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1. INTRODUCTIO

2. INTRODUCTION ADAMS’ Equity Theory was developed by John Stacey Adams in 1963. It is a framework for understanding how fairness impacts motivation in the workplace. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. The higher an individual's perception of equity, the more motivate they will be.

3. INPUTS OUTCOMES TIME SKILLS LOYALTY EFFORT EXPERIENCE HARDWORK PERSONAL SACRIFICE ETC. SALARY BENEFITS RECOGNITION PROMOTION JOB SECURITY REPUTATION ACHIEVEMENT ETC.

4. ADAMS’ EQUITY THEORY DIAGRAM Scales ‘calibrated’ and measured against comparable references in the market place What I put into my job; time, effort ,skills, loyalty, hard work etc. What I get from my job; salary, bonus, benefits, security, recognition etc. INPUTS OUTPUTS People become demotivated and reduce input and seek change or improvement whenever they feel their inputs are not being fairly rewarded by outputs.

5. STRUCTURE OF EQUITY BASED ON THE RATIO OF INPUTS TO OUTCOMES RATIO COMPARISONS PERCEPTION SITUATION OF AN EMPLOYEE Individual’s outcome < Other’s outcome Individual’ input Other’s input Inequity Anger Individual’s outcome = Other’s outcome Individual’ input Other’s input Equity Satisfied Individual’s outcome > Other’s outcome Individual’ input Other’s input Inequity Pride, Over confidence, and guilt

6. EQUITY THEORY EXCHANGE SCENARIOS When Individual's Outcome/Input < Other's Outcome/Input: Perception: Inequity (feeling unfairly treated). Employee's Situation:The employee feels anger because they believe they are putting in more effort but receiving less reward compared to others. When Individual's Outcome/Input = Other's Outcome/Input: Perception: Equity (feeling fairly treated). Employee's Situation: The employee feels satisfied because they believe their effort and rewards are balanced compared to others. When Individual's Outcome/Input > Other's Outcome/Input: Perception: Inequity (feeling unfairly treated in the opposite direction). Employee's Situation: The employee might feel pride, overconfidence, or guilt because they believe they are getting more rewards for the same or less effort compared to others.

7. Try to Influence Manager to Increase Outcomes Reduce Inputs Try to Influence co-workers’ inputs Withdraw Emotionally or Physically Reduce Efforts Complain, raise voice etc. Criticize others outcomes or inputs. Engage in absenteeism, or quit.

8. Applications of the theory in workplace Motivation Management Practices Equity sensitivity Fairness in compensation and recognition boosts employee morale Transparent decision-making, clear communication, and consistent performance evaluations help maintain equity Managers should be aware of individual differences in equity sensitivity when making decision

9. Criticism of the theory Subjectivity Cultural Difference Focus on individualism Perceptions of fairness vary widely among individuals The theory may not apply uniformly across different cultural contexts Collectivist societies may not prioritize individual equity in the same way

10. CONCLUSION Adams' Equity Theory provides valuable insights into employee motivation by emphasizing the importance of fairness. By understanding and applying this theory, organizations can create more equitable and motivating work environments. In conclusion, the application of Equity Theory in management practices encourages transparency, consistency, and fairness, which are essential for fostering a positive and productive work environment.

11. THANK YOU