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Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratio of contributions (or costs) and benefits (or rewards) for each person.
The core of the equity theory is the principle of balance or equity. As per this motivation theory, an individuals motivation level is correlated to his perception of equity.
Equity Theory is a concept that people derive job satisfaction and motivation by comparing their efforts (inputs) and outcome (outputs) with those of the other people in the same or other firms.
Sentence Formation:
He did not believe in the equity theory and subscribed to the idea that people were happy when they did not have to do any work
Equity theory is based on the idea that individuals are motivated by fairness, and if they identify inequities in the input or output ratios of themselves and their referent group, they will seek to adjust their input to reach their perceived equity.
The core of the equity theory is the principal of balance or equity. As per this motivation theory , an individual motivation level is correlated to his perception of equity.
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