ADAM’S EQUITY THEORY

OF MOTIVATION

Inputs Outputs

Organisation Behaviour
28 th November 2022
John Stacy Adams
Adams' Equity Theory is named for John
Stacey Adams, a workplace and
behavioral psychologist, who developed
his job motivation theory in 1963.

• John Stacy Adams, Belgian psychologist.

• Recipient Carolina Psychology Distinguished Alumnus
award, University North Carolina, 1977
• National Science Foundation grantee, 1972-1976
• Served with United States Navy, 1942-1946
• Member American Psychological Association, Academy
Management.
Equity Theory
 Equity theory aims to strike a fair balance between
an employee’s inputs and outputs in a workplace.
 If the employee is able to find his or her right
balance it would lead to a more productive
relationship with the management.
Inputs=Outputs
What I put into my job What I get from my job

Inputs Equity Outputs

Effort Financial rewards

Loyalty Fair Balance Recognition
Hard work Reputation
Commitment Achievement
Skill Advancements
Ability Praise
Enthusiasm Stimulus
Adaptability Job Security
Determination Promotions
Personal sacrifice Experience
Propositions
Individuals seek to Groups can
maximize their maximize collective
outcomes (where, rewards by
Outcomes = Rewards – developing accepted
Costs systems.
Self- Self-
inside outside

Others Other-
-inside outside

Individuals
When individuals find
who perceive that they
themselves participating
are in an inequitable
in inequitable
relationship attempt to
relationships, they
eliminate their distress
become distressed
by restoring equity
 Advantages Disadvantages Criticism

• Simplicity of the
• Difference of
• Helps in Reducing model
Perception
Exploitation
• Assumptions and
• Exact
• Source of practical
Comparison
Motivation application
Difficult
• Better Relations • Demographic and
• All other Factors
between Workers psychological
are Ignored
variables
Applications
1. Business managers

2. Compensation

3. Measure the totals

4. Different personal
values

5. Different perceptions

6. Purchasing power and

local market

7. Staff perceptions
THANK YOU