Review the various inequity reactions described earlier. How have you reacted to inequity in the past?

Inequity

Inequity exists for person if either of the following conditions result from the comparison:

As these formulas show, people can experience two types of inequity. People
can feel underpaid for what they give the organization (negative inequity). They
also can feel they are paid more than their work is worth (positive inequity).
The amount of inequity experienced is proportional to the size of the perceived discrepancy in the two ratios. The point at which a person experiences inequity is higher for positive inequity than for negative inequity. People might attribute some amount of overpayment to “good fortune” or see it as their just reward for high levels of effort in the past. 

The perception of inequity creates an internal state of psychological tension (anger and guilt, for example). The state of tension motivates the individual to reduce the tension by trying to alter directly or cognitively any of the four
elements in the formulas presented earlier.

Transcribed Image Text:

Person Outcomesp Inputsp Outcomesp Inputsp Other Outcomeso Inputso Outcomeso Inputso Negative inequity ("underpayment") Positive inequity ("overpayment")