Equity Theory
Abstract
This paper explores the equity theory of motivation, including its past and present application. Equity theory by Adam, an American psychologist, recognizes that apart from salary, and gifts, employees get motivation from fair treatment. The word fairness, in theory, is the treatment of employees about their dedication to the organization. Employees get motivated when they realize that the rewards resonate with the commitment they put, including skills and loyalty towards the organization. However, they also assess whether other workers are doing lesser tasks but with higher pay than theirs, leading to demotivation. The paper also finds that equity theory has maintained its assumption without any update due to its basic construction. The approach applies in therapeutic settings to assess therapy that resonates with patients’ needs and hence raise satisfaction. In Educational settings, Equity theory also guides educators to support student’s needs as opposed to generalization. However, business people use the approach to control employees’ hard work and behaviors by varying rewards in comparison to their practices and hard work.
Keywords:Equity Theory, Motivation, Input, Output, Rewards, Satisfaction
Theory Overview
Equity theory, referred to as Adam’s equity theory, is a motivation model that John Stacy Adam, an American behavioral and workplace psychologist, created in 1963 (John &Chiekezie, 2016). Adam developed the theory after realizing that equity and fairness are an essential component of individual motivation. According to the theory, fair treatment of employees leads to motivation and vice versa. Fairness in the theory context is balance in employee input and output and also treatment about other employees and organizations (John &Chiekezie, 2016). The theory considers input as employees’ quantity and quality of contribution to the organization, including skills, loyalty, social skills, and experience. Output, on the other hand, is the employees’ rewards material and non-material, for example, praise and recognition. Employees who get rewards that are proportionate to the input have motivation because of the feeling of fairness. Employees also compare their input and output to those of their colleagues. Demotivation occurs when employees feel that their colleagues are getting more rewards with fewer efforts.
Application of the Theory in the Past and Present
Equity theory application concentrated on the motivation of employees at the begging, later in marketing, and finally went back to capitalize on workplace motivation. Huppertz et al. (1978) demonstrate that the theory gained application in marketing to motivate customers following Adam’s recommendation that it was applicable in any relationship exchange. The researcher performed research to show find out whether equity theory would apply to attract customers in retail. Findings indicate that customers are sensitive to equity in input and output, which makes it possible to use Adam’s theory as a marketing tool (Huppertz et al., 1978). The cost in which customers for products are inputs while the price and customer service they receive is the output. Where the customers perceive that the cost they pay is too high for the services and price, they perceive inequality and likely to avoid the retailer. However, the relationship is more complex, asHuppertz et al. explain in the research study.
In the present, Adam’s theory has an extensive application in business organizations to motivate employees. However, managers are using the approach to stimulate the right behaviors and hard work. In a research study, Gino and Pierce (2009) found that employees are likely to engage in honest acts when they perceive equity in treatment with high-level workers. Employees, as a result, are using the theory to motivate employees towards the adoption of other behaviors that maintain organizational culture as opposed to directly increasing productivity.However, employees are using the same approach, indirectly stimulating worker performance. John andChiekezie (2016), in a study, found that fair treatment of employees motivates university employees. Adam’s theory, as a result, has several applications, including motivation for the right behaviors and hard work in organizations in the present.
Current Updates on the Theory
Adam’s equity theory has no received any update since its development due to its general or primary approach to motivation. Recognized the theory as “the explicit and rigorously developed,” and which had sustained prediction of behavior in relationships by 1983 (Cosier& Dalton, 1983, 311). Other theories have built on the equity model, for example, the game theory and indication that it sustains its initial assumption since there is no adjustment before its application.
Application of the Theory in Therapeutic, Educational and Business Settings
In healthcare, psychiatric, and other therapeutic settings, equity theory applies in assessing the right treatment that will increase satisfaction and hence, recovery. Patients accept treatment, and the treatment relates to their needs when it is socially fair. Fairness in the therapeutic setting is the provision of care that resonates with the patient’s needs, both psychological and physiological (Pauly, 2017). Equity in healthcare is also the provision of care that is similar to the one which other groups of people, for example, different ages, gender, and ethnicity receive. The theory, therefore, applies in therapeutic settings to guide the therapist on how to increase satisfaction, which is by offering care that resonates with the patient’s needs without discrimination.
Adam’s theory, on the other hand, applies in an educational setting to identify makers of student’s motivation towards the class. Student’s motivation occurs when they perceive that the teacher is supporting themconcerning their contribution. Most students struggle to achieve their needs through different means, like asking questions. As a result, the theory guides educators to assess student’s needs and provide individualized support, which will allow improvement in hard work and maintaining motivation. Equity in education is the provision of support to students according to their needs while avoiding discrimination. The theory thus applies in an educational setting to allow identification of the proper intervention for student’s motivation in their work.
In a business setting, managers and supervisors apply the theory to seek employee motivation for the right behaviors and hard work. Managers cultivate proper behaviors and organizational culture through fairness in treatment(John &Chiekezie, 2016). They can increase output inform of rewards higher compared to the input to push workers towards loyalty, honesty, and other behaviors. However, businessesuse the theory to raise motivation towards hard work where an increase in rewards compared to the work input results in increased employee’s efforts.
References
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Gino, F., & Pierce, L. (2009). Dishonesty in the name of equity. Psychological science, 20(9), 1153-1160.
Huppertz, J. W., Arenson, S. J., & Evans, R. H. (1978). An application of equity theory to buyer-seller exchange situations. Journal of marketing research, 15(2), 250-260.
Sun, K. (2016). The Power of Perks: Equity Theory and Job Satisfaction in Silicon Valley.Scripps Senior Theses. Paper 846. Retrieved from https://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1886&context=scripps_theses
Ward, P. R. (2018). The relevance of equity in health care for primary care: creating and sustaining a’fair go, for a fair innings’. Quality in Primary Care, 17(1).