Equity Theory

This theory was profunded by Js Adams. It is based on the assumption that nembers of the
organisation experenice strong expectations of justice, balance and fairness in treatement by
the Organisation. When a person that he's being treated unfaily by the e Organisation ,these
feelings one have avariety of an adverse effects on the persons Motivation and performance
on the job.The equity theory of motivation helps in understanding both the course and the
consequences of feelings and inequitable treatment among the organization members.

According to Adams, two Variabiles are important ie inputs and outputs. Inputs are the efforts
and skills which an a member of the organization perceives that he puts in to his job. Outcomes
are the rewards which a member recieves from the organization and his job. Inputs and
outcomes are important elements in the exchange and relationship between the organisation
and it's members. When the individual finds equity in the situation or feels that he recieves
from the organization interms of treatment and compensation from is fair interms of the effort
and skills he contributes to the organization he is satisfied with the arrangement and is
normally committed to the organisation and the goals.

Four important terms in the theory.

1. Person

The individual for whom or inequity exists.

2. Comparison.

Other or any group or individual used by a person as a reference regarding inputs and
outcomes.

3. Input .

Characteristics which individuals brings with them to the job is education, skills, experience.

4. Outcomes .

Pay promotion and fringe benefits recieved from job.In relation to that the theory proposes
that the motivation to act develops after the person compares luputs/ outcomes with the
identical ratio of the relevant offer.

Inequity is defined as the perception that Persons job input / outcomes ratio is not equal to the
inputs and outcomes of the comparison offer.
 The basic equity proposal assumes that upon feeling inequity, the person is motivated to
reduce it. Further the greater the felt inequity the greater the motivation reduce it.

When attempting to reduce inequity, the person may try a number of alternatives, which
includes

-Altering his or her job inputs.

-Altering his or her outcomes.

- Distorting his or her inputs & outcomes cognitively.

- leaving the field

- Trying to alter or cognitively distort inputs & outcomes of the comparison ofher, or force him
or her to leave the field.