Equity Theory
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- Words: 362
- Pages: 9
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By John Stacey Adam in 1962
People value fair treatment which causes them to be motivated
A fair balance to be struck between an employee’s inputs and an employee’s outputs.
Keep the fairness maintained within the relationships of their co-workers and the organization.
3
If the employees feel as though their inputs are greater than the outputs, they become demotivated.
Being equal.
Acceptable for a more senior colleague to receive higher compensation.
Roles of Justice 4
individual ' s outcomes partner's outcomes individual ' s own inputs partner's inputs
If both employees were perhaps rewarded the same, it would help the workforce realize that the organization is fair, observant, and appreciative.
Roles of Justice 5
Adaptability
Flexibility
Effort
Ability
Tolerance
Personal sacrifice, etc.
Loyalty
Skill
Determination
Support of colleagues
Hard Work
Commitment
Enthusiasm
Trust in superiors
Inputs :
6
Financial Rewards
Intangible Salary Benefit Perks
Recognition Reputation Responsibility
Sense of Achievement Praise Stimulus Sense of Advancement/Growth Job Security
Equity theory 7
Reference:
http://en.wikipedia.org/wiki/Equity_theory
http://www.timeanalyzer.com/lib/ioequity.htm
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2
By John Stacey Adam in 1962
People value fair treatment which causes them to be motivated
A fair balance to be struck between an employee’s inputs and an employee’s outputs.
Keep the fairness maintained within the relationships of their co-workers and the organization.
3
If the employees feel as though their inputs are greater than the outputs, they become demotivated.
Being equal.
Acceptable for a more senior colleague to receive higher compensation.
Roles of Justice 4
individual ' s outcomes partner's outcomes individual ' s own inputs partner's inputs
If both employees were perhaps rewarded the same, it would help the workforce realize that the organization is fair, observant, and appreciative.
Roles of Justice 5
Adaptability
Flexibility
Effort
Ability
Tolerance
Personal sacrifice, etc.
Loyalty
Skill
Determination
Support of colleagues
Hard Work
Commitment
Enthusiasm
Trust in superiors
Inputs :
6
Financial Rewards
Intangible Salary Benefit Perks
Recognition Reputation Responsibility
Sense of Achievement Praise Stimulus Sense of Advancement/Growth Job Security
Equity theory 7
Reference:
http://en.wikipedia.org/wiki/Equity_theory
http://www.timeanalyzer.com/lib/ioequity.htm
8
Q u e s t i o n s ? ? ?
Q u e s t i o n s ? ? ?
Q u e s t i o n s ? ? ?
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