Overview
The lecture explains John Stacy Adams' Equity Theory of Motivation, focusing on how perceived fairness in reward and work affects motivation in the workplace.
Core Concepts of Equity Theory
- Equity Theory states people are motivated when they perceive fairness and demotivated by unfairness in workplace outcomes.
- Motivation depends on the comparison between rewards (outcomes) received and the effort (inputs) put into work.
- Employees evaluate fairness not just by their own rewards, but also by comparing themselves to others.
Three Principles of Equity Theory
- Equity Norm: People expect fair rewards for their work efforts.
- Social Comparison: Fairness is judged by comparing one's input and outcomes with those of others.
- Redressing Imbalance: People adjust effort or mentally reframe their work/reward if they perceive unfairness.
Adjusting to Perceived Inequity
- Employees may reduce effort if under-rewarded or increase effort if over-rewarded due to guilt.
- Cognitive distortion (reframing) involves mentally adjusting perceptions of input or outcomes to restore a sense of fairness.
Managerial Implications
- Perceptions of fairness are subjective and may not match managerial assessments.
- Differences in cost of living or cultural expectations can affect perceptions of equity.
- Pay disparities across roles, genders, or locations can create or reduce perceived fairness.
- Managers need to be cautious about legal and ethical issues in remuneration fairness.
Inputs and Outcomes
- Inputs: Time, effort, loyalty, experience, education, flexibility, sacrifices, enthusiasm, etc.
- Outcomes: Salary, benefits, job security, recognition, learning, reputation, responsibility, praise, or even negative aspects like loss of time.
Four Sources of Comparison
- Self Inside: Comparing own effort and rewards within the same organization.
- Self Outside: Comparing current job rewards to potential rewards in other organizations.
- Others Inside: Comparing with colleagues within the same organization.
- Others Outside: Comparing with friends or peers in other organizations.
Key Terms & Definitions
- Equity Theory — A theory that motivation depends on perceived fairness between work inputs and outcome rewards.
- Equity Norm — The expectation of fair compensation for work done.
- Social Comparison — Assessing fairness by comparing oneself to others.
- Cognitive Distortion/Reframing — Mentally adjusting perceptions to restore a sense of fairness.
Action Items / Next Steps
- Reflect on team members’ perceptions of fairness in workload and rewards.
- Review organization policies for equity in reward structures.
- Prepare to address complaints about perceived inequity with sensitivity to subjective experiences.