John Stacey Adams, was a workplace and behavioural psychologist of the United States. He formulated his Equity Theory on job motivation in 1965. The theory acknowledges that distinct variable factors affect each individual's appraisal and recognition influence their attitude and approach to their work, and thereby with their employer. The Equity theory is founded on the assumption that workers formingpart of an organisation expect justice, fairplay, or equity in treatmentby their employers.

Adams supports his theory by distinguishing two variables, viz. inputs (what the worker delivers to the organization) and outcomes (what he gets by way of compensation or reward). Inpurts in other words represent the contributions which the employees feels that he bestows into his job byway of his time, skill, devotion, loyaklty etc.).Inputs may also include employees experience, special knowledge, personalcharacteristics etc. Outcomes is the reward or compensation that the employee gets in return. In addition to pay andother monetary benefits, it may also include promotion, recognition, status, fringe benefits etc.

Inputs and outcomes thus represent a psychological feling representing an exchange of values between the worker and the organization. When the worker feels that the compensation that he is provided is adequate in terms ofthe inputs delivered by him, he feels satgisfied and motivated. The worket further compares the outcomes that he is getting with the input-outcome analysis of other members ofthe organization and when he feels that he is reciving a fair deal, there is equity.

However where the worker feels that his inputs out-weigh the outcomes or that that he getsa inadequate compensation in relation to his own contribution,there is a sense of demotivation reflecting his attitude to his job and further to the employers. Generally the extent of demotivation is proportional to the perceived disparity between inputs and expected outputs. Such demotivtion may result in the worker reducing effort and application and become discontented, or indiufferent, recalcitrant or even disruptive. There may also be a positive response in some case, wherethe worker demands better or higher scale of rewards, or seeking an alternative job.

In brief the theory canbe summarised as under:

• A worker compares his inputs (value) with the outcome he receives and the input-outcome ratio of his with other workers.

• If the worker in the process perceives equity or that he is receiving a fair deal, he is happy, contended and further motivated towards his job andhisemployer.

• However where a worker perceives inequity or injustice he responds to co-relate the inquity. He may lower productivity, reducde quality, increaase absentism or he may even voluntarily resign the job.