![]() ![]() ![]() Employees create a mental ledger of the inputs and outcomes of their job and then use this ledger to compare the ratio of their inputs and outputs to others. What is the meaning of equity theory?Įquity theory is a theory of motivation that suggests that employee motivation at work is driven largely by their sense of fairness. The theory considers the concept of equality and fairness, as well as the importance of comparison to others. It says that the level of reward we receive, compared to our own sense of our contribution, affects our motivation. Stacey Adams’ equity theory is a process model of motivation. But, what an employee thinks of their current input-output balance can change day-to-day if they think one of their colleagues currently has a better balance between what they give and what they get back. How does equity theory affect the performance of employees?Įquity theory can be a model for measuring how satisfied an employee is in their job. ![]() When applied to the workplace, it means an individual will generally aim to create a balance between what they give to the organization compared to what they get in return. The equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation. What is the equity theory of motivation How does it affect one’s job satisfaction? ![]() In terms of how the theory applies to work and management, we each seek a fair balance between what we put into our job and what we get out of it. Equity theory thus helps explain why pay and conditions alone do not determine motivation. What is the application of Adam’s equity theory of motivation in practice? It’s all about the money According to equity theory, if an employee feels underpaid then it will result in the employee feeling hostile towards the organization and perhaps their co-workers, which may result the employee not performing well at work anymore. What is the relationship between the pay equity theory and the employee’s motivation? Employees who feel that they are receiving inequitable treatment will be emotionally motivated to gain equity. Equity theory shows that inequities (perceived or real) harm employee motivation. Why Adam’s Equity Theory is Important to the Workplace. Why is the equity theory of motivation important? As an example of equity theory, if an employee learns that a peer doing exactly the same job as them is earning more money, then they may choose to do less work, thus creating fairness in their eyes. How can the equity theory motivate employees?Įquity Theory is based on the idea that individuals are motivated by fairness. When it ceases to be the case, individuals may cease to be motivated. ![]()
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