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MotivationTheories

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 Adam’s Equity Theory

•  J.S. Adams suggested that employees are bound tocompare their ‘equity’ against others. The degree ofequity in an organisation is based on the ratio of inpand outcomes.

• nputs! "ontributions made by the employee# eg#e$pertise% e$perience% enthusiasm and e&ort

• 'utcomes! (nancial and non (nancial re)ards# eg#remuneration% recognition% ran* and responsibilities

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Equity Theory

• Equity occurs when each person has equal ratios (e.g., 50:50)

other’s-outcomes

other’s-inputs

self-outcomes

self-inputs

vs

n!erpayment equity: "he sense of unfairness !erive! from the

 perception that the ratio of one’s own inputs an! outcomes is

lower than the ratio of a comparison other.

#verpayment equity: "he sense of unfairness !erive! from the

 perception that the ratio of one$s own inputs an! outcomes is

greater that the ration of comparison other.

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 Adam’s Equity Theory

• Equity "heory Underpayment %nequity &re!ictions

• Hourly Wages

• 'orers will !ecrease effort

•

ecreases in pro!uct quality an! quantity• Piece Rate Wages

• "o compensate for un!erpayment, worers woul!

 pro!uce more, *ut much lower quality

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 Adam’s Equity Theory

• Equity "heory Overpayment %nequity &re!ictions

• Hourly Wages

• 'orers shoul! e+pen! more effort (i.e., increase i

•Piece Rate Wages• 'orers shoul! e+pen! more effort to pro!uce few

more high quality pro!ucts

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+,- Theory

• aniel +in* stressed on the importance of three factthat drive people at )or*.

•  Autonomy# Self su&iciency to direct their o)n lives

• Mastery# Self improvement to learn and create ne)

• +urpose# Self esteem and drive to do better by them

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 Autonomy

• 'rganisations can provide employees )ith autonomy)ithin various aspects of )or*!

• Tas*# )hat )or*ers do

• Time# )hen )or*ers do their tas* 

• Technique# ho) )or*ers do their tas*s

• Team# )hom employees )or* )ith to complete their

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Mastery

•  Allo)s people to become better at something that mto them as individuals.

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+urpose

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 Thank You

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