Introduction
Equity Theory is a cognitive social-exchange theory used to explore how people make decisions about the distribution of resources within their relationships (Furnham, 2001). The theory explains how individuals balance inputs and outputs within their relationships to determine the perceived fairness of a particular exchange (Furnham, 2001). It suggests that individuals compare their inputs and outputs to those of their partner and make judgements about equity in the relationship (Furnham, 2001). While the primary focus is on distributive fairness, Equity Theory also encompasses aspects of procedural and interactional equity, which pertain to the allocation share of resources and the communication policies used to distribute those resources (Agliata & Tashchian, 2007).
The primary goals of the theory are to describe and explain how people perceive fairness in their social relationships. These goals provide individuals with the means to assess and evaluate how the process of delivering and receiving resources will shape the overall balance of power between involved parties. In other words, Equity Theory provides guidance on how to facilitate a fair and productive exchange and to consider the aspects of distributive, procedural, and interactional equity.
Historical Development
Equity Theory was first developed in the early 1960s by John Stacey Adams, who was an organizational psychologist and an early writer in the areas of motivation and group dynamics. Adams’ original concept sought to explain how people evaluate their relationships, based on whether they perceive an equal exchange of resources. At the time, most of the research focused on the exchanges between employers and employees in the workplace. Adams argued that individuals are motivated to work harder and become more engaged in their jobs when they perceive a fair and equitable balance of resources.
Adams’ theory was further developed in the 1970s by behavioral scientist J. Stacy Adams, who refined the original concepts and added a psychological component to the theory. Adams proposed that feelings of inequity are experienced when there is a discrepancy between an individual’s inputs and outputs in a relationship. If an individual perceives that they have given more than they have received, they may experience negative emotions such as envy, anger, jealousy, and resentfulness. Conversely, if an individual perceives that they have received greater value than they have contributed, they may experience a sense of satisfaction and be more motivated to continue the relationship.
Adams’ Equity Theory has since been widely accepted within the social psychology field. Over the years, researchers have further extended the theory to better explain how people perceive fairness and inequity in a range of social contexts, including couple, family, and peer relationships.
Central Tenets
Equity Theory proposes that individuals are motivated by a desire to achieve and maintain equity in their social relationships. According to the theory, an individual’s perception of equity or inequity in a relationship is determined by comparing their own contribution of resources to those they receive from their partner, and their level of satisfaction or dissatisfaction will depend on whether they perceive the exchange to be fair.
The theory suggests that when individuals perceive that their contributions are equal or greater than their partner’s, they will be more satisfied with the relationship. Conversely, if they perceive that their contributions are less than their partner’s, they will experience negative emotions and be less likely to engage in the relationship.
Implications
Equity Theory has implications for a range of interpersonal relationships, including intimate relationships and peer relationships. In the context of intimate relationships, the theory suggests that couples should strive for a balance of inputs and outputs in the relationship. This can be achieved through communication and a mutual understanding of the relative contributions each party is making to the relationship.
In peer relationships, such as between friends or coworkers, individuals should strive to achieve an equal exchange of resources and avoid dominating or being dominated by the other individuals in the relationship. If an individual perceives that they are being undervalued or taken advantage of, they may become resentful or disengaged which can cause friction in the relationship.
In the workplace, Equity Theory provides managers with an understanding of what motivates employees to work hard and remain engaged. Managers can use the theory to facilitate a fair and equitable exchange of resources in the workplace, by taking into account the needs and contributions of each employee. This can help to create a happier, more motivated and productive work environment.
Conclusion
Equity Theory is a cognitive social-exchange theory that provides insights into how individuals perceive fairness in their relationships with others. The primary focus of the theory is on distributive equity, or the balance of resources exchanged in a relationship, but it also encompasses aspects of procedural and interactional equity, which pertain to the communication policies used to distribute those resources. The theory has implications for a range of interpersonal relationships, including intimate relationships, peer relationships and the workplace. It suggests that individuals should strive for a balance of inputs and outputs in their relationships and that managers can use the theory to facilitate a fair and equitable exchange of resources in the workplace.
