This paper discusses and describes the equity theory of motivation with its implications to managers in the light of a real organizational example.Equity theory is a study of human perception in terms of proportionate equivalence of the ratio of one persons inputs. Equity theory comes under process theory which gives the perception whether the individual is going to work hard or not depending upon the rewards and possible outcomes. Robbins & Judge (2007, p.186) defines Motivation вЂњas the processes that account for an individualвЂ™s intensity, direction, and persistence of effort towards attaining a goalвЂќ. AdamsвЂ Equity Theory calls for a fair balance to be struck between an employeeвЂ™s inputs (hard work, skill level, tolerance, enthusiasm, and so on) and an employeeвЂ™s. Equity theory is simple and almost instinctual. Equity theory, most popularly known as equity theory of motivation, was first developed by John Stacey Adams, a workplace.

Individuals are more likely to be motivated when they feel fairly or equitably treated. Adams called these as inputs and outcomes (Okpara, 2006). An individual should feel a fair balance of what he/she puts into the jobs and what he/she gets out of it.

Gender and the relationship between perceived fairness in pay, promotion, and job pay, promotion, and job satisfaction in a sub '' Saharan African economy. New York: McGraw-Hill Irwin.Okpara, J.O. Organizational Behaviour and Management. And Matteson M.T., (2008). International Journal of Manpower,15(7), 26-43.Ivancevich, J.M., Konopaske, R.

The equity factor: a vital part of the quality equation. New Jersey: Pearson Prentice Hall.Weller,L.D. And Judge,T.A.,(2007).Organizational Behaviour.(12th ed.).

John Stacey Adams Equity Theory