Editing Equity theory (section)

==Background==
Equity theory stems from Social Exchange Theory. <ref>{{Cite book|last1=Littlejohn|first1=S.W.|title=Theories of Human Communication|last2=Foss|first2=K.A.|last3=Oetzel|first3=J.G.|publisher=Waveland Press|year=2021|pages=239–240}}</ref> It proposes that individuals who perceive themselves as either under-rewarded or over-rewarded will experience distress, and that this distress leads to efforts to restore equity within the [[Interpersonal relationship|relationship]].<ref>{{Cite web|title=Process and Motivation {{!}} Boundless Management|url=https://courses.lumenlearning.com/boundless-management/chapter/process-and-motivation/|access-date=2021-03-19|website=courses.lumenlearning.com}}</ref>  Equity is measured by comparing the [[ratio]]s of contributions and benefits of each person within the relationship.{{Citation needed|date=April 2020}}  Partners do not have to receive equal benefits (such as receiving the same amount of love, care, and financial security) or make equal contributions (such as investing the same amount of effort, time, and financial resources),{{Citation needed|date=April 2020}} as long as the ratio between these benefits and contributions is similar. Much like other prevalent theories of motivation, such as [[Maslow’s hierarchy of needs]], equity theory acknowledges that subtle and variable individual factors affect each person’s assessment and perception of their relationship with their relational partners.{{sfnp|Guerrero|Andersen|Afifi|2010}} According to Adams in 1965,{{sfnp|Adams|1965}} anger is induced by underpayment inequity and guilt is induced with overpayment equity.{{sfnp|Spector|2008}} Payment whether hourly wage or salary, is the main concern and therefore the cause of equity or inequity in most cases.{{Citation needed|date=April 2020}}

In any position, an employee wants to feel that their contributions and work performance are being rewarded with their pay.<ref>{{Cite web|title=Reading: Equity Theory {{!}} Introduction to Business|url=https://courses.lumenlearning.com/wmintrobusiness/chapter/reading-process-based-theories/#:~:text=In%20any%20position,%20employees%20want,being%20rewarded%20with%20fair%20pay.&text=Subtle%20or%20intangible%20compensation%20also,role%20in%20feelings%20about%20equity.|access-date=2021-03-19|website=courses.lumenlearning.com}}</ref> If an employee feels underpaid then it will result in the employee feeling hostile towards the organization and perhaps their co-workers, which may result in the employee not performing well at work anymore.<ref>{{Cite web |last=Kurt |first=Dr Serhat |date=2023-11-07 |title=Equity Theory: Definition, Origins, Components and Examples |url=https://educationlibrary.org/equity-theory-definition-origins-components-and-examples/ |access-date=2023-11-07 |website=Education Library |language=en-US}}</ref> It is the subtle variables that also play an important role in the feeling of equity. Just the idea of recognition for the job performance and the mere act of thanking the employee will cause a feeling of satisfaction and therefore help the employee feel worthwhile and have better outcomes.{{Citation needed|date=April 2020}} Employees can also feel positive inequity which may cause the worker to feel guilty and attempt to compensate for those feelings of guilt.<ref>{{Cite journal|last1=Brockner|first1=J|last2=Greenberg|first2=J.|last3=Brockner|first3=A.|last4=Bortz|first4=J.|last5=Davy|first5=J.|last6=Carter|first6=C.|date=1986|title=Layoffs, equity theory, and work performance: Further evidence of the impact of survivor guilt|journal=The Academy of Management Journal|volume=29|pages=373–384}}</ref>

===Definition of equity===
Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any perceived inequities.{{Citation needed|date=April 2020}}
Referent comparisons:

===Inputs and outcomes===

====Inputs====
Inputs are defined as each participant’s contributions to the relational exchange and are viewed as entitling them to rewards or costs.{{Citation needed|date=April 2020}} The inputs that a participant contributes to a relationship can be either assets – entitling them to rewards – or liabilities - entitling them to costs.{{Citation needed|date=April 2020}} The entitlement to rewards or costs ascribed to each input vary depending on the relational setting.{{Citation needed|date=April 2020}} In industrial settings, assets such as capital and manual labor are seen as "relevant inputs" – inputs that legitimately entitle the contributor to rewards. In social settings, assets such as physical beauty and kindness are generally seen as assets entitling the possessor to social rewards.{{Citation needed|date=April 2020}} Individual traits such as boorishness and cruelty are seen as liabilities entitling the possessor to costs.{{sfnp|Walster|Traupmann|Walster|1978}} Inputs typically include any of the following:

* [[Time]]
*Education 
*Εxperience
*Effort
* [[Loyalty]]
*Hard Work
*Commitment
*Ability
*Adaptability
* [[Flexibility]]
* [[Toleration|Tolerance]]
*Determination
* [[Enthusiasm]]
*Personal [[sacrifice]]
*Trust in supervisors
*Support from co-workers and colleagues
*Skill

====Outcomes====
Outputs are defined as the positive and negative consequences that an individual perceives a participant has incurred as a consequence of their relationship with another.  When the ratio of inputs to outputs is close, then the employee should have much satisfaction with their job.{{Citation needed|date=April 2020}} Outputs can be both tangible and intangible.<ref name="Love and attraction">{{cite book|editor-last=Cook|editor-first=Mark |title=Love and attraction: an international conference |year=1979 |publisher=Pergamon Press |location=Oxford [u. a.] |isbn=008022234X |pages=309–323 |url=http://www.elainehatfield.com/49.pdf |edition=1 |editor2=Wilson, Glenn|access-date=3 June 2012|archive-url=https://web.archive.org/web/20150923234812/http://www.elainehatfield.com/49.pdf|archive-date=23 September 2015|url-status=dead}}</ref>  Typical outputs include any of the following:

* [[Job security]]
* [[Salary]]
* [[Employee benefit]]
*Expenses
*Recognition
* [[Reputation]]
* [[Moral responsibility|Responsibility]]
*Sense of achievement
*Praise
*Thanks
*Stimuli

===Propositions===
Equity theory consists of four propositions:

* self-inside: Individuals seek to maximize their outcomes (where outcomes are defined as rewards minus costs).{{Citation needed|date=April 2020}}
* self-outside: Groups can maximize collective rewards by developing accepted systems for equitably apportioning rewards and costs among members. Systems of equity will evolve within groups, and members will attempt to induce other members to accept and adhere to these systems. The only way groups can induce members to equitably behave is by making it more profitable to behave equitably than inequitably. Thus, groups will generally reward members who treat others equitably and generally punish (increase the cost for) members who treat others inequitably.{{Citation needed|date=April 2020}}
* others-inside: When individuals find themselves participating in inequitable relationships, they become distressed. The more inequitable the relationship, the more distress individuals feel. According to equity theory, both the person who gets "too much" and the person who gets "too little" feel distressed.  The person who gets too much may feel guilt or shame.  The person who gets too little may feel angry or humiliated.{{Citation needed|date=April 2020}}
* other-outside: Individuals who perceive that they are in an inequitable relationship attempt to eliminate their distress by restoring equity.  The greater the inequity, the more distress people feel and the more they try to restore equity.{{sfnp|Walster|Traupmann|Walster|1978}}