2. Equity theory of motivation by Stacy Adams is
based on the social exchange process.
Employees seek to maintain equity between the
inputs and the outcomes.
The structure of equity in the workplace is based on
the ratio of inputs to outcomes.
3. Individuals make contributions(inputs) for
which they expect certain rewards(outcomes).
Social comparison.
Employees who perceive themselves as being in
an inequitable scenario will attempt to reduce the
Inequity.
4. S Input r Input
S Outcome Versus r Outcome
I= Inputs – employees contribution to employer
O= Outcomes – the individual gets in return for his
contribution
R= Referent – Comparison person
S= Subject – the employee who is judging fairness
of the exchange
5.
6. 1.EQUITY:
A person feels equitably treated when his outcome/input ratio is
equal to other person’s outcome/input ratio.
2.UNDER REWARDED INEQUITY/ NEGATIVE INEQUITY:
A person feels under rewarded when his outcome/input ratio is
less than to whom the person compare himself.
3.OVER REWARDED INEQUITY/ POSITIVE INEQUITY:
A person feels over rewarded when his outcome/input ratio is greater
than to whom the person compare himself.
7.
8. * Changing his/her inputs
* Changing his/her outcomes
* Changing perception about inputs and outcomes
* Changing inputs and outcomes of others
* Changing the persons compared
* Leaving the situation
9. Organisational Justice- An overall perception of what
is fair in the workplace.
Distributive Justice- Perceived fairness of the amount
and allocation of reward among individuals.
Procedural Justice- Perceived fairness of the process
used to determine the distribution of rewards.
Interactional Justice- Perceived degree to which an
individual is treated with diginity,concern and respect.
10. *It is difficult to assess the perception of people about
input/outcomes relationships.
*Equity is a matter of comparison.
*The theory does not specify the action that a person will
take to re-establish equity if he perceives inequity.
11. Equity theory helps manager and policy-makers to
appreciate that while improving one person’s terms and
condition can resolve that individual demands (for a
while) if the change is perceived by other people to
upset equity of their own situations then the solution
can easily generate for more problems than it attempt
to fix.
