ABSTRACT

Stacy Adams introduced equity theory to organizational behavior and has indicated a wide range of influences on his thinking, including a number of social psychologists, industrial social psychologists, and sociologists. Given that the research has demonstrated the effects predicted by equity theory, it is still posited that the performance effects are transitory and have no real meaning in understanding ongoing motivation in organizations. In contrast to attempts to introduce inequities through variations in pay plans, compensation levels, input perceptions, and the like, traditional compensation administration has sought to achieve equity through an adjustment of outcomes to perceived inputs, thus reducing the probability of absenteeism, turnover, disruptive behavior, and the like. Adams clearly recognizes the role of individual differences, but specific propositions about them are lacking in the theory. If Adams had lived, it might well have incorporated macro organizational factors as well. In any event, equity theory remains quite active, but primarily in a broader organizational justice context.