Equity theory
1. INTRODUCTION
Equity is defined by a complex mathematical formula, but in practice it is described as relationship‘s fairness between people in one society.
Equity theory is social justice theory, designed by Adams in 1963. It claims that individuals review the inputs and outcomes of themselves and others, and in situations of inequity, experience greater cognitive dissonance than individuals in equitable situations. This kind of equity is perceived as social justice in society (or company, or any other environment that involves individuals).
Equity theory draws from exchange, dissonance, and social comparison theories in making predictions about how individuals manage their relationships with others. Equity theory postulates that persons in social exchange relationships compare with each other the ratios of their inputs into the exchange to their outcomes from the exchange. Inequity exists when perceived inputs and/or outcomes in an exchange relationship are psychologically inconsistent with the perceived inputs and/or outcomes of the referent
This theory is based upon the assumption that individuals are equally sensitive to equity, that outcome/input ratios are equal to that of the comparison other. This premise has been named the "norm of equity".
However, researchers confirmed that there are also other norms that appear to contradict the norm of equity: the contribution (equity) rule, (others are rewarded outcomes in proportion to their inputs), the needs rule (others are rewarded based upon their legitimate needs), or the equality rule (others receive equal outcomes irrespective of their individual inputs).
Equity theory is theory directed toward social justice. However, social justice is a term that is defined differently, due to societies place and time. Societies have had very different visions as to what social justice is.
2. THE COMPONENTS
Equity theory is a straightforward theory. It consists of four propositions that can
Equity is defined by a complex mathematical formula, but in practice it is described as relationship‘s fairness between people in one society.
Equity theory is social justice theory, designed by Adams in 1963. It claims that individuals review the inputs and outcomes of themselves and others, and in situations of inequity, experience greater cognitive dissonance than individuals in equitable situations. This kind of equity is perceived as social justice in society (or company, or any other environment that involves individuals).
Equity theory draws from exchange, dissonance, and social comparison theories in making predictions about how individuals manage their relationships with others. Equity theory postulates that persons in social exchange relationships compare with each other the ratios of their inputs into the exchange to their outcomes from the exchange. Inequity exists when perceived inputs and/or outcomes in an exchange relationship are psychologically inconsistent with the perceived inputs and/or outcomes of the referent
This theory is based upon the assumption that individuals are equally sensitive to equity, that outcome/input ratios are equal to that of the comparison other. This premise has been named the "norm of equity".
However, researchers confirmed that there are also other norms that appear to contradict the norm of equity: the contribution (equity) rule, (others are rewarded outcomes in proportion to their inputs), the needs rule (others are rewarded based upon their legitimate needs), or the equality rule (others receive equal outcomes irrespective of their individual inputs).
Equity theory is theory directed toward social justice. However, social justice is a term that is defined differently, due to societies place and time. Societies have had very different visions as to what social justice is.
2. THE COMPONENTS
Equity theory is a straightforward theory. It consists of four propositions that can