Equity theory

Definition

Equity theory is a concept in organizational psychology that suggests employee motivation is influenced by their perception of fairness in the workplace, especially in how rewards and burdens are distributed. It posits that individuals assess their job inputs and outcomes relative to those of others and then adjust their effort accordingly.

Related terms

Organizational Psychology: The study of individual and group behavior in professional settings and how psychological principles can be applied to solve workplace issues.

Job Satisfaction:

An emotional state reflecting an employee’s overall evaluation of his or her job experience and feelings towards their job situation.

Motivational Theories: Theories that explain what drives individuals to work towards certain goals or behaviors in personal, academic, or professional contexts