Equity Theory by Ishani Chatterjee Shukla

Equity Theory by Ishani Chatterjee Shukla
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The article explores the equity theory and the manner in which people strive to achieve balance in intimate, personal and organizational relationships. The equity theory also popularly referred to as "the equity theory of motivation" is based on the premise that perception of fair treatment is likely to encourage individuals to maintain equality in their interactions with the organization and others at large. According to the article, this theory was developed by John Stacey Adams in 1963 and it studies human perception in relation to the balance between the ratio of an individual`s inputs and outputs compared to those of colleagues. Basically, equity theory rests on equity, outcomes and inputs; elements whose interaction determines the level of equilibrium perceived by an individual. Nonetheless, the theory is largely relative and heav...