what is the concept of equity theory and the role of social comparison at workplace? What are the managerial implications of equity theory?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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what is the concept of equity theory and the role of social comparison at

workplace?

What are the managerial implications of equity theory?

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Introduction

Equity theory helps in determining how satisfied and motivated an employee is at the workplace with their respective jobs. The essence of equity theory is the principle of equity or balance.  
The motivation level of employees is correlated with the fairness and justice practiced in the organization by the managers. The higher the level of equity and justice, the higher will be the employee motivation level and vice-versa.  

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