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Unit 11: Work Motivation

Adam's Theory of Equity is one of the popular social exchange theories and is perhaps the most Notes
rigorously development statement of how individuals evaluate social exchange relationships.
Basically, the theory points out that people are motivated to maintain fair relationships with
others and will try to rectify unfair relationships by making them fair. This theory is based on
two assumptions about human behaviour:

1. Individuals make contributions (inputs) for which they expect certain outcomes (rewards).
Inputs include such things as the person's past training and experience, special knowledge,
personal characteristics, etc. Outcomes include pay recognition, promotion, prestige, fringe
benefits, etc.
2. Individuals decide whether or not a particular exchange is satisfactory, by comparing
their inputs and outcomes to those of others in the form of a ratio. Equity exists when an
individual concludes that his/her own outcome/input ratio is equal to that of others.
The Figure 11.4 below shows the basic equity model.

Figure 11.4: The Basic Equity Model
Person Other
Inputs Comparison Inputs
Outcomes Outcomes
The motivational aspect of equity theory is based on its two major premises:
1. The theory argues that the perception of inequity creates a tension in us.
2. The tension motivates us to eliminate or reduce inequality. The greater the perceived
inequity, the stronger the tension and the greater our motivation to reduce it. When
attempting to reduce felt inequity, an individual is likely to try a number of alternatives,
some of which are:
(a) The person may increase or decrease inputs or outcomes relative to those of the
other;
(b) The person may subjectively distort perceptions of her own or the other's inputs or
outcomes;
(c) The person may change to a different comparison 'other';
(d) The person may leave the situation.

Reducing or Eliminating Inequity

Although the specific actions an individual takes will depend on what appears to be feasible in
a given situation, Adam suggests that maintaining one's self-esteem is an important priority. As
a result, an individual will probably first attempt to maximize outcomes and to personally
resist costly changes in inputs. Changing perceptions about the inputs and outcomes of others or
attempting to alter their side of the equation will usually be more palatable than cognitively
changing or actually altering one's own side of the equation. Actions to leave the situation will
probably be taken only in cases of high inequity when the other alternatives are not feasible.
Finally, an individual will be highly resistant to changing the comparison others, especially if
the objects of comparison have stabilized over time.
Although Adam's equity formulation considered one situation at a given point of time, recent
work on the theory also considers inequities that extend over a period of time. The addition of
the time perspective helps explain why people sometimes blow up over seemingly small
inequities. Residues from previous inequities may pile up until the small incident becomes the
"straw that broke the camel's back", and we react strongly.

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