According to the theory of motivation known as equity, employees' feeling of fairness plays a significant role in what motivates them to do their best at work. Employees keep track of the inputs and outputs of their work in a mental ledger, which they use to assess how their inputs and outputs compare to those of others.
John Stacey Adams, a behavioral and workplace psychologist who created his job incentive theory in 1963, is the subject of the Adams' Equity Theory.
Employees who notice a state of inequity between them and their peers will experience demotivation and distress, in accordance with Adam's Equity Theory of Motivation. For instance, if a worker is aware that their coworker is receiving a larger income for performing the same amount of labor, this may lead to unhappiness.
The input, outcome, and comparison levels are the three main components of equity theory. The amount of work a person invests into a relationship is referred to as their input. The benefits that a person derives from a connection are referred to as the outcome. The ideal degree of contribution and result in a connection is referred to as the comparison level.
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