Importance and Effects of Work Equity on. Job Satisfaction and Work Motivation: An Exploratory Study of the Utility of Equity. Adams' Equity theory (Adams, 1965) suggests that employees' perceptions of equity or inequity stem from individual comparisons with salient referents of.

• • • Stacey Adams equity theory Stacey Adams equity theory John Stacey Adams' equity theory helps explain why pay and conditions alone do not determine motivation. It also explains why giving one person a promotion or pay-rise can have a demotivating effect on others. When people feel fairly or advantageously treated they are more likely to be motivated; when they feel unfairly treated they are highly prone to feelings of disaffection and demotivation. Employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others.

The belief in equity theory is that people value fair treatment which causes them to be motivated to keep the fairness maintained within the relationships of their co-workers and the organization. Words like efforts and rewards, or work and pay, are an over-simplification - hence the use of the terms inputs and outputs. Inputs are logically what we give or put into our work. Outputs are everything we take out in return. Download our FREE ebook 'A summary of motivation theories' to get an overview and brief practical analysis all the theories in one handy document.

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Inputs This equity theory term ecompasses the quality and quantity of the employees contributions to his or her work. Typical inputs include time, effort, loyalty, hard work, commitment, ability, adaptability, flexibility, tolerance, determination, enthusiasm, personal sacrifice, trust in superiors, support from co-workers and colleagues, skill. Outputs Outputs in equity theory are defined as the positive and negative consequences that an individual perceives a participant has incurred as a consequence of his/her relationship with another. Outputs can be both tangible and intangible. Typical outcomes are job security, esteem, salary, employee benefits, expenses, recognition, reputation, responsibility, sense of achievement, praise, thanks, stimuli. It's all about the money Payment however, is the main concern and therefore the cause of equity or inequity in most cases. In any position, an employee wants to feel that their contributions and work performance are being rewarded with their pay.