Which theory argues that fairness in social exchanges is crucial for motivation?

Equity theory posits that individuals are motivated by fairness in social exchanges, particularly in the context of work and relationships. This theory suggests that people assess their contributions in relation to what they receive in return compared to others. If they perceive an imbalance, such as putting in more effort but receiving less reward than a colleague, it can lead to feelings of demotivation and dissatisfaction. Therefore, maintaining a sense of equity—where individuals feel that their input and outcomes are proportionate to those of their peers—is critical for sustaining motivation and productivity in a workplace environment. This theory emphasizes the importance of fairness as a key driver of motivation and performance, making it central to understanding how people navigate social exchanges and work dynamics.