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MENTAL MODEL · M2004

Equity Theory

Equity Theory
BusinessHigh supportManagement
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

Adams proposed that employees judge fairness by comparing their own input-output ratio with that of a reference person, and a sense of unfairness directly affects work motivation.

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In management studies and in social policy, equity theory focuses on determining whether the distribution of resources is fair. Equity is measured by comparing the ratio of contributions (or costs) and benefits (or rewards) for each person within an organization or social context. Considered one of …

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Equity Theory: People compare their own 'input/output' ratio with that of a reference person. If they perceive inequity, they experience tension and adjust their behavior or cognition to restore a sense of fairness.

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/Equity_theoryZH · Explicit
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