Adams' Equity Theory suggests that employees compare their own inputs and outputs (e.g., effort and rewards) to those of others, and when there is a perceived imbalance, they will act to restore equity. It states that employees are motivated to keep their own perceived fairness levels in balance with those around them.
What are the three components of Adams' Equity Theory?The three components of Adams' Equity Theory are inputs, outputs, and comparisons.Inputs refer to the resources that employees bring to the job, such as their education, experience, and skills.Outputs refer to the resources that employees receive from the job, such as salary, benefits, and recognition.Comparisons refer to the process of comparing one's own inputs and outputs to those of others.Adams' Equity Theory is based on the premise that employees seek to maintain equity between their inputs and outputs. When there is a perceived inequity, employees will take action to restore equity