Equity theory definition pdf file

Equity theory equity theory is a conceptualization that focuses on the causes and consequences of peoples perceptions of equity and inequity in their relationships with others. According to equity theory, it is the perception of equitability and in equitability. I will examine the research on equity theory in regard to pay since it is assumed to be one of the. Plain and simple, equity is a share in the ownership of a company. Equity theory is known as one of the general theory, which is very efficient in predicting employee behavior. Equity theory focuses on determining whether the distribution of resources is fair to both. It ensures a basic minimum standard of education for all. Article pdf available in journal of applied psychology 743. For example, a package shape, size or color that is highly associated with a category may do a good job.

Examples include gender, socioeconomic status, or ethnic origin. Equity represents a claim on the companys assets and earnings. If the employee perceives inequality, he or she he will act to correct the inequity. A definition of equity theory adams devised his equity theory on the basis that when your employee feels like youre treating them in an advantageous way, theyre more likely to be motivated to work hard. The principle should cover every individuals actions in society but should be of particular importance in setting goals and constraints on actions by governments and states. This paper will focus on examining equity theory, its propositions and underlying assumptions. Archived from the original pdf on 23 september 2015. Abstract this study examines the concept of equity theory, its intention, and core hypothesis. Perceptions of equity and justice and their implications on. As you acquire more equity, your ownership stake in the company becomes greater. What is motivation motivation university of oklahoma. An employee compares his or her jobs inputs with an outcomes ratio. The utility of equity theory in enhancing organizational.

Ppt equity theory powerpoint presentation free to view. Whether you say shares, equity, it all means the same thing. It means making sure that personal and social circumstances are not obstacles to achieving educational potential. Equity theory and its effect on performance outcome ijser. But some of these functions may be in conflict with others. This paper describes a new construct, equity sensitivity, and proposes that reactions to. Pdf the utility of equity theory in enhancing organizational. John stacey adams suggests that the higher an individuals perception of equity, the more motivated they will be. According to equity theory, it is the perception of equitability and inequitability. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. Inputs are defined as each participants contributions to the relational exchange and are. This sentiment may have started with the beatles song, but chances are youve heard it dozens of times and used for different meanings. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. Pdf this paper will focus on examining equity theory, its propositions.

The idea of equity is the application of this principle of moral equality to the ways in which people are treated by society. Equity theory is based in the idea that individuals are motivated by fairness. In equity theory, motivation is affected by the individual perception of being treated fairly in comparison to others. Equity theory motivation is affected by ones perception accurate or inaccurate of the relative outcome rewards one receives and inputs efforts one exerts in comparison to others. The theory of equity has been highlighted in the literature after the seminal work by. The utility of equity theory in enhancing organizational effectiveness.