equity theory of work motivation

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EQUITY THEORY OF WORK MOTIVATION Prepared By :- Kajol Hargude Varsha Jawalge Rohit Mane

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Page 1: Equity theory of work motivation

EQUITY THEORY OF WORK MOTIVATION

Prepared By :-

Kajol HargudeVarsha Jawalge

Rohit Mane

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1963 – John Stacey Adams

Idea that fairness and equity are

key components

of a motivated individual

The higher an

individual's perception of equity, the more motivated

they will be

If someone perceives an

unfair environment, they will be demotivated

History

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Definition

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self other

Outcomes inputs

Outcomes inputs

Rs. 10 1 hr. = Rs. 10/hr.

Rs.20 2hr. = Rs.10/hr.

1) An equitable suitable

selfother

Outcomes inputs

Outcomes inputsRs. 10

1 hr. = Rs. 10/hr.

=Rs. 15/hr

selfother

Outcomes inputs

Outcomes inputs

= Rs. 10/hr

3) Positive equity

Rs. 15 hr.

Rs. 10 1 hr.

2) Negative inequity

= Rs. 15/hr.Rs. 15 hr.

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Types of Equity

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A Person’s reaction to Reduce INEQUITY

Altering the inputs of referent. Altering the outputs of referent. Demand for a hike in terms of pay, title, benefits

etc Decrease production and quality of work. Delegation of more work towards referent. Pointing out overpayment of referent. Influencing any individual/group regarding the

inequity. Forcing referent to leave the field. Changing the referent. Leaving the field/job.

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HOW TO REDUCE

INEQUITY

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Make sure employees can achieve targeted performance levels. Make sure changes

in outcomes are large enough to motivate high effort.

Link desired outcomes to targeted levels of performance.

Identify good performance so appropriate behaviors can be rewarded.

Determine the employee’s

outcome value

Managerial Decisions

Monitor the reward system for inequities.

Allow employees to have a “voice”

(Open Communication)

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Monitor employee motivation through interviews or anonymous questionnaires.

Reward people for desired performance and do not keep pay decisions secret.

Design challenging jobs. Tie some rewards to group accomplishments

to build teamwork and encourage cooperation.

Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and outcomes that lead to high effort and goal attainment.

Accommodate individual differences by building flexibility into the motivation program.

Organizational Responsibilities

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CONCLUSIONPeople are

motivated to reduce perceived

inequalities

To provide the proper support for

employees that may feel inequality

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THE ENDTHANK YOU