![]() ![]() Referents: These are the four comparisons an employee can make. ![]() Equity is achieved when the output-input relationship of both the workers remains same. When the output-input level of worker A is less than the worker B, it is a situation of Negative Tension State, in which an employee will get motivated to work. ![]() Because he will start thinking that he is getting more money so his efforts towards the job will decrease. If the output-input of worker A is greater than B, then it is over rewarded, which leads to no motivation. This is a comparison between two worker’s A and B. O/I a O/I b Over-rewarded (Equity Tension) Common way to see the equity theory at work is when the employee compares the work they do with someone else who gets paid more than them. Adams suggested that higher the fairness perceived by an employee, higher will be the motivation and vice versa. It is believed that people value fairness and to keep them motivated, fairness is maintained between the co-workers and the organization. Stacy Adam was a workplace and behavioral psychologist, who affirmed that employees seek to maintain balance between the inputs they bring to a job and the outcomes that receive from the job. This theory was first developed in the year 1960 by J. Equity can be measured by comparing the cost and the reward for each person. According to this theory of motivation, an individual’s motivation level is connected with his perception of equity, fairness and justice practiced by management. Core of equity is the principle of balance or equity. ![]()
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