Adams’ Equity Theory.pptVIP

Introduction: Adams’ Equity Theory Teamwork 2 Do you ever wonder what kind of grade the person sitting next to you in class makes on a test or on a major class assignment? Most of us do! Being human, we tend to compare ourselves with others. If someone offered you $50,000 a year on your first job after graduating from college, you’d probably jump at the offer and report to work enthusiastic, ready to tackle whatever needed to be done, and certainly satisfied with your pay. How would you react, though, if you found out a month into the job that a coworker—another recent graduate, your age, with comparable grades from a comparable work experience –was getting $55,000 a year? You’d probably be upset! Even though in absolute terms, $50,000 is a lot of money for a new graduate to make (and you know it!), that suddenly isn’t the issue. Now you see the issue as what you believe is fair—what is equitable. The term equity is related to the concept of fairness and equitable treatment compare with others who behave in similar ways. Evidence indicates that employees compare themselves to others and that inequities influence how much effort employees exert. A man summarize and explain the phenomenon, he created a new theory. He called it “Equity Theory”, his name is John Stacey Adams, so we also call this theory “Adams’ Equity Theory” John Stacey Adams Adams’ Equity Theory Proposes that employees compare what they put into it (inputs), and then they compare their inputs-outcomes ratio with the inputs-outputs ratios of relevant others. If an employee perceives his ratio to be equitable in comparison to those of relevant others. There is no problem. However, if the ratio is inequitable, he views herself as underrewarded or overrewarded. When inequities occur, employees attempt to do something about it. The referent that an employee selects adds to the complexity of equity theory. There are four referent comparisons that an employee can use: 1.Self-i