Question

There are various motivational theories postulated by various authors. One such an author is J. Stacy Adams. Equity theory was first developed in the 1960s by J. Stacy Adams, a workplace and behavioral psychologist. Explain the concept of equity theory and the role of social comparison at workplace. What are the managerial implications of equity theory?

Answer 1

Equity theory proposes that in social exchange relationships the participants are compared to each other and the ratios of their inputs into the exchange to their outcomes from the exchange.

Every employee has an expectation to get a fair return form his work contribution. so this concept known as the "equity norm". The return always calculated in terms of the employee's inputs and outcomes with those of their coworkers. This concept is referred to as "social comparison" at the workplace.

The equity theory mainly implied on the business and mostly on the managers for different aspects like. determining the wage. type of work assignment. type of grope comparison, the potentiality of a worker may be physical or mental. the criteria of comparison are the most important as well as complicated part of this equity theory. According to Adam, there should be fairness in input, output and return. so this matters a lot while calculating the deserved return from the employer.