SGDU 5063

EQUITY THEORY

826650

SREE DEWI SUBRAMANIAM

EQUITY THEORY
INTRODUCTION
• Equity Theory of motivation, developed in
the early 1960’s .
• J.Stacey Adams in 1963
• Behavioral psychologist
• ‘Give and take affair’

• Adams’ Equity Theory Model: This theory

shows that employees strive to achieve
equity between themselves and their
coworkers. This equity can be achieved
when the ratio of employee outcomes
over inputs is equal to other employee
outcomes over inputs (Baxamusa, 2012).
 INTRODUCTION
• Equity- fair and being impartial
(Ekuiti - adil dan tidak memihak)

• Calls for a fair balance to be struck between an employee's inputs and an

employee's outputs
(Teori ekuiti memberi tumpuan kepada dua pihak)

• Behavioral psychologist
• ‘Give and take affair’
(Adam percaya bahawa tingkah laku yang dipilih akan menjadi utiliti maksimum)

• The higher an individual's perception of equity, the more motivated they will be.
(Semakin tinggi persepsi ekuiti individu, mereka akan menjadi lebih bermotivasi)
 EQUITY VS. EQUALITY

Under the equality model rewards are equally given out to

all participants despite individual inputs. Therefore, the
outcome is preset.

This is opposite of the equity theory which states that

individual outcomes or rewards will be in proportion to
individual inputs and efforts. (Fadil, et. al., 2005).
 EMPLOYEE'S INPUTS AND AN EMPLOYEE'S OUTPUTS

What I put in my job : What I get from my job :

1. Time
2. Effort 1. Job security
3. Loyalty
2. Salary
4. Hard Work
5. Commitment 3. Employee benefit
6. Ability
7. Adaptability
4. Expenses
8. Flexibility 5. Recognition
9. Tolerance
10. Determination 6. Reputation
11. Enthusiasm
7. Responsibility
12. Personal sacrifice
13. Trust in superiors 8. Sense of achievement
14. Support from co-workers and colleagues
15. Skill
9. Praise
Finding the Balance
INPUTS
• Masa
• Usaha OUTPUTS
• Kesetiaan • Keselamatan kerja
• Kerja keras • Gaji
• Komitmen
• Keupayaan • Manfaat pekerja
• Kesesuaian • Perbelanjaan
• Fleksibiliti
• Toleransi
• Pengiktirafan
• Keazaman • Reputasi
• Semangat • Tanggungjawab
• Pengorbanan peribadi
• Kepercayaan kepada atasan • Rasa pencapaian
• Sokongan daripada rakan • Pujian
sekerja dan rakan sekerja
• Kemahiran
IN EDUCATION……
1. Motivating workers is a major concern in work place so
as to ensure maximum production in the organization.

3. Analysis of Adams’ Equity Need hierarchy Theory is

analyzed. In the analysis of both theories the main focus is
the applicability of the theory in the motivation of teachers
in schools so as to maximize their efficiency and
effectiveness in teaching.

2. Considering the significant role and contributions of

educational institutions to meaningful individual and
national development, proper management and motivation
skills remain vital for the better performance of the school.
Primary School

 Primary education in Malaysia is the first stage of compulsory education. Although

it is preceded by pre-school or nursery education then followed by secondary
education. This is the type of education given to children within the ages of 7 and
12 years. The duration shall be six years.

 The one at the helm of affairs is called head-master. He motivates the staff to
work through the provision of incentives like chalk, textbooks and teaching aids.
The head-teacher recommends staff for promotion. If a staff feels that the
management is indifferent to this aspiration, he will be less dedicated to achieving
the goals of the school.

 Teachers and students should be positively motivated. This will encourage them to
put more effect in the teaching and learning activities that go on in the schools.

 Quality education is achievable through equity theory. Equity theory, if put

into practice by school operators will raise schools to enviable high
standard. This implies that the general objective, aims and goals of
Nigerian education will be met.
 M.Deutsch’s notions about the determinants of the justice
value base:

• In cooperative relations in which economic productivity

is a primary goal, equity rather than equality or need will
be the dominant principle of distributive justice.
• In cooperative relations in which the fostering or
maintenance of enjoyable social relations is the
common goal, equality will be the dominant principle of
distributive justice.
• In cooperative relations in which the fostering of
personal development and personal welfare is the
common goal, need will be the dominant principle of
distributive justice.
 Inequity in social exchange
• Relative deprivation – felt injustice:
– response discrepancy between what is perceived to be and what is
perceived should be
• Distributive justice

A’s rewards less A’s costs B’s rewards less B’s costs
A’s investments = B’s investments

Notes:
 “Justice is a curious mixture of equality within inequality”
(Homans, 1961, p.244)
 The role of mutual perceptions between As and Bs
 Inequity in social exchange
• Antecedents of inequity:
– inputs (recognition and relevance)
– outcomes (positive/negative valence and
recognition and relevance)
• Definition of inequity:

A’s outcomes B’s outcomes

A’s inputs < B’s inputs
 Inequity in social exchange
• Consequences of inequity, cognitive dissonance approach:
– the presence of IQ in Person creates tension in him/her
– this tension will motivate Person to eliminate or reduce it
• Ways to reduce inequity: (ketidaksamaan-
samattuvam)
– person altering his inputs
– person altering his outcomes
– person distorting his inputs or outcomes cognitively
– person leaving the field
– person acting on the other
– person changing the object of his comparison
Equity, equality, and need as a basis of distributive justice

justice
≈ equity

Morton Deutsch:
• it is a limited perspective and not applied to
the noneconomic social relations
 Equity, equality, and need as a basis of distributive justice

The sense of injustice. Grounds (M. Deutsch):

• the values underlying the rules governing the distribution
(injustice of values)
• the rules which are employed to represent the values
(injustice of rules)
• the ways that the rules are implemented (injustice of
implementation)
• the way decisions are made about any of the foregoing
(injustice of decision-making procedures). Issue of legitimacy
 References
• Adams, J.S. (1965) Inequality in Social Exchange. In L.
Berkowitz (Ed.), Advances in Experimental Psychology
(pp. 267-299). NY: Academic Press.

• Deutsch, M. (1975). Equity, equality, and need: What

determines which value will be used as the basis of
distributive justice? Journal of Social Issues, 31, 137-
149.