Equity Theory

Equity theory explains how individuals are motivated by fairness, comparing their inputs and outputs to others. Reactions to perceived inequity include changing perceptions, adjusting inputs or outputs, and seeking remedies. The theory emphasizes the importance of balanced input-output ratios for perceived fairness.

What motivates individuals according to equity theory?

• Financial incentives

• Peer pressure

• Sense of fairness

• Job security

How do individuals react when they perceive inequity by distorting perceptions?

• They seek legal action

• They change their job

• They work harder

• They view the situation differently

What might individuals do to increase their outputs when they perceive inequity?

• Change their job role

• Ignore the situation

• Negotiate for better compensation

• Reduce their work hours

What is a possible reaction to perceived inequity involving changing references?

• Comparing with different people

• Working overtime

• Seeking a promotion

• Filing a complaint

What formal remedy might individuals seek when they perceive inequity?

• Ignoring the issue

• Taking a vacation

• Seeking legal action

• Requesting a transfer