Describe equity theory. What are the three general possibilities that can result from the comparison of the ratio of outcomes and inputs to the ratio of some comparison other? Describe a situation when you experienced a sense of inequity, and relate your response to that situation.

What will be an ideal response?


Student answers will vary but should demonstrate understanding of equity theory and the three general possibilities that can result from comparison. A sample answer follows.

Equity theory acknowledges that motivation does not just depend on your own beliefs and circumstances but also on what happens to other people. More specifically, equity theory suggests that employees create a "mental ledger" of the outcomes (or rewards) they get from their job duties. Equity theory argues that you compare your ratio of outcomes and inputs to the ratio of some comparison other-some person who seems to provide an intuitive frame of reference for judging equity.

There are three general possibilities that can result from this "cognitive calculus." The first possibility is that the ratio of outcomes to inputs is balanced between you and your comparison other. In this case, you feel a sense of equity, and you are likely to maintain the intensity and persistence of your effort. The second possibility is that your ratio of outcomes to inputs is less than your comparison other's ratio. According to equity theory, any imbalance in ratios triggers equity distress-an internal tension that can only be alleviated by restoring balance to the ratios. The third possibility is that your ratio of outcomes to inputs is greater than your comparison other's ratio. Equity distress again gets experienced, and the tension likely creates negative emotions such as guilt or anxiety.

Once, I worked at a grocery store. I did extra jobs, such as sweeping and straightening shelves. My friend, who also worked at the store, did nothing extra and even stole snacks from the back room. He always got to work more hours than I did. I quit the job because I felt it was unfair.

Business

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