O SlideShare utiliza cookies para otimizar a funcionalidade e o desempenho do site, assim como para apresentar publicidade mais relevante aos nossos usuários. Se você continuar a navegar o site, você aceita o uso de cookies. Leia nosso Contrato do Usuário e nossa Política de Privacidade.
O SlideShare utiliza cookies para otimizar a funcionalidade e o desempenho do site, assim como para apresentar publicidade mais relevante aos nossos usuários. Se você continuar a utilizar o site, você aceita o uso de cookies. Leia nossa Política de Privacidade e nosso Contrato do Usuário para obter mais detalhes.
Inputs : effort, loyalty, hard work ,commitment skill, ability, adaptability, flexibility, tolerance, determination, heart and soul, enthusiasm, trust in our boss and superiors, support of colleagues and subordinates, personal sacrifice, etc.Outcomes are typically all financial rewards - pay, salary, expenses, perks, benefits, pension arrangements, bonus and reputation, and thanks, interest, responsibility, travel, training, development, sense of achievement and advancement, promotion, etc.
1. (Don’t work hard; take longer breaks)2. (Individuals paid on a piece-rate basis can increase their pay by producing a higher quantity of units of lower quality)3. (“I used to think I worked at a moderate pace, but now I realise that I work a lot harder than everyone else.”)4. (“Mike’s job isn’t as desirable as I previously thought it was”)5. (“I may not make as much as my brother-in-law, but I’m doing a lot better than my Dad did when he was my age”) 6. (Quit the job)
A: internal assessment (input/ output ratio), comparison procedures (compare others) & quality changes (reactions to inequity)C: D: employees can use the equity theory to determine if inequity has occurred, and if so, they can use the expectancy theory to act upon the inequity (Stetcher and Rosse, 2007)
Short-time: career are life-long => need inequity examination over timeIgnore reactions to experienced inequities: not likely that 2 people will react somewhat differently to the same magnitude of inequity if they believe different things caused the inequityRestricted: In allocations of pay increase, not only specific distribution of money but other factors (procedure used to determine the raises) need to be considered
Motivation management_equity theory (Ha Mai, New Zealand)
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
HIGHLIGHTSIntroduction & Assumptions1Output/Input ratio - Comparison others2Consequences of inequity3Development of Equity theory45 Theory’s strengths and criticism152.700 Organisation and Management - Assignment 1b
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
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.
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
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 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
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
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
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
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
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
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
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).
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
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
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
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
Applications of Equity theoryExplanation ofemployeebehaviourEquityDistributivejustice•Compensation•Promotion=>fairdistribution ofrewardsGibson, Ivancevich, Donnelly, & Konopaske (2009, p. 151-153)152.700 Organisation and Management - Assignment 1b
ContentsTheory’s strengths and criticismDevelopment of Equity theoryConsequences of inequityOutput/Input ratio - Comparison othersIntroduction & Assumptions152.700 Organisation and Management -Assignment 1b
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
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
Group reflection• Forming• Agreeing on topic• Assigning responsibilities• Time frame• Conflicts152.700 Organisation and Management -Assignment 1b
Forming• Make friends during paper• For assignment• Assign leader• Group is not so diverse in cultures152.700 Organisation and Management -Assignment 1b
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
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
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
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
THANK YOU FOR YOUR ATTENTION!152.700 Organisation and Management -Assignment 1b