What does Equity Theory primarily focus on?

Equity Theory primarily focuses on fairness in social exchanges and the perceptions individuals have about their contributions and rewards in relation to others. This theory posits that individuals assess their own input-output ratio (like effort, skills, and loyalty against the rewards they receive) and compare it with that of others in similar situations. If individuals perceive an imbalance or unfairness, it can lead to feelings of dissatisfaction or demotivation.

In the context of the workplace, for instance, if one employee feels they are working just as hard as another but receiving less recognition or compensation, they may experience feelings of inequity. The focus on fairness and the subjective nature of perceived equality are central to understanding motivation and behavior in social settings, particularly within organizations.

While job satisfaction is certainly impacted by perceived equity, and motivational strategies can be influenced by it, the core principle of Equity Theory is the emphasis on fairness and the comparisons individuals make regarding their social exchanges. Classes of needs does not capture this focus on fairness, which distinguishes Equity Theory from other motivational theories.