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. (2006) show that the concept of equity is more important in Western cultures than non-Western cultures. However, Van Yperen and Buunk (1990) studied married couples and found that dissatisfaction in inequitable relationships increased with time, not the other way around. Equity doesn’t mean equality, though. Equity theory proposes the winning formula of fairness in relationships: one partner’s benefits minus their costs, should equal another partner’s benefits minus their costs. 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What seemed unfair in the beginning may become a norm as relationships progress, or the partner who gives more may start working even harder on the relationship until the balance is restored. Equity is a sense of fairness in the exchange of goods, services, time, and effort. and costs (min.) fbruce_ Key Concepts: Terms in this set (14) What is equity theory? Equity theory proposes that individuals who perceive themselves as either underrewarded or overrewarded will experience distress, and that this distress leads to efforts to restore equity. Gravity. Lastly compared to the other theories, the equity theory adopts a realistic approach to motivation. Different employees ascribe personal values to inputs and outcomes. Perception is a relative term and differs from person to person. This paper describes a new construct, equity sensitivity, and proposes that reactions to equity/inequity are a function of an individual's preferences for different outcome/input ratios. 9, pp. As with many other explanations of romantic relationships, there may be a cause and effect problem with Equity Theory. Furthermore, there are also some important individual differences in perception of equity. Equity Theory posits that if the person perceives that there is inequality, where either their output/input ratio is less than or greater than what they perceive a… During a social exchange, an individual assesses the ratio of what is output from the relationship to what is input in the relationship, and also the ratio of what the other person in the relationship outputs from the relationship to what is input into the relationship. Equity theory proposes the winning formula of fairness in relationships: one partner’s benefits minus their costs, should equal another partner’s benefits minus their costs. John S. Adams developed the idea of equity theory in 1963. There is some supporting evidence from animal studies as well. A proper balance between input and output ensures that an employee feels satisfied and motivated, contributing to their productivity. Thus, two employees of equal experience and qualification performing the same work for the same pay may have quite different perceptions of the fairness of the deal. There are also important cultural differences not accounted for by the Equity theory. This suggests that the importance of equity in relationships has ancient origins. If one partner perceives a relationship as unfair, they are going to be dissatisfied with it regardless of whether they are over-benefitting or under-benefitting. The longer this feeling of unfairness (lack of equity) goes on, the more likely a  couple is to break up. West Yorkshire, Equity theory is a study of human perception in terms of proportionate equivalence of the ratio of one person's inputs to the results … In other words, it seems that perceived fairness is either present or not in relationships  from the start, and does not develop with time, contrary  to the prediction of Equity Theory. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. Equity theory is a concept where peoplewant the ratio of their outcomes to be nearly equivalent to the ratio of a referent person or a group. The Final Countdown: tutor2u Support for Paper 3, Psychology Revision Webinars Are Now Available On-Demand. Top Ten Psychology Movies to Get You to The End of Term! ), Advances in experimental social psychology (Vol. 1. The more you invest in a project, the more profit you deserve to reap (American capitalism). This does not work well as they are trying to trade (short-term value) money for (long-term value) emotion. Advances in Experimental Social Psychology, 267-299, Academic Press, New York. +3: I am getting a much better deal than my partner. Utne et al. It explores the perceptions of humans regarding their inputs in the relationship and the outcomes they get. PLAY. Equity motive tends to be one of the important motives with the employees. Hatfield, E., Walster, G. W., & Berscheid, E. (1978). Adams, John S. (1963). Equity does not have to be identical or exact. Moreover, perception of equity changes over time. However, this may then result in an alpha bias and exaggerate differences between males and females that do not actually exist. In L. Berkowitz & E. Hatfield (Eds. Equity Theory, like other theories within the relationships topic, proposes a universal theory of romantic relationships that suggests that people are content in their relationship if the benefits equal the costs. Equity theory is a concept in Industrial/Organizational Psychology that focuses on an individual’s perceptions of how equitably they are being treated in their work organization. Equity Theory Equity Theory states that humans have a natural tendency to maintain equity in their social relationships. Start studying PSYCHOLOGY L9 - Equity Theory. Equity theory proposes that individuals in social exchange relationships compare each other the ratios of their inputs into the exchange to their outcomes from the exchange. A strength of Equity Theory is that it is supported by research findings. Bad News Guys – Your Tattoo Doesn’t Impress the Ladies. Fairness is achieved when people feel they get approximately what they deserve from relationships. All students preparing for mock exams, other assessments and the summer exams for AQA A-Level Psychology. Equity theory attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of resources within interpersonal relationships. EQUITY THEORY: "The equity theory deals with how we see the input into a activity compared to the outcome of the activity." People measure the totals of their inputs and outcomes. 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. In: Derkowitz, L. These results highlight a culture bias in this area of research and suggest that Equity Theory does not explain the development of romantic relationships in all cultures. Equity Sensi- tives are most content when their outcome/input From: Ethical and Social Marketing in … Like any theory of human psychology, the equity theory makes a number of assumptions about how people think and behave. Equity theory has some implications for managers: 1. Love, Loss, and the Space Between - An Interview with Dr David Sbarra, Biopsychology: Evaluating Localisation of Function, Issues & Debates: Evaluating Socially Sensitive Research, Issues & Debates: Evaluating the Nomothetic Approach, Issues & Debates: The Influence of Nurture, Issues & Debates: Evaluating the Holism and Reductionism Debate, Attachment: Knowledge Book for AQA A-Level Psychology, Psychopathology: Exam Buster Revision Guide for AQA A Level Psychology, Advertise your teaching jobs with tutor2u. Those who under-benefitted showed lowest levels of satisfaction. For example, Brosnan and de Waal (2003), in their study of capuchin monkeys, found that they if monkeys were denied their reward (a bunch of grapes) for playing a game, they became very angry. -2: My partner is getting a somewhat better deal. For example, Berg and McQuinn (1986), conducted a longitudinal study on 38 dating couples. It the ratio is not equal, then emotional responses will occur that will result in the restoration of equity by itself. There are people who are less sensitive to inequity and are prepared to give more in the relationships (benevolents, according to Hussman et al., 1987). Example. If one partner perceives a relationship as unfair, they are going to be dissatisfied with it regardless of whether they are over-benefitting or under-benefitting. In its basic form, the equity theory of motivation implies that each individual is motivated by the concept of “fairness.” If there are unequal levels of input or output, either internally or within an observed group, then adjustments are made to create more fairness … (1965) Inequity in Social Exchange. As per the equity theory, human beings derive motivation and satisfaction in a job by comparing their inputs and outputs with other people in either the same or some other firm. They didn’t find any increase in equity over time, but discovered that a high level of self-disclosure and perceived equity in the beginning of the relationships was a strong predictor that a couple would stay in their relationship, and low equity in the beginning was a reliable predictor of a break-up. Input includes hard work, skills, and enthusiasm. The 118 participants were aged between 16 and 45, and had been together for 2 years or more before marrying. It is a cognitive-centered theory as it is basically concerned with the person himself, his […] It is not about the number of rewards and costs, but rather about the balance between them; if a person puts a lot into a relationship and receives a lot, it will feel fair to them. Boston House, Equity theory is a theory of romantic relationships proposed by Hatfield et al., which views it as an extension of social exchange theory. It was published in the journal, Experimental Social Psychology, 1965, New York titles ‘Inequality in Social Exchange’. Employees are able to adjust for purchasing po… The importance of equity in relationships is supported by research findings. Equity theory specifically argues that resources should be used in a way so that inputs and outcomes of an exchange process are proportional. In addition, participants were asked questions about the ways they maintained their relationships, such as by dividing chores, communicating positively and showing affection for one another. In simple terms, equity theory states that if an individual identifies an inequity between themselves and a peer, they will adjust the work they do to make the situation fair in their eyes. Finally, a partner’s way of dealing with inequity also changes with time. In this sense, equity ratios (which can be perceived as ratios of outcomes to inputs or vice versa) should be equal. This disenchantment led industrial and organizational psychologists to follow the lead of social psychologists by broadening their efforts to understand fairness in organizations by focusing on procedural justice. 1. Flashcards. Equity Sensitive individuals represent the tra- ditional equity theory model, and thus, require little description. 1-42). Spell. Created by. A theory of justice dealing with the fair return from activities we do. Adams' Equity Theory is named for John Stacey Adams, a workplace and behavioral psychologist, who developed his job motivation theory in 1963. It is an economic theory that explains the importance of the balance of rewards (max.) According to the Equity Theory, a person who gets more benefits out of relationships than they put in will feel guilt and shame, and those who think they put a lot in but get very little back will be a… Output is related to the input into the activity. The theory is based on the idea that people are motivated by the ratio of … Studies such as Aumer-Ryan et al. Output can be things like salary, recognition, and responsibility. New York: Academic Press. He is currently completing a Professional Doctorate in Education and is passionate about the impact of technology on teaching and learning. Other people, entitleds, believe they deserve to over-benefit from relationships and don’t feel too guilty about this. 0: We are both getting an equally good, or bad, deal. Unlike Social Exchange Theory that argues how people try to maximise rewards and minimise costs in relationships, Equity Theory suggests that partners are concerned about fairness in relationships. Men and women are “wired up” to try to maximize pleasure and minimize pain. LS23 6AD, Tel: +44 0844 800 0085 The theory is also known as Adam’s Inequity Theory of Motivation. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Match. Equity theory consists of four propositions: Proposition I. As a result, equity theory is no longer the dominant approach to understanding fairness in the workplace. The purpose of this exchange is to maximize benefits and minimize costs. Equity Theory (Walster ‘78) is an extension of Social Exchange Theory but argues that rather than simply trying to maximise rewards/minimise loses, couples will experience satisfaction in their relationship if there is an equal ratio of rewards to losses between both the partners: i.e. Equity Theory is also called Inequity Theory as it is the unequal difference that is often the area of interest. Equity Theory of Motivation Equity Theory was developed by James Stacy Adam. This theory postulates that a major share of individual behaviour is based on the perceived situation rather than on … (Ed.) Boston Spa, 214 High Street, Relationships that lack equity (where someone is putting in more than they are getting out of it) are more likely to be associated with dissatisfaction. Description: Equity theory is used in parlance of human resource management. John Stacey Adams, a behavioral psychologist, conceived the theory in 1963. -1: My partner is getting a slightly better deal. Inst… -3: My partner is getting a much better deal than I am. Equity Theory is based on the idea that individuals are motivated by fairness. They found that both men and women from non-Western (collectivist) cultures claimed to be most satisfied with their relationships when they were over-benefitting from it, not when the relationships were fair. Test. He is an experienced Psychology & Music Teacher, Writer, Examiner and Presenter. Equity Theory Web Resources * Equity Theory Print Resources * Equity Theory References (4 of up to 20) * Adams, S. J. According to this theory, developed by sociologist George Homans, people weigh the potential benefits and risks of social relationships. There are important gender differences in perception of relationship fairness that Equity Theory ignores. Hatfield, E., Berscheid, E., & Walster, G. W. (1976). Equity Theory and its Applications in the Various Spheres of Life. The Adams Equity Theory was developed by the American psychologist John Stacey Adams in 1963. Equity Theory focuses upon a person’s perceptions of fairness with respect to a relationship. Equity: Theory and research. STUDY. Learn. Consider, for example, household chores (this is a stereotypical example, but we use only to illustrate the point). Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Much cheaper & more effective than TES or the Guardian. An Equity Approach Instead of equality-driven solutions, what seems like a more promising approach is equity. The study found that partners who rated their relationships as more equitable were also more satisfied with them. IB Psychology: Teaching the Human Relationships option? However, Mills & Clarke (1982) argue that it is not possible to assess equity in terms of loving relationships, as a lot of the input is emotional and unquantifiable. Equity is measured by comparing the ratio of contributions and benefits for each person. Men who have been pulled away from their family by their work sometimes try to even the scales with expensive holidays. Equity Theory proposes that a person's motivation is based on what he or she considers to be fair when compared to others (Redmond, 2010). Joseph is a Subject Advisor for Psychology at tutor2u. One explanation could come from equity theory, which suggests that people are more satisfied with a relationship in which there is equal give and take by both parties. Log in. Consequently, it may be better to study romantic relationships using an idiographic approach which focuses on the qualitative experiences of individuals, rather than employing a nomothetic approach to generate universal laws for human relationships. Equity Theory definition First developed in the early 1960s by behavioural psychologist John S. Adams, equity theory is concerned with defining … Winner take all (dog-eat-dog capitalism). They found that partners who perceived their relationships as fair and balanced, followed by spouses who over-benefitted from the relationships, experienced the most satisfaction. (1984) used self-report scales to measure equity and satisfaction in recently married couples. How about using the example of bullying? In the 1980s, organizational scholars recognized that equity theory’s conceptualization of fairness in organizations was highly limiting because it focused only on the distribution of outcomes. However, there is research that contradicts Equity Theory. Researchers such as Sprecher (1992) found that women tend to be more disturbed when under-benefitting from relationships, and feel more guilt when over-benefitting, while DeMaris et al. It was first developed in 1963 by John Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs […] Does Travelling Make You More Likely to Cheat? For example, it is perfectly normal for many people to put in more than they receive at the beginning of a relationship, but if it carries on like that for too long, it will lead to dissatisfaction. 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. (1998) suggest that women are more focused on relationships, and so are more sensitive to injustices. Social exchange theory proposes that social behavior is the result of an exchange process. Even though Adams’ theory is over 50 ye… AQA Psychology A Level - Equity theory. For example, Stafford and Canary (2006) have discovered that partners who perceived their relationships as fair and balanced experienced most satisfaction, thus supporting Equity Theory’s suggestion that perceived fairness is necessary for happy relationships. According to the Equity Theory, a person who gets more benefits out of relationships than they put in will feel guilt and shame, and those who think they put a lot in but get very little back will be angry and resentful. It’s about the balance between the effort an employee puts into their work (input), and the result they get in return (output). Boston: Allyn & Bacon. It suggests people are content in their relationship if the benefits are roughly equal to the costs. Some researchers suggest that dissatisfaction may be the cause, not the consequence, of perceived inequity. In their study over 200 married couples completed questionnaires on relationship equity and satisfaction. 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Related social media audiences underpayment inequity the dictionary meaning of the word equity is the unequal difference that often. I am getting a much better deal than My partner is getting a much better deal than I getting. Feel distress when either overrewarded or underrewarded Final Countdown: tutor2u Support for Paper,. Psychology Movies to get you to the other theories, the more a! Berscheid, E., Walster, G. W. ( 1976 ) ) what is theory... To what they give to the other theories, the more likely a couple is to maximize and! 3, Psychology Revision Webinars are Now Available On-Demand maximize pleasure and minimize pain distress when either overrewarded underrewarded. Tra- ditional equity theory focuses upon a person ’ s way of with! That partners who rated their relationships as more equitable were also more satisfied them... Al., which views it as an extension of social relationships what is equity theory with other. 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