Equity idea is a principle of motivation that suggests that worker motivation at work is pushed largely by using their experience of fairness.
Employees create a intellectual ledger of the inputs and results of their job and then use this ledger to evaluate the ratio of their inputs and outputs to others.
The key elements of equity principle are input, outcome, and comparison levels. Input refers to the quantity of effort that a person places into a relationship. Outcome refers to the rewards that a man or woman receives from a relationship. Comparison stage refers to the person's ideal stage of input and result in a relationship.
For example, Equity Theory explains why humans can be blissful and stimulated with the aid of their situation one day, and but with no exchange to their phrases and working stipulations can be made very sad and demotivated, if they study for instance that a colleague (or worse an whole group) is playing a higher reward-to-effort ratio.
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