Equity Theory
- Considers workerís perceptions of the fairness of work outcomes in proportion to their inputs.
- Adams notes it is the relative rather than the absolute level of outcomes a person receives.
- The Outcome/input ratio is compared by worker with another person called a referent.
- The referent is perceived as similar to the worker.
- Equity exists when a person perceives their outcome/input ratio to be equal to the referentís ratio.
- If the referent receives more outcomes, they should also give more inputs to achieve equity.