Introduction to Equity Theory: The Impact of Perception on Employee Motivation

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Developed in 1963 by behavioral psychologist John Stacey Adams, equity theory says that workers are motivated to pursue perceptions of fairness in the workplace. In this video we'll discuss the basic elements of equity theory and also address how perceptions of fairness can impact productivity in the workplace.

A minor correction. In the video the correct ratio is expressed as outcomes over inputs. Although this is listed at the beginning, I did write inputs/outcomes several times in the video. At the end of the day it isn't a huge deal how you express them as the evaluative process is far more important, but just for accuracy I thought that I'd clarify.

[ChaceAlexander]

My professor put it like this: Equity is achieved by changing work effort, changing outcomes, changing perceptions, or leaving the job. I understood the simpler three but wasn't sure about how someone would change their perceptions, so I appreciate your explanation of rationalizing inputs/outcomes or changing referents. Thank you!

[Alanisbusinessacademy]

A minor correction. In the video the correct ratio is expressed as outcomes over inputs. Although this is listed at the beginning, I did write inputs/outcomes several times in the video. At the end of the day it isn't a huge deal how you express them as the evaluative process is far more important, but just for accuracy I thought that I'd clarify.

[mariacassar]

These theories are explained really well and in a very practical manner. I am studying to get a diploma in leadership and management and I believe these videos will be helpful. Thanks and well done.

[Alanisbusinessacademy]

Thanks Peter. I'm actually an instructor. Basically I teach, but I don't do research or have a Ph.D. Options aren't really my background, but I may be able to put something together on DCF. If and when that happens maybe you'll have that million dollars handy :)
Take care!

[schwendtner]

Such excellent videos! Thanks so much! I used these to prepare for my upcoming OB exam instead of my notes. You rock! The videos are fantastic!

[taylastyleshairandbeauty]

Wow thank you for the video, well explained.

[kenvaldez]

Thanks a lot sir. My report would not be a successful one without your help.

[asdf-jg]

Do any videos in the Management playlist talk about the Theory X & Y?

[kenvaldez]

Thank You very much. This video helped me a lot especially I am a business management student. I will add this as one of my references. :)

[brendaphiri]

Can you please explain the difference between the humans relations theory and the human resources theory

[mervintham]

Hallo, my name is Mervin, we are going to make a seminar according to this theory for like a sub topic of employee motivation, I just wonder, how could an organization actually settle this problem down, do they have specific methods? Thank you very much for your time

[timbroders]

This is an awesome channel, Are you a professor?

Also, can you provide a discounted cash flow analysis on let's say Coca-cola? Or a video on company/stock valuation in general.
-Videos on options trading and the different spreads involved would also be greatly appreciated

I'd give you the present value of a million dollars today from the future when I will earn it, but I don't have that money Yet haha.

[kenvaldez]

Sir can you explain further the change of referent. Is this another way to restore  equity?

[lauraguerrero]

These videos are very helpful for when I teach online. You are very thorough but your videos are not too long. For when I teach online, I need something shorter and more engaging ... if you ever feel inclined to do that...

[kenvaldez]

One last question sir, how about the equity sensitivity?I dont get why peolple have different preference.

[tyciannagreen]

당신은 매우 아름다운 이미지를 만들고 Nghia Tui는 그것을 정말 좋아합니다.