Proportionality and equality will be used to refer to research and findings based on their respective rules. The Utility of Equity Theory in Enhancing Organizational Effectiveness Introduction What motivates people to work? In Equity Theory Inputs Usually Refer To of Maximus Devoss Read about In Equity Theory Inputs Usually Refer To collection, similar to In Equity Theory Inputs Usually Refer To Quizlet and on In Equity Theory Inputs Usually Refer To Chegg. Equity theory states that motivation is affected by the outcomes we receive for our inputs compared to the outcomes and inputs of other people. Equity theory explains how employees determine what is fair and how they act upon their perceptions. Equity theory is supported by research over the years. Another theory relevant to the goals of this study is equity theory, which asserts that workers are motivated by a desire to be treated fairly, which is measured by the ratio of their inputs and outcomes (Adams, 1965). That’s why it is crucial to maintain a high level of perceived pay fairness at your organization. Because equity theory as outlined in the four principles above is primarily concerned with perceived fairness in relationships, the term equity as used here will apply to fairness. Yet, the addition of one new employee has transformed you from a happy to an unhappy employee. Workers possess certain inputs that they bring to the job, like skills, time, and effort. Managers who truly want to understand equity theory, and how it can apply to what they do, need to go a little deeper into an explanation of human motivation and perceptions of equity. Equality vs. Equity. Adams introduced two key concepts for assessing this perception: Inputs and Outputs. For managers it is better to effectively address these concerns than ignore them. If the assumptions hold true then the equity theory can help you increase motivation. This is based on a ratio of inputs and outputs. Meaning of equity theory. The key assumptions of the equity theory of motivation include: Inputs and outputs are highly correlated A theory proposed by John Stacey Adams, the Equity Theory, asserts that if employees feel that their inputs at work are greater than their outputs, they lose their motivation, become less productive, or even disgruntled. - Inputs: Energy, knowledge, hard work - Outcomes: Salary, benefits, job satisfaction. The Key Premises of The Equity Theory. Definition of equity theory in the Definitions.net dictionary. Equity theory states that motivation is affected by the outcomes we receive for our inputs compared to the outcomes and inputs of other people. Equity = more concerned about individual preferences on fairness Equity Theory. The equity theory of motivation has to make key assumptions. Equity theory focuses on two sides: the input and the outcome. This feeling of unfairness is the basis for equity theory. If not, then it fails and should be discarded for another theory or approach. What does equity theory mean? As a result, employee perceptions about fairness do matter–whether they are real or misguided. 21 This theory is concerned with the reactions people have to outcomes they receive as part of a “social exchange.” An employee compares his or her job’s inputs with an outcomes ratio. Explains how people perceive fairness in an organization. According to equity theory, it is the perception of equitability and in-equitability. Information and translations of equity theory in the most comprehensive dictionary definitions resource on the web.