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Equity theory is based in the idea that individual 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.
important:self inside ,self outside.
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 and benefits for each person.
Meaning:
Equity theory focuses on determining whether the distribution of resources is fair to both relational partners. It 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.
Sentence form:
The equity theory was frequently used by analysts in comparing their own experiences to others as the frame of reference was useful.
Equity theory (also known as Equity theory of Motivation) states that an individualās motivation level is correlated to his perception of equity, fairness and justice practiced by the management. Higher is individualās perception of fairness, greater is the motivation level and vice versa
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