Equity theory of Motivation by John S.

Adams

This theory depends on definition of equity which

means the quality of being fair and impartial

Equity theory of Motivation was developed by John S. Adams in

1963, on the concept that individual want to be treated fairly at
his/her work for motivation. If someone perceives an unfair
environment, they will be de-motivated.
In this theory Individuals compare themselves with a comparison
person (Known as referent ) someone in a comparable organization
situation.

Referent means:
Example:- if a sales person compares themselves to rest of the sales
staff, the referent group is sale staff.
There are four basic referent groups thatpeople use :
Self Inside :Your own experience within current organization
(when working for other supervisor things were better)
Self outside: Your own experience withanother organization
(previous Co.paid me less for same job)
Other inside: other person within current organization
(mycolleague just sitwhole day and get paid way too much)
Other outside: other people outside current organization
(employees of other Co. gets less benefit )
 Process To Find Whether There Exist Equity Or Inequity

Individuals compare their job inputs and outcomes with

those of others and then take actions to reduce inequities

Evaluation of Evaluation of Comparison of

self Others self with others

Actions to reduce Feeling of equity

inequity or inequity
 Equity Person’s Outcomes Other’s Outcomes
=
occurs Person’s Inputs Other’s Inputs
when

Job Inputs Job

outcomes

Equity

Job Inputs/Job Job Inputs/Job

outcomes outcomes

Inequity
 Action to reduce
Job Inputs Job Outcomes
Inequities
• Ability, Knowledge • Salary, Benefits • Changing inputs
• Time, Effort • Promotion • Changing
• Age, Commitment • Recognition, Status Outcomes
• Personal scarifies • Personal • Changing the
• others development inputs or outcome
• others of comparison
person
• Changing the
comparison person
(referent)
• Leaving the field