The Equity theory states that:

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The Equity theory suggests that individuals are more motivated if they perceive they are being treated as fairly as their fellow workers or those in other firms. This implies that employees compare their inputs (such as effort, skills, time) and outcomes (such as salary, recognition, benefits) to those of their colleagues or peers in other organizations. If employees feel that their inputs are not commensurate with their outcomes, or that they are being treated unjustly, they may become demotivated, dissatisfied, or disengaged. Therefore, equity or fairness in the workplace is crucial for fostering motivation and engagement among employees. The other options are related to other motivational theories, such as Goal-setting theory, Operant conditioning theory, and Expectancy theory, respectively.

The Equity Theory States That