Equity Theory of Motivation

According to the equity theory, whose founder is Stackey Adams, individuals are satisfied only in cases where their inputs and outputs are equal. According to this theory, employees compare their inputs and outputs with inputs and outputs from other members of the organization (Champagne & McAfee, 1989).

Perhaps employees start with an idea of ​​what inputs and rewards another employee has and then compare them to themselves. If another employee with the same effort at the workplace has the same remuneration, the employee concludes that he has been treated fairly and equally with other employees of the organization, if not it will be considered as an injustice is being done to him in the organization. It should be noted here that in fact there can be equality between workers, but this should not be understood as such by the relevant employee (Champagne & McAfee, 1989).


Figure 1: Equity Theory Relationships

Source: (Robbins, et al., 2013)

Adams proposed this theory, specifically about how employees would behave in response to situations when they are treated less or more fairly than others. The theory suggests that inequitable comparison will lead to tension that will encourage employees to restore equity (for example, increase or decrease labor intensity, quit their job). In the study of the equity theory, it was studied how employees will behave in response to inequity (e.g. job satisfaction) as well as the type of behavior which will result in compensation for inequity such as theft (Robbins, et al., 2013).   

Considering contemporary organization it is identified that Google believes in treating employees well is more important than making a lot of money. Therefore, the equity theory is used to motivate employees. This theory is that employees will be motivated when they recognize that they are being treated fairly. At Google everyone is treated equally, because employees work independently, there is a lot of decentralized control. Every employee has their own voice, and their ideas are respected. Managers do not run after employees and do not force them to work. Employees are allowed to choose which project to work on and can set their own work schedule, which also enhances the idea of ​​equal treatment. As a result, employees perceive that they are treated fairly; that motivates them (William & McWilliams, 2010). 


References

Champagne, P. & McAfee, B., 1989. Motivating strategies for performance and productivity: A duide to human resource development. New York: Quorum Books .

Robbins, S., Cenzo , D. D. & Coulter, M., 2013. Fundamentals of Management: Essential Concepts and Applications. 8th ed. USA: Pearson Education Inc.

Williams, C. & McWilliams, A., 2010. MGMT. 1st ed. South Melbourne, Victoria: Cengage Learning Australia.

Comments

  1. Raveen kulendraAugust 27, 2022 at 7:42 AM

    Hi Reshan, nice blog presented and wish to add -
    Expectancy theory
    Expectancy theory states that motivation will be
    high when people know what they have to do in
    order to get a reward, expect that they will be able
    to get the reward and expect that the reward will be
    worthwhile.
    The concept of expectancy was originally contained in the valency-instrumentality-expectancy
    (VIE) theory that was formulated by Vroom (1964). From the Book of Armstrong 2017.

    ReplyDelete
    Replies
    1. Reshan FernandoSeptember 2, 2022 at 10:12 AM

      Yes Raveen. According to Koontz and Weihrich (1988), expectancy theory recognizes the importance of different individual needs and motivations. This avoids some of the simplistic features of Maslow and Herzberg approaches. It seems more realistic. It helps align an individual's goal with organizational goals. And it is in accordance with the system of management by objectives.

      Delete

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