⚖️ Adams'' Equity Theory
Big Idea: People compare their inputs (effort, skills, time) and outputs (pay, recognition, promotion) to those of others. If the ratio feels unfair, they become demotivated.
- Inputs = what the employee gives: effort, experience, skills, qualifications, time
- Outputs = what the employee receives: salary, bonus, recognition, promotion, benefits
- If my input/output ratio = your input/output ratio — I feel EQUITY (fair)
- If I give more but get the same as you — I feel INEQUITY (unfair, demotivated)
- If I give less but get more than you — I may feel guilt (over-rewarded)
How employees respond to inequity
- Reduce effort (work less hard to match perceived unfairness)
- Demand more pay or recognition
- Change their comparison person (compare to someone else instead)
- Leave the organization (turnover increases)
- Rationalize the situation (convince themselves it is fair)
Equity theory explains why pay transparency and fair reward systems matter. If employees discover a colleague earns more for the same work, motivation drops sharply.
Free preview
This is the free notes preview
You're reading the free notes. Aimnova Pro unlocks the full study experience — and you can try it free for 7 days:
- FlashcardsLock in vocabulary and key terms with spaced repetition.
- Practice questionsAnswer exam-style questions and get instant AI marking.
- Mock exams & past-paper vaultSit full mocks and see exactly how examiners award marks.
- Personalised study planA daily plan built around your exam date and weak areas.
Start your 7-day free trial Full access to Aimnova Pro · cancel anytime