SlideShare a Scribd company logo
EQUITY THEORY
Akash Patil
CMBA4
Introduction to Equity Theory
• First developed in 1963 by John Stacey Adams
• Employees seek to maintain equity between the
inputs that they bring to a job and the outcomes that
they receive from it against the perceived inputs and
outcomes of others.
• The structure of equity in the workplace is based on
the ratio of inputs to outcomes
Equity Theory
1)Equity:
A person feels equitably treated when his outcome/input ratio
is equal to other person’s outcome/input ratio.
Individual’s outcome = Other’s outcome
Individual’s input Other’s input
Equitably paid workers are said to feel satisfied.
Equity Theory
2)Under rewarded inequity / Negative inequity:
A person feels under rewarded when his outcome/input ratio is
less than whom the person compare himself.
Individual’s outcome < Other’s outcome
Individual’s input Other’s input
Equity theory states that an underpaid worker feels angry.
3)Over rewarded inequity /Positive inequity:
A person feels over rewarded when his outcome/input ratio is
greater than whom the person compare himself.
Individual’s outcome > Other’s outcome
Individual’s input Other’s input
Equity theory states that an overpaid worker produce higher
quality.
Inputs & Outputs
Inputs
• Individual’s contribution to
an Organization.
• Time
• Effort
• Loyalty
• Hardwork
• Commitment
• Abilities
Outputs
• Organization’s return to an
Individual.
• Job Security
• Salary
• Employee benefits
• Recognition
• Reputation
• Sense of achievement
Consequences of Inequity
Based on equity theory, when employees
perceive an inequity, they can be predicted to
make one of six choices.
•They change their inputs.
•They change their outcomes
•They distort perceptions of self
•They distort perceptions of others
•They choose a different referent
•They leave the field
References
• Robbins, S.P- Organisational Behaviour.
pg. 183.
• Schultz, K., Schoenherr, Nembhard, D. (2006).
Equity theory effects on worker motivation and
speed on an assembly line. Retrieved from:
http://www.hbs.edu/units/tom/pdf/kschultz.pdf
THANK YOU FOR YOUR ATTENTION!

More Related Content

Viewers also liked

2012 and We're STILL Using PowerPoint Wrong
2012 and We're STILL Using PowerPoint Wrong2012 and We're STILL Using PowerPoint Wrong
2012 and We're STILL Using PowerPoint Wrong
The Presentation Designer
 
How to stand out online
How to stand out onlineHow to stand out online
How to stand out online
Mars Dorian
 
Your Speech is Toxic
Your Speech is ToxicYour Speech is Toxic
Your Speech is Toxic
Chiara Ojeda
 
Great Speakers Tell Stories
Great Speakers Tell StoriesGreat Speakers Tell Stories
Great Speakers Tell Stories
Slides That Rock
 
Slides That Rock
Slides That RockSlides That Rock
Slides That Rock
Slides That Rock
 
SMOKE - The Convenient Truth [1st place Worlds Best Presentation Contest] by ...
SMOKE - The Convenient Truth [1st place Worlds Best Presentation Contest] by ...SMOKE - The Convenient Truth [1st place Worlds Best Presentation Contest] by ...
SMOKE - The Convenient Truth [1st place Worlds Best Presentation Contest] by ...
Empowered Presentations
 
State of the Word 2011
State of the Word 2011State of the Word 2011
State of the Word 2011
photomatt
 

Viewers also liked (7)

2012 and We're STILL Using PowerPoint Wrong
2012 and We're STILL Using PowerPoint Wrong2012 and We're STILL Using PowerPoint Wrong
2012 and We're STILL Using PowerPoint Wrong
 
How to stand out online
How to stand out onlineHow to stand out online
How to stand out online
 
Your Speech is Toxic
Your Speech is ToxicYour Speech is Toxic
Your Speech is Toxic
 
Great Speakers Tell Stories
Great Speakers Tell StoriesGreat Speakers Tell Stories
Great Speakers Tell Stories
 
Slides That Rock
Slides That RockSlides That Rock
Slides That Rock
 
SMOKE - The Convenient Truth [1st place Worlds Best Presentation Contest] by ...
SMOKE - The Convenient Truth [1st place Worlds Best Presentation Contest] by ...SMOKE - The Convenient Truth [1st place Worlds Best Presentation Contest] by ...
SMOKE - The Convenient Truth [1st place Worlds Best Presentation Contest] by ...
 
State of the Word 2011
State of the Word 2011State of the Word 2011
State of the Word 2011
 

Similar to Equitytheory 141229043856-conversion-gate02

Equity theory- Mohit Bhat
Equity theory- Mohit BhatEquity theory- Mohit Bhat
Equity theory- Mohit Bhat
vickyricky
 
equity_1.ppt
equity_1.pptequity_1.ppt
equity_1.ppt
EstelaMarieBarrete
 
Equity theory
Equity theoryEquity theory
Equity theory
Biswajit sahoo
 
Equity theory
Equity theoryEquity theory
equity theory of motivation
equity theory of motivationequity theory of motivation
equity theory of motivation
Jyoti Kandpal
 
Two factor theory, expectancy theory, equity theory
Two factor theory, expectancy theory, equity theoryTwo factor theory, expectancy theory, equity theory
Two factor theory, expectancy theory, equity theory
abdullahugo
 
Motivation management_equity theory (Ha Mai, New Zealand)
Motivation management_equity theory (Ha Mai, New Zealand)Motivation management_equity theory (Ha Mai, New Zealand)
Motivation management_equity theory (Ha Mai, New Zealand)
Mai Ha
 
Organizational Behavior : Motivation
Organizational Behavior : Motivation Organizational Behavior : Motivation
Organizational Behavior : Motivation
Dr Kiran Kakade
 
Equity Theory of Adams.pptx
Equity Theory of Adams.pptxEquity Theory of Adams.pptx
Equity Theory of Adams.pptx
CharlemagneGravidez1
 
Mbo,equity and expectancy theory
Mbo,equity and expectancy theoryMbo,equity and expectancy theory
Mbo,equity and expectancy theory
Ace Ahmer
 
Motivation
MotivationMotivation
Equity Theory of Motivation
Equity Theory of MotivationEquity Theory of Motivation
Equity Theory of Motivation
Simran Agrawal
 
OB Motivation.ppt
OB Motivation.pptOB Motivation.ppt
OB Motivation.ppt
ShreyanshJain602904
 
OB Motivation.ppt
OB Motivation.pptOB Motivation.ppt
OB Motivation.ppt
ShreyanshJain602904
 
Principi del Management: 12^ - Motivazione
Principi del Management: 12^ - MotivazionePrincipi del Management: 12^ - Motivazione
Principi del Management: 12^ - Motivazione
Manager.it
 
Motivational Theories.pptx
Motivational Theories.pptxMotivational Theories.pptx
Motivational Theories.pptx
rahilaali9
 
Equity theory
Equity theoryEquity theory
Equity theory
Pramodh Sherla
 
Theories of Motivation
Theories of MotivationTheories of Motivation
Theories of Motivation
agrawal24
 
Pay Structure Decision
Pay Structure DecisionPay Structure Decision
Pay Structure Decision
Talha Jalal
 
Organizational justice
Organizational justiceOrganizational justice
Organizational justice
Dr. Anugamini Priya
 

Similar to Equitytheory 141229043856-conversion-gate02 (20)

Equity theory- Mohit Bhat
Equity theory- Mohit BhatEquity theory- Mohit Bhat
Equity theory- Mohit Bhat
 
equity_1.ppt
equity_1.pptequity_1.ppt
equity_1.ppt
 
Equity theory
Equity theoryEquity theory
Equity theory
 
Equity theory
Equity theoryEquity theory
Equity theory
 
equity theory of motivation
equity theory of motivationequity theory of motivation
equity theory of motivation
 
Two factor theory, expectancy theory, equity theory
Two factor theory, expectancy theory, equity theoryTwo factor theory, expectancy theory, equity theory
Two factor theory, expectancy theory, equity theory
 
Motivation management_equity theory (Ha Mai, New Zealand)
Motivation management_equity theory (Ha Mai, New Zealand)Motivation management_equity theory (Ha Mai, New Zealand)
Motivation management_equity theory (Ha Mai, New Zealand)
 
Organizational Behavior : Motivation
Organizational Behavior : Motivation Organizational Behavior : Motivation
Organizational Behavior : Motivation
 
Equity Theory of Adams.pptx
Equity Theory of Adams.pptxEquity Theory of Adams.pptx
Equity Theory of Adams.pptx
 
Mbo,equity and expectancy theory
Mbo,equity and expectancy theoryMbo,equity and expectancy theory
Mbo,equity and expectancy theory
 
Motivation
MotivationMotivation
Motivation
 
Equity Theory of Motivation
Equity Theory of MotivationEquity Theory of Motivation
Equity Theory of Motivation
 
OB Motivation.ppt
OB Motivation.pptOB Motivation.ppt
OB Motivation.ppt
 
OB Motivation.ppt
OB Motivation.pptOB Motivation.ppt
OB Motivation.ppt
 
Principi del Management: 12^ - Motivazione
Principi del Management: 12^ - MotivazionePrincipi del Management: 12^ - Motivazione
Principi del Management: 12^ - Motivazione
 
Motivational Theories.pptx
Motivational Theories.pptxMotivational Theories.pptx
Motivational Theories.pptx
 
Equity theory
Equity theoryEquity theory
Equity theory
 
Theories of Motivation
Theories of MotivationTheories of Motivation
Theories of Motivation
 
Pay Structure Decision
Pay Structure DecisionPay Structure Decision
Pay Structure Decision
 
Organizational justice
Organizational justiceOrganizational justice
Organizational justice
 

Recently uploaded

2024: The FAR - Federal Acquisition Regulations, Part 40
2024: The FAR - Federal Acquisition Regulations, Part 402024: The FAR - Federal Acquisition Regulations, Part 40
2024: The FAR - Federal Acquisition Regulations, Part 40
JSchaus & Associates
 
PPT Item # 7 - 231 Encino Avenue (sign. review)
PPT Item # 7 - 231 Encino Avenue (sign. review)PPT Item # 7 - 231 Encino Avenue (sign. review)
PPT Item # 7 - 231 Encino Avenue (sign. review)
ahcitycouncil
 
Researching the client.pptxsxssssssssssssssssssssss
Researching the client.pptxsxssssssssssssssssssssssResearching the client.pptxsxssssssssssssssssssssss
Researching the client.pptxsxssssssssssssssssssssss
DanielOliver74
 
PPT Item # 4 - 434 College Blvd. (sign. review)
PPT Item # 4 - 434 College Blvd. (sign. review)PPT Item # 4 - 434 College Blvd. (sign. review)
PPT Item # 4 - 434 College Blvd. (sign. review)
ahcitycouncil
 
Milton Keynes Hospital Charity - A guide to leaving a gift in your Will
Milton Keynes Hospital Charity - A guide to leaving a gift in your WillMilton Keynes Hospital Charity - A guide to leaving a gift in your Will
Milton Keynes Hospital Charity - A guide to leaving a gift in your Will
fundraising4
 
原版制作(Hope毕业证书)利物浦霍普大学毕业证文凭证书一模一样
原版制作(Hope毕业证书)利物浦霍普大学毕业证文凭证书一模一样原版制作(Hope毕业证书)利物浦霍普大学毕业证文凭证书一模一样
原版制作(Hope毕业证书)利物浦霍普大学毕业证文凭证书一模一样
ii2sh2v
 
快速办理(Bristol毕业证书)布里斯托大学毕业证Offer一模一样
快速办理(Bristol毕业证书)布里斯托大学毕业证Offer一模一样快速办理(Bristol毕业证书)布里斯托大学毕业证Offer一模一样
快速办理(Bristol毕业证书)布里斯托大学毕业证Offer一模一样
3woawyyl
 
Practical guide for the celebration of World Environment Day on june 5th.
Practical guide for the  celebration of World Environment Day on  june 5th.Practical guide for the  celebration of World Environment Day on  june 5th.
Practical guide for the celebration of World Environment Day on june 5th.
Christina Parmionova
 
Awaken new depths - World Ocean Day 2024, June 8th.
Awaken new depths - World Ocean Day 2024, June 8th.Awaken new depths - World Ocean Day 2024, June 8th.
Awaken new depths - World Ocean Day 2024, June 8th.
Christina Parmionova
 
Antyodaya saral portal haryana govt schemes
Antyodaya saral portal haryana govt schemesAntyodaya saral portal haryana govt schemes
Antyodaya saral portal haryana govt schemes
narinav14
 
Item #s 8&9 -- Demolition Code Amendment
Item #s 8&9 -- Demolition Code AmendmentItem #s 8&9 -- Demolition Code Amendment
Item #s 8&9 -- Demolition Code Amendment
ahcitycouncil
 
TRUE BOOK OF LIFE 1.15 OF TRUE JESUS CHRIST
TRUE BOOK OF LIFE 1.15 OF TRUE JESUS CHRISTTRUE BOOK OF LIFE 1.15 OF TRUE JESUS CHRIST
TRUE BOOK OF LIFE 1.15 OF TRUE JESUS CHRIST
Cheong Man Keong
 
karnataka housing board schemes . all schemes
karnataka housing board schemes . all schemeskarnataka housing board schemes . all schemes
karnataka housing board schemes . all schemes
narinav14
 
Contributi dei parlamentari del PD - Contributi L. 3/2019
Contributi dei parlamentari del PD - Contributi L. 3/2019Contributi dei parlamentari del PD - Contributi L. 3/2019
Contributi dei parlamentari del PD - Contributi L. 3/2019
Partito democratico
 
PPT Item # 8&9 - Demolition Code Amendments
PPT Item # 8&9 - Demolition Code AmendmentsPPT Item # 8&9 - Demolition Code Amendments
PPT Item # 8&9 - Demolition Code Amendments
ahcitycouncil
 
Item # 10 -- Historical Presv. Districts
Item # 10 -- Historical Presv. DistrictsItem # 10 -- Historical Presv. Districts
Item # 10 -- Historical Presv. Districts
ahcitycouncil
 
Border towns and spaces of (in)visibility.pdf
Border towns and spaces of (in)visibility.pdfBorder towns and spaces of (in)visibility.pdf
Border towns and spaces of (in)visibility.pdf
Scalabrini Institute for Human Mobility in Africa
 
G7 Apulia Leaders Communique, 14th June 2024
G7 Apulia Leaders Communique, 14th June 2024G7 Apulia Leaders Communique, 14th June 2024
G7 Apulia Leaders Communique, 14th June 2024
Energy for One World
 
快速办理(UVM毕业证书)佛蒙特大学毕业证学位证一模一样
快速办理(UVM毕业证书)佛蒙特大学毕业证学位证一模一样快速办理(UVM毕业证书)佛蒙特大学毕业证学位证一模一样
快速办理(UVM毕业证书)佛蒙特大学毕业证学位证一模一样
yemqpj
 
RFP for Reno's Community Assistance Center
RFP for Reno's Community Assistance CenterRFP for Reno's Community Assistance Center
RFP for Reno's Community Assistance Center
This Is Reno
 

Recently uploaded (20)

2024: The FAR - Federal Acquisition Regulations, Part 40
2024: The FAR - Federal Acquisition Regulations, Part 402024: The FAR - Federal Acquisition Regulations, Part 40
2024: The FAR - Federal Acquisition Regulations, Part 40
 
PPT Item # 7 - 231 Encino Avenue (sign. review)
PPT Item # 7 - 231 Encino Avenue (sign. review)PPT Item # 7 - 231 Encino Avenue (sign. review)
PPT Item # 7 - 231 Encino Avenue (sign. review)
 
Researching the client.pptxsxssssssssssssssssssssss
Researching the client.pptxsxssssssssssssssssssssssResearching the client.pptxsxssssssssssssssssssssss
Researching the client.pptxsxssssssssssssssssssssss
 
PPT Item # 4 - 434 College Blvd. (sign. review)
PPT Item # 4 - 434 College Blvd. (sign. review)PPT Item # 4 - 434 College Blvd. (sign. review)
PPT Item # 4 - 434 College Blvd. (sign. review)
 
Milton Keynes Hospital Charity - A guide to leaving a gift in your Will
Milton Keynes Hospital Charity - A guide to leaving a gift in your WillMilton Keynes Hospital Charity - A guide to leaving a gift in your Will
Milton Keynes Hospital Charity - A guide to leaving a gift in your Will
 
原版制作(Hope毕业证书)利物浦霍普大学毕业证文凭证书一模一样
原版制作(Hope毕业证书)利物浦霍普大学毕业证文凭证书一模一样原版制作(Hope毕业证书)利物浦霍普大学毕业证文凭证书一模一样
原版制作(Hope毕业证书)利物浦霍普大学毕业证文凭证书一模一样
 
快速办理(Bristol毕业证书)布里斯托大学毕业证Offer一模一样
快速办理(Bristol毕业证书)布里斯托大学毕业证Offer一模一样快速办理(Bristol毕业证书)布里斯托大学毕业证Offer一模一样
快速办理(Bristol毕业证书)布里斯托大学毕业证Offer一模一样
 
Practical guide for the celebration of World Environment Day on june 5th.
Practical guide for the  celebration of World Environment Day on  june 5th.Practical guide for the  celebration of World Environment Day on  june 5th.
Practical guide for the celebration of World Environment Day on june 5th.
 
Awaken new depths - World Ocean Day 2024, June 8th.
Awaken new depths - World Ocean Day 2024, June 8th.Awaken new depths - World Ocean Day 2024, June 8th.
Awaken new depths - World Ocean Day 2024, June 8th.
 
Antyodaya saral portal haryana govt schemes
Antyodaya saral portal haryana govt schemesAntyodaya saral portal haryana govt schemes
Antyodaya saral portal haryana govt schemes
 
Item #s 8&9 -- Demolition Code Amendment
Item #s 8&9 -- Demolition Code AmendmentItem #s 8&9 -- Demolition Code Amendment
Item #s 8&9 -- Demolition Code Amendment
 
TRUE BOOK OF LIFE 1.15 OF TRUE JESUS CHRIST
TRUE BOOK OF LIFE 1.15 OF TRUE JESUS CHRISTTRUE BOOK OF LIFE 1.15 OF TRUE JESUS CHRIST
TRUE BOOK OF LIFE 1.15 OF TRUE JESUS CHRIST
 
karnataka housing board schemes . all schemes
karnataka housing board schemes . all schemeskarnataka housing board schemes . all schemes
karnataka housing board schemes . all schemes
 
Contributi dei parlamentari del PD - Contributi L. 3/2019
Contributi dei parlamentari del PD - Contributi L. 3/2019Contributi dei parlamentari del PD - Contributi L. 3/2019
Contributi dei parlamentari del PD - Contributi L. 3/2019
 
PPT Item # 8&9 - Demolition Code Amendments
PPT Item # 8&9 - Demolition Code AmendmentsPPT Item # 8&9 - Demolition Code Amendments
PPT Item # 8&9 - Demolition Code Amendments
 
Item # 10 -- Historical Presv. Districts
Item # 10 -- Historical Presv. DistrictsItem # 10 -- Historical Presv. Districts
Item # 10 -- Historical Presv. Districts
 
Border towns and spaces of (in)visibility.pdf
Border towns and spaces of (in)visibility.pdfBorder towns and spaces of (in)visibility.pdf
Border towns and spaces of (in)visibility.pdf
 
G7 Apulia Leaders Communique, 14th June 2024
G7 Apulia Leaders Communique, 14th June 2024G7 Apulia Leaders Communique, 14th June 2024
G7 Apulia Leaders Communique, 14th June 2024
 
快速办理(UVM毕业证书)佛蒙特大学毕业证学位证一模一样
快速办理(UVM毕业证书)佛蒙特大学毕业证学位证一模一样快速办理(UVM毕业证书)佛蒙特大学毕业证学位证一模一样
快速办理(UVM毕业证书)佛蒙特大学毕业证学位证一模一样
 
RFP for Reno's Community Assistance Center
RFP for Reno's Community Assistance CenterRFP for Reno's Community Assistance Center
RFP for Reno's Community Assistance Center
 

Equitytheory 141229043856-conversion-gate02

  • 2. Introduction to Equity Theory • First developed in 1963 by John Stacey Adams • Employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others. • The structure of equity in the workplace is based on the ratio of inputs to outcomes
  • 3. Equity Theory 1)Equity: A person feels equitably treated when his outcome/input ratio is equal to other person’s outcome/input ratio. Individual’s outcome = Other’s outcome Individual’s input Other’s input Equitably paid workers are said to feel satisfied.
  • 4. Equity Theory 2)Under rewarded inequity / Negative inequity: A person feels under rewarded when his outcome/input ratio is less than whom the person compare himself. Individual’s outcome < Other’s outcome Individual’s input Other’s input Equity theory states that an underpaid worker feels angry. 3)Over rewarded inequity /Positive inequity: A person feels over rewarded when his outcome/input ratio is greater than whom the person compare himself. Individual’s outcome > Other’s outcome Individual’s input Other’s input Equity theory states that an overpaid worker produce higher quality.
  • 5. Inputs & Outputs Inputs • Individual’s contribution to an Organization. • Time • Effort • Loyalty • Hardwork • Commitment • Abilities Outputs • Organization’s return to an Individual. • Job Security • Salary • Employee benefits • Recognition • Reputation • Sense of achievement
  • 6. Consequences of Inequity Based on equity theory, when employees perceive an inequity, they can be predicted to make one of six choices. •They change their inputs. •They change their outcomes •They distort perceptions of self •They distort perceptions of others •They choose a different referent •They leave the field
  • 7. References • Robbins, S.P- Organisational Behaviour. pg. 183. • Schultz, K., Schoenherr, Nembhard, D. (2006). Equity theory effects on worker motivation and speed on an assembly line. Retrieved from: http://www.hbs.edu/units/tom/pdf/kschultz.pdf
  • 8. THANK YOU FOR YOUR ATTENTION!