Explain how employees assess, and if necessary, restore equity.

Question

What will be an ideal response?

Answer 1

Equity theory proposes that when people assess how fairly they are treated, they consider two key factors: outcomes and inputs. People compare their own outcomes and inputs to those of a comparison person. If the ratios are equivalent, people believe the relationship is equitable, or fair. Equity causes people to be satisfied with their treatment. But the person who believes his or her ratio is lower than another's will feel inequitably treated. Inequity causes dissatisfaction and leads to an attempt to restore balance to the relationship. People who feel inequitably treated and dissatisfied are motivated to do something to restore equity. They have a number of options to change the ratios, or they may reevaluate the situation and decide it is equitable after all. People who feel inequitably treated can reduce their inputs by giving less effort, performing at lower levels, or quitting, or they can attempt to increase their outcomes. On the positive side, employees can also put forth extra effort to keep a situation equitable for the group. When employees see their colleagues working hard to meet an important deadline, they may be inclined to work harder themselves. Other ways of restoring equity focus on changing the other person's ratio. A person can decrease others' outcomes. An employee may sabotage work to create problems for his or her company or boss. A person can change his or her perceptions of inputs or outcomes. It is also possible to increase others' inputs, particularly by changing perceptions. Thus a person can restore equity in a number of ways by behaviorally or perceptually changing inputs and outcomes.