Equity theory is a theory of employee motivation, developed by J. Stacy Adams in the 1960s, that holds employees assess fairness in the workplace by comparing the ratio of their own inputs, such as effort, skill, and time, to their own outcomes, such as pay and recognition, against the equivalent ratio for a comparison other, often a coworker in a similar role. According to the theory, employees who perceive their ratio as unfairly low relative to others experience distress and are motivated to restore equity, whether by reducing their own effort, seeking greater rewards, or changing their point of comparison. Equity theory remains widely taught in organizational behavior as one of the process theories of motivation, contrasted with content theories such as Maslow's or Herzberg's.
Facts
Core ClaimEquity theory holds that individuals compare the ratio of their own inputs and outcomes to that of others, and perceived inequity in that ratio causes distress and motivates efforts to restore fairness. 1 Cross-Tradition Connections
Associated With
Equity theory and expectancy theory are the two classic process theories of workplace motivation, taught side by side.
Sources
1. Wikipedia, Equity Theory
WikipediaWikipedia, Equity theory lead sectionQuote, Wikipedia, Equity theory lead section
Equity is measured by comparing the ratio of contributions (or costs) and benefits (or rewards) for each person within an organization or social context.
1. Wikipedia, Equity Theory
WikipediaWikipedia, Equity theory Background sectionQuote, Wikipedia, Equity theory Background section
According to Adams in 1965, anger is induced by underpayment inequity and guilt is induced with overpayment equity.
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