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Equity theory focuses on determining whether the distribution of resources is fair. Equity is measured by comparing the ratio of contributions (or costs) and benefits (or rewards) for each person.[1] Considered one of the justice theories, equity theory was first developed in the 1960s by J. Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others.[2] According to Equity Theory, in order to maximize individuals' rewards, we tend to create systems where resources can be fairly divided amongst members of a group. Inequalities in relationships will cause those within it to be unhappy to a degree proportional to the amount of inequality.[3] The belief is that people value fair treatment which causes them to be motivated to keep the fairness maintained within the relationships of their co-workers and the organization. The structure of equity in the workplace is based on the ratio of inputs to outcomes. Inputs are the contributions made by the employee for the organization.
^Guerrero, Laura K.; Peter A. Andersen & Walid A. Afifi. (2014). Close Encounters: Communication in Relationships, 4th Edition. Los Angeles, CA: Sage Publications Inc. p. 263. ISBN 978-1-4522-1710-9.
^Adams (1963).
^Adams, J.S. (1965). "Inequality in social exchange". Advanced Experimental Psychology. 62: 335–343.
Equitytheory focuses on determining whether the distribution of resources is fair. Equity is measured by comparing the ratio of contributions (or costs)...
Intergenerational equity, equality and fairness in relationships between people in different generations (including those yet to be born) Equitytheory, on the...
comparison with the ratio of others, pay equity is present in the organisation. From the perspective of equitytheory, vertical pay dispersion is a matter...
The Trapped EquityTheory explains the application of cash flows that are freed up and in excess of the company's requirements, arising from the over...
Finally, lower levels of neuroticism lead to higher job satisfaction. EquityTheory shows how a person views fairness in regard to social relationships...
the ERG theory. The achievement orientation has garnered more research interest as compared to the need for affiliation or power. EquityTheory is derived...
Self-expansion approach Social exchange theoryEquitytheory Interpersonal relationship Prisoner's dilemma Social exchange theory Van Lange, P.A., & Balliet, D...
acts. The idea of organizational justice stems from equitytheory, which posits that judgments of equity and inequity are derived from comparisons between...
issued; and when it is no longer sensible to issue any more debt, equity is issued. This theory maintains that businesses adhere to a hierarchy of financing...
philosophy. Various academic theories of friendship have been proposed, including social exchange theory, equitytheory, relational dialectics, and attachment...
main forms. Distributive justice : Depending on the equitytheory, managers should achieving equity while distributing the outcomes of the organization...
fairness, justice, and equity in the formation of public policy.” In 1968, H. George Frederickson articulated "a theory of social equity" and put it forward...
Disconfirmation Theory is the most widely accepted theoretical framework for explaining customer satisfaction. However, other frameworks, such as EquityTheory, Attribution...
Private equity (PE) is capital stock in a private company that does not offer stock to the general public. In the field of finance, private equity is offered...
The equity premium puzzle refers to the inability of an important class of economic models to explain the average equity risk premium (ERP) provided by...
(2017). "Knowledge Equity is Social Justice: Engaging a Practice Theory Perspective of Knowledge for Rural Transformation: Knowledge Equity is Social Justice"...
A court of equity, also known as an equity court or chancery court, is a court authorized to apply principles of equity rather than principles of law to...
time, they forego a partner. Time management can also be related to equitytheory, which stresses the importance of fairness in relationships. Published...
Equity sharing is another name for shared ownership or co-ownership. It takes one property, more than one owner, and blends them to maximize profit and...
capital elsewhere. Finance theory (and practice) offers various models for estimating a particular firm's cost of equity: The capital asset pricing model...
employee-owned (or socially) owned firms, and citizen ownership of equity., "Theory and Practice in Socialist Economics". Retrieved 23 August 2023. Steele...
income. Recent data has shown the sweat equity in the private business sector equals 1.2 times the U.S. GDP. Theories have been put out to the public to say...
(November 1996). "Situational determinants of software piracy: An equitytheory perspective". Journal of Bus Ethics. 15 (11): 1189–1198. doi:10.1007/BF00412817...
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