What does it mean to be equitably treated according to equity theory and how do employees respond to inequity?

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What is equity theory and how do employees respond to inequity?

Equity Theory is based on the idea that individuals are motivated by justice. In simple terms, Equity Theory states that if an individual identifies inequity between himself and a peer, he automatically will adjust his working style to make the situation fair in his own eyes.

What does the equity theory explain?

Equity theory is a theory of motivation that suggests that employee motivation at work is driven largely by their sense of fairness. Employees create a mental ledger of the inputs and outcomes of their job and then use this ledger to compare the ratio of their inputs and outputs to others.

How does equity theory apply to the employees in the workplace?

The equity theory of motivation is the idea that what an individual receives for their work has a direct effect on their motivation. When applied to the workplace, it means an individual will generally aim to create a balance between what they give to the organization compared to what they get in return.

What is meant by the equity theory in regards to employee motivation?

The Equity Theory of Motivation deals with the way people compare the value of themselves to others in similar work situations based on their inputs and outputs. Inputs are what you bring to the situation, like your skills, time and education.