A New Perspective on Equity Theory: The Equity Sensitivity Construct

Abstract

Equity theory proposes that individuals who perceive themselves as either underrewarded or overrewarded will experience distress, and that this distress leads to efforts to restore equity. This paper describes a new construct, equity sensitivity, and proposes that reactions to equity/inequity are a function of an individual's preferences for different outcome/input ratios. The construct is delineated through a series of propositions, and implications for equity research in organizations are discussed.