In Adams’ Equity Theory, what is the most likely reaction of an employee who perceives they are being under-rewarded compared to a colleague doing the same work?

Solution

According to Adams’ Equity Theory, individuals evaluate fairness by comparing their own input-to-outcome ratio (effort vs. reward) with that of a referent other. When an employee perceives they are under-rewarded, they experience equity tension or distress. To resolve this uncomfortable state and restore a sense of fairness, the most direct behavioral response is to reduce inputs (e.g., working less hard, being less punctual, or decreasing overall effort) so that their lower rewards feel more commensurate with their contribution. Kindly note - While Equity Theory mentions changing the referent other or distorting perceptions, physically shifting work to others to justify their own higher reward is not a standard predicted reaction for an under-rewarded individual; it describes an attempt to change others' inputs, which is less common than changing one's own. Similarly, while an individual might change who they compare themselves to (changing the referent), they do not simply stop comparing or focusing on personal goals as a standard response to inequity.