EQUITY THEORY & EXPECTANCY THEORY

1. Equity theory
1.1. Definition:
- According to the theory of motivation known as equity theory, employees'
motivation at work is primarily influenced by their perception of justice. People
want their interactions to be fair. They want to believe that other people are
giving them what they deserve. Workers mentally record all of the inputs and
outputs associated with their work, which they subsequently utilize to compare
their input-to-output ratio to that of other workers. People may become
unhappy and even take action to make things right if they believe they are not
being treated fairly. The foundation of equity theory is the notion that
individuals compare their outputs—such as their pay, perks, and recognition—
to their inputs—such as the labor they perform, the money they contribute, and
the effort they expend.

Figure 1.1: Equity mindmap 1

- Adams’s equity theory: According to Adams' equity thesis, motivation is

influenced by how peers view the fairness of rewards and contributions. From a
leadership and management standpoint, this means that in order to guarantee
 the highest levels of engagement, motivation, and output, a team has to develop
a feeling of justice.

Figure 1.1.1: Adams inputs and outputs (1)

Figure 1.1.2: Adams equity theory inputs and outputs (2)

1.1.1. Implications:
 + Implementing an intervention within a specific constituency has equitable
implications since resource allocation choices sometimes take factors other
than efficiency into account.
+ Ensuring that resources are allocated fairly to individuals with varying levels of
need, providing equal access to those in equal need.
+ In order to maintain a balance in the input-output ratio, perceived injustice may
lead to decreased input, such as decreased dedication or loyalty to the
organization.

1.2. Equity vs Equality

According to Marin Health and Human Services Organization:

- Equality means each individual or group of people is given the same resources
or opportunities.
For example: If I gave a rich woman and a poor woman each $100 that would be an
example of equality since I gave both the same amount of money.

- Equity recognizes that each person has different circumstances and allocates
the exact resources and opportunities needed to reach an equal outcome.
For example: If I gave a rich woman $100 and a poor woman $200, it could be said I
am trying to achieve equity by “fairly” giving the poor woman more help based on her
financial situation.
 -

1.3. Example
Considering a workplace scenario involving two employees, Alice and Bob,
who work in the same department and have similar job roles.

In this scenario, Alice has been with the company for five years, consistently
delivering high-quality work and going above and beyond her job
responsibilities. She receives positive feedback from her superiors and is
recognized for her contributions. As a result, Alice is given a promotion and a
significant raise in her salary.

On the other hand, Bob, who joined the company around the same time as
Alice, feels that he has also been performing exceptionally well. He
 consistently meets his targets, receives positive feedback from colleagues, and
believes he is equally deserving of a promotion and raise.

However, Bob does not receive any recognition or promotion, and his salary
remains unchanged. He starts to feel a sense of inequity, as he perceives that
Alice is receiving greater rewards for similar levels of effort and performance.

As a result of this perceived inequity, Bob may experience various reactions.

He might become demotivated, leading to a decline in his performance and
commitment to the organization. Alternatively, Bob might seek ways to restore
equity, such as requesting a promotion or discussing his concerns with his
supervisor or human resources.

This example illustrates the core premise of equity theory, which suggests that
individuals strive for fairness in social exchanges. When they perceive
inequity, whether it's under-reward or over-reward, they are likely to
experience discomfort and may take actions to restore equity in the situation.

2. Expectancy theory
2.1. Definition
In 1964, Victor H. Vroom developed the Expectancy theory through his study
of the motivations behind decision making. His theory is relevant to the study
of Expectancy theory proposes that an individual will decide to behave or act in
a certain way because they are motivated to select a specific behavior over
other behaviors due to what they expect the result of that selected behavior will
be.
- Expectancy theory is about the mental processes regarding choice, or choosing.
It explains the processes that an individual undergoes to make choices
2.2. Key elements of Expectancy theory
 + Valence is the significance associated by an individual about the expected
outcome. It is an expected and not the actual satisfaction that an employee
expects to receive after achieving the goals.
+ Expectancy is the faith that better efforts will result in better performance.
Expectancy is influenced by factors such as possession of appropriate skills for
performing the job, availability of right resources, availability of crucial
information and getting the required support for completing the job.
+ Instrumentality is the faith that if you perform well, then a valid outcome will
be there.
Instrumentality is affected by factors such as belief in the people who decide who
receives what outcome, the simplicity of the process deciding who gets what
outcome, and clarity of relationship between performance and outcomes

relationship of 3 key elements in Expectancy theory

 2.3. Implications of the Expectancy Theory
“This theory emphasizes the needs for organizations to relate rewards directly to
performance and to ensure that the rewards provided are those rewards deserved and
wanted by the recipients.” - Victor H. Vroom
- The managers can correlate the preferred outcomes to the aimed performance
levels.
- The managers must ensure that the employees can achieve the aimed
performance levels.
- The deserving employees must be rewarded for their exceptional performance.
- The reward system must be fair and just in an organization.
- Organizations must design interesting, dynamic and challenging jobs.
- The employee’s motivation level should be continually assessed through
various techniques such as questionnaire, personal interviews
2.4. Example
A is an employee who works in a software development company. A is motivated to
work on a challenging project in order to receive a promotion.
+Expectancy: A believes that if he puts in extra effort, works diligently, and utilizes
his skills and knowledge, he will be able to successfully complete the challenging
project.
+Instrumentality: A believes that if he successfully completes the project, his
performance will be recognized by his superiors, and he will have a higher chance of
receiving a promotion.
+Valence: A values the promotion highly because it comes with a higher salary,
increased responsibilities, and a sense of professional accomplishment.

Based on these factors, A's motivation to perform well on the challenging project

is influenced by his belief that his effort will result in successful project completion

(expectancy), which will then lead to recognition and a higher likelihood of

promotion (instrumentality), and the value he places on the promotion and its

associated benefits (valence). →

If A strongly believes in all three factors, he will be highly motivated to put in the
effort, work diligently, and utilize his skills to successfully complete the project. He
sees it as a pathway to achieving his desired promotion. However, if any of these
factors weaken, A's motivation may decrease. For example, if he doubts his ability to
complete the project successfully (low expectancy), or if he believes that even if he
excels, the company has a history of not promoting employees (low instrumentality),
his motivation may diminish.

3.References

1. Juneja, P. (n.d.). MSG Management Study Guide. Expectancy Theory of

Motivation. https://www.managementstudyguide.com/expectancy-theory-
motivation.htm
2. Vasudev, P. (2013, December 7). Victor H vroom theory of expectancy. Retour
à la page d’accueil. https://fr.slideshare.net/poojanvasudev/victor-h-vroom-
theory-of-expectancy
3. Adams' Equity Theory of Motivation: A Simple Summary. (2021, July 21). The

World of Work Project. Retrieved November 30, 2023, from

https://worldofwork.io/2019/02/adams-equity-theory-of-motivation/

4. Equity Theory Revisited: Comments and Annotated Bibliography. (2023, June

16). Advances in Experimental Social Psychology. Retrieved November 30,

2023, from

https://www.sciencedirect.com/science/article/abs/pii/S0065260108600581

5. HR Glossary. (n.d.). Equity Theory: HR Terms Explained. Pelago. Retrieved

November 30, 2023, from https://www.pelagohealth.com/resources/hr-

glossary/equity-theory/

6. Robert D. Pritchard. (2023, June 16). Equity theory: A review and critique.

Organizational Behavior and Human Performance. Retrieved November 30,

2023, from

https://www.sciencedirect.com/science/article/abs/pii/0030507369900051

7. S, R. (2020, December 26). Adams Equity Theory –

SanzuBusinessTraining.com. SanzuBusinessTraining.com. Retrieved

November 30, 2023, from https://sanzubusinesstraining.com/adams-equity-

theory/

8. Equity vs. equality: What’s the difference? - marin HHS. (n.d.).

https://www.marinhhs.org/sites/default/files/boards/general/equality_v._equity

_04_05_2021.pdf

Name % Score
 effort

1 Trương Minh Tuệ

2 Võ Thiện Kha

3 Nguyễn Hoàng Ly Na

4 Nguyễn Thanh Thủy

Tiên

5 Nguyễn Trần Minh

Khuê