Equity Theory

What is Equity Theory?

Equity theory suggests that people strive for fairness in their relationships. They want to feel that they are receiving what they deserve from others. When people feel that they are not being treated fairly, they may become dissatisfied and may even take action to correct the situation. Equity theory is based on the idea that people compare their inputs (the work they do, the money they contribute, the effort they put forth) to their outcomes (the rewards they receive, such as salary, benefits, and recognition). If they feel they are not being treated fairly, they may become dissatisfied and take action to correct the situation.

How does Equity Theory work?

Equity theory is based on the idea that people strive to maintain a balance in their relationships. They want to feel that they are getting what they deserve from the people with whom they interact. Equity theory states that people will make comparisons between what they contribute to a relationship and what they receive in return. If they feel they are not getting what they deserve, they will take steps to correct the imbalance.

This theory can be used to explain a wide variety of behaviors, including employee motivation, job satisfaction, and organizational citizenship behavior. Employees who feel they are not being treated fairly may become disgruntled and less motivated. They may also be less likely to go above and beyond their job duties. Organizations that use equity theory to understand and address employee concerns can improve employee satisfaction and motivation.

What are the key elements of Equity Theory?

Equity theory is a social psychology theory that attempts to explain how people perceive the fairness of their relationships. It is based on the idea that people strive for equity in their relationships, meaning that they want to feel like they are getting what they deserve from the relationship. The key elements of equity theory are input, outcome, and comparison levels. Input refers to the amount of effort that a person puts into a relationship. Outcome refers to the rewards that a person receives from a relationship. Comparison level refers to the person’s ideal level of input and outcome in a relationship. Equity theory predicts that people will be happiest when their input and outcome are equal to their comparison level. If a person’s input is greater than their comparison level, they will feel overworked and underappreciated. If a person’s outcome is greater than their comparison level, they will feel spoiled and unappreciated.

Who use Equity Theory?

Equity Theory is used to explain how people perceive the fairness of their relationships with others. In particular, it focuses on how people compare the inputs and outcomes of their relationships to determine whether they are fair. Equity Theory is often used in the context of work relationships, where people may compare their contributions (e.g. time, effort, skills) to the outcomes they receive (e.g. salary, benefits, recognition). If people feel that they are not being treated fairly, they may be less motivated to contribute or may even leave the relationship.

Why is Equity Theory used?

Equity theory is used because it is thought to be a motivator. It is based on the idea that people want to be treated fairly in their relationships. When people feel that they are not being treated fairly, they may become disgruntled and less motivated. Equity theory is used to try to correct these feelings by ensuring that people are treated equitably.