Contemporary Views on Motivation: Equity Theory
• People are motivated to obtain and preserve equitable treatment for themselves.
• Equity: the distribution of rewards in direct proportion to the contribution of each employee to the organization.
• Workers compare their own input-to-outcome (reward) ratios to their perception of other's.
• Workers who perceive an inequity may
- Decrease their inputs
- Try to increase outcome (ask for a raise)
- Try to get the comparison other to increase inputs or receive decreased outcomes
- Leave the work situation (quit)
- Switch to a different comparison other
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