6. Equity Theory

Question 1

what are the stages of equity theory?

Answer 1

1. profit
2. distribution
3. dissatisfaction
4. realignment

Question 2

explain equity theory

Answer 2

Walster et al:
the level of profit (rewards – costs) must be equal or perceived to be equal.
There is strong correlation between inequity and dissatisfaction.
The solution can be behavioural (change in behaviour) or cognitive (change in perceived equity).

Question 3

evaluation (5)

Answer 3

• Utne: self-report scale found that equity associated with happiness.
• Issue above of social desirability bias undermining evidence.
• Aumer-Ryan: individualist cultures believe in equity, collectivist better for over benefiting.
• Huseman: benevolents, able to deal with putting in more. Entitleds, believe they should benefit more.
• Clark and Mills: inappropriate to see relationships economically.