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People, whom we deem to be relevant reference points or examples ('referent' others).Ĭrucially this means that Equity does not depend on our input-to-output ratio alone - it depends on our comparison between our ratio and the ratio of others. Importantly we arrive at our measure of fairness - Equity - by comparing our balance of effort and reward, and other factors of give and take - the ratio of input and output - with
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But how do we decide what a fair balance is? In terms of how the theory applies to work and management, we each seek a fair balance between what we put into our job and what we get out of it. Equity Theory adds a crucial additional perspective of comparison with 'referent' others (people we consider in a similar situation).Įquity theory thus helps explain why pay and conditions alone do not determine motivation.
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Adams Equity Theory goes beyond - and is quite different from merely assessing effort and reward.These terms help emphasise that what people put into their work includes many factors besides working hours and that what people receive from their work includes many things aside from money.Īdams used the term 'referent' others to describe the reference points or people with whom we compare our own situation, which is the pivotal part of the theory. Outputs are everything we take out in return.Inputs are logically what we give or put into our work.The Role of Inputs and Outputs in Equity TheoryĪdams called personal efforts and rewards and other similar 'give and take' issues at work respectively 'inputs' and 'outputs'. Rather, Equity, and the sense of fairness which commonly underpins motivation is dependent on the comparison a person makes between his or her reward/investment ratio with the ratio enjoyed (or suffered) by others considered to be in a similar situation.Equity, and therefore the motivational situation we aim to assess using the model, is not dependent on the extent to which a person believes reward exceeds effort, nor even necessarily on the belief that reward exceeds effort at all.The way that people measure this sense of fairness is at the heart When people feel fairly or advantageously treated they are more likely to be motivated when they feel unfairly treated they are highly prone to feelings of disaffection and demotivation. Of Equity, which commonly manifests as a sense of what is fair. The Adams' Equity Theory model, therefore, extends beyond the individual self and incorporates influence and comparison of other people's situations - for example, colleagues and friends - in forming a comparative view and awareness.However, awareness and cognizance of the wider situation - and crucially comparison - feature more strongly in Equity Theory than in many other earlier motivational models. Herzberg and other pioneers of workplace psychology, in that the theory acknowledges that subtle and variable factors affect each individual's assessment and perception of their relationship with their work,
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There are similarities with Charles Handy's extension and interpretation of previous simpler theories of Maslow, John Stacey Adams, a workplace and behavioural psychologist, put forward his Equity Theory on job motivation in 1963.