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Theories and Concepts

Equity Theory

Industrial-Organizational Psychology

Equity theory, in management studies and social policy, focuses on determining whether the distribution of resources is fair, measured by comparing the ratio of contributions and benefits for each person within an organization or social context. First developed in the 1960s by the workplace and behavioral psychologist John Stacey Adams, it holds that employees seek to maintain equity between the inputs they bring to a job and the outcomes they receive against the perceived inputs and outcomes of others, and that inequalities in a relationship cause unhappiness proportional to the amount of inequality. The theory can also be applied in a wider social context beyond the workplace. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/

Facts
Core Claim
Equity theory holds that people compare the ratio of their own inputs and outcomes in a relationship or job to the ratio others receive, and feel distress in proportion to how unequal that comparison is, whether they are underpaid or overpaid. 1
Origin Year
1965 1
Connections

Developed By

Sources
1. Wikipedia: Equity Theory
Wikimedia Foundation
  • Introduction
    equity theory was first developed in the 1960s by John Stacey Adams, a workplace and behavioral psychologist
  • Background section, distress from inequity
    individuals who perceive themselves as either under-rewarded or over-rewarded will experience distress, and that this distress leads to efforts to restore equity within the relationship
  • Background section, Adams 1965
    According to Adams in 1965, anger is induced by underpayment inequity and guilt is induced with overpayment equity.
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