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    Equity Theory of Motivation Organizational Justice

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    Equity Theory of Motivation Organizational Justice

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    32 views12 pages

    Equity Theory of Motivation Organizational Justice

    Uploaded by

    aeshabhavsar431

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Equity Theory of

    Motivation:
    Organizational
    Justice
    Equity Theory proposes that motivation is heavily influenced by an
    employee's perception of fairness and justice within the organization.
    This groundbreaking theory, developed by J. Stacy Adams in 1963, aims
    to explain how workers react to real or perceived inequalities in their
    work environment.
    Defination
    equity theory A theory that says that individuals
    compare their job inputs and outcomes with those of
    others and then respond to eliminate any inequities.
    Understanding Equity Theory
    Key Components Equity Ratio Importance of Fairness
    Equity Theory focuses on three The core premise is that By prioritizing fairness and justice,
    key components: inputs (an employees evaluate the ratio of organizations can boost
    employee's contributions), their inputs to outcomes, and motivation, productivity, and
    outcomes (rewards received), and compare this to the ratio of their employee satisfaction. This is
    comparisons (to colleagues or referents. Perceived inequities can exemplified by companies like
    industry standards). lead to negative emotions and Google and its "20% time" policy.
    behavioral responses.
    The Equity Theory Process
    Evaluation
    Perception Based on this evaluation, employees determine
    Employees assess their own inputs (effort, skills) whether the ratios are equitable, leading to either
    and the outcomes (pay, recognition) they receive. satisfaction or dissatisfaction.

    1 2 3

    Comparison
    Workers then compare their input-to-outcome
    ratio to that of their referents, such as colleagues or
    industry standards.
    Types of Inequity
    1 Under-Reward
    Feeling underpaid or underappreciated for one's contributions.

    2 Over-Input
    Experiencing an excessive workload or lack of challenging work.

    3 Comparison Disparities
    Perceiving unfair differences in rewards or recognition compared
    to colleagues.
    Consequences of Inequity
    Reduced Motivation
    Perceived unfairness can significantly diminish an employee's drive
    and productivity.

    Increased Turnover
    Studies show employees who feel underpaid are 26% more likely to
    leave their job.

    Organizational Challenges
    Inequity can lead to conflict, grievances, and an overall negative
    work environment.
    Promoting Organizational
    Justice

    Transparency
    Ensure clear, consistent, and fair reward systems and decision-making
    processes.

    Open Communication
    Foster an environment where employees feel comfortable voicing
    concerns and feedback.

    Diversity & Inclusion


    Actively address disparities and promote equitable opportunities for all
    employees.
    Equity Theory in Practice
    1 Feedback & Evaluation
    Provide regular, constructive feedback and performance
    evaluations to ensure fair and transparent processes.

    2 Addressing Inequities
    Actively identify and address any perceived or real
    disparities in the workplace.

    3 Fostering Justice
    Promote a culture of organizational justice, where all
    employees feel valued and treated fairly.
    The Importance of Fairness
    Increased Motivation When employees perceive
    fairness, they are more
    motivated to contribute and
    excel.

    Higher Productivity Organizational justice leads to


    greater engagement, creativity,
    and overall performance.

    Enhanced Retention Employees are less likely to


    leave when they feel their
    efforts are recognized and
    rewarded fairly.
    Conclusion:
    Equity Theory highlights the fundamental importance of fairness and justice in the workplace. By understanding
    and addressing inequities, organizations can create a more motivated, productive, and engaged workforce -
    essential for success in the ever-evolving world of work. The principles of Equity Theory will continue to shape the
    future of organizational behavior and human resource management.
    Thank you
    Presentation by.

    Aesha bhavsar

    Nandita mishra

    Dharmik gediya

    Subham bundela

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