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In the equity theory of motivation, employee’s motivation depends on their perception of how fair is the compensation and treatment for their work input. Equity Theory states that the employees perceive what they get from a job situation (outcomes) about what they put into it( inputs) and then compare their inputs- outcomes ratio with the inputs- outcomes ratios of others. The equity theory of motivation describes the relationship between the employee’s perception of how fairly is he being treated and how hard he is motivated to work. J. Stacy Adams developed equity theory. This theory show-
This theory is based on the following two assumptions about human behavior:
The essential aspects of the equity theory may be shown by an equation; There should be a balance of the outcomes/inputs relationship for one person in comparison with that for another person. If the person thinks that the rewards are greater than what is considered, he/she may work harder. If the person perceives the rewards as equitable, he/she probably will continue at the same level of output. If the person feels that he/she is inequitably rewarded, he/she may be dissatisfied, reduce the quantity or quality of output, or even leave the organization. The three situations of equity theory are illustrated in the following figure: An employee with several years’ experience can be frustrated to find out that a recent college grad hired at a salary level higher than he or she is current earnings, causing motivation levels to drop. Why? Roles played by the equity in motivation;
Equity theory demonstrates that, for most employees, motivation is influenced significantly by relative rewards as well as by absolute rewards, but some key issues are still unclear. Which theory states that individual compare their job inputs and results with that of others?Equity theory was first developed in 1963 by Jane Stacy Adams. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. The higher an individual's perception of equity, the more motivated they will be.
Which of the following theories proposes that people prefer to feel they have control over their actions?Explanation: D) Self-determination theory proposes that people prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will undermine motivation.
Which motivation theory suggests that the perceived fairness of one's work inputs/outputs will determine how motivated an employee is?Adams' Equity Theory calls for a fair balance to be struck between an employee's "inputs" (hard work, skill level, acceptance, enthusiasm, and so on) and their "outputs" (salary, benefits, intangibles such as recognition, and more).
Which of the following theories of motivation is concerned with comparing the ratios of inputs to outcomes they receive against the ratios of other people?Equity Theory states that the employees perceive what they get from a job situation (outcomes) about what they put into it( inputs) and then compare their inputs- outcomes ratio with the inputs- outcomes ratios of others.
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