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 theoryLecturer: Wendelin KuepersGroup members:1. Mai Thu Ha (12032382)2. Zhengyan ZUO (05017882)3. Haoxiang Wu (120...
HIGHLIGHTSIntroduction & Assumptions1Output/Input ratio - Comparison others2Consequences of inequity3Development of Equity...
Introduction to Equity theoryFirst developed in 1963 by John Stacey AdamsAdams (1963) argues that when peoplemeasure the f...
Assumptions of Equity Theory• Employees expect a fair and equitable returnfor their contribution to their jobs.• Social co...
Model of Equity TheoryS Input versus r InputS Outcome r OutcomeI = Inputs - employee’scontribution to employerO=Outcomes -...
Key Factors in Equity Assessment152.700 Organisation and Management -Assignment 1b
Equity Theory’s“Relevant Others”• Can be four different situations:Self-Inside• The person’s experience in a different job...
Accoring to the equity theory employees compare their outcome/input ratiowith the outcome /input ratio of others to determ...
b.under rewarded inequity /negative inequity:A person feels over rewarded when his outcome/input ratio is less thanwhom th...
Consequences of inequityBased on equity theory, when employees perceivean inequity, they can be predicted to make one ofsi...
The Development of Research on EquityTheory1. First developed in 1963 by John StaceyAdamsAdams (1963) argues that when peo...
The Development of Equity Theory2. Effects of Inequity on Work Output andQuality by UnderpaymentLawler and O’ Gara (1967) ...
The Development of Equity Theory3. Equity and workplace statusGreenbery (1988) stated that employeesreassigned to offices ...
The Development of Equity Theory4. Equity Sensitive Construct• Huseman, Hatfield and Miles(1987) defined the equitysensiti...
The Development of Equity Theory5. Work Motivation on an Assembly LineThe study was completed on the basis thatequity theo...
The Development of Equity Theory6. Dishonesty in the Name of EquityIndividuals are more likely to engage indishonest behav...
StrengthsStrengthsBECDAAccurately predicts behavior on under-rewardInter-personalprocesses(socialcomparison)+ referencegro...
Restricted & incomplete(focus on payment only)Little practicalvalue ->better asan explanationafter the factthan as apredic...
Applications of Equity theoryExplanation ofemployeebehaviourEquityDistributivejustice•Compensation•Promotion=>fairdistribu...
ContentsTheory’s strengths and criticismDevelopment of Equity theoryConsequences of inequityOutput/Input ratio - Compariso...
References• Adams, J.S. (1963). Towards An Understanding of Inequality.Journal of Abnormal and Normal Social Psychology.(6...
References (cont)• Lawler, E., & O‘Gara, P. (1967). Effects of inequity produced byunderpayment on work outputs, work qual...
Group reflection• Forming• Agreeing on topic• Assigning responsibilities• Time frame• Conflicts152.700 Organisation and Ma...
Forming• Make friends during paper• For assignment• Assign leader• Group is not so diverse in cultures152.700 Organisation...
Topic agreement• Group members study all theories inmotivations• Each member proposes 1 topic• Group discusses and agrees ...
Assigning responsibilities• Individual task is assigned based onmembers’ strength (who can do better inone part)• Members ...
Time frame• 1st week: forming, individually study, agreeon topic• 2nd: individual to prepare theirpart, combine and discus...
Conflicts• Task: unequal, discussion to fix with outlinesand orders of the presentation => membersagree & be happy with as...
THANK YOU FOR YOUR ATTENTION!152.700 Organisation and Management -Assignment 1b
Próximos SlideShares
Carregando em…5
×

Motivation management_equity theory (Ha Mai, New Zealand)

Motivation management - Equity theory

  • Seja o primeiro a comentar

Motivation management_equity theory (Ha Mai, New Zealand)

  1. 1. Equity theoryLecturer: Wendelin KuepersGroup members:1. Mai Thu Ha (12032382)2. Zhengyan ZUO (05017882)3. Haoxiang Wu (12083815)4. Wu Di (11046037)152.700 Organisation and Management - Assignment 1b
  2. 2. HIGHLIGHTSIntroduction & Assumptions1Output/Input ratio - Comparison others2Consequences of inequity3Development of Equity theory45 Theory’s strengths and criticism152.700 Organisation and Management - Assignment 1b
  3. 3. Introduction to Equity theoryFirst developed in 1963 by John Stacey AdamsAdams (1963) argues that when peoplemeasure the fairness of their work outcomesrelative to others, any perceived inequity is amotivating state of mind.152.700 Assigment 1b
  4. 4. Assumptions of Equity Theory• Employees expect a fair and equitable returnfor their contribution to their jobs.• Social comparison.• Employees who perceive themselves asbeing in an inequitable scenario will attemptto reduce the inequity.
  5. 5. Model of Equity TheoryS Input versus r InputS Outcome r OutcomeI = Inputs - employee’scontribution to employerO=Outcomes - the individual getsin return for his contribution.R = Referent - comparisonpersonS = Subject the employee who isjudging fairness of theexchange 152.700 Organisation and Management - Assignment 1b
  6. 6. Key Factors in Equity Assessment152.700 Organisation and Management -Assignment 1b
  7. 7. Equity Theory’s“Relevant Others”• Can be four different situations:Self-Inside• The person’s experience in a different job in thesame organizationSelf-Outside• The person’s experience in a different job in adifferent organizationOther-Inside• Another individual or group within the organizationOther-Outside• Another individual or group outside of theorganization152.700 Organisation and Management - Assignment 1b
  8. 8. Accoring to the equity theory employees compare their outcome/input ratiowith the outcome /input ratio of others to determine whether they are beingtreated fairly or fairly by the organization.These comparisions are divied into3 categories:a.Equity:A person feels equitably treated when his outcome/input ratio is equal toothers persons outcome/input ratio with the person compares himself.S outcome = R outcomeS input R inputEquitably paid workers are said to feel satisfied.152.700 Organisation and Management -Assignment 1b
  9. 9. b.under rewarded inequity /negative inequity:A person feels over rewarded when his outcome/input ratio is less thanwhom the person compare himself.S outcome < R outcomeS input R inputEquity theory states that an overpaid worker feels angry.c .over rewarded inequity /positive inequity:A person feels over rewarded when his outcome/input ratio is greater thanwhom the person compare himself.S outcome > R outcomeS input R inputEquity theory states that an overpaid worker feels guilty.152.700 Organisation and Management -Assignment 1b
  10. 10. Consequences of inequityBased on equity theory, when employees perceivean inequity, they can be predicted to make one ofsix choices.•They change their inputs.•They change their outcomes•They distort perceptions of self•They distort perceptions of others•They choose a different referent•They leave the field (Robbins, Millett & Waters-marsh , 2004, p.183).152.700 Organisation and Management -Assignment 1b
  11. 11. The Development of Research on EquityTheory1. First developed in 1963 by John StaceyAdamsAdams (1963) argues that when peoplemeasure the fairness of their work outcomesrelative to others any perceived inequity is amotivating state of mind.152.700 Organisation and Management -Assignment 1b
  12. 12. The Development of Equity Theory2. Effects of Inequity on Work Output andQuality by UnderpaymentLawler and O’ Gara (1967) indicated that theunderpaid group experienced feelings of inequityusing the higher paid group members as theircomparative others.Additionally, the underpaid worker would producemore work output via conducting moreinterviews was indeed correct.152.700 Organisation and Management -Assignment 1b
  13. 13. The Development of Equity Theory3. Equity and workplace statusGreenbery (1988) stated that employeesreassigned to offices of higher statuswould be more productive than thosereassigned to offices of equal statusemployees.152.700 Organisation and Management -Assignment 1b
  14. 14. The Development of Equity Theory4. Equity Sensitive Construct• Huseman, Hatfield and Miles(1987) defined the equitysensitive construct as the investigation of a personsperception of what is and what is not equity, and thenuses that information to make predictions aboutreactions to inequity.• Individuals react in consistent but individually differentways to both perceived equity and inequity because theyhave different preferences for equity on a continuum withclasses of individual: Benevolent, EquitySensitive, and Entitled (Huseman et al., 1987).
  15. 15. The Development of Equity Theory5. Work Motivation on an Assembly LineThe study was completed on the basis thatequity theory indicates that workers react to andmodify their work behaviour based upon thespeed or rate of the work of the people aroundthem (Schultz, Schoenherr & Nembhard, 2006).152.700 Organisation and Management -Assignment 1b
  16. 16. The Development of Equity Theory6. Dishonesty in the Name of EquityIndividuals are more likely to engage indishonest behaviour when they have inequity ofwealth (Gino & Pierce, 2009).152.700 Organisation and Management -Assignment 1b
  17. 17. StrengthsStrengthsBECDAAccurately predicts behavior on under-rewardInter-personalprocesses(socialcomparison)+ referencegroupImportant insightsinto employeemotivationAbility to fit withother theories(particularly theexpectancytheory)Accounts forinternalassessment,comparisonprocedures&qualitychanges152.700 Organisation and Management -Assignment 1b
  18. 18. Restricted & incomplete(focus on payment only)Little practicalvalue ->better asan explanationafter the factthan as apredictor ofbehaviorFocuses on short-time comparisonIgnores reactionsto experiencedinequitiesEquity’s criticismCriticismsGibson, Ivancevich, Donnelly, & Konopaske (2009, p. 151-153)Huseman, Hatfield & Miles, 1987 152.700 Organisation and Management -Assignment 1b
  19. 19. Applications of Equity theoryExplanation ofemployeebehaviourEquityDistributivejustice•Compensation•Promotion=>fairdistribution ofrewardsGibson, Ivancevich, Donnelly, & Konopaske (2009, p. 151-153)152.700 Organisation and Management - Assignment 1b
  20. 20. ContentsTheory’s strengths and criticismDevelopment of Equity theoryConsequences of inequityOutput/Input ratio - Comparison othersIntroduction & Assumptions152.700 Organisation and Management -Assignment 1b
  21. 21. References• Adams, J.S. (1963). Towards An Understanding of Inequality.Journal of Abnormal and Normal Social Psychology.(67), 422-436.• Gibson, J.L., Ivancevich, J.M., Donnelly, J.H., &Konopaske, R. ( 2009). Organizations:Behavior, structure, process (13th ed.). New York, NY:McGraw-Hill., p150-153• Gino, F., & Pierce, L. (2009). Dishonesty in the Name ofEquity. Psychological Science, 20 (9): 1153-1160.• Greenberg, J. (1988). Equity and workplace status: a fieldexperiment. Journal of Applied Psychology, 4, 606-613.• Huseman, R., Hatfield, J., & Miles, E. (1987). A NewPerspective on Equity Theory: The Equity SensitivityConstruct. Academy of Management Review. 12(2). 232-234.152.700 Organisation and Management -Assignment 1b
  22. 22. References (cont)• Lawler, E., & O‘Gara, P. (1967). Effects of inequity produced byunderpayment on work outputs, work quality, and attitudes towardthe work. Journal of Applied Psychology, 51(5), 403-410.• Robbins, S.P., Millett, B., & Waters-marsh, T. (2004). OrganisationalBehaviour. Australia: Person Education Australia, p. 183.• Schultz, K., Schoenherr, T., & Nembhard, D. (2006). Equity theoryeffects on worker motivation and speed on an assembly line.Retrieved from: http://www.hbs.edu/units/tom/pdf/kschultz.pdf• Stecher, M.D. & Rosse, J. (2007). Understanding reactions toworkplace injustice through process theories of motivation. Journalof Management Education, (31), 777-796.• Weick, K.E. (1996). The concept of equity in the perception of pay.Administrative Science Quarterly. (11), 414-439.152.700 Organisation and Management -Assignment 1b
  23. 23. Group reflection• Forming• Agreeing on topic• Assigning responsibilities• Time frame• Conflicts152.700 Organisation and Management -Assignment 1b
  24. 24. Forming• Make friends during paper• For assignment• Assign leader• Group is not so diverse in cultures152.700 Organisation and Management -Assignment 1b
  25. 25. Topic agreement• Group members study all theories inmotivations• Each member proposes 1 topic• Group discusses and agrees on topic152.700 Organisation and Management -Assignment 1b
  26. 26. Assigning responsibilities• Individual task is assigned based onmembers’ strength (who can do better inone part)• Members read and makerecommendations for others in group152.700 Organisation and Management -Assignment 1b
  27. 27. Time frame• 1st week: forming, individually study, agreeon topic• 2nd: individual to prepare theirpart, combine and discuss, proof-reading, finalize152.700 Organisation and Management -Assignment 1b
  28. 28. Conflicts• Task: unequal, discussion to fix with outlinesand orders of the presentation => membersagree & be happy with assigned task• Time: different time -> difficult to schedule forgroup meeting => discuss & propose severaloptions then agree on one that suits all• However, thanks to small group size of4, those conflicts are easier to be resolved.152.700 Organisation and Management -Assignment 1b
  29. 29. THANK YOU FOR YOUR ATTENTION!152.700 Organisation and Management -Assignment 1b

×