Equity Theory Flashcards
1
Q
What is equity theory?
A
- An economic model based on fairness for each partner
- Emphasises need for each partner to experience a balance between their cost/effort and their benefit/reward
- Inequality = dissatisfaction
- Over-benefitting → guilt, comfort shame
- Under-benefitting → anger, hostility and humiliation
2
Q
What is equity?
A
Giving everyone what they need to be successful
3
Q
What is equality?
A
Treating everyone the same. Equality aims to promote fairness, but it can only work if everyone starts from the same place (unlikely).
4
Q
What is profit?
A
Rewards are maximised and costs minimised
5
Q
What is distribution?
A
Trade-offs and compensations negotiated
6
Q
What is dissatisfaction?
A
Inequality = Dissatisfaction
7
Q
What is realignment?
A
Attempts made to realign equity
