ADAMS EQUITY

THEORY

Presented by:- Prateek Deo

Saurabh kr. Verma
Dhaval Pedhadiya
Sourabh kumar
Kamlesh koshti
Saurabh Dwivedi
 Model

Contempor
Early
ary
Theories
Theories

Scientific Human
Content Process
Manageme Relations
Theories Theories
nt Model

Maslows
Herzberg Alderfers Achievement
Need
Two-factor ERG Motivation
Hierarchy
Theory Theory Theory
Theory

Porters
Vrooms
Goal Setting Adams Equity Performance
Expectancy
Theory Theory Satisfaction
Theory
 Introduction to Equity
Theory
First developed in 1963 by John Stacey
Adams

Employees seek to maintain equity

between the inputs that they bring to
a job and the outcomes that they
receive from it against the perceived
inputs and outcomes of others.

The structure of equity in the

workplace is based on the ratio of
inputs to outcomes
 Equity Theory
1) Equity:
A person feels equitably treated when his outcome/input ratio is
equal to other persons outcome/input ratio.
Individuals outcome = Others outcome
Individuals input Others input
Equitably paid workers are said to feel satisfied.
 Equity Theory

2) Under rewarded inequity / Negative inequity:

A person feels under rewarded when his
outcome/input ratio is less than whom the person
compare himself.
Individuals outcome < Others output
Individuals input Others input
Equity theory states that an underpaid worker feels
angry.
 Equity Theory
3) Over rewarded inequity /Positive inequity:
A person feels over rewarded when his
outcome/input ratio is greater than whom the
person compare himself.
Individuals outcome > Others outcome
Individuals input Others input
Equity theory states that an overpaid worker
produce higher quality.
Inputs & Outputs
Inputs
Individuals
contribution to an
Organization.

Time
Effort
Loyalty
Hard work
Commitment
Abilities
Outputs
Outputs
Organizations
return to an
Individual. Employee benefits
Recognition
Job Security Reputation
Salary Sense of
achievement
 Consequences of
Inequity
Based on equity theory, when employees perceive
an inequity, they can be predicted to make one of
the choices.
They change their inputs.
They change their outcomes
They distort perceptions of self
They distort perceptions of others
They leave the field
 Bibliography
Robbins, S.P and Seema Sanghi-
Organisational Behaviour. (11th & 13th edition)
Organisational Behaviour A Strategic Approach
Michael A. Hitt ,C.Chet Milla, Adrienne Colella
Organizational Behaviour Dr. Anjali Ghanekar
Schultz, K., Schoenherr, Nembhard, D. (2006).
Equity theory effects on worker motivation and
speed on an assembly line. Retrieved from:
http://www.hbs.edu/units/tom/pdf/kschultz.pdf
THANK YOU FOR YOUR ATTENTION!