Adam’s Equity Theory of Motivation to IT Employees

Comparing oneself to family, friends, relatives or specially colleagues is a norm for any individual, even though such comparison generally causes sadness than joy (Stecher and Rosse, 2007). This psychological phenomenon, which is posing a challenge in the workplace, can be explained as how the individuals perceive the inputs and outputs at work, compared to other colleagues in the organization (Bilan and Abayomi, 2018). In the Adam’s equity theory, the compensation package of an employees is identified in relation to the other workers in the company with consideration to the social environment factor, rather than just focusing on money itself (Bilan and Abayomi, 2018). Therefore, how an employee is treated by the employer is perceived by the individual employee, based on the received rewards by his/her colleagues (Stecher and Rosse, 2007).

Figure 1: Adams’s Equity Theory

Source: Mulder (2018)

The balance between the input or everything including effort, skills and experience an employee brings in to the company, and the outputs or everything such as money, benefits, happiness and learnings an employee gets as outcome from the company, is considered one of the two main principals in the Adam’s equity theory (Stecher and Rosse, 2007). The second principal is that an individual should feed that the treatment is fair from the employer, compared with the colleagues (Taboli, 2012).

The inputs encompass the quality of work and the quantity of work an individual contributes, to an organization (Bell and Martin, 2012). The effort, time, loyalty, commitment, skills, experience, tolerance, flexibility, determination, passion towards work, enthusiasm, trust and support are few of the input factors (Taboli, 2012).

The positive and negative consequences an employee receives from the organization are considered as outputs (Dinibutun, 2012). The outputs include compensation, benefits, reputation, recognition, pride, praise, job security, expenses, esteem or could be even negative outcome such as a pay cut, demotion, or a punishment (Stecher and Rosse, 2007).

Employees tend to seek the equity between inputs and outputs compared to the inputs and outcomes other colleagues receive (Dinibutun, 2012). Individuals value the fair treatment and will be motivated when they feel treated fairly or advantageously over the co-workers, however when an individual feels unfairly treated it acts as a demotivation towards work (Taboli, 2012).

Payment is an important aspect of outcome and when an employee feels unpaid for the job delivered such employee may not perform well and could be hostile towards other workers in the organization which would be a negative impact in a work environment (Taboli, 2012). However, Dinibutun, (2012) says, the subtle variables such as appraisal for work delivered, thankfulness form the employer, recognition also play significant roles in equity. Therefore, the acts of being thankful by the employer has a feel of satisfaction in employees, which motivated them to work for the company (Dinibutun, 2012). 

Adam’s Equity Theory Application to IT Industry

Information technology being an industry with higher demand for innovation requires the motivation and passion towards work from each of the employees to succeed (Bell and Martin, 2012). The intelligent workforce may easily get demotivated in situation where there is the feel of unfair treatment (Souza, 2014). Hence, it is worth to understand the applicability of Adma’s equity theory to tech company perspective.

In general, most tech companies follow flat style of management, allowing each employee to share the thoughts towards work and changes and improvements to way of work (Dinibutun, 2012). The feel of one’s ideas are valued equally and admired is a motivation which will allow the employees to come up with innovative solutions, which is much required need of tech companies (Souza, 2014).

In information technology companies’ teamwork is encouraged and helping each other to chive the task at hand to help the team to reach the goals is a norm (Souza, 2014). This culture allows employees to put effort together as input and the management generally provide the same level of benefits to all the team members (Taboli, 2012). For example, even a parking slots at company car parks in IT companies are not reserved, generally they are available as first comes first save basis, which leaves each employee feeling equality.

The salary information is kept secret in most tech companies and employees are not allowed to share the remuneration information with other colleagues. However, this information sometimes gets revealed in closer circles, which would lead to comparisons. Hence, most of the tech companies keep slabs of salary scales for designations and makes the salary slab information visible to each employee. Therefore, an employee depending on the designation has an idea of maximum and minimum remuneration (Souza, 2014). However, there can be situations where handpicked employees are treated with extra benefits and salary hikes if the individual has shown special skills, or the organization has a dependency on hidden knowledge of such an individual (Dinibutun, 2012). Sometimes such special individual treatment to an employee may demotivate other colleagues in tech companies (Dinibutun, 2012).

Additional benefits such as health care, family vacations, sports facilities, leisure activities are equally provided to each employee in information technology companies, making them feel treated fairly (Souza, 2014). In situations of conflict management, the management of tech companies follow discussion and solve approach without mistreating any employees to ensure the equality, as negativity causes significant damage to the team work in the tech companies (Souza, 2014).

Considering the above factors information technology industry can be identified as an industry where Adam’s equity theory is used in practical to make fair treatment to every employee to keep them motivated.

List of References

Bell, R. I and Martin, J. S. (2012) The Relevance of Scientific Management and Equity Theory in Everyday Managerial Communication Situations. Journal of Management Policy and Practice, 13(3), pp.106-115.

Bilan, S and Abayomi, M. F. (2018) Sensitivity of equity theory on employees’ commitment A Study of Nigeria Furniture Sector. International Journal of Entrepreneurship Management Innovation and Development, 2(1), pp.104-131.

Dinibutun, S. R. (2012) Work Motivation: Theoretical Framework. GSTF Business Review, 1(4), pp.133-140.

Mulder, P. (2018) Adams Equity Theory [online Available at: < https://www.toolshero.com/psychology/adams-equity-theory/>.].[Accessed on 23rd May 2020].

Souza, A. A. G. (2014) What Is the Role of the Sensitive Construct Theory in Free and Open Source Software Development? International Journal of Innovation, Management and Technology, 5(6), pp.474-478.

Stecher, M. D and Rosse, J. G. (2007) Understanding Reactions to Workplace Injustice Through Process Theories of Motivation: A Teaching Module and Simulation. Journal of Management Education, 31(6), pp.777-796.

Taboli, H. (2012) Approach Based on Motivation Theories. Life Science Journal, 9(4), pp.556-560.