Equity Theory

Equity theory is a social psychology concept that suggests that individuals are motivated by fairness and equity in social interactions. Equity theory posits that people compare the outcomes (such as rewards or benefits) they receive from their job or relationship to the inputs (such as effort, time, and resources) they contribute. If the ratio of outcomes to inputs is perceived as equitable, individuals feel satisfied and motivated. However, if the ratio is perceived as inequitable, individuals may experience feelings of injustice and may be motivated to restore fairness.

Equity theory was first proposed by psychologist J. Stacy Adams in the 1960s. According to equity theory, individuals make social comparisons to determine whether their outcomes are proportional to their inputs, and they may adjust their behavior to restore equity. For example, an employee who feels that they are putting in more effort than their coworkers but receiving fewer rewards may feel resentful and may be motivated to seek a raise or promotion to restore equity.

Equity theory has been applied to a wide range of social situations, including job satisfaction, organizational behavior, and interpersonal relationships. The theory suggests that individuals have a natural desire for fairness and equality in social interactions and will strive to maintain equitable relationships.

There are some criticisms of equity theory, including that it may not account for individual differences in values and preferences or cultural variations in social norms and expectations. However, overall, equity theory remains a widely studied and influential concept in social psychology and organizational behavior, highlighting the importance of fairness and equity in motivating and satisfying individuals in social interactions.