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Adams Put Forward Equity Theory Which Simply States That People Will Be ...

Adams put forward equity theory which simply states that people will be better motivated if they are treated equitably and de-motivated if they are not treated in an equitable manner. Equity is not the same as equality. Equity is where people feel that they are being treated fairly. Equality is where people are being treated the same and can in fact be seen as inequitable if they deserve to be treated differently. Equity theory informs us that reward systems need to be transparent and generally accepted as fair by employees in order to succeed in motivating people (Lawler, 2003). People evaluate with a ratio of inputs and outcomes to see if their compensation is equal to what others receive. Inputs are what a person puts into a job; experience, education and effort. The outputs are what a person gets from a job; that is pay, benefits and recognition. Inequity happens when input and output ratio is perceived to be out of balance.

Expectancy theory argues that motivation is only likely when there is a clearly perceived and useable relationship between performance and outcome and the outcome is seen as a means of satisfying needs. The main proponent of this theory was Vroom and the theory provides the foundation for good practise in the design and management of contingent pay. It emphasises the need for a clear link between the reward and what is being done to achieve it (Vroom, 1964). Expectancy theory attempts not to define specific needs, but to show that they exist and can be different for different individuals.

Instrumentality theory states that people will be motivated to work if rewards and penalties are related directly to their performance. Instrumentality theory came out of Taylor's work and led naturally to the development of performance related pay schemes.
Goal theory asserts that motivation and therefore performance are higher when individuals are set specific goals. Not only this, but the goals need to be difficult but accepted and employees need to receive feedback on their performance. The practical consequences of this theory are obvious, highlighting the importance of goal setting and feedback as part of a reward system.

Reinforcement Theories of Motivation

Reinforcement theories look at the relationship between behaviour and its consequences. It focuses on changing employees' behaviour through the appropriate use of immediate rewards and punishment. Managers have four different reinforcement tools to motivate their employees. The first tool is positive reinforcement. This is the administration of a pleasant or rewarding consequence following a desired behaviour. This will increase the likelihood of a good work behaviour being repeated. The second reinforcement tool available is the process of avoidance learning.Avoidance learning is the removal of an unpleasant consequence that follows a desired behaviour.


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