Use equity theory to discuss motivation at work with an example.
What will be an ideal response?
(Answers will vary.) Equity theory focuses on distributive justice (what people
receive as a result of their knowledge, skills, and effort on the job). Equity theory
suggests that people may become demotivated or put forth less effort when they feel
that what they give and what they get is not in balance. According to the theory, a
person (the focal person, or FP) compares himself to the coworker (or CO). Next, he
compares his inputs (skills, abilities, effort on the job) to his outcomes (e.g., a merit
raise). Three situations can occur in this comparison: (1) the inputs and outcomes for
the FP equal the inputs and outcomes for the other (CO). There is balance because the
FP recognizes that the CO works harder and gets a higher raise. 2. The input and
outcomes for the FP are lower than the inputs and outcomes for the CO. For example,
the FP views the ratio of his inputs and outcomes as less than the CO. The FP realizes
that he is seen as “underpaid,” and this causes dissonance or stress for the FP. This is
referred to as underpayment inequity. (3) The input and outcomes for the FP are higher
than the inputs and outcomes for the CO. For example, the FP makes the comparison
of inputs to outcomes and views his ratio of inputs to outcomes as higher than his CO.
The FP realizes that he is being “overpaid” for his contributions compared to his CO.
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