In the context of equity theory, <u>inputs</u> are the contributions employees make to their organization.
Justice theory focuses on determining whether the distribution of resources is fair to both relationship partners. Equity is measured by comparing the ratio of contribution (or cost) to benefit (or reward) for each person.
Equity theory is considered one of the theories of equity and was first developed in the 1960s by his J. Stacey Adams, an occupational and behavioral psychologist. From there, it opposes the perceived inputs and results of others (Adams, 1963). According to justice theory, we tend to create systems that allow resources to be shared fairly among group members in order to maximize individual rewards.
Inequality in relationships makes people unhappy in proportion to the magnitude of the inequality. There is a belief that people value fair treatment, which motivates us to maintain fairness in our employee-organizational relationships.
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