Equity Theory of Motivation

The Equity Theory touches on the effects these situations have on the employee’s motivational level. In society today employees are constantly comparing how they are

This can also relate to the process theories such as the expectancy and equity theories. The expectancy theory (Appendix c) predicts that individuals will be motivated if they value the reward given for work and believe this is a just reward. By working hard and professionally they can achieve promotion and so become motivated. The basis of the equity theory is related to one’s perception of job input and outcomes and those of their colleagues (Appendix d). Employees in Primark who have high input and outcomes can see these outcomes through the opportunity of promotion. However such fairness does not always arise in Primark.

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”(Balancing Employee Inputs and Outputs).

forces employees to focus even more on their self-interest. Now when presented with work, they

Adam’s Equity Theory is a model of motivation which basically states that employees will perform at a more productive rate if they feel that they are being treated fairly (Kreitner & Kinicki, 2010). Equity is achieved when a worker perceives their reward for their amount of work to be equal to that of a relevant worker. Negative inequity is perceived by the employee when the relevant worker receives greater rewards for the same amount of work. Positive inequity is perceived by the employee when the relevant worker receives fewer rewards for the same amount of work (Kreitner & Kinicki, 2010).

Conversely, a person who has negative emotions towards the organisation will want to avoid the

We could gain an appreciation for their hard work and dedication to the company. Pay raises could compensate the employees for this dedication, along with bonuses and incentives. Incentives, whatever they may be, are a good way to celebrate the way that culture can influence employees so that they may embrace its importance and meaning.

(1) What is suggested mathematically by the fact that employees who received the same performance ratings got different monetary increases?

When making compensation decisions, whether it is internal or external, comparisons must be considered. However, employers must carefully balance pay structures, because internal and external comparisons may not converge. Therefore, employers may differ in the way they place priorities on internal and/or external comparison data when they are developing pay structures.

The success of any business depends on the productivity and satisfaction of its employees. Employees need to be motivated to work. Motivation can be defined as the inner force that drives individuals to accomplish personal and organizational goals. Motivation can be either intrinsic or extrinsic. For an individual to be motivated in a work situation there must be a need, which the individual would have to perceive a possibility of satisfying through some reward. Intrinsic motivation stems from motivations that are inherent and arise from performing the task of the job itself, which the individual gets a feeling of either positive or negative motivation as a result of

In respect to inequality, one may wonder “What is inequality?” Inequality in organizations as deliberate inconsistency between individuals with leadership position who control over resources, goals and outcomes. They are additionally in charge of decision making such as organizing work opportunities, promotion and rewards, security in employment and benefits; pay; respect; and pleasures in work and work relations (Acker, 2006). It is an unreasonable situation caused by some members in a workplace having more rights or preferable opportunities more than others. It is also often related to: Class, gender, ethnicity, sexuality, race/or heteronormativity.

Equity Theory: Individuals compare their work inputs and outcomes with others and then respond to eliminate any inequities between those comparisons

It is clear from this article that there is no clear answer. Miller’s repeated use of phrases like “satisfaction,” “compensation,” and “recognition” in the article all accurately describe the state of employee’s expectation. His first point, more workers looking to regain raises and bonuses, sounds reasonable and his second point, compensation as the second contributing

Motivation in the workplace is one of the major concerns that managers face when trying to encourage their employees to work harder and do what is expected of them on a day-to-day basis. According to Organizational Behavior by John R. Schermerhorn, James G. Hunt and Richard N. Osborn the definition of motivation is "the individual forces that account for the direction, level, and persistence of a person's effort expended at work." They go on to say that "motivation is a key concern in firms across the globe." Through the years there have been several theories as to what motivates employees to do their best at work. In order to better understand these theories we will apply them to a fictitious organization that has the following

From this theory we will see that Outcome / Input Ratio is under rewarded. From Conversation between Researcher and Alby Siegel. We know that Alby get some idea that can input couple of hundred thousand dollar profit across the country, but the company only Outcome or will give Alby for $500. and he feels that the amount of money is an insult. Equity evaluation what company get and what the employee get is really not balanced which the employee feels under rewarded.