Equity theory of motivation developed by J.Stacy Adams

The Concepts of Motivation

The term motivation is derived from English word motive and it is borrowed from the Latin word ‘movere’ the meaning of ‘movere’ is to move. Motives mean the drives, needs, desires, wants or impulses within the individual. According to Harold Koontz and Heinz Weihrich, Motivation is a general term Appling to the entire class of drives, desires, needs an wishes. There are different types of motivation. Whereby according to Kendra, 2017 explain intrinsic an extrinsic as the type of motivation as follows;

Intrinsic motivation

refers to behavior that is driven by internal rewards. In other words the motivation to engage in a behavior arise from within the individual because it is naturally satisfying to him

Extrinsic motivation

refers to behavior that is driven by external reward. In other words the motivation to engage in a behavior in order to earn external rewards such as money, fame, grades and praise or avoid punishment.

Motivation processes.

Needs;

Motivation process starts from needs expectation. If employees have no need or expectation they cannot be motivated. Employees run to address or to solve the need or expectation. Need of expectation is very important process of motivation.

Drive/action;

drive is action oriented. After the expectation, people seek a job. The action is needed to address the need of expectation, without action employee cannot sole different problems.

Incentives;

Incentives is the last process of motivation. After having the job employees should be provided fair and competitive wages. It supports to solve and address the need or expectation.

Equity Theory of Motivation

The theory was first developed by J.Stacy Adams 1963. The core of the equity theory is the principle of balance or equity. As per this theory, an individual’s motivation level is correlate to his perception of equity, fairness and justice practiced by management. Higher the individual’s perception of fairness, the greater is the motivation level and vice versa.

More over the theory of motivation deals with the way people compare the value of themselves to others in similar work situation base on their inputs, outcomes, over rewarded, equity and unrewarded. Where by inputs are what you v=bring to situation, they include all the rich and diverse elements that employees believe they bring or contribute to the job like their education experience, efforts, loyalty and commitments.

Outcomes are rewards they perceive they get from their jobs and employer’s outcomes include direct pay and bonuses, fringe benefits, job security, social rewards an psychological rewards. Over rewarded is when employees feel over-rewarded. Equity theory predicts that they will be an imbalance in their relationship with their employees and seek to restore that balance while unrewarded feels they have been unrewarded and seek to reduce their feeling in equity through the same type of strategies but same of this specific actions are now reverse. Equity is when employee’s perceive equity then they will be motivated to continue to contribute act about the same level. The theory assumes that people’s motivation in an organization is based on the desire to be treated equally and fairly. (Huseman et al, 1987).

Assumptions of Equity theory of motivation

The equity theory of motivation has various assumptions the following are the assumptions of equity theory.
Equity theory suggests that overpaid workers avoid any inequity reduction techniques that result in negative consequences to self-esteem or physical wellbeing or devaluation of one’s of a good job outcome such as job satisfaction or monetary compensation. The preferred method is physical justification involving a higher valuation of one’s job inputs as indicated by the results of the study indication when the employees are not satisfied with their job they react negatively (Perry, 1993).

Individuals make contribution (inputs) for which they expect certain outcomes (rewards). Inputs includes such things as the person’s past training and experience, special knowledge and personal characteristics. Outcomes which includes pay recognition, promotion, prestige and fridge benefits (Gogia, 2010)

Equity theory propose that when a state of inequality is perceived the individual would experience a state of distress (Welster et al, 1973). This distress state will move individual to take action to restore equity (Leamer, Miller & Holmes, 1976). The greater the inequality the more the distress or suffering individual feel and the harder they will try to restore equality (Adams. 1965)

Employees decide what their equitable return should be after comparing their inputs and outcomes with those of their colleagues, Motivation increases once the inputs and outcomes of employees is higher than other colleagues like experience efforts and bonuses, but when inputs and outcome of employee’s is low than the others also the motivation level will decline.

Employees who perceive themselves as being in an inequitable scenario will attempt to reduce the inequity either by distorting inputs and or outcomes psychologically by directly altering inputs and or outputs or by quitting the organization.

Employees expect a fair and equitable return for their contribution for their jobs. As fair and equitable exist among employees also the motivation level increases. For example salaries, bonuses and commitment, once those become fair and equitable, results into motived employees and vice versa.

Application of Equity Theory of motivation

Apart from the assumptions of equity theory also the following are the application of equity theory of motivation in academic institutions in Tanzania.
An employee who believes he or she is over compensated may increase his effort. However he may also adjust the values that it ascribes to his or her personal inputs. It may be that they internalizes a sense of superiority and actually decrease their efforts (Gill, 2010).

Also education managers should evaluate the way in which the rewards are distributed among teachers. The way in which rewards are distributed should not affect teacher’s perception of their own state of equity and their willingness to respond and participate (Ibid).

The workers can also decide to change input or outcome ratio for more favorable and equitable levels by distorting the values of inputs or outcomes. They may artificially increase the importance of the jobs that they are doing in their own mind. For example, if a professor does not get promotion that believed he reserved may justify this denial by either thinking that “ it is not the promotion that counts but helping the students achieve academic excellence”. In this since an educational worker will feel more equitable as those teachers who are rewarded (Chandan, 2000).

Equity theory may be acceptable for more senior staff to receive higher compensation, there are limits to the balance of the scales of equity and employees can find excessive executive pay demotivating. Staff perceptions of inputs and outcomes of themselves and others may be incorrect and perceptions need to be managed effectively.

Employees are able to adjust for purchasing power Thus a teacher from one area may accept lower compensation than his colleagues in another area if their cost of living is different while a teacher in a remote African village may accept a totally different pay structure.

Strength of equity theory of motivation

The following are the strength of equity theory of motivation whereby these factors a strength validity to the equity theory.
The theory of equity make a practical sense for example reasonable to assume that people do compare their inputs and outcomes relative to others (Redmod, 2009).

Ability to fit with other theories particularly the expectancy theory to determine if inequity has occurred and if so they can use expectancy theory to act upon the inequity (Stretcher & Rosse, 2007).

Equity theory help people readiness state of inequality for instance altering their belief about the outcome they receive from their jobs. (Greenberk, 1990).

Weaknesses of equity theory of motivation

Lacks details in certain factors for example a variety of strategies for restoring equity but does not predict in detail which option an individual will select (Remond 2009).

Little practical value then better as an explanation after the fact then as a predictor of behavior Example, various factors which are not under administration managers and or organizations control can lead to inequality (Reymond, 2009).

The Original of equality theory as posed by Adam’s Lacks scientific consideration or explanation for different value or lack thereof equity itself within culture. Example research conducted on equity theory as it pertains to the eastern culture found equality rather than equity was preferred.

Furthermore, people might perceive equity or inequity not only in terms of specific input and output of a relationship but also in terms of a relationship, in terms of the overarching system that determine those inputs and outcome. Thus in an organizational setting, one might feel that his or her compensation is equitable to other employees but one might view the entire compensation system as unfair (Cornell & Dittrich, 1978).

Also after argue that a number of demographic and psychological variables affect people’s perception of fairness and interaction with others. Much of research support the basic proposition of equity theory has been conducted in laboratory setting and thus has questionable applicability to real world situation (Haseman, Hatfield & Miles, 1987).