O slideshow foi denunciado.
Utilizamos seu perfil e dados de atividades no LinkedIn para personalizar e exibir anúncios mais relevantes. Altere suas preferências de anúncios quando desejar.

Equity theory

Equity Theory

Livros relacionados

Gratuito durante 30 dias do Scribd

Ver tudo
  • Seja o primeiro a comentar

Equity theory

  1. 1. EQUITY THEORY JOHN STACEY ADAMS Prepared by: AC 220 8D SITI KHADIJAH BINTI ZAILAN(2012248034) NURFARAH AMALINA BINTI ABDUL AZIZ(2012494562) ANIS SYAFIQAH BINTI ROSLAN(2012459002) NUR ATHIRAH BINTI TUAN YAACOB(2012203764)
  2. 2. HISTORY 1963 – John Stacey Adams Idea that fairness and equity are key components of a motivated individual The higher an individual's perception of equity, the more motivated they will be If someone perceives an unfair environment, they will be demotivated
  3. 3. DEFINITION Concept that people derive job satisfaction and motivation by comparing their efforts (inputs) and income (outputs) with those of the other people in the same or other firms. Outputs What the worker gets from a job Salary, bonus, recognition, reputation, job security, etc. Inputs What a worker contributes to a job Effort, loyalty, hard work, skill, ability, determination, etc.
  4. 4. PROPOSITIONS Individuals develop their perception of fairness by calculating a ratio of their inputs and outcomes and then comparing this to the ratio of others. • An individual may not perceive he is being treated fairly when he works 40 hours per week and receives RM500 in pay, while his co-worker works 30 hours per week and receives RM650 in pay. If the comparative ratios are perceived by the individual to be unequal, then inequity exists. • Inequity exists when there is a perceived difference in the ratios of inputs and outcomes. • Underpayment inequity and overpayment inequity
  5. 5. As the difference in inequity increases, the tension and distress felt by an individual will increase. • Smaller differences of inequity are more tolerable than significant differences of inequity. The greater tension an individual feels due to perceived inequity, the harder they will work to decrease their tension and increase perceived levels of equity • Examples include decreasing productivity at work, finding a new job, asking for a wage increase, or attempting to justify changes in their perceptions of inputs or outcomes
  6. 6. APPLICATION OF EQUITY THEORY
  7. 7. APPLICATION OF ET Employees will compare their input and output with their coworkers input and output to measure their performance and will compromise if it is different. Equity theory can be measured by: Individual’s outcomes Individual’s own inputs Rational partner’s outcomes Rational partner’s inputs
  8. 8. APPLICATION OF ET Condition Person Referent Example Equity Outcomes = Outcomes Inputs Input Employee input and output equal with the referent. Underpayment Equity Outcomes < Outcomes Inputs Input Employee input is more than the referent but get same output as referent. Overpayment Equity Outcomes > Outcomes Inputs Input Employee input is same as referent but get more outcome than the referent.
  9. 9. RESEARCH ON EQUITY A study published in 1967, Effects of Inequity Produced by Underpayment on Work Output, Work Quality, and Attitudes Towards the Work Lawler & O'Gara found that equity theory was indeed supported in that those who received less pay than their peers doing the same job found ways to "increase their outcomes while decreasing their inputs”.
  10. 10. APPLICATION OF ET IN WORKPLACE Distributive justice Involves ensuring that outcomes are fairly distributed in the organization. Two levels : o Low level o Increase level Procedural justice Deals with whether or not the process used to allocate the rewards is fair. Examples: o Giving employees a voice in the decision-making process o Making unbiased decisions
  11. 11. GLOBAL APPLICATION OF ET Equity Individual outcomes or rewards will be in proportion to individual inputs and efforts. Equality Rewards are equally given out to all participants despite individual inputs.
  12. 12. GLOBAL APPLICATION OF ET Inputs Outcomes Choice of a referent Individualism (Western) Effort, education, intelligence, experience Pay, autonomy, job status, fringe benefits Range of individuals due to loosely tied in-groups Collectivism (Eastern) Group membership, loyalty, support, respect Harmony, acceptance, social status, solidarity, cohesion May choose out-groups as a group referent, not an individual
  13. 13. ASSUMPTIONS OF EQUITY THEORY
  14. 14. ASSUMPTIONS OF EQUITY THEORY Equity norm Social comparison Cognitive distortion
  15. 15. IMPLICATION OF EQUITY THEORY
  16. 16. MANAGER Different employees ascribe personal values to inputs and outcomes People measure the totals of their inputs and outcomes Employees are able to adjust for purchasing power and local market conditions Staff perceptions of inputs and outcomes may be incorrect Employee who believes he is overcompensated may increase his effort
  17. 17. HOW TO REDUCE INEQUITY
  18. 18. HOW TO REDUCE INEQUITY • Changing individual inputs/outcomes • Persuading others to change inputs • Withdrawal Behavioral option • Distort perceptions of inputs/outcomes • Distort the inputs/outcomes of others • Change the other comparison Cognitive option
  19. 19. EQUITY SENSITIVITY Determines the extent to which an individual will tolerate inequality.
  20. 20. EQUITY SENSITIVITY- CATEGORIES • Employees as givers and more tolerant of under reward inequality Benevolent • Experience tension with inequality and will seek to restore a balance of equity in their relationships Equity Sensitive • Individual who frequently have an attitude that they are great and thus are entitled to great outcomes Entitled
  21. 21. CRITICISM TO EQUITY THEORY Directed towards both the assumptions and practical application of equity theory
  22. 22. EQUITY THEORY Criticisms A number of demographic and psychological variables affect people’s perception of fairness and interactions with others People might perceive equity/ inequity not only in terms of the specific inputs and outcomes of a relationship, but also in terms of the system that determines those inputs and outputs Not everyone will perceive the compensation system as unfair even they are in the same situation
  23. 23. CONCLUSION People are motivated to reduce perceived inequalities To provide the proper support for employees that may feel inequality
  24. 24. THE END THANK YOU

    Seja o primeiro a comentar

    Entre para ver os comentários

  • 100001749309038

    Jul. 25, 2015
  • Nai99

    Nov. 15, 2015
  • DevrieJezebelle

    Jan. 1, 2016
  • salejanmaengilay

    Apr. 7, 2016
  • SamsoniteOkubs

    Apr. 15, 2016
  • KenechiIbeanu

    Apr. 17, 2016
  • myahazra

    Jun. 6, 2016
  • Chivanz

    Aug. 9, 2016
  • DisnaDarshika

    Oct. 13, 2016
  • deekshanainani

    Nov. 10, 2016
  • ParamDagli1

    May. 14, 2017
  • FawadHussain22

    May. 24, 2017
  • NoorUlAin102

    May. 29, 2018
  • ChandaGupta10

    Jul. 17, 2018
  • OmerJaved20

    Jul. 31, 2018
  • Maccaran89

    Oct. 28, 2018
  • MDABDURRAHMAN26

    Nov. 11, 2018
  • MunishKaur

    Dec. 17, 2018
  • AzharFarz1

    Jul. 9, 2019
  • ManasviTupe

    Aug. 18, 2019

Equity Theory

Vistos

Vistos totais

17.913

No Slideshare

0

De incorporações

0

Número de incorporações

17

Ações

Baixados

913

Compartilhados

0

Comentários

0

Curtir

21

×