1.b. Equity Theory Flashcards
Equity Theory
The working world is evaluated through the fairness & equality of input:output ratios
We evaluate our working world through inputs and outcomes
History
Arose from Festinger’s dissonance theory
- States that we will try to return to balance after having dissonant cognitions (incompatible thoughts)
- e.g. through rationalization or action
Input
what effort/work we put in e.g. energy, skills, dedication, ability
Output
what we get out of it e.g. money, job security, attention, reputation, enjoyment
Step 1
input:output ratios are created
Step 2
We compare these to other people e.g. peers or co-workers
Can also be compared to other organizations, previous jobs etc. (comparison group can change)
Step 3
This can lead to dissatisfaction if we feel someone else is getting a better deal e.g. less effort, same/more benefits
Cognitive dissonance like described by Festinger
Equation
your input/output = others’ input/output
Evidence
Study
Underpaid by the hour led to less effort & lower quality
Underpaid per piece led to more effort & higher quality
Predicted that overpaid by the hour would lead to more effort & overpaid per piece would lead to less effort
This was not seen
Being overpaid does not lead to any kind of tension
Criticism
Do people really conduct complicated cost-benefit calculations
Research is definitional (too broad)
What is are outcomes, inputs & comparisons? Can they change around? Do outputs eventually stop being effective?
Ignores individual differences
Not really used today
Motivation link
Higher motivation when you feel the ratios are fair or you’re being fairly compensated
Justice & Equity Theory
Helps explain how justice perceptions are formed
Fairness is perceived by comparing input:output ratios
Popular theory
Criticism
Other justice dimensions are ignored
Equity does not mean fairness, everyone can be treated equally badly
Input & output can be subjective and therefore, so can comparisons
Individual differences are ignored
