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This process of benchmarking is knows as social comparison.įor individuals to feel that things are fair, they need to feel that the benefits they receive per unit of contribution are similar to the benefits that their peers receive for a comparable unit of contribution. The second test of equity that needs to be considered is the relationship between an individual’s return on contribution, and that for their peer group. Test 2: The equity of reward and peer reward As a result, they will probably be motivated. When an individual feels that their rewards are commensurate with their contributions, they will feel they are being fairly treated. These are sensible comparrisons as these are other ways they could choose to allocate their time and effort. When individuals consider the fairness of their reward they probably make comparisons to other careers and industries. The sense of what a makes a fair reward is probably shaped by societal and social norms. For individuals to feel a sense of fairness, they need to perceive that the benefit they receive from their organization is appropriate for the level of input that they’ve contributed to their work. The first test of equity that needs to be considered is the relationship between an individual’s contributions and their rewards. Consequently, individuals will probably be motivated. If both of these tests are passed, then a fair and equitable working arrangement may exist.
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Similarly, they want the rewards that others receive for their work to be similar to the rewards that they themselves would receive for the same level of contribution. What this means is that they want the benefits (rewards) they receive from work to seem fair in relation to the inputs (contribution) that they provide. The theory considers the concept of equality and fairness, as well as the importance of comparison to others.Īt its core, Adams’ theory says that individuals want a fair relationship between inputs and outputs.
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It says that the level of reward we receive, compared to our own sense of our contribution, affects our motivation. Stacey Adams’ equity theory is a process model of motivation.