was developed by courts of equity, and it is typically raised in cases where a plaintiff has delayed her suit without good reason. Petrella raises two big questions about how laches fits into contemporary American law. One is whether it applies to all claims or only to equitable ones.2 The other is how it is affected by a federal statute of limitations. Is laches displaced, on the theory that Congress has spoken by enacting the statute of limitations, so that it would violate the separation of powers for a court to substitute its own equitable doctrines? Or does laches remain and coexist with the statute of limitations on the theory that Congress legislates against the background of traditional equitable principles? * Assistant Professor, UCLA School of Law. Thanks for comments are due to William Baude, Nathan Chapman, Patrick Goodman, Doug Laycock, Michael McConnell, Seth Barrett Tillman...
Words: 8584 - Pages: 35
