Equity theory of motivation

J. Stacy Adams developed equity theory of motivation. The equity theory argues that motivations arise out of simple desire to be treated fairly. Equity can be defined as an individual’s belief that he is being treated fairly relative to the treatment of others. The figure 9.4 shows the equity process.

A person’s perception of equity develops through a four-step process as shown below:

1. First an individual evaluates the way he is being treated by an organization.
2. The next step is for an individual to choose a co-worker who seems to be in a roughly similar situation and to observe how an organization treats him.
3. In the crucial step of equity theory an individual ‘compares’ the two treatments.
4. In the fourth step he evaluate a sense of equity to see if the two treatments seem similar or if the are different.

Adam suggests that employees make these comparisons by focusing on input and outcome ratios. An employee’s contributions or input to an organization include time, education, effort, experience and loyalty. Outcomes are what an individual receives from an organization such as, pay, recognition and social relationships. The theory suggests that people view their outcomes and inputs as ratio and then- compare their ratio to the ratio of someone else. This other ‘person’ may be someone in the work group. The comparison may result in three types of attitudes:

• The individual may feel equitably rewarded,
• Under-rewarded.
• Over-rewarded.

An individual will experience a feeling of equity when the two ratios are equal. If an individual has the feeling of equity then he should maintain the status quo. If he has a feeling of inequity then he is likely to change the input.

The single most important idea for managers to remember about equity theory is that if rewards are to motivate employees, they must be perceived as being equitable and^ fair. However, managers must remember that different employees have different sense towards basis for a reward and this may result in problems. Hence, the best way to avoid such problems is to make all employees aware of the basis for rewards.

Reinforcement Based Approaches to Motivation

A final approach to the motivation process focuses on why some behavior are maintained and changed overtime. Reinforcement-based approaches explain the role of those rewards as they cause behavior to change or remain the same over time. Specifically, reinforcement theory is based on the fairly simple assumption that behaviors that result in rewarding consequences are likely to be repeated, whereas behavior that results in punishing consequences are less likely to be repeated. There arc similarities between expectancy theory and reinforcement theory. Both consider the processes by which an individual chooses behaviors in a particular situation. However, the expectancy theory focuses more on behavior choices and the latter is more concerned with the consequences of those choices.

Reinforcement Contingencies

Reinforcement contingencies are the possible outcomes that an individual may experience as a result of his or her behaviors. The four types of reinforcement contingencies that can affect individuals in an organizational setting are positive reinforcement, avoidance, punishment and extinction.

Positive Reinforcement is a method of strengthening behavior. It is a reward or a positive outcome after a desired behavior is performed. When a manager’ observes an employee is doing a good job and offers praise then this praise helps in positive reinforcement of behavior. Other positive reinforces include pay, promotions and awards.

The other reinforcement, contingency that can strengthen desired behavior is avoidance. This occurs when an individual chooses certain behavior in order to avoid unpleasant consequences. For instance, an employee may come to work on time to avoid criticism.

Punishment is used by some managers to weaken undesired behaviors. The logic is that the unpleasant, consequence will reduce an undesirable behavior again, for example, punishing with fine for coming late.

Extinction can also be used to weaken behavior, specially that has previously been rewarded. When an employee tells a vulgar joke and the boss laughs, the laughter reinforces the behavior and the employee may continue to tell similar jokes. By simply ignoring this behavior and not reinforcing it, the boss can cause the behavior to subside which eventually becomes ‘extinct’.

Positive reinforcement and punishment are the most common reinforcement contingencies practiced by organizations. Most managers prefer a judicious use of positive reinforcement and punishment. Avoidance and extinction are generally used only in specialized circumstances.