adam’s equity theory

• built on maslows & herzberg’s theories

  considers the influence of comparisions employees make with each other

  based on fairness

  employees will compare their inputs at work to the inputs of collegues and will expect similar outputs for inputs
• inequity occurs when there is a perceived imbalance between effort/input and reward/output
• equity is when an employee perceives that they are receiving what they deserve based on their input
• if…

  outcomes are not as expected, employees may lose motivation as efforts will not match rewards/ recognition
• inputs examples

  time

  effort

  enthusiasm

  commitment

  hard work
• outputs examples

  self-esteem

  recognition

  financial rewards

  promotion

  praise
• application to business

  employers should ensure that employee inputs are fairly rewarded by equitable outcomes for all employees