According to the equity theory of motivation, we:
compare our inputs and outputs to a manager’s inputs and outputs.
perceive fairness if we believe that the input-to-output ratio we are bringing into the situation is similar to the input/output ratio of a comparison person, or a referent
create tension within us when we perceive equity and it drives us to action that will reduce perceived equity.
will have greater job performance with High Motivation x Great Ability x Positive Work Environment
The Correct Answer and Explanation is :
The correct answer is: “perceive fairness if we believe that the input-to-output ratio we are bringing into the situation is similar to the input/output ratio of a comparison person, or a referent.”
Explanation:
Equity Theory, developed by John Stacey Adams in the 1960s, is a theory of motivation that focuses on the principle of fairness in the workplace. According to this theory, individuals are motivated by a sense of fairness in their exchanges with others, especially in a work environment.
Inputs and Outputs: The theory suggests that employees bring certain “inputs” to their jobs, such as skills, experience, effort, and time. In return, they expect “outputs,” which include salary, benefits, recognition, and job satisfaction. The key idea is that employees compare their input-to-output ratio with that of others, often referred to as “referents.”
Perception of Fairness: Equity theory holds that individuals perceive fairness when they believe their input/output ratio is similar to that of a referent. A referent can be a colleague in the same position, a different employee in a similar role, or even an external standard like industry norms. If an individual perceives that their efforts (inputs) are being rewarded equally compared to others’ efforts, they perceive fairness.
Inequity and Tension: However, if employees perceive an imbalance or inequity (for example, if they feel they are working harder but getting fewer rewards than others), this leads to tension. The tension created by perceived inequity is a powerful motivator, compelling employees to take action. They might reduce their efforts (inputs), ask for higher rewards (outputs), or even change their comparison referent to restore a sense of fairness.
Performance and Motivation: While equity theory does explain how perceptions of fairness can motivate behavior, the broader equation of job performance being influenced by “High Motivation x Great Ability x Positive Work Environment” is a result of various factors, including equity, but not the sole determinant of performance. A motivated and able employee in a fair work environment is likely to perform well, but this is just one of many motivational theories at play in organizational behavior.