According to the equity theory of motivation we :
create tension within us when we perceive equity and it drives us to action that will reduce perceived equity
compare our inputs and outputs to a manager’s inputs and outputs.
perceive fairness if we believe that the input-to-output ratio we are bringing into the situation is similar to the input/output ratio of a comparison person or a referent
The Correct Answer and Explanation is :
The correct answer is that according to Equity Theory of Motivation, we perceive inequity when there is a discrepancy between our input-to-output ratio and the input-to-output ratio of a referent (e.g., a colleague, manager, or peer). This perceived inequity creates a sense of tension or discomfort, which motivates individuals to take actions to restore equity. This theory, developed by John Stacey Adams in 1963, focuses on the role of fairness in motivation in the workplace and other social settings.
Explanation:
Equity theory operates on the idea that individuals are motivated by a desire for fairness in the exchange of inputs and outputs. Inputs are what a person brings to a situation, such as effort, experience, time, skills, or education. Outputs are the rewards a person receives in return, such as salary, recognition, or promotions. According to the theory, individuals compare their own input/output ratio to that of others (the referent), typically someone in a similar role, such as a peer or a manager.
If a person perceives that their input/output ratio is equally balanced to the referent’s ratio, they feel a sense of fairness and are motivated to maintain or continue their level of effort. However, if a person perceives an imbalance—for example, if they believe their inputs are high but their outputs are low compared to others—they may feel a sense of inequity.
This perceived inequity leads to tension, which acts as a motivator for change. To restore balance, individuals might:
- Reduce their inputs by working less or disengaging.
- Increase their outputs by seeking higher rewards or compensation.
- Change their referent by comparing themselves to others in different roles or organizations.
- Distort perceptions of their inputs or outputs, justifying the discrepancy in their mind.
Thus, equity theory suggests that fairness and the perception of fairness significantly impact motivation, behavior, and performance in organizational settings.