Adam's Equity Theory

What is Adam’s Equity Theory?

Equity theory aims to explain why employees’ views on what is just, fair, and appropriate at work are essential for organizational success. In the 1960s, John Stacey Adams created this.

Why Adam’s Equity Theory Matters

According to Adams’ Equity Theory, people are driven to work quite hard by two things in particular:

  • Their salary (which must be equitable in the first place)
  • Their estimation of their compensation in comparison to others

The fact that equity in this situation is based on perception rather than truth is what matters most.

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