The equity theory of relationships is based on a theory developed by workplace and behavioral psychologist john stacey adams. Equity is said to exist whenever the ratio of persons outcomes to inputs is equal to the ratio. One of the assumptions of the expectancy theory is that people make. The bestknown work in this area has been concerned with vrooms expectancy theory and adams equity. Adams equity theory of motivation and vrooms expectancy. Vroom expectancy motivation theory employee motivation. Expectancy theory proposes a causal relationship between expectancy attitudes and motivation. Expectancy theory shows a heavy linkage between rewards and the amount of work needing to be done to achieve the reward. An empirical examination of the relationship between stakeholder. Instrumentality is the perceived relationship between performance and rewards. Equity theory does not really link motivation to an outcome or goal purely about relating outcome to that of your peers. According to the equity theory, a person who gets more benefits out of relationships than they put in will feel guilt and shame, and those who think they put a lot in but get very.
The equity theory has generated extensive research, with many of the results being supportive. The theory recognises the influence of social comparison processes on motivation. Expectancy theory an overview sciencedirect topics. Motivating yourself with goal and expectancy theories. Process theories are concerned with the thought processes that influence behaviour. The theories of maslow and herzberg are surely worthy to be the reference for. Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job. Equity theory, popularly known as adams equity theory, aims to strike a balance between an employees input and output in a workplace. Very simply, the expectancy theory says that an employee will be motivated to exert a high level of. An individualdifferences interpretation of the conflicting predictions generated by equity theory and expectancy theory. The major variables in process models are incentive, drive, reinforcement and expectancy. Equity theory in some sense is related to motivationhygiene theory, in that it considers both demotivators and motivators.
This way of thinking plays a key role in the development of this theory. A comparison of equity theory and expectancy theory and some implications for managers in a global work environment. Although possible, most research studies show a higher correlation between higher motivation and higher employee performance. The difference between expectancy theory and equity theory needs substantial analysis as both explain how employees relationships evolve in a working environment. From the preceding discussion it can be deduced that there is a relationship between pay and. It is possible for each partner to receive give very different amounts and for the perception of equity to still be present. Expectancy theory of motivation vrooms expectancy theory. In other words, an employee gets demotivated by the job and his employer in case his. Equity theory proposes that individuals who perceive themselves as. Expectancy theory directly links action, outcome, reward and value placed on this reward 2. Expectancy theory fills in the gaps left in equity theory and replaces. It explores the perceptions of humans regarding their inputs in the relationship and the outcomes they get. In my experience, there is a psychological theory at the foundation of office politics. Expectancy theory vs equity theory essay 872 words.
Faisal almadi department of business administration, the hashemite university, jordan abstract this paper will focus on examining equity theory, its propositions and underlying assumptions. The utility of equity theory in enhancing organizational effectiveness dr. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. The utility of equity theory in enhancing organizational. Basically, he theory points out that people are motivated to maintain far relationship between their performance and reward in comparison to others. Isaac 2008 expectancy theory and its implications for employee motivation,academic leadership. The motivated theories chosen are the expectancy theory and the equity theory. Motivation provides reasons for peoples action, desires, and needs. If the relationship between the colleagues and themselves cannot solve well or treated inequitable, it means people will not satisfied with their work. Equity theory of work motivation is based on the social exchange process. The principle involved in creating the environment in these situations is the expectancy theory. Difference between expectancy theory and equity theory.
Pdf a comparison of equity theory and expectancy theory and. Equity theory proposes that individuals estimate the ratio of what has been. When discussing the equity theory, it is important to distinguish between equity th eory of motivation and expectancy theory, as both thesis are often interlinked. Expectancy vie theory, examines the relationship between worker motivation and each of these three components. The major components of exchange relationships in adams theory are inputs. There is a useful link between vrooms expectancy theory and adams equity theory of motivation. Equity theory of motivation management study guide.
There is a subtle link between expectancy, effort, productivity and reward. Pdf a comparison of equity theory and expectancy theory. If the employees are not motivated they will put a minimal amount of energy into their job if any at all. Finally, a comprehensive understanding of the relationship between expectancy and equity theories of motivation requires that students be exposed to the. Similarities between equity theory and expectancy theory. Expectancy theory of motivation argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. It means that a valued level outcome leads to a second level outcome. The equity theory of motivation describes the relationship between the employees perception of how fairly is he being treated and how hard he is motivated to work. There has always been an issue to get employees motivated for managers and leaders. The equity theory is defined as a theory that states that people will be motivated when they perceive that they are being treated fairly. Equity theory suggests that people will alter the level of effort they put in to make it fair compared to others according to their perceptions. Expectancy theory and its implications for employee motivation.
The dictionary meaning of the word equity is the quality of being fair and impartial. Exchange relationship between a persons inputsoutcomes in relation to those of other persons may be of three types. Equity theory strongest when predicting absence and turnover behaviors. They posit that motivation does not equal satisfaction or performance. Higher is individuals perception of fairness, greater is. People in inequitable relationships will attempt to reduce their distress via a variety of techniques. Another motivational theory, which appears in the literature at about the same time as vrooms 1964 expectancy theory, is adams 1963 equity theory. To help you motivate yourself to achieve your goals, consider applying locke and lathams goal theory and victor vrooms expectancy theory. As per this motivation theory, an individuals motivation level is correlated to his perception of equity, fairness and justice practiced by the management. This theory integrates many of the elements of the needs, equity and. Victor vrooms expectancy theory of motivation an evaluation. Expectancy, ranging from 0 to 1, is based on probabilities. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Motivational theories a critical analysis 67 efforttoperformance expectancy is the starting point in the implementation of the expectancy theory.
Two such theories are expectancy theory and equity theory. The core of the equity theory is the principle of balance or equity. Miles university of georgia equity theory proposes that individuals who perceive themselves as either underrewarded or overrewarded will experience distress, and that this distress leads to efforts to restore equity. Generally, estimates of expectancy by employees lie between two extremes. In 1963, adams claims that equity model focus on an individuals feeling of low fairly she is treated in comparison with others 1963. Equity theory proposes that a persons motivation is based on what he or she considers to be fair when compared to others redmond, 2010.
As motivational theories appear chronologically in the literature, one typically takes the place of its predecessor, e. Various theoretical frameworks have been used to explain the relationship between a range of attitudes toward statistics including efficacy, perceived difficulty, affect, expectancy, value, and effort and achievement. Expectancy theory directly motivates your actions through the steps. Weakest when predicting differences in employee productivity. When applied to the workplace, equity theory focuses on an employees workcompensation relationship or exchange relationship as well as that employees attempt to minimize any sense of unfairness that might result. Expectancy theory vs equity theory essay expectancy. If one partner perceives a relationship as unfair, they are going to be dissatisfied with it regardless of whether they are overbenefitting or underbenefitting. Equity theory is a psychological theory that focuses on the input and output ratios between people. According to stephan robbins expectancy theory is a theory that says that the strength of a tendency. In fact, porter and lawlers theory is an improvement over vrooms expectancy theory. This is the belief that if someone performs well, a valued outcome will arise. A major weakness of expectancy theory is using between subjects designs. In this paper the focus will be on the expectancy theory of motivation which was propounded by victor vroom.
The adams equity theory posits that people maintain a fair relationship between the performance and rewards in comparison to others. Individuals evaluate their relationships with others by assessing the ratio of their out. The model suggested by them encounters some of the simplistic traditional assumptions made about the positive relationship between satisfaction and performance. According to this theory motivation of any individual depends on the desired goal and strength of his expectation of achieving. Equity theory is used in parlance of human resource management. Performance measurement, expectancy and agency theory. In short, this theory says that people are motivated by outcomes that they expect. Equity is measured by comparing the ratios of contributions and benefits of each person within the.
Similarities and differences between motivation theories. Understanding reactions to workplace injustice through process. The key difference between expectancy theory and equity theory is that according to expectancy theory, people perform actions in exchange for. For instance, maslows needbased theories which focus on fulfilling employees needs, vrooms expectancy theory which is related to the function of individual expectation, herzbergs twofactor theory which is known as motivationhygiene theory and adams equity theory which demonstrates the relationship between equity and. The expectancy theory emphasizes that people will be motivated when they believe their efforts will lead to the outcome they desire.
The basic premise of goal theory is that people can form expectations about the future and strive to achieve them. Motivation is the theoretical concept, which attempts to explain human behavior. Expectancy theory focus on performance variables it is a rational model so be careful when using it. Expectancy is a persons estimate of the probability that jobrelated effort will result in a given level of performance. By utilizing expectancy theory, organizations are able to understand the importance of demonstrating appreciation for their employees work, and as a result, their employees will perform stronger, and show more loyalty towards the organization. Article information, pdf download for equity and expectancy. Test your understanding of the expectancy theory of employee motivation with this quiz and worksheet combo. Clear knowledge and understanding of the relationship between outcomes and performance. Expectancy is the perceived relationship between effort and performance. Expectancy theory in comparison to the other motivation theories. Pdf the original research performed concerning equity theory gradually contributed to the tenet.
Individuals are concerned not only with the amount of rewards they receive for their efforts but also with the relationship of this amount to what others receive. Equity and expectancy considerations in stakeholder action sefa. There are both positive motivators and negative motivators that can be utilized by the organization. Process theories attempt to explain and describe how people start, sustain and direct behavior aimed at the satisfaction of needs or the reduction of inner tension. Article pdf available january 2010 with 14,217 reads how we measure reads. This is key to equity theory, as it suggests that a relationship doesnt have to be equal to be equitable. Equity theory has been widely applied to business settings by industrial psychologists to describe the relationship between an employees motivation and his or her perception of equitable or inequitable treatment.
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