Unformatted text preview: Equity Theory Equity
Equity theory suggests that individuals evaluate the ratio Equity of their inputs to outcomes for a given job in relation to other, referent employees. other, (1) perceived inequity creates tension in the (1) individual individual (2) the amount of tension is proportional to the magnitude of the perceived inequity magnitude (3) the tension created in the individual will motivate (3) him or her to reduce it him (4) the strength of the motivation to reduce inequity (4) is proportional to the perceived inequity is Equity theory suggests that overrewarded individuals Equity might be motivated to increase their performance and underrewarded individuals to decrease their performance in an effort to restore equity. Takeaways Takeaways
Management attention and consideration is a Management significant source of employee motivation and satisfaction; satisfaction; Based on psychology and organizational Based research, it is possible to take actions that increase employee motivation and satisfaction; increase...
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This note was uploaded on 11/12/2009 for the course AEM 1200 at Cornell.