equity theory

  

Definition

Concept that people derive job satisfaction and motivation by comparing their efforts (inputs) and income (outputs) with those of the other people in the same or other firms.

Use equity theory in a sentence

  • The equity theory was frequently used by analysts in comparing their own experiences to others as the frame of reference was useful.

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  • I did not believe in equity theory and I subscribed tho the idea that people were happy when they did not have to do any work.

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  • You need to fully understand the equity theory and how you can best use it to your full advantage when you need to.

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