Equity theory

Jun 30th, 2016
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1Running head: EQUITY THEORYSituation Action Plan Using the Equity TheoryNameCourse NameCourse InstructorDate2EQUITY THEORYIntroductionThe equity theory is one that is used to show the comparison and balance of the inputs andoutputs that a worker inserts and achieves in accomplishing their duties. According to Adams,people tend to have different perspectives at accomplishing certain tasks due to comparisonbetween colleagues executing similar tasks. Psychologist in the early 1960s have tried to comeup with ways to solve this issue and Adams came up with the equity theory as a job motivationtheory. He emphasises on the importance of ensuring that employees are treated fairly throughdivision of equal duties and rewards in order to be motivated. It will ensure that they are satisfiedand therefore motivated to work hard which is eventually acts as an advantage to theorganisation (Adams, 1963).An employee that is not satisfied tends to lack motivation and therefore they underperform their duties which generally affects the companys returns of investment or achievementof its goals. Equity is mainly measure when a comparison is done between the effort one puts inexecuting a certain duties and the rewards they gain. They then use that comparison to comparewith workers performing the same duties. When the comparison proves to be equal the worker issatisfied and at the end is motivated to continue executing the duties at the same rate and evenbetter.

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