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Adam's equity theory

3.4. 4 Equity Theory

Adams 's (1965) equity theory is another form of motivation. In this model, like in expectancy theory, people are viewed as having thoughts, feeling, and opinions that affect their work. He also proposes that the social comparison process begins with the individual's assessment of what he or she need to puts into the job relative to what is received from it. That is, the person develops a cognitive ratio composed of the inputs to the job and the return (output) from it.

Inputs

Outputs

According to Adams (1965), people who feel that there is fairness between inputs and outputs. T he output/input(O/I) ratio denotes the proportion of job inputs (I) to job outputs (O), and it expresses to the extent to which of the exchange is felt to be appropriate. People feel it will be fair if the exchange of the output is seen to be as equal as the input. When outputs are greater than inputs, people know they are overpaid, and conversely, when outputs are less than inputs, people feel underpaid. In a second phase of the process, people engage in social comparison. They begin by assessing the O/I ratios of others at work. Then, the person compares their self-ratio with the ratios of other significant persons.

3.4.4.1 Discussions on Equity Theory

Equity theory has been used as a guide for paying and motivation, particularly in terms of changes in the quality and quantity of performance. Reviewers of the research have reported that the predicted effects of underpayment on performance are well supported (Campbell and Pritchard, 1976; Goodman and Friedman, 1971). Decreased production among underpaid hourly subjects has been observed as predicted (Pritchard, Dunnette, and Jorgenson, 1972). Increased production coupled with decreased work quality among underpaid piece rate subjects also has been observed (Lawler and O'Gara, 1967).

3.4.6 Goal-setting Therory

Like equity and expectancy theories, goal-setting theory is consider as a process theory. Locke (1968) initiated the original work on this theory. The theory identifies the contents of the motivational structure, but the greater emphasis is on the process of motivation. Goals are the central feature of the motivational structure. His studies resulted in three main conclusions:

3.4.6.2 Discussions on Goal-setting Theory

Goal-setting theory is useful to many managers because much of people management is specifically about performance against goals. It is also a theory that human resource professionals are likely to be familiar with because it is often focus on objectives.

Although the Goal-setting theory specifically states that goals have to be considered valid for them to be motivating, the theory does not cover the issue of goal commitment according to Hollyforde and Whiddett (2002). People's commitment to a goal is an obviously key to anticipating their motivation to succeed at it. Carroll and Tosi (1973) reported that the self-esteem seems to be an important factor here. For example, managers with high self-esteem reported they were more persistent in meeting their goals than those managers with low self-esteem.

In general, Goal-setting theory is a theory that has great relevance for managers. The three conclusions of the theory that suggest that the most motivating goals are not only specific but also challenging must ring true for many managers.

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