How can you avoid common pitfalls when using equity theory for team motivation?

1 Pitfall 1: Ignoring individual differences

One of the main assumptions of equity theory is that people have similar preferences and expectations for what constitutes a fair exchange. However, this is not always the case. Different team members may value different types of inputs and outcomes, such as effort, skills, recognition, feedback, autonomy, or growth opportunities. Moreover, some team members may be more sensitive to equity than others, and react more strongly to perceived inequity. Therefore, when using equity theory for team motivation, you should not assume that everyone has the same standards of fairness. Instead, you should try to understand the individual needs and preferences of your team members, and tailor your rewards and feedback accordingly.

2 Pitfall 2: Overlooking procedural and interactional justice

Another limitation of equity theory is that it focuses mainly on the distribution of outcomes, and neglects the importance of the process and the communication involved in allocating those outcomes. However, research has shown that team members also care about how the outcomes are decided and delivered, and that these aspects affect their motivation and satisfaction. Procedural justice refers to the fairness of the rules and methods used to determine the outcomes, while interactional justice refers to the fairness of the treatment and respect shown to the team members during the process. Therefore, when using equity theory for team motivation, you should not only ensure that the outcomes are distributed fairly, but also that the process and the communication are transparent, consistent, and respectful.

3 Pitfall 3: Creating unhealthy competition

A potential drawback of equity theory is that it can create a competitive climate within the team, where team members constantly compare themselves with others, and try to maximize their own outcomes at the expense of others. This can lead to reduced cooperation, trust, and collaboration, and increased conflict, resentment, and turnover. Therefore, when using equity theory for team motivation, you should not encourage or reward individualistic behavior that undermines the team's goals and values. Instead, you should foster a cooperative and supportive culture, where team members are recognized and rewarded for their contributions to the team's success, and where they help and learn from each other.

4 Pitfall 4: Neglecting intrinsic motivation

Another risk of equity theory is that it can overshadow the intrinsic motivation of team members, which is the motivation that comes from within, and is driven by interest, enjoyment, or personal growth. Research has shown that intrinsic motivation is more powerful and sustainable than extrinsic motivation, which is the motivation that comes from external factors, such as rewards, punishments, or social comparisons. Therefore, when using equity theory for team motivation, you should not rely solely on extrinsic incentives, such as money, bonuses, or promotions. Instead, you should also enhance the intrinsic motivation of your team members, by providing them with meaningful and challenging work, autonomy and ownership, feedback and recognition, and opportunities for learning and development.

5 Pitfall 5: Failing to monitor and adjust

A final pitfall of equity theory is that it assumes that the inputs and outcomes of team members are stable and fixed, and that once a fair balance is achieved, it will remain so. However, this is not realistic, as the inputs and outcomes of team members can change over time, due to various factors, such as performance, feedback, market conditions, organizational changes, or personal circumstances. Therefore, when using equity theory for team motivation, you should not set and forget your reward and feedback systems. Instead, you should monitor and adjust them regularly, to ensure that they reflect the current situation and expectations of your team members, and that they maintain a fair and motivating balance.

Equity theory can be a valuable tool for enhancing team motivation, but it also has its limitations and pitfalls. By being aware of these pitfalls, and by applying some of the tips suggested in this article, you can use equity theory more effectively and efficiently for your team's motivation.

6 Here’s what else to consider

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