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Equity Theory in Motivation

Sep 6, 2025

Overview

This lecture covers process-based perspectives on motivation, focusing on equity theory, which explains how individuals assess fairness in the workplace and respond to perceived (in)equity.

Process-Based Perspectives on Motivation

  • Process-based theories examine how motivation occurs, not just what stimulates it.
  • These perspectives focus on how individuals select behaviors and assess satisfaction of their needs.

Equity Theory of Motivation

  • Equity theory states that people want to be treated fairly in the workplace.
  • Equity is defined as the belief of being treated fairly compared to others.
  • Inequity is the belief of being treated unfairly in relation to others.
  • Equity theory is a major tool for understanding workplace motivation via social comparison.

The Four-Step Equity Perception Process

  • Individuals assess how the organization treats them.
  • They perceive how a comparison other is treated (could be a coworker or group).
  • They compare their own situation to the comparison other's.
  • Based on this, they judge if they experience equity or inequity and decide how to respond.

Inputs, Outcomes, and the Equity Ratio

  • Inputs are personal contributions like education, experience, effort, and loyalty.
  • Outcomes are what one receives in return, such as pay, recognition, relationships, and intrinsic rewards.
  • Individuals compare their input/outcome ratio to that of the comparison other.

Responses to Perceived Inequity

  • People may change their own inputs (work harder/less).
  • They may seek to change their outcomes (request higher pay).
  • They may alter perceptions of their own inputs or outcomes.
  • They may change how they view the comparison other's situation.
  • They may select a new comparison other.
  • As a last resort, they may leave the situation.

Key Terms & Definitions

  • Process-based perspectives — Approaches focusing on how motivation occurs and is maintained.
  • Equity theory — Motivation theory explaining how fairness perceptions influence motivation.
  • Equity — Belief that one is being treated fairly compared to others.
  • Inequity — Belief of being treated unfairly compared to others.
  • Inputs — Individual’s contributions to an organization.
  • Outcomes — Rewards or returns received from the organization.
  • Comparison other — The person or group to whom one compares oneself.

Action Items / Next Steps

  • Review examples of input and outcome factors in your own organizational experiences.