Employees of a company strive to maintain this equity by putting in inputs and receiving outputs and compare them with others working under similar working conditions. If fairness is perceived by these employees then they stay motivated. Adams’ Equity theory aims at keeping this fairness component intact in an organizational setup so that employees stay motivated.
Adams’ Equity Theory – Idea
John Stacey Adams in his Equity Theory on job motivation tries to explain why salary or wage is not the only factor behind motivation. Adams, a behavioral psychologist tried to strike a balance between employees’ inputs measured by skill, hard work, enthusiasm on the one hand, and outputs measured by salary, commission, and benefits on the other. Adams’ Equity Theory tries to establish a balance between this two thereby creating an environment where employees are motivated and contended. Adams used the terms ‘inputs’ and ‘outputs’ in place of ‘efforts’, and ‘rewards’ respectively as the former appear more logical.