Equity Theory

According to Carrell and Dittrich (1978), “workers who sense injustice will endeavor to eliminate it, either by quitting the business, directly manipulating inputs and/or results, or distorting inputs and/or outcomes in their own thoughts (“cognitive distortion”).

Equity theory is a theory of motivation at work that is motivated by a feeling of fairness and is a component of organizational justice in a business perspective. Based on the contributions they make to the company and the results they obtain in return, employees develop a balanced mentality. They compare their inputs and products to those of others using this mentality. Effort, loyalty, performance, skills, education, faith in superiors, and experience are examples of employee inputs, and the results often relate to pay. Employees may get demotivated and dissatisfied with their jobs if they believe that the input-to-output ratio is unbalanced. 

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