Equity theory is a popular model of team motivation that suggests that people compare their inputs and outcomes with those of others and strive for a fair balance. If they perceive an imbalance, they may experience dissatisfaction, resentment, or demotivation. As a team leader, you can use equity theory to motivate your team by following these tips.
Inputs are the contributions that your team members make to the team's goals, such as their skills, efforts, time, and resources. Outcomes are the rewards that they receive for their inputs, such as recognition, feedback, pay, benefits, and opportunities. To motivate your team with equity theory, you need to understand what inputs and outcomes matter to them and how they evaluate them. You can do this by conducting surveys, interviews, or performance reviews, or by observing their behaviors and reactions.
One of the main sources of inequity in teams is the lack of clear and consistent expectations and criteria for inputs and outcomes. If your team members don't know what is expected of them, how their performance is measured, and how their rewards are determined, they may feel confused, frustrated, or cheated. To motivate your team with equity theory, you need to communicate the expectations and criteria for inputs and outcomes to your team members and ensure that they are aligned with the team's vision, mission, and values. You also need to provide regular and constructive feedback to your team members and recognize their achievements.
Another source of inequity in teams is the mismatch between inputs and outcomes. If your team members feel that they are putting more or less effort than others, or that they are receiving more or less rewards than others, they may lose motivation or seek to restore balance by changing their inputs or outcomes. To motivate your team with equity theory, you need to adjust the inputs and outcomes of your team members according to their needs, preferences, and performance. You can do this by offering different types of rewards, such as monetary, non-monetary, intrinsic, or extrinsic, or by providing different levels of support, autonomy, or challenge.
The final tip to motivate your team with equity theory is to promote a culture of fairness and trust in your team. Fairness and trust are essential for creating a positive and productive team climate, where your team members feel valued, respected, and supported. To promote a culture of fairness and trust, you need to model ethical and transparent behaviors, treat your team members equally and respectfully, encourage collaboration and cooperation, and address any conflicts or issues promptly and constructively.
Equity theory can help you understand and improve your team's motivation by focusing on the balance between inputs and outcomes. By following these tips, you can use equity theory to motivate your team and achieve your team's goals.
Equity theory of motivation is only workable if there is fair conversation around it as individuals would measure ratio of their output to input with the referent others. And the variables of input and output of an individual and the referent could or couldn’t be similar, that’s what disturb the dynamics. Rather than social comparisons, I believe, the transparency between an individual and the boss is more beneficial and motivational for the firm and personal growth of individuals.