Equity Theory
The Equity Theory
Description:
Helps determine whether the distribution of resources is fair for both relational partners. It is measured by comparing the ration of contributions and benefits for each person.
Description:
Input: Refers to anything a person possesses that they deem valuable.
Example: experience, education, leadership abilities, etc.
Output: Refers to the compensation or reward that one receives based on their ”input”
Example: salary, benefits, promotion, job security, etc.
History of the Equity Theory:
The Equity Theory was developed by American Psychologist John Stacey Adams in 1963.
Hypothesized that motivation can be affected by the individuals perception of fair treatment. When compared to others, individuals want to be treated fairly based on what they have contributed.
His theory analyzes the balance between the effort an individual puts into their job (input) and the results they receive (output).
Equity Theory Model Testing:
A study published in 1967, Effects of Inequity Produced by Underpayment on Work Output, Work Quality and Attitudes Toward the Work, provides further testing of Adams’ Theory of Equity.
This study demonstrated how individuals were paid an equitable wage or an unfairly low wage for participating in an interviewing job.
Results showed that the underpaid interviewers produced more interviews when compared to the equitably paid, but their interviews were characterized to be of low quality.
Equity Theory Application:
References:
5. Equity Theory - PSYCH 484: Work Attitudes and Job Motivation. (0AD). Retrieved from https://wikispaces.psu.edu/display/PSYCH484/5. Equity Theory
FALL 2014 Equity Theory Case - PSYCH 484: Work Attitudes and Job Motivation. (0AD). Retrieved from https://wikispaces.psu.edu/display/PSYCH484/FALL 2014 Equity Theory Case
Lawler, E. E., & Ogara, P. W. (1967). Effects of inequity produced by underpayment on work output, work quality, and attitudes toward the work. Journal of Applied Psychology, 51(5, Pt.1), 403–410. doi: 10.1037/h0025096
Mulder, P. (2019, February 6). Adams Equity Theory, a powerful theory of motivation. Retrieved from https://www.toolshero.com/psychology/theories-of-motivation/adams-equity-theory/