EquityTheory,developedbypsychologistJohnStaceyAdamsin1963,isaconceptinsocialpsychologythatexamineshowindividualsperceivefairnessinsocialexchanges,particularlyintheworkplace.Thetheorysuggeststhatpeoplecomparetheirinput(effort,skills,time)andoutput(rewards,recognition)tothoseofothersinsimilarsituations.Iftheyperceiveanimbalanceorinequity—eitherunder-rewardorover-reward—theymayexperiencedistressandtakeactionstorestorebalance,suchasadjustingeffort,changingperceptions,orseekingchangesinrewards.EquityTheoryiswidelyappliedinorganizationalbehaviortounderstandmotivation,jobsatisfaction,andemployeerelations.Itemphasizesthatfairness,ratherthanabsoluterewards,drivesbehavior.
