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Equity Theory Notes: Definitions & Explanations PDF | Download eBooks

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

Equity Theory Definition:

  • Theory that an employee compares his or her job's input-outcomes ratio with that of relevant others and then corrects any inequity.

    Management by Stephen P. Robbins, Mary A. Coulter



Equity Theory Notes:

The center of the value hypothesis is the standard of parity or value. According to this inspiration hypothesis, a person's inspiration level is associated to his impression of value, decency and equity drilled by the administration. Higher is person's impression of decency, more prominent is the inspiration level and the other way around. While assessing decency, worker looks at the specific employment contribution (as far as commitment) to result (as far as pay) and furthermore contrasts the equivalent and that of another companion of equivalent unit/classification. D/I proportion (yield input proportion) is utilized to make such an examination. In business brain science, value hypothesis goes under the umbrella of hierarchical equity, which is worried about representative view of an organization's inside and outer conduct and how these observations fuel or change their very own frames of mind and conduct.

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