Adam’s Equity Theory (1965). Equity theory is based on perceptions among individual workings comparing one’s input–outcome ratio with the input–outcome of another. When the two ratios are equal, equity exists. Inputs are contributions people feel they are making to their environment. For example, one’s hard work, loyalty to an organization, amount of time with the organization, as well as individual level of education, training, and skills may become relevant inputs. Outcomes are perceived as rewards someone can receive. Notably, equity perceptions develop as the result of a subjective process as different people may look at similar situations and perceive different levels of equity.
Affective organizational commitment. The emotional ...