According to Adams,the two primary components involved in the employee-employer exchange are inputs and outcomes.

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Adams' Equity Theory posits that employees consider the inputs they contribute (such as their skills, effort, and time) and the outcomes they receive (such as pay, benefits, and recognition) in comparison to other individuals or groups in similar situations. This guides their perception of the fairness of the exchange between them and their employer.

According to Adams,the Two Primary Components Involved in the Employee-Employer