Equity Theory was formulated by J. Stacy Adams, which focuses on how employees perceive the relationship between outcomes they receive and efforts they contribute by comparing own outcome-input ratio with that of a referent. According to equity theory, highly motivated employees are those who perceive their treatment to be fair and will continue to put in current level of effort. For instance, executives desire to be paid fairly against their …show more content…
Take Bell Aliant, Canada 's largest telecommunications company for example, who boasts a performance driven culture where employees share in company success through compensation incentives and awards recognizing outstanding performance. “It’s a lot of fun, and a great feeling, when the targets are set and you achieve them - and then stretch targets are set, and you achieve those, too,” says Anthony Murphy, product manager on Bell Aliant’s residential marketing team (Herald, …show more content…
According to the study by Bartol and Locke, if an employee expects that the group will attain organisational goals without his contribution, he may not be motivated to put forth effort (e.g., social loafing). Conversely, if an employee expects that the group will be unable to achieve organisational goals even with his best efforts, he may not be motivated to put forth these efforts (e.g., reduction of individual effort in response to work group social norms of restricting work effort or performance) (Kanfer, Chen, & Pritchard,