Explain the basic premise of equity theory as it applies to the workplace. What are two steps that a person experiencing distress within this model might take to reduce their discomfort? Give an example of how this might play out in a real workplace situation

Question

What will be an ideal response?

Answer 1

According to equity theory, presented in Chapter 9, people want rewards to be
equitable. In other words, the ratio between inputs and outcomes should be the same
for the self as it is for others. Relative to co-workers, then, the more effort you exert,
and the more you contribute, the more money you should earn. If you feel overpaid or
underpaid, however, you will experience distress and try to relieve it by (1) restoring
actual equity, say, by working less or getting a raise, or (2) convincing yourself that
equity already exists (Cropanzano, 1993).