Equity Theory

Definition

The Equity Theory suggests that people are motivated to maintain a sense of fairness and balance in their relationships. It proposes that individuals compare the ratio of inputs (efforts, contributions) to outcomes (rewards, benefits) with those of others, and seek equity or equality in these ratios.

Related terms

Social Exchange Theory:

This theory suggests that people engage in social relationships based on a cost-benefit analysis where they seek to maximize rewards and minimize costs.

Comparison Level: This is an individual's personal assessment of what they expect from a relationship in terms of rewards and costs.

Distributive Justice: Refers to the perception of fairness regarding the distribution of resources or rewards within a group or society.