Equity Theory

Equity theory is a psychological concept that suggests people seek fairness in relationships, particularly regarding the balance of contributions and benefits. For example, in work settings, if one employee feels they invest more effort but receives the same rewards as a colleague, they may feel resentful. Conversely, if both feel fairly compensated for their contributions, motivation and satisfaction increase. Essentially, equity theory emphasizes the importance of perceived fairness to maintain healthy interactions, whether in personal relationships, workplaces, or social settings.