EQUITY THEORY OF MOTIVATION

• EQUITY THEORY OF MOTIVATION
  ORGANIZATION BEHAVIOR
  CIVIL SERVICES FOR MAIN EXAM ON ACCOUNTANCY AND COMMERCE

• EQUITY THEORY OF WORK MOTIVATION

1. J.STACY ADAMS
2. TWO VARIABLES ARE IMPORTANT I.E INPUTS AND OUTCOMES
3. INPUTS ARE THE EFFORTS AND SKILL TO BE PUT INTO THE JOB
4. OUTCOMES ARE THE REWARDS WHICH THE MEMBER RECEIVE FROM THE JOB
5. INPUTS AND OUTCOMES ARE IMPORTANT ELEMENTS IN THE RELATIONSHIP BETWEEN THE ORGANIZATION AND MEMBERS
6. IT IS BASED ON THE ASSUMPTION THAT A MEMBERS OF AN ORGANIZATION EXPERIENCE STRONG EXPECTATION OF JUSTICE,BALANCE AND FAIRNESS IN TREATMENT BY THE ORGANIZATION
7. THE EQUITY THEORY OF MOTIVATION HELPS IN UNDERSTANDING BOTH THE CAUSES AND THE LIKELY CONSEQUENCES OF FEELING OF INEQUITABLE TREATMENT AMONG ORGANIZATION MEMBERS

• EQUITY THEORY OF WORK MOTIVATION

1. INPUTS
2. ABILITY
3. TIME
4. EFFORTS
5. IDEAS
6. TRAINING
7. EDUCATION
8. EXPERIENCE

• OUTCOMES

1. PAY
2. PROMOTION
3. BENEFITS
4. RECOGNITION
5. SECURITY
6. FRIENDSHIP OPPORTUNITY
7. BENEFITS

• EQUITY THEORY OF WORK MOTIVATION

1. THE INDIVIDUAL WILL COMPARE HIS INPUT-OUTCOME RATIO(OUTCOME/EFFORTS) WITH THE RATIOS OF INPUTS AND OUTCOMES OF OTHERS
2. COMPARISON IS SUBJECTIVE BASED ON PERCEPTION AND FEELING
3. EQUITY OCCURS=PERSON’S OUTCOME/INPUTS=OTHER’S OUTCOMES/OTHER’S INPUTS
4. POSITIVE FEELING
5. WHEN AN INDIVIDUAL FEELS THAT THIS RATION OF INPUT –OUTCOME IS MORE OR LESS EQUAL TO THAT OF OTHERS OF HIS RANK OR STATUS THEN HE FEELS MOTIVATED
6. THE RATIOS GET IMBALANCED WHEN A PERSON ‘S RATIO OF OUTCOME TO INPUT IS SIGNIFICANTLY LESS OR MORE THAN THE RATIOS OF OUTCOME TO INPUTS OF OTHERS
7. EQUITY THEORY OF WORK MOTIVATION
8. IF THE RATIO IS SIGNIFICANTLY HIGHER,THE INDIVIDUAL FEELS OVER REWARDED . IT WILL GENERATE THE FEELING OF GUILT
9. IF THE RATIO IS SIGNIFICANTLY LESS,THE INDIVIDUAL FEELS FRUSTRATED,ANGRY AND HOSTILE
10. FEELING OF INEQUITY BY INDIVIDUAL IS UNCOMFORTABLE AND CREATES TENSION IN HIS MIND

• EQUITY THEORY OF WORK MOTIVATION
• INEQUITY OCCURS

1. PERSON’S OUTCOMES/PERSON’S INPUTS < OTHER’S OUTCOME/OTHER’S INPUTS
2. PERSON’S OUTCOMES/PERSON’S INPUTS > OTHER’S OUTCOME/OTHER’S INPUTS

• EQUITY OCCURS WHEN:
• PERSON’S OUTCOMES/PERSON’S INPUTS =OTHER’S OUTCOME/OTHER’S INPUTS

• MECHANISM FOR REESTABLISHING PERCEIVED EQUITY

1. CHANGING INPUTS: MAY CHOOSE TO INCREASE OR DECREASE INPUTS
2. CHANGING OUTCOMES: MAY ATTEMPT TO CHANGE HIS OUTCOME BY REQUESTING A SALARY INCREASE/DEMAND FOR BIGGER OFFICE/PERSONAL SECRETARY
3. CHANGING PERCEPTIONS OF INPUTS AND OUTCOME:_ RATHER THAN ACTUALLY CHANGING HIS INPUTS OR OUTCOME,A PERSON MAY CHANGE HIS PERCEPTIONS OF THESE FACTORS
4. CHANGING THE INPUTS OR OUTCOME OF OTHERS:-A PERSON COULD TRY TO RESTORE EQUITY BY CONVINCING OTHER PERSON TO REDUCE HIS INPUTS
5. CHANGING THE COMPARISON PERSON
6. LEAVING THE SITUATION

• IMPLICATIONS FOR THE MANAGERS

1. IT MAKES THEM REALIZE THAT EQUITY MOTIVE IS ONE OF THE IMPORTANT MOTIVES WITH THE EMPLOYEES
2. FEELING OR PERCEPTIONS IN WORK SETTING ARE AS IMPORTANT AS FACTS IN MOTIVATING EMPLOYEES
3. EQUITY CONSIDERATION SHOULD FORM A PART IN THE DETERMINATION OF WAGES AND SALARY STRUCTURE IN THE ORGANIZATION