What does equity theory primarily address in the context of work?

Equity theory primarily addresses fairness and justice in the workplace. It posits that employees evaluate their job satisfaction and motivation based on the perceived fairness of their input-output ratios compared to others. This means that individuals assess their contributions—such as effort, skill, and time—against the rewards they receive, such as salary, recognition, and benefits. When individuals perceive that they are being treated fairly in comparison to their peers, they are more likely to feel satisfied and motivated in their roles. Conversely, if they feel that their contributions are not fairly rewarded relative to others, it can lead to dissatisfaction and disengagement. This theory emphasizes the importance of equitable treatment among employees in fostering a positive work environment and enhancing overall employee morale.