MOTIVATION

 EQUITY THEORY

Prepared By:

Emily Alo
Perlie Joy Enriquez
MOTIVATION
 is the activation of an energized
goal-oriented behavior. It is seen not
only humans, but even animals show
a level of motivation to achieve their
goals.
Motivation
 Money, is the primary motivating
outcome for an employee, but it is
not the only, and in some cases not
even the most important factor.
Power and status are also prime
motivators.
Equity theory

 Developed by John Stacy Adams.

 When people believe that they have
been treated unfairly in comparison to
others, they try to eliminate the
discomfort and restore a perceived sense
of equity to the situation.
 Perceived inequity.
 Perceived equity.
Equity Theory
 Is a study of human perception in
terms of proportionate equivalence of
the ratio of one person’s inputs to the
results to those of others around him
‘ceteris paribus’.
 A version of discrepancy theory of job
satisfaction focusing on the
discrepancies between what one has
on the job and what one thinks is fair
- what one should have
EQUITY THEORY
 He puts emphasis on the importance
of determining motivation as relative
and not an absolute factor.
 It recognizes the variable factors that
can affect employee’s assessment
and perception of their relationship
with their work and the employer.
EQUITY THEORY
 Was developed on the belief that fair
treatment, or a perception thereof,
motivates people to keep such
fairness maintained within the
relationships of their colleagues and
the organization.
 Equity in the workplace is founded on
the ratio of inputs to outcomes;
Equity Theory
 The Give and Take Relationship

 As input-outcome relationship, the

give and take ratio is the pivotal
aspect of this theory.
 it is trying to balance the perceived
give against the expected take.
 INPUT OUTCOME EQUITY

Salary, allowances,
Skills, efforts, hard work,
perquisites, benefits,
loyalty, determination,
recognition, appreciation, The feeling that the points
dedication, enthusiasm, trust in
responsibility (additional), under INPUT and OUTCOMES
superiors and organization,
promotion, training, are balanced and the
cooperation with
cooperation from organization proportion is equivalent to that
colleagues,support to
and colleagues, sense of of others' (colleagues and
subordinates, tolerance, time,
achievement, growth and peers) INPUT:OUTCOME
personal sacrifice,
development, additional ratios.
commitment, flexibility,
opportunities within
experience, etc.
organization, etc.
Equity Theory
Managerial implications of equity theory—

 Underpaid people experience anger.

 Overpaid people experience guilt.
 Perceptions of rewards determine motivational
outcomes.
 Negative consequences of equity comparisons
should be minimized, if not eliminated.
 Do not underestimate the impact of pay as a
source of equity controversies in the workplace.
 Gender equity.
 Comparable worth
Choices for dealing with inequality
 Change inputs (slack off)
 Change outcomes (increase output)
 Distort/change perceptions of self
 Distort/change perceptions of others
 Choose a different referent person
 Leave the field (quit the job)
Propositions relating to inequitable pay:

 Overrewarded employees produce more than

equitably rewarded employees.
 Overrewarded employees produce less, but do
higher quality piece work.
 Underrewarded hourly employees produce
lower quality work.
 Underrewarded employees produce larger
quantities of lower-quality piece work than
equitably rewarded employees
 Equity Theory: A Summary and Example

INEQUITABLE
INEQUITABLERELATIONSHIP
RELATIONSHIP
Andy is Bill is
overpaid underpaid
compared to Bill compared to Andy
Seana’s outcomes
Mike’s outcomes (P25,000/mo)
(P30,000/mo) Bill’s inputs
Andy’s inputs (8 hours/week)
(8 hour/week)

Mike feels guilty Seana feels angry

EQUITABLE
EQUITABLERELATIONSHIP
RELATIONSHIP
Mike is equitably paid Seana is equitably paid
compared to Seana compared to Mike
Mike’s outcomes Seana’s outcomes
(P30,000/mo) (P30,000/mo)
Andy’s inputs Mike feels Seana feels Seana’s inputs
(8 hour/week) satisfied satisfied (8 hours/week)
Lessons in Equity Theory
 Pay attention to what employees’ perceive to
be fair and equitable
 Allow employees to have a voice
 Employees should have oppurtunity to appeal
 Organiational changes, promoting cooperation,
etc. can come easier with equitable outcomes
 Failure to achieve equity could be costly
 Climate justice