In equity theory an under-rewarded individual is likely to
Answers
Inputs: Inputs include all the rich and diverse elements that employees believe they bring or contribute to the job – their education, experience, effort, loyalty, commitment.
Outcomes: Outcomes are rewards they perceive they get from their jobs and employers outcomes include- direct pay and bonuses, fringe benefit, job security, social rewards and psychological.
Overrewarded: if employees fell over-rewarded equity theory predicts then they will feel an imbalance in their relationship with their employee and seek to restore that balance.
Equity: if employees perceive equity then they will be motivated to continue to contribute act about the same level.
Unrewarded: unrewarded who feel they have been unrewarded and seek to reduce their feeling in equity through the same types of strategies but same of this specific action are now reverse.
This theory is based on the following two assumptions about human behavior:
Individuals make contributions (inputs) for which they expect certain outcomes (rewards). Inputs include such things as the person’s past training and experience, special knowledge, personal characteristics etc. Outcomes include pay, recognition, promotion, prestige, fringe benefits etc.
Individuals decide whether or not a particular exchange is satisfactory, by comparing their inputs and outcomes to those of others, in the form of a ratio. Equity exists when an individual concludes that his/her own outcome/input ratio is equal to that of other people.
The essential aspects of the equity theory may be shown by an equation;
There should be a balance of the outcomes/inputs relationship for one person in comparison with that for another person. If the person thinks that the rewards are greater than what is considered, he/she may work harder.
If the person perceives the rewards as equitable, he/she probably will continue at the same level of output.