So, how can you ensure that they’re balanced? Become more aware. As a result, this is going to affect your outputs. Finding and Maintaining BalanceĪs you can see, there are a number of motivation equation factors that can influence your inputs. And, despite the fact that you haven’t lost the same amount of weight, you feel more energetic and are sleeping better. In this case, you get to spend quality time with your spouse. That can de-motivate you because you’ve put in the same effort, without the same results. For them, they could have lost twenty pounds, but you only lost five. If you and your spouse start a new diet and exercise regimen, you’ll compare how much weight you’ve lost. For you, you could forfeit that fame and fortune just so you could spend more time with your family. For him, he’s willing to sacrifice that for changing the world. Even though he’s extremely successful, he probably doesn’t enjoy the work-life balance you do. Musk is running two companies and works an excessive amount of hours per week. That would be an example of others-outside. You hustle every day but haven’t achieved the level of success that someone like Elon Musk has. Let’s say that you’re a freelancer or entrepreneur. And, that was its original intent.īut, in my opinion, it can be used elsewhere. So far we’ve focused on the equity theory in a traditional workplace setting. The Equity Theory Beyond the Traditional Workplace They should also take into account that the CEO has more responsibilities and stress than they do. Even though the CEO is making more money, they may not have a healthy work-life balance. In their mind, it probably doesn’t seem fair that they’re making millions of dollars.īut, that’s when they have to examine the outputs. It’s not uncommon to compare your salary with what the CEO is making. What’s interesting is that we don’t always compare ourselves to the same position. If they compare their salary to their previous gig, this would be self-outside. If they compare themselves to their friends who are programmers, this would be others-outside. Others outside of the individual organization.įor example, when a programmer compares themselves to their fellow programmers in your business, this would be others-inside. Others within the individual’s organization. The individual’s experience with outside organizations. The individual’s experience within their organization. According to Adams, there are four referent groups How We Compare: Referent GroupsĪnother component of equity theory within the motivation equation is how we compare our work to others. Also, it gives you the chance to connect their work to the bigger picture. It allows you to address any concerns and recognize your team for their hard work. To prevent this, leaders must treat all employees equally.
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Even worse, this could result in deviant workplace behavior. This can lead to lower productivity, morale, and even a higher turnover rate. When there are inequalities in rewards, you can anticipate a decrease in job satisfaction.
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So, if you have two employees who have the same responsibilities, they should be paid the same exact salary. They also expect others to be rewarded the same way. People expect to be adequately rewarded for their efforts. If you’re still scratching your head, let’s breakdown this theory even more. How Leaders Can Apply Adam’s Equity Theory In short, this theory states that we strive for a fair balance between what we put into something and what we get out of it. According to Carrell and Dittrich (1978), “employees who perceive inequity will seek to reduce it, either by distorting inputs and/or outcomes in their own minds (“cognitive distortion”), directly altering inputs and/or outcomes, or leaving the organization.” Trust and support from leader and colleaguesĮquity theory is based on a principle that peoples’ actions and motivations are guided by fairness and that discrepancies in this fairness in the workplace will spur them to try and redress it.“Outputs” are everything that we get in return. As a result, they’ll be more productive and motivated.Īccording to Adams, “inputs are the personal efforts and rewards that are put into work. When balance is achieved, the employee will feel more satisfied. What is Equity Theory?ĭeveloped in 1963 by behavioral psychologist John Stacey Adams, equity theory simply argues that there needs to be a balance between an employee’s input and output. And, it may be because of something called the equity theory. Also, balance plays a vital role in the motivation equation. For them to perform at peak performance, they must have a routine that includes the proper exercise, nutrition, and sleep. Without balance we’re not as successful or productive.
![adam equity theory of motivation adam equity theory of motivation](https://www.strategies-for-managing-change.com/images/EquityTheory.jpg)
I think a lot of us underestimate the importance of balance.