Equity Theory proposes that a person's motivation is based on what he or she considers to be fair when compared to others (Redmond, 2010). The fairness of exchange between employees and When applied to the workplace, Equity Theory focuses on an employee's work-compensation relationship or "exchange relationship" as well as that employee's attempt to minimize any sense of unfairness that might result. The general objective of this study is to ascertain how the equity theory of motivation can be . Equity theory has received more attention lately from human resource professionals especially regarding the fairness of outcomes. It does so, however, at the same time. Equity theory is a concept belonging to John S. Adams, a behavioural psychologist.The theory helps explain why your employees’ motivation levels can go up and down at work. Other equity theories include the entity theory… What does EQUITY THEORY mean? As we’ve talked about many times here at BrightHR, your business needs motivated staff to operate at its full capacity. http://www.theaudiopedia.com What is EQUITY THEORY? Higher is individual’s perception of fairness, greater is the motivation level and vice versa. However, residual equity theory can present a more accurate picture when investing in publicly traded companies. Equity theory in some sense is related to motivation-hygiene theory, in that it considers both demotivators and motivators. The core of the equity theory is the principle of balance or equity. applied in organizations i n order to influence workers performance. According to J. Stacy Adams (1963: 422):. As per this motivation theory, an individual’s motivation level is correlated to his perception of equity, fairness and justice practiced by the management. Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratio of contributions (or costs) and benefits (or rewards) for each person. Whenever two individuals exchange anything, there is the possibility that one or both of them will feel that the exchange was inequitable. John S. Adams developed the idea of equity theory in 1963. Equity, or more precisely, inequity is a major concern of industry, labor, and government. Laws such as the Civil Rights Act of 1964 provide equality, while policies such as affirmative action provide equity. Equity theory is based in the idea that individuals are motivated by fairness, and if they identify inequities in the input or output ratios of themselves and their referent group, they will seek to adjust their input to reach their perceived equity. A cognitive theory of motivation, based on the work of J. Stacey Adams, which claims that employees will be motivated if they believe that they are fairly treated in the workplace. Equality and equity are most often applied to the rights and opportunities of minority groups. Equity is providing various levels of support and assistance depending on specific needs or abilities. Equity theory is another concept that affects people in our organizations. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of “fairness.” If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness …

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