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Management & Leadership vocabulary · Motivation and Feedback

Equity theory

Meaning in management & leadership, with examples

nounAdvanced term

In management & leadership, equity theory means: A theory proposing that people judge work rewards by comparing their contributions and outcomes with those of others.

In Turkish: hakkaniyet kuramı

How it is used

Use to discuss perceived proportional fairness; equity does not require identical rewards for everyone.

Example sentences

  1. Equity theory helped explain why equal bonuses upset staff with very different workloads.

    People compare rewards in relation to contributions rather than amounts alone.

  2. The manager used equity theory to explore whose pay employees treated as a reference point.

    The chosen comparison person influences the perceived fairness of the exchange.

Common collocations

  • apply equity theory
  • equity theory of motivation
  • motivationThe reasons and energy that make a person want to do something and keep doing it, such as interest in the work, recognition, money or a sense of purpose.
  • incentiveSomething, such as a bonus, a commission or an extra day off, that is offered to encourage people to work harder or to behave in a particular way.

More terms: Motivation and Feedback

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