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Equity theory
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===Implications for managers=== Equity theory has several implications for business managers: *People measure the totals of their inputs and outcomes. This means a working mother may accept lower monetary compensation in return for more flexible working hours.{{Citation needed|date=April 2020}} *Different employees ascribe personal values to inputs and outcomes. Thus, two employees of equal experience and qualification performing the same work for the same pay may have [[Double Demotivation|quite different perceptions of the fairness of the deal]].{{Citation needed|date=April 2020}} *Employees are able to adjust for purchasing power and local market conditions. Thus a teacher from Alberta may accept lower compensation than his colleague in Toronto if his cost of living is different, while a teacher in a remote African village may accept a totally different pay structure.{{Citation needed|date=April 2020}} *Although it may be acceptable for more senior staff to receive higher compensation, there are limits to the balance of the scales of equity and employees can find excessive executive pay demotivating.{{Citation needed|date=April 2020}} *Staff perceptions of inputs and outcomes of themselves and others may be incorrect, and perceptions need to be managed effectively.{{Citation needed|date=April 2020}} *An employee who believes he is overcompensated may increase his effort. However he may also adjust the values that he ascribes to his own personal inputs. It may be that he or she internalizes a sense of superiority and actually decrease his efforts.{{Citation needed|date=April 2020}}
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