If employees perceive that an inequity exists,they are likely to withhold some of their contributions,either consciously or unconsciously,to bring the situation into better balance.

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This is known as the equity theory of motivation, where employees compare their inputs (efforts, skills, and experience) to their outputs (rewards and compensation) with those of their peers. If they believe that the ratio is unequal, they may become demotivated, dissatisfied, or resentful, and may reduce their level of productivity, quality, or commitment. They could also try to restore the equity by asking for a raise, a promotion, or a better job assignment, or by seeking a new job elsewhere. Therefore, managers need to monitor and address any perceived or real inequities to maintain a positive work environment and encourage high performance.

If Employees Perceive That an Inequity Exists,they Are Likely to Withhold