Question

Explain and discuss ONE of the following theories below. Quote examples. They are (a) goal-setting theory, (b) reinforcement theory, (c) designing motivating jobs, (d) equity theory, or (e) expectancy theory.

Answer 1

Equity Theory is established by John Stacey Adams in 1963 and termed as ‘Equity Theory of Motivation’. This theory is supports the idea to have individual level motivation through fairness. It means in case any individual determines any type of inequity among a peer and them then the work is accustomed to have the fair situation. Equity for Individual’s perception is directly related to the motivation. It means more fairness more motivation whereas less fairness then more demotivation. In the Equity Theory, the types of inputs used are such as kind of commitment or enthusiasm an individual have, Effort done by an individual, any type of experience, duties for a role, loyalty or flexibility shown etc. Whereas the outcomes are performance appraisals, salary, learning, stock options, pension, bonus etc. Therefore, Equity is characterized as Individual level output by the inputs from the same individual. It is found that the there are types of referent groups through which individuals relate themselves such as – experience within the organization (self-inside); experience with other organization (self-outside); others experience within the organizations (others-inside); others experience with other organization (others-outside). For example, for the same type of role or work, employee compares himself with a peer within the organization or same level employee in other organization. Other example, with the same designation, a tenured employee gets less salary as compared to the new hire. Whereas, CEO of one company may be getting more benefits compare to the other.