The document discusses motivation theories including Vroom's Expectancy Theory and Equity Theory developed by John Stacey Adams in 1963. Equity Theory proposes that employees seek to maintain fairness or equity between the inputs they bring to their job and the outcomes they receive compared to others. When employees perceive inequity between their input-outcome ratio and others, the theory predicts they will take actions to restore equity such as changing inputs/outcomes, distorting perceptions, or leaving their job.

1. Dr. NITIN SHARMA
ASSISTANT PROFESSOR-HR, TIMSR
MUMBAI

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6. MOTIVATION PROCESS
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10. • You have to tell in the class
about the content theory
and process theory verbally.
To make impact on
students.
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25. • Vroom realized that employee’s performance is
based on individual factors.
(Personality, Skills, Knowledge, Experience)
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27. EQUITY THEORY
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28. John Stacey Adams (1963)
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29. 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
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30. 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.
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31. 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
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32. 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
By: Dr NITIN SHARMA