Equity Theory

Definition

Equity theory is a motivational theory that suggests individuals are driven to maintain a sense of fairness and balance in their relationships and exchanges with others. It proposes that people are motivated to achieve a fair balance between their inputs (efforts, skills, experience) and their outcomes (rewards, recognition) compared to the inputs and outcomes of relevant others.

5 Must Know Facts For Your Next Test

1. Equity theory suggests that individuals are motivated to maintain a balance between their inputs (e.g., effort, time, skills) and their outcomes (e.g., pay, recognition, opportunities) compared to relevant others.
2. When individuals perceive an imbalance or inequity, they experience distress and are motivated to restore a sense of fairness, either by adjusting their own inputs or seeking to change their outcomes.
3. Equity theory is particularly relevant in the context of prosocial behavior, as individuals may be more likely to engage in helping behaviors when they perceive an equitable exchange with the recipient.
4. Perceptions of inequity can lead to a variety of behavioral responses, such as reducing one's own inputs, increasing one's own outcomes, or attempting to change the inputs or outcomes of the comparison other.
5. Equity theory emphasizes the importance of social comparison processes in shaping individual motivation and behavior, as people constantly evaluate their own situation relative to that of others.

Review Questions

• Explain how equity theory relates to prosocial behavior.
  • According to equity theory, individuals are motivated to maintain a sense of fairness and balance in their relationships and exchanges with others. In the context of prosocial behavior, such as helping or volunteering, equity theory suggests that people are more likely to engage in these behaviors when they perceive an equitable exchange between their inputs (e.g., time, effort) and the outcomes they receive (e.g., recognition, satisfaction) compared to the inputs and outcomes of the recipient or other relevant individuals. If individuals perceive an imbalance or inequity, they may be less inclined to engage in prosocial actions, as they seek to restore a sense of fairness.
• Describe how social comparison processes influence individual motivation and behavior according to equity theory.
  • Equity theory emphasizes the importance of social comparison processes in shaping individual motivation and behavior. People constantly evaluate their own inputs (e.g., effort, skills) and outcomes (e.g., rewards, recognition) in relation to those of relevant others, such as coworkers, peers, or community members. If individuals perceive an imbalance or inequity between their own inputs/outcomes and those of others, they experience distress and are motivated to restore a sense of fairness. This can lead to a variety of behavioral responses, such as adjusting their own inputs, seeking to change their outcomes, or attempting to alter the inputs or outcomes of the comparison other. The desire to maintain equity and balance in these social comparisons is a key driver of individual motivation and behavior according to equity theory.
• Analyze how perceptions of distributive and procedural justice relate to equity theory and prosocial behavior.
  • Equity theory is closely linked to the concepts of distributive and procedural justice. Distributive justice refers to the perceived fairness of how rewards and resources are allocated or distributed among individuals or groups, while procedural justice concerns the perceived fairness of the processes and procedures used to determine these outcomes. In the context of equity theory and prosocial behavior, individuals are more likely to engage in helping or volunteering when they perceive an equitable distribution of rewards and resources (distributive justice) and when they believe the processes used to allocate these outcomes are fair and transparent (procedural justice). Perceptions of inequity or unfairness in either the distribution of outcomes or the procedures used to determine them can lead to decreased motivation for prosocial actions, as individuals seek to restore a sense of balance and fairness in their social exchanges.

Related terms

Social Comparison: The process of evaluating one's own circumstances, achievements, or abilities in relation to those of others.

Distributive Justice: The perceived fairness of how rewards and resources are allocated or distributed among individuals or groups.

Procedural Justice: The perceived fairness of the processes and procedures used to determine outcomes or allocate resources.