Workplace motivation differs from employee to employee. For some employees, motivation means money, status, etc. Show
For others, it is about doing their best and becoming the star performer. Many business leaders have invested their time to understand employee perception and theories of motivation. They test these theories in the workplace to learn how it affects employee productivity and efficiency. One such motivation theory is Equity Theory, and this article will shed some light upon it. But before we go in-depth, let’s understand: What is Adam’s Equity Theory of Motivation?Equity Theory, otherwise known as the Equity Theory of Motivation, was introduced in 1963 by John Stacey Adams, a workplace behavioral psychologist. It is based on a simple idea. A succesful workplace can enhance team motivation by treating everyone with respect and dignity. According to Adam’s Equity Theory of motivation, employees who identify a situation of inequality between them and their peers will feel demotivated and distressed. 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. The theory also indicates that the higher the level of equity (fairness) amongst employees, the higher the level of motivation. Similarly, the prime reason for employee demotivation is inequity. Also Read: Employee Motivation: A Comprehensive Guide Understanding Adam’s Equity Theory of Motivation in the WorkplaceIf we were to understand Adam’s Equity Theory fully, we must know the inputs and outputs of employees first. Inputs are nothing but the things an employee does to achieve the outputs. Inputs are nothing but every small or significant contribution employees make towards the organization. For instance: Inputs include:
Whereas outputs, commonly referred to as outcomes, are what the employee receives because of their inputs in the organization. Some of them are tangible benefits like salary or intangible benefits like flexible working hours and recognition. Some of the typical outputs are:
We can clearly define equity now that we understand the basics of inputs and outputs.. The definition of equity is an employee’s outputs divided by their inputs. But Adam’s Equity Theory is a level-up and mentions that individuals do not measure equity in isolation. Instead, they compare with their peers. If they come across an inequitable situation, they tend to adjust their inputs to maintain balance. To maintain the balance, employees constantly regulate their inputs. Let's say X and Y have identical inputs. But, the output of Y is vastly larger than that of X. Thus, X would feel highly demotivated. Also, employees will have to give better inputs if their outputs are more significant than their colleagues doing the same job. Employees’ perception of equity depends on how their managers treat them by giving them equal respect and opportunities. How To Compare: Referent GroupsA referent group is a group of people a person uses for comparison. As per Adam’s Equity Theory, there are four significant referent groups people tend to compare themselves with.
Let’s have a look at this with an example to understand better.
Surprisingly, the Equity Theory of Motivation in the workplace is applicable when employees compare themselves to people in absolute opposite job roles and significant salary differences. For instance, let’s take the example of a UX Designer. They might compare themselves to the CEO, who earns much higher than them. How can this seem fair to you? Well, here’s the answer! Employees determine their inputs to be very different. They will see that even though they have a lesser salary than the CEO, they have an excellent work-life balance. They might know the CEO is traveling very often for client meetings, work long hours even on weekends, and deals with tremendous stress. In such a situation, employees console themselves to see the fairness established in their minds. As a leader or a manager, keep in mind, Equity Theory is applicable in a broad sense. Every employee responds to inequitable relationships in their unique way. Equity Theory Examples in the WorkplaceOne can identify Equity Theory in the workplace by overhearing conversations among their colleagues and peers. Generally, employees compare themselves with people who get higher salaries than them. Equity Theory comes into existence when you hear things like:
With these examples, we can see employees comparing their remuneration and contribution with others. However, salary comparison is a common practice amongst employees. There are other types of comparison like learning opportunities, work from home opportunities, flexibility, etc. Critical Points for Managers to Keep in MindHere are some essential things to keep in mind to understand equity theory in the workplace if you’re managing a team:
Managers must also keep track of options available to the ti reduce inequality and partiality in the workplace. They are:
Equity Theory- SummaryOverall, Adam’s Equity Theory of Motivation indicates that employees can attain higher motivation when every employee gets equal and fair opportunities. It is common for employees to compare themselves to other employees from inside and outside the organization. They compare their total of all inputs against the sum of all outputs. If they see inequality and unfairness, they will lower their inputs to compensate. They will choose to work more or work less depending on the positivity or negativity of the situation. This article is written by Gautam Gayan. He works as a Content Marketer at Vantage Circle. Apart from being a passionate content creator for HR services and employee engagement, Gautam is a theatre enthusiast, an avid reader and an aspiring poet. For any related queries, contact [email protected] What is Adams equity theory about?Adams' Equity Theory calls for a fair balance to be struck between an employee's "inputs" (hard work, skill level, acceptance, enthusiasm, and so on) and their "outputs" (salary, benefits, intangibles such as recognition, and more).
How can the experience of equity or inequity as described by adams impact on the motivation of independent workers?According to Adams' theory, inequity will eventually lead to dissatisfaction, either in the form of anger (when the employee is under-rewarded), or guilt (when the employee is over-rewarded). If the employee finds himself in the first situation, he or she might reduce efforts or will start to complain.
How would equity theory account for the behavior of the employees?Equity theory says that employees view a situation as equitable when employees who give similar inputs receive similar outcomes. When the rewards differ for the same degree of effort, employees view the situation as inequitable.
What are the results of inequality based on equity theory?The more inequitable the relationship, the more distress they will feel. According to equity theory, the person who gets “too much” and the person who gets “too little” both feel distressed. The person who gets too much may feel guilt or shame. The person who gets too little may feel angry or humiliated.
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