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Equity Theory Notes: Definitions & Explanations PDF | Download eBooks

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Study Equity Theory lecture notes PDF with organizational behavior definitions and explanation to study What is Equity Theory?. Study equity theory explanation with organizational behavior terms to review organizational behavior course for online MBA programs.

Equity Theory Definition:

  • A theory that says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities.

    Organizational Behavior by Stephen P. Robbins, Timothy A. Judge



Equity Theory Notes:

Equity theory centers around deciding if the conveyance of assets is reasonable for both social accomplices. Value is estimated by contrasting the proportion of commitments (or expenses) and advantages (or rewards) for every individual. Value hypothesis centers around deciding if the dissemination of assets is reasonable for both social accomplices. It recommends that people who see themselves as either under-remunerated or over-compensated will experience trouble, and that this misery prompts endeavors to reestablish value inside the relationship. It centers around deciding if the dissemination of assets is reasonable for both social accomplices. Value is estimated by looking at the proportions of commitments and advantages of every individual inside the relationship. Accomplices don't need to get equivalent advantages, (for example, getting a similar measure of affection, care, and monetary security) or make equivalent commitments, (for example, contributing a similar measure of exertion, time, and money related assets), as long as the proportion between these advantages and commitments is comparative.

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