Equity Theory Justice Theory Key Motivational Issue: Have we been treated fairly?

Equity Theory perspective People are motivated to engage in behavior that either maintains equity between employees or rectifies inequity between employees

An employee will consider what she contributes to the job (her inputs), and what she receives from the job (her outcomes) An employee will consider what another employee contributes to the job (his inputs), and what he receives from the job (his outcomes) ~ and then compare her situation to his

OUTCOMES OUTCOMES _________ _________ INPUTS OUTCOMES OUTCOMES _________ _________ INPUTS = = > > < < EE #1EE #2

OUTCOMES OUTCOMES _________ _________ INPUTS OUTCOMES OUTCOMES _________ _________ INPUTS = = EE #1 motivated to maintain current level of performance Manager does not need to change anything EE #1EE #2

OUTCOMES OUTCOMES _________ _________ INPUTS OUTCOMES OUTCOMES _________ _________ INPUTS < < EE #1 motivated to try and outcomes or inputs Manager needs to increase outcomes for EE #1 EE #1EE #2

OUTCOMES OUTCOMES _________ _________ INPUTS OUTCOMES OUTCOMES _________ _________ INPUTS > > EE #1EE #2 EE #1 motivated to try and outcomes or inputs Manager needs to outcomes for EE #2 or let EE #1 inputs

Justice Theory perspective People are motivated when they feel the are treated the same as other employees in terms how they are awarded

Procedural justice – was the process used to decide which outcomes the employee would receive impartial and fair? If not, employees can become demotivated

How to achieve procedural justice In making decisions about which employees get which rewards, managers need to: 1)Be transparent in their procedure or protocol 2)Be consistent in using the same procedure across employee 3)Be neutral; free from bias 4)Use accurate and appropriate information on which to base decisions 5)Establish trust with employees so intentions are seen as positive and fair