Adam Equity Theory

According to Stacey Adams’ Equity Theory, an employee’s “inputs” (hard work, skill level, acceptance, enthusiasm, etc) and “outputs” (salary, benefits, intangibles such as recognition, etc.) must be balanced fairly.

Equity theory, recognized as one of the justice theories, was first developed in the 1960s by J. Stacy Adams, a workplace and behavioural psychologist, who stated that employees attempt to maintain fairness between the inputs they bring to a job and the outcomes they receive from it in comparison to the perceived inputs and outcomes of others.

Equity theory, developed by J. Stacey Adams, is a motivational process model. It contends that our motivation is correlated with the amount of reward we receive in comparison with our own perception of our contribution. The theory takes into account the concepts of equality and fairness, as well as the significance of comparing oneself to others.

Hard work, skills, and enthusiasm are examples of input. Salary, recognition, and responsibility are all examples of output. A proper balance of input and output ensures that an employee is satisfied and motivated, which contributes to their productivity.

Benefits and Contribution

According to Adams’ Equity Theory of Motivation, the relationship between an individual’s inputs (contribution) and benefits (reward) is important for their sense of fairness and equity, and thus for their motivation. However, in order to make sense of this, we must first understand what types of things constitute both inputs and benefits.

Contributions (inputs)

Inputs are the actions that an individual takes to assist an organization in reaching a goal. These are the things that the individual brings to the organization. Often, the first thing that comes to mind is the amount of time a person spends working. But there’s a lot more to it than that.

Contribution mainly include:

1. Skills : Employees are skilled, which they use to perform their duties efficiently and professionally.
2. Effort : Every day, employees make an effort to come to work and do their jobs and tasks. There is no work if no effort is made. It is the most fundamental level of input.
3. Loyalty : This includes all aspects of personal sacrifice. A loyal employee is one who remains loyal to his organization despite a job offer from another organization.
4. Knowledge : Employees gain this valuable input through schooling and training, being interested in their field, and growing and evolving.
5. Experience : Employees can’t put their knowledge to good use unless they have some experience. As a result, experience is regarded as a highly valuable input with a distinguishing feature. Furthermore, experience cannot be easily replaced.
6. Social Skills : Employees participate in company trips, celebrate one another’s birthdays, and can create comfortable working conditions by engaging in conversation with one another.

Benefits (outputs)

Benefits are the things that an individual receives as a result of assisting a company in reaching a goal. These are the items received by the individual from the organization or its agents. In general, a benefit is anything that an employee receives and perceives to be beneficial to their life.

Outputs mainly include:

1. Financial Rewards

• Salary : This is regarded as the most important output for employees. In exchange for all of their inputs, they receive a set amount of money each month from the company.
• Bonus : A bonus is money paid on top of a salary that is considered a financial reward. Bonuses can be based on commissions or goals. The higher this bonus, the harder an employee works.

1. Recognition : Employees seek intrinsic motivation. This indicates that they believe it is critical that their efforts be recognized. When a co-worker takes credit for an employee’s work, the Equity Theory suffers from a massive imbalance. Managers must be aware of this component and actively give employees the recognition they deserve.
2. Responsibility : Employees will feel a sense of belonging and control over their work as a result of this. This responsibility gives confidence in them and allows them to organize and carry out their duties as they see fit.
3. Challenges : Employees enjoy engaging and significant challenges at work. This makes them feel good about their work and more committed to the organization.
4. Sense of Community
5. Praise
6. Growth
7. Financial Security

What needs to be Fair?

The ideas of fair treatment and comparison are discussed in Adams’ Equity Theory of Motivation. To be considered appropriate, a professional relationship should always pass two tests:

1. Individuals must first believe that the compensation they get for their contributions is truly fair.
2. Second, they must believe that the levels of rewards they receive are comparable to those of their peers within the organization.

What if things are not fair ?

According to Stacey Adams’ Equity Theory of Motivation, people have experienced “distress” when things are perceived to be unfair. Moreover, the greater the perceived level of unfairness, the greater the level of distress.

Conclusion

According to J. Stacey Adams’ Equity Theory of Motivation, employees seek to maintain equity between the inputs they bring to a job and the outcomes they receive from it. A proper balance of input and output ensures that an employee is satisfied and motivated, which contributes to their productivity. In order to make sense of this, we must first understand what types of things constitute both inputs and benefits. Inputs are the actions that an individual takes to assist an organization in reaching a goal. Benefits (outputs) are the things that an individual receives as a result of assisting a company in reaching a goal. When a co-worker takes credit for an employee’s work, the Equity Theory suffers from a massive imbalance.