Equity Theory

Group 4 presentation
 Agenda

1 2 3 4 5
Brief Background Relevant Criticisms of Implications/
background of the theory concepts and the theory Applications
of the theorist definitions in the
workplace

2 EQUITY THEORY 2022

JOHN STACEY ADAMS
❑ Born March 16, 1925 in Brussels,
Belgium
❑ Father: Charles Stacy Adams
Mother: Simonne (Herrman)
Adams
Spouse: Antoinette Hamilton
(divorced)
Children: Michele, Erica
❑ Career: American workplace and
behavioral psychologist who
worked in General Electric
Company
❑ Developed his job
motivation theory in 1963
GUESS ME:

ANS: MOTIVATION
GUESS ME:

ANS: EQUITY
To be motivated, individuals need to perceive that the rewards they
MOTIVATION:
receive for their contributions are fair, and these rewards are similar to
those received by their peers. If individuals perceive that their rewards
EQUITY THEORY
are not fair, they will feel distressed and try to change things to create
a sense of fairness.

Individuals compare their job inputs and outcomes with those of others and
then respond to eliminate any perceived inequities.

✓ The higher an individual's perception of equity, the more motivated they

will be.
✓ If someone perceives an unfair environment, they will be demotivated.

6
 Balance calibrated and measured against
comparable references in the market-place

What I put into my job: time, effort, What Iget from my job: pay,
EQUITY THEORY
ability, loyalty, tolerance, bonus, perks, benefits, security,
flexibility, integrity, commitment, recognition, interest,
reliability, heart and soul, personal development, reputation,
sacrifice, etc praise, responsibility, INDIVIDUAL OTHER’S
enjoyment, etc OUTPUTS OUTPUT

inputs outputs
INDIVIDUAL OTHER’S
INPUTS INPUT
People become demotivated and reduce input and/or seek change or improvement
whenever they feel their inputs are not being fairly rewarded by outputs. Fairness is
based on perceived market norms.
 THE STRUCTURE OF EQUITY IN THE WORKPLACE IS BASED
ON THE RATIO OF INPUTS TO OUTCOMES
SITUATION
RATIO COMPARISONS PERCEPTION OF AN
EMPLOYEE

Individual’s outcome < Other’s outcome

Individual’s Input Other’s input
Inequality Anger

Q2Individual’s outcome = Other’s outcome

Individual’s Input Other’s input Equity Satisfied

Q3Individual’s outcome > Other’s outcome Pride,

Over
Individual’s Input Other’s input Inequity confidence
and guilt

8 EQUITY THEORY 2022

EQUITY THEORY FOCUSED ON
DISTRIBUTIVE JUSTICE
Ex: I got the pay raise I deserve.

ORGANISATIONAL
PROCEDURAL JUSTICE
JUSTICE Ex: I was given a raise with the explanation of why I
was given.

INTERACTIONAL JUSTICE
Ex: While telling me about my raise my supervisor was very
nice and complimentary.
 PROPOSITIONS RELATING TO INEQUITABLE PAY:

❑Given Payment Time- over rewarded

❑ Given Payment Time- under rewarded
❑Given Payment by Quantity of Products-
over rewarded
❑Given Payment by Quantity of Products-
under rewarded

10 EQUITY THEORY 2022

 Criticisms of Adam’s Equity Theory

Failed to consider People may view equity

psychological and and inequity in terms Employee
demographic factors Lacks real of both the particular motivation
that influence how inputs and outputs of a increased when
world relationship as well as
people perceive coworkers faced
fairness and interact evidence the overall system that suitable sanctions
with others produces those inputs
and outputs.
for their actions.

Simplicity Environmental validity Carrell and Dittrich O'Reilly and Puffer

(Huseman, Hatfield, (1978) (1989)
and Miles

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POSSIBLE IMPLICATIONS:

People measure the totals of their

1 inputs and outcomes.

Employees are able to adjust for

2 purchasing power and local market
conditions.

An employee who believes he is over-

3 compensated may either increase or
decrease his effort.

"Pay and conditions alone do not determine motivation."

THANK YOU!
Prepared by:

BALDONADO, Coleen
CAMAT, Angelyn
FLORES, Elizabeth
JAPSON, Revi Mae
LUMIDAO, Shaena
OSOTEO, Irish