65-113). The only way groups can induce members to equitably behave is by making it more profitable to behave equitably than inequitably. Burr Ridge, IL: McGraw-Hill/Irwin. 9, pp. For example, if you feel a friend has been overly generous in doing favors for you, you may buy them a present to reduce your feelings of imbalance and to make the friendship feel more “even.”, Get the word of the day delivered to your inbox, © 1998-, AlleyDog.com. Or that you work hard to get insufficient results from others? An individual’s perception of their output from a relationship. Individual traits such as boorishness and cruelty are seen as liabilities entitling the possessor to costs (Walster, Traupmann & Walster, 1978). Employees are able to adjust for purchasing power and local market conditions. Researchers have offered numerous magnifying and competing perspectives: The Equity Sensitivity Construct proposes that individuals have different preferences for equity and thus react differently to perceived equity and inequity. How to Build Trust in a Relationship Using CBT? The three primary assumptions applied to most business applications of equity theory can be summarized as follows: Equity theory has several implications for business managers: Criticism has been directed toward both the assumptions and practical application of equity theory. The psychologist John Stacey Adams, who considers himself behavioral (although for others it is cognitive), is the one who proposed the theory of equity (1965), influenced by the previous concepts. Thus, all else being equal, it would be acceptable for a more senior colleague to receive higher compensation, since the value of his experience (and input) is higher. The inputs that a participant contributes to a relationship can be either assets – entitling him/her to rewards – or liabilities – entitling him/her to costs. Biopsychology | In this article we will explain what this theory consists of, we will analyze its postulates or central ideas, we will mention some example and we will also explain its limitations. Adams, J. S. (1965). Cognitive | If one partner perceives a relationship as unfair, they are going to be dissatisfied with it regardless of whether they are over-benefitting or under-benefitting. Thus, in a way, we make a social comparison. 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. Privacy Policy - Terms of Service. Inputs are defined as each participant’s contributions to the relational exchange and are viewed as entitling him/her to rewards or costs. Why embracing pain, discomfort, or suffering, is a need for happiness? This theory stems from social and organizational psychology and can be applied in both fields. 2, pp. However he may also adjust the values that he ascribes to his own personal inputs. What does my partner give me? by Patty Mulder November 20, 2018 July 19, 2020 5 min read. However he may also adjust the values that he ascribes to his own personal inputs. This dissatisfaction would result in the employee feeling underappreciated and perhaps worthless. Employees determine what their equitable return should be after comparing their inputs and outcomes with those of their coworkers. It was first developed in 1963 by John Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs […] Let’s see the key points of the theory. Join us for less than 1$ a day and boost your skills! Inequity in social exchange. Inputs are the contributions made by the employee for the organization. According to Adams (1965), anger is induced by underpayment inequity and guilt is induced with overpayment equity (Spector 2008). According to the Equity Theory, a person who gets more benefits out of relationships than they put in will feel guilt and shame, and those who think they put a lot in but get very little back will be a… Underpayment inequity is said to exist for P whenever his or her own outcome-input ratio is less than the corresponding outcome-input ratio of O—that is, when, Overpayment inequity is said to exist for P whenever his or her own outcome-input ratio is greater than the corresponding outcome-input ratio of O—that is, when.