Contemporary Theories Of Motivation (cont. Equity Theory proposes that employees perceive what they get from a job (outcomes)in relation to what they put into it (inputs) input/outcome ratio compared with the ratios of relevant others equity-ratio is equal to that of relevant others inequity -ratio is unequal to that of relevant others -rgerent (relevant other)may be: other-individuals with similar jobs a system -includes organizational pay policies and administrative systems self-past personal experiences and contacts ©Prentice Hall,2002 16-28 Contemporary Theories Of Motivation (cont.) Equity Theory – proposes that employees perceive what they get from a job (outcomes) in relation to what they put into it (inputs) – input/outcome ratio compared with the ratios of relevant others • equity - ratio is equal to that of relevant others • inequity - ratio is unequal to that of relevant others – referent (relevant other) may be: • other - individuals with similar jobs • a system - includes organizational pay policies and administrative systems • self - past personal experiences and contacts © Prentice Hall, 2002 16-28