Motivation can be defined as a set of reasons which regulates ones behaviour. As observed the success of any organization depends largely on employee motivation. Motivated workforce leads to reduced absenteeism, staff turnover, greater efficiency leading to higher productivity. Various motivation theories by social scientists can be classified into process and content theories. Content theories concentrate on drives and needs of individuals whereas process theories discuss our goal oriented decisions. In this essay we will discuss two process theories and evaluate their applicability. First we will have a look at equity theory. “ It’s a process theory which argues that perception of unfairness leads to tension which motivates the individual to resolve the unfairness". A notable statement by Stacey Adams describes employees’ perception of fair treatment at work place and reaction to unfairness. According to equity theory, employees prefer situations of equity, when ratio of employees inputs and outcomes are equals ratio of inputs and outcomes for a comparison other .Adam proposed two types of inequities under reward (ratio of employee less than comparison with other) and over reward (ratio of employee more than comparison with other) and pointed that employee reaction to these might differ.
To understand its applicability, let’s look at this example. Inequity was created in two plants A and B by decreasing the wages by 15%. Plant A workers were given a reasonable explanation for reduction while plant B wasn’t. It was noticed that resultant thefts were more in plant B
This research supports the predictions of the theory. As predicted by Adams, underreward created tension and provoked the underpaid workers to resolve inequity by increasing output, theft in this case. Lack of information in plant B causes imprecisely perceived inequity, therefore for equity theory to