DSST Practice Exam 2025 – The Complete All-in-One Guide for Successful DANTES Subject Standardized Tests Preparation!

Equity theory is focused on fairness and emphasizes the importance of balance in the input and output individuals perceive in their relationships, particularly in the workplace. According to this theory, people are motivated by fairness in their exchanges and will compare their own input-to-output ratios with those of others. If they perceive an imbalance—where their contributions (such as effort, skill, or time) do not equate to the rewards they receive (such as pay, recognition, or benefits)—they may feel demotivated or seek to restore equity by either adjusting their own inputs or seeking to change the outcomes.

This theory highlights that individuals are not solely motivated by personal gain but also by their perception of fairness relative to their peers. If employees feel they are being treated unfairly compared to others, it can lead to decreased motivation and morale, which is why equity theory is significant in understanding workplace dynamics and motivational factors.