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Description: Equity theory is used in parlance of human resource management. We might not see it but this theory is applied at every workplace. Equity Theory. Equity theory proposes that individuals estimate the ratio of what has been contributed (i.e., inputs) to what has been received (i.e., outcomes) for both themselves and a chosen referent other (Adams, 1965).

Equity theory

The theory is based on the idea that people are motivated by the ratio of inputs and outputs they receive in comparison to others. Equity theory is a concept in psychology that asserts humans will be more motivated if what they receive as compensation is equal to the efforts they give out. John Stacey Adams, a behavioral psychologist, conceived the theory in 1963. Adams' Equity Theory calls for a fair balance to be struck between an employee's inputs (hard work, skill level, acceptance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition, and so on). According to the theory, finding this fair balance serves to ensure a strong and productive relationship is achieved with the employee, with the overall result being contented, motivated employees. Equity theory is a conceptualization that focuses on the causes and consequences of people’s perceptions of equity and inequity in their relationships with others.

Teorin om arbetskraften fokuserar på att bestämma om fördelningen av resurser för både relationella partners på jobbet, arbetsgivaren och medarbetaren är En kritisk process för individ och organisation. - En skriftlig annons ger en bild av vad som önskas. - Rekryteringsprocessen är till för att testa sökandes Beskriv motivationsteorin equity theory.

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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. Definition: Equity theory, popularly known as Adam's equity theory, aims to strike a balance between an employee’s input and output in a workplace. If the employee is able to find his or her right balance it would lead to a more productive relationship with the management. In business psychology, equity theory comes under the umbrella of organisational justice, which is concerned with employee perceptions of a company's internal and external behaviour and how these perceptions fuel or change their own attitudes and behaviour.

John Stacey Adams, a behavioral psychologist, conceived the theory in 1963. According to equity theory, people feel most comfortable when they are getting exactly what they deserve from their relationships—no more and certainly no less. Equity theory consists of four propositions: Proposition I. Men and women are “wired up” to try to maximize pleasure and minimize pain. Everyone wants to be treated fairly.
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The enterprise theory of the firm is a broader concept than the equity theory, but less well defined in its scope and application. In the entity theory, the firm is considered to be a separate economic unit operated primarily for the benefit of the equity holders, whereas in the enterprise theory the company is a social institution operated for the benefit of many interested groups.

The division's research in decision theory includes studies of basic issues of decision-theoretical rationality, investigations of uncertainty representation, and Gender differences in the contribution patterns of equity-crowdfunding investors A Theory of Sequential-Stage Signaling: Evidence from Equity-Crowdfunding. Teorin om arbetskraften fokuserar på att bestämma om fördelningen av resurser för både relationella partners på jobbet, arbetsgivaren och medarbetaren är En kritisk process för individ och organisation. - En skriftlig annons ger en bild av vad som önskas. - Rekryteringsprocessen är till för att testa sökandes Beskriv motivationsteorin equity theory.
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