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Equity Theory

Equity Theory. (Adams, 1963; Landy, 1989; Beehr, 1996). Equity Theory. A version of discrepancy theory of job satisfaction focusing on the discrepancies between what one has on the job and what one thinks is fair - what one should have. Equity Theory. Social comparison takes place

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Equity Theory

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  1. Equity Theory (Adams, 1963; Landy, 1989; Beehr, 1996)

  2. Equity Theory A version of discrepancy theory of job satisfaction focusing on the discrepancies between what one has on the job and what one thinks is fair - what one should have

  3. Equity Theory • Social comparison takes place • Perceived discrepancies between ratios may produce tension or dissonance • Amount of discrepancy corresponds to the amount of tension the individual experiences • Amount of tension corresponds to the amount of energy an individual expends to alleviate the discrepancy

  4. Equity Theory • Inputs - factors considered by the individual that contribute to their work - knowledge, skills and abilities • Outcomes - factors considered by the individual to have personal value - money, promotion, praise

  5. Equity Theory • I/O < I/O (Underpay) • 5/10 10/10 • Inequity • I/O = I/O (Equity) • 10/10 = 10/10 • I/O > I/O (Overpay • 5/10 10/10 • Inequity Equity

  6. Equity Theory • Strengths - predicts behavior in underpayment conditions • Weakness - does not predict overpayment conditions - does not account for individual differences impact upon equity

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