Motivation is a goal-oriented characteristic that helps a person achieve his objectives. It pushes an individual to work hard at achieving his or her goals. An executive must have the right leadership traits to influence motivation. However, there is no specific blueprint for motivation. As a leader, one should keep an open perspective on human nature. Knowing different needs of subordinates will certainly make the decision-making process easier. Both an employee as well as manager must possess leadership and motivational traits. An effective leader must have a thorough knowledge of motivational factors for others. He must understand the basic needs of employees, peers and his superiors. Leadership is used as a tool of motivating others. In the big company such as Air Asia, PETRONAS, Google and Microsoft have high motivated employee and also manage by persons who have both leadership and motivational traits. Due to those traits those companies become well-known companies in their respectively industries.
Motivation has been defined as: the psychological process that gives behavior purpose and direction (Kreitner, 1995); a predisposition to behave in a purposive manner to achieve specific, unmet needs (Buford, Bedeian, & Lindner, 1995); an internal drive to satisfy an unsatisfied need (Higgins, 1994); and the will to achieve (Bedeian, 1993). When talking about motivation equity theory is one of the most spoken theories in the motivation behavior. According to Cory (2006), the equity theory describes the relationship between how fairly an employee perceived he is treated and how hard work he is motivated to work.Peter Dunkey is an author who is specialize in economic first to propose the relationship between the equity theory and employee motivation. The basic idea behind the equity theory is that workers in attempts to balance what they put in into their jobs and what they will get from them. According to equity theory, the most highly motivated employee is the one who perceives his rewards are equal to his contributions. If he feels that he is working and being rewarded at about the same rate as his peers, then he will judge that he is being treated fairly. This doesn't mean that every manager should treat every employee identically, because every worker does not measure his contributions in the same way. For example, flexible working hours might motivate a working mother even more than a pay raise. Research on Equity Theory and employee motivation has shown that, in general, over-rewarded employees will produce more and of a higher quality than will under-rewarded, less motivated employees.
Adams' theory states that employees strive for equity between themselves and other workers. Equity is achieved when the ratio of employee outcomes over inputs is equal to other employee outcomes over inputs (Adams, 1965). If an employee at the centers feels that there is a lack of appreciation for work done, as being too low relative to another employee, an inequity may exist and the employee will be dis-motivated. Further, if all the employees at the centers feel that there is a lack of appreciation for work done, inequity may exist.
There should be balance of the outcomes/inputs relationship for one person in comparison with that for another person. If people feel that they are inequitably rewarded, they may be dissatisfied, reduce the quantity or quantity or quality of output, or leave the organization. If people perceive the rewards as equitable, they probably will continue at the same level of output. If people think that rewards are greater than what is considered equitable, they may work harder. It is also possible that some may discount the rewards. Criticism of the theory
Equity theory has its own criticisms. One criticism of both expectancy and equity theories is that they focus primarily on psychological processes involved in work motivation, providing little explicit theory and...