The core of the equity theory is the principle of balance or equity. As per this motivation theory, an individual’s motivation level is correlated to his perception of equity, fairness and justice practiced by the management. Higher is individual’s perception of fairness, greater is the motivation level and vice versa.

While evaluating fairness, employee compares the job input (in terms of contribution) to outcome (in terms of compensation) and also compares the same with that of another peer of equal cadre/category. D/I ratio (output-input ratio) is used to make such a comparison. EQUITY THEORY Ratio Comparison Perception O/I a O/I b Over-rewarded (Equity Tension) Negative Tension state: Equity is perceived when this ratio is equal. While if this ratio is unequal, it leads to “equity tension”. J.Stacy Adams called this a negative tension state which motivates him to do something right to relieve this tension. Incrediflash Xtreme 4 Serial. A comparison has been made between 2 workers A and B to understand this point.

Referents: The four comparisons an employee can make have been termed as “referents” according to Goodman. The referent chosen is a significant variable in equity theory. These referents are as follows: Self-inside: An employee’s experience in a different position inside his present organization.

Self-outside: An employee’s experience in a situation outside the present organization. Other-inside: Another employee or group of employees inside the employee’s present organization. Other-outside: Another employee or employees outside the employee’s present organization. An employee might compare himself with his peer within the present job in the current organization or with his friend/peer working in some other organization or with the past jobs held by him with others. An employee’s choice of the referent will be influenced by the appeal of the referent and the employee’s knowledge about the referent. Moderating Variables: The gender, salary, education and the experience level are moderating variables.

Towers Watson is a leading global professional services company that helps organizations improve performance through effective people. The procedures that generate that distribution are not exam- ined. The focus is on fair distribution. Problems of fair procedure are ignored. Download Ben 10 Protector Of Earth Psp Rom. The third problem is that equity theory tends to exaggerate the importance of fairness in social relationships. Concern for justice is only one motivational force among many that influence. Your favorite technology company, Google, is working on an upcoming feature that could put the kibosh on autoplaying videos for good. Soon you’ll be able to silence.

Individuals with greater and higher education are more informed. Thus, they are likely to compare themselves with the outsiders. Males and females prefer same sex comparison. It has been observed that females are paid typically less than males in comparable jobs and have less salary expectations than male for the same work. Thus, a women employee that uses another women employee as a referent tends to lead to a lower comparative standard. Employees with greater experience know their organization very well and compare themselves with their own colleagues, while employees with less experience rely on their personal experiences and knowledge for making comparisons.