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Management Theory

Equity Theory

Behavioral, Human Relations and Contingency Theories

Equity theory is a theory of employee motivation, developed by J. Stacy Adams in the 1960s, that holds employees assess fairness in the workplace by comparing the ratio of their own inputs, such as effort, skill, and time, to their own outcomes, such as pay and recognition, against the equivalent ratio for a comparison other, often a coworker in a similar role. According to the theory, employees who perceive their ratio as unfairly low relative to others experience distress and are motivated to restore equity, whether by reducing their own effort, seeking greater rewards, or changing their point of comparison. Equity theory remains widely taught in organizational behavior as one of the process theories of motivation, contrasted with content theories such as Maslow's or Herzberg's.

Facts
Core Claim
Equity theory holds that individuals compare the ratio of their own inputs and outcomes to that of others, and perceived inequity in that ratio causes distress and motivates efforts to restore fairness. 1
Origin Year
1965 1
Classification
Topic (Functional Area)
Human Resources 1
Connections

Addresses Topic

Associated With

Equity theory and expectancy theory are the two classic process theories of workplace motivation, taught side by side.

Source Wikipedia, Human resource management

Both are 1960s-era workplace motivation theories commonly grouped together, alongside expectancy theory and two-factor theory, in motivation theory literature.

Source Wikipedia, Equity Theory
In the Other Atlases

Developed By

Also in Psychology Atlas: the developer of this subject.

Sources
1. Wikipedia, Equity Theory
Wikipedia
  • Wikipedia, Equity theory lead section
    Equity is measured by comparing the ratio of contributions (or costs) and benefits (or rewards) for each person within an organization or social context.
  • Wikipedia, Equity theory Background section
    According to Adams in 1965, anger is induced by underpayment inequity and guilt is induced with overpayment equity.
  • Introduction, functional area topic classification
    In management studies and in social policy, equity theory focuses on determining whether the distribution of resources is fair.
  • Associated With: McClelland's Theory of Needs
View the Source
Wikipedia, Human resource management
Associated With: Human Resources, Classified by subject-matter domain within management theory (w-bbfill-business-other-0926); cites the discipline definition.View the Source
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