Beruflich Dokumente
Kultur Dokumente
" PERFOR~[ANCE 49 1 7 6 - 2 1 1
(1969)
EQUITY
THEORY
177
such factors as effort, education, age, beauty, etc. The important point
is that the person actually perceives them as something of value that he
brings or puts into a relationship. In contrast, outcomes include any and
all factors perceived by the person as returns to himself that is, factors
that have utility or value to him. Outcomes and inputs form a ratio,
and the individual outcomes and inputs are weighted according to their
perceived importance in determining the final "value" of this outcome/
input ratio.
A person is said to consciously or unconsciously compare his outcome/
input ratio to t h a t of another person or persons. This comparison "person" does not necessarily have to be any one individual, it could be a
broad class of individuals who are perceived by the person as relevant for
comparison.
Adams refers to this generalized comparison person as "Other," and to
the comparer as "Person." This notation will be followed in the remainder of this paper.
Equity is said to occur when Person perceives that the ratio of his
outcomes to his inputs is equal to Other's outcome/input ratio. Conversely, Person experiences inequity when he perceives t h a t his ratio is
not equal to Other's. Inequity can result either when Person and Other
are in a direct exchange relationship, for example two lovers or two partners; or, when both Person and Other are related to a third p a r t y and
Person compares himself with Other, for example, two employees being
paid by one employer.
Inequity can occur in m a n y ways. Several possibilities are shown
in Table 1.
Thus, perceived equity results when Person's inputs match his outeomes
and when Other's inputs match his (Other's) outcomes. (LL, LL; 2 HH,
HH; LL, HH; HH, LL.) This is true regardless of the absolute level
of inputs and outcomes for either party. E q u i t y is also said to exist
in those situations where Person's inputs do not match his outcomes but
Other is perceived to be an identical situation (LH, LH, or HL, HL).
Perceived inequity arises whenever Person's ratio differs from Other's
In exemplifying various input-outcome relationships, the notation used by Weiek
and Nesset (unpublished manuscript) will be employed in place of the more complicated notation of Adams (1965). This simplified notation is based on a temporal
sequence, and'is not to be read as a ratio. The first letter of a pair refers to level of
inputs, the second letter to level of outcomes. Thus, HL = Person invests high input
and receives low outcomes. In situations involving two persons, the input-outcome
relationship for Person will appear first and the input-outcome relationship for
Other, the generalized comparison person, appears second. Thus HL, LH = Person
invests high inputs and receives low outcomes while his generalized comparison
person invests low inputs and receives high outcomes.
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ROBERT D. PRITCHARD
TABLE 1
SITUATIONS OF ]~QUITY AND INEQUITY
Equitable
Inequitable
Under-reward
LL,
HH,
LL,
HH,
LH,
HL,
LL 2
HH
HH
LL
LH
HL
LL,
HL,
HL,
HL,
HH,
LH
LL
LH
HH
LH
Over-reward
LL,
LH,
LH,
LH,
HH,
HL
LL
HL
HH
HL
ratio. This is the case not only when Person is under-rewarded relative
to Other (LL, LH ; HL, LL ; HL, LH ; HL, HH ; HH, LH) but also when
Person is over-rewarded relative to Other (LL, HL; LH, LL; LH, HL;
LH, HH; HH, HL). The degree or magnitude of felt inequity is said
to vary as a function of the degree of discrepancy between the two ratios.
For example, HL, LH should produce more inequity than LL, LH.
Although Adams is somewhat imprecise in the discussion of the consequences of inequity, he does postulate that it will "create tension" and
that this tension has motivating properties impelling Person to reduce
or eliminate it. Moreover, the force of the motivation is proportional
to the magnitude of the inequity. Thus, the strength of the behavioral
tendencies to reduce inequity is determined by the amount of difference
between the two ratios.
Adams lists several things Person can do to reduce or avoid inequity.
He can attempt to equalize his and Other's ratios by (1) cognitively distorting his or Other's inputs or outcomes, (2) by acting on Other to get
him to change his inputs or outcomes, (3) Person can change his own
inputs or outcomes, (4) Person can change his comparison person or
leave the field. Adams notes that not all of these modes of inequity reduction are equally available to Person psychologically, and he sets down
some tentative hypotheses about how Person will choose to reduce inequity. Person will maximize positive outcomes; he will minimize increasing effortful or costly inputs. He will resist real and cognitive
changes in inputs and outcomes that are more central to his self-concept
and to his self-esteem. Person will be more resistant to altering cognitions about his own inputs and outcomes than to altering cognitions about
the inputs and outcomes of Other. Leaving the field will be a last resort,
occuring only when inequity is high and other means of reducing it are
unavailable. Once comparison with a particular Other has stablized over
time, Person will be highly resistant to changing comparison persons.
EQUITY
THEORY
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180
ROBERT D. PRITCHARD
EQUITY THEORY
181
This may be a good place to inject a point that deserves mention. These
criticisms of Adams' theory may seem quite unfair if they are seen as
points Adams failed to consider. This is not meant to be the case. This
discussion is meant to indicate that the theory needs further work, and
to point out some of the directions this further work should take.
REVIEW OF EMPIRICAL LITERATURE
Studies bearing on equity theory divide conveniently into two groups:
those studying the effects of underpayment and those dealing with the
effects of overpayment. The first three discussed below are cited by
Adams as support for his theory, but were not originally planned in the
context of the theory.
Homans (1963)
The relevant portion of this study consisted of interview data from two
types of clerical workers in a large company. In one part of the billing
department there were two groups of female clerical workers, cash posters
and ledger clerks. One group, known as cash posters, did the fairly
monotonous job of entering paid bills on the customer's account while the
other group, the ledger clerks, were required to record address changes,
make breakdowns of over- and underpayments and deal with other
employees and customers on the phone. A girl had to be a cash poster for
several years before she became a ledger clerk. Although the ledger clerks
had higher status, they were nearly all paid the same as the cash posters.
Adams (1965) sees this as a situation where the ledger clerks have higher
inputs than the cash posters, but their outcomes are not correspondingly
high. Thus, inequity should be experienced to the extent the ledger clerks
used the cash posters as Others; and given that the ledger clerks perceived the input-outcome ratios as unequal. The results of the openended interviews indicate that approximately 75% of the ledger clerks
stated that the situation was unjust and that they should "get a few
dollars more" because of their higher seniority and greater skill. It was
not so much that they were actually dissatisfied with the pay; in answer
to the same open-ended question of "How do you like your job," 11 of
the 19 voluntarily reported that they liked the pay; rather, they felt they
should get a little more than the cash posters because their inputs were
higher. Adams (1965) interprets this as support for the theory in that
unequal input-outcome ratios led to felt inequity.
Clark (1958)
The results of this study are available only through Adams (1965). As
such, we are limited to the details he reports.
The subjects in Clark's study consisted of two groups of employees in
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ROBERT D. PRITCt-IARD
Patchen (1961)
Patchen's thesis was explicitly designed to test derivations from cognitire dissonance theory. He deals with overpayment only in passing,
devoting the vast majority of his effort to equitable and underpayment.
In this respect it is similar to the first two studies discussed.
The data that are relevant here were collected by asking skilled and
unskilled workers (N = 489) in an oil refinery to describe two persons
either inside or outside the company whose earnings were different from
their own. The subject was also asked several other questions including
whether the "comparison person" earned more or less than himself, the
comparison person's occupational level, and the worker's satisfaction
with his own earnings. Actual pay rates were also available.
Patchen's results generally support equity theory. Subjects who chose
higher-earning Others showed a consistent trend to be less satisfied with
these comparisons the closer Other's occupational level was to their own.
Patchen interprets these data as indicating that "the more a comparison person who earns more than the comparer is similar to the com-
EQUITY THEORY
183
parer in occupational level (and thus, the more objectively dissonant the
comparison), the less satisfied the comparer is (p. 39)." This is consistent
with the equity theory prediction earlier elaborated from Weick (1965)
that a given amount of inequity will create more dissatisfaction the more
similar Person is to Other. These data are also consistent with the
postulate that the greater the difference between the input-outcome ratios
the greater inequity and the greater the dissatisfaction. A comparison
with an individual who earns more than Person should not be bothersome
if that individual also has higher inputs. For example, if the comparison
were with a professional man (Person is a blue-collar worker) the situation would be LL, H H - - a n equitable condition. On the other hand, if the
comparison is with an individual who is of more similar occupational
level the situation would be closer to LL, LH. This should generate
feelings of inequity and lead to dissatisfaction.
Reasons for reported satisfaction or dissatisfaction with a comparison
with a higher-earning Other were also recorded. Included in reasons for
satisfaction were: Person has compensating financial and nonfinancial
advantages; Other is superior in what his job requires in seniority, experience, age, and in personal qualities; Person is not interested in comparing earnings; and Person earns enough for his needs. Predominantly
reported reasons for dissatisfaction with a comparison with a higher
earning Other were: Person is superior in job requirements, seniority,
age, and experienee; and Person wants more money and a higher living
standard. This list is very similar to types of inputs and outcomes Adams
discusses as relevant in determining the input-outcome ratio.
One of the methodological drawbacks with Patehen's study concerns
the procedures he used in obtaining comparison persons. By asking
Person to name someone he knew inside or outside the company who
earned more than he, Patchen may easily have obtained "nominees" who
were in no way real Others for Person. Person's doctor makes more than
he, but is very unlikely to be an Other. Furthermore, a large source of
"nominees" could have come from the direct family of Person since these
could easily be the first people to come to Person's mind if he was not
trying to name someone he actually used as an Other. We have no direct
evidence of the number of "nominees" named who were irrelevent for
Person's comparisons, but 30% of these comparisons made were a close
relative of Person. Admittedly, some portion of these "nominees" were
Others, but the point is, we don't know how many.
Another related problem is tha~ Person was prohibited, by the directions, from naming someone who earned the same as he did. The degree
to which this procedure precluded the choice of relevant Others is again
not estimable.
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ROBERT D. PRITCHARD
EQIJITY T H E O R Y
~85
~86
ROBERT D. PRITCHARD
ence. This was the maior qualification set. I can't understand how
such a slip-up could have occurred . . . (agonizing pause) . . .
Research in this area has shown that the nature of the response
elicited by a skilled and experienced interviewer is more accurate
and representative of the respondent's sentiments and differs substantially from the responses elicited by inexperienced people.
Who interviewed you at Placement? (tries to call Blacement).
Gets a busy signal and slams the receiver down . . .
I guess I'll have to hire you anyway, but please pay close attention
to the hlstructions I will give you. If anything I say seems complicated, don't hesitate to ask for clarification. If it seems simple, pay
close attention. Some of this stuff, on the surface, may appear to be
deceptively easy.
Since I'm going to hire you, I'll just have to pay you at the rate
we advertized; that is, $3.50 per hour (or 30 per interview for piecerate conditions) (p. 165, emphasis on original).
The purpose of this extended quote describing the manipulation is
to emphasize the nature of the message the Ss received. The essence
of E's statement seems to be (1) what is an unqualified person like you
doing here; (2) you will be a poor interviewer; (3) you will cause errors
in my data; (4) I'm going to raise hell with the idiot who sent you over
here; (5) I have to hire you, but I don't want to; (6) you will have
to be extremely careful of these interviews; (7) you may think this
stuff is simple, but it's not; and (8) I'm forced to pay you at the going
rate, but you don't deserve it. E then proceeds to describe the extremely
simple interviewing procedure.
I t seems quite likely that the result of this initial contact with the
"employer" was not only to induce cognitions of LH, HH inequity in the
S, but also to threaten the S's self-esteem. This threat could be relative
to the subject himself "I'll be a poor interviewer," and/or relative
to E--"He thinks I'll be a poor interviewer." If these were indeed the
feelings aroused by the manipulation, it seems quite plausible that the
S would attempt to do an especially good job to convince himself
and/or E that he was not as poor an interviewer as he was made out
r o b e . The essential point is, how would increasing self-esteem by doing
a "better job" take the form o f increasing the number of interviews
in the hourly paid condition, and decreasing the number of interviews
in the piece-rate condition. Since the task was a Simple one,s it seems
zThe interviewers were only to record which of five kinds of automobile the
interviewees associated with six brief personal descriptions such as, "A rising junior
executive."
EQUITY THEORY
187
unlikely that inputs could have been very different in terms of actual
quality for the two conditions. Thus it seems that the sheer number of
interviews conducted is the important measure. For the hourly paid
Ss, supposedly experiencing inequity due to overpayment, conducting
a large number of interviews could be seen as doing a good job. This
would tend to raise the previously reduced feelings of self-es~eem, ttowever, the self-esteem explanation is not so straightforward for Ss in
the piece-rate condition. It could be that the number of interviews was
a more salient aspec~ of the job in the piece-rate condition since Ss
would be paid on this basis. Approaching E with a relatively small
number of completed interviews could consciously or unconsciously
express to E that S conducted the interdews with a great deal of care
and hence would not bias his employer's data.
The argument for the piece-rate Ss admittedly rests on the two lessthan-obvious assumptions that number of interviews was more salient
for piece-rate Ss and that perceptions of "subjective quality" existed
in the piece-rate condition that did not exist in the hourly condition.
Nevertheless, perceptions of self-esteem and methods of increasing selfesteem potentially confound the data and make the results difficult to
interpret.
There is another qualification which is applicable to this study and
to all the following studies that experimentally test equity theory.
Namely, the work periods are short; they range from one to two-andone half hours. If the subjects are not really aware of how difficult the
lob will be and especially how much they will really be earning in the
piece-rate conditions (e.g., how many interviews they are doing in an
hour), it is difficult to see how they can make "accurate estimates" of
their input-outcome ratios. Also, it seems reasonable that when Ss are
first hired, they would tend to be under high motivation to make a
good initial impression.
Arrowood (1961)
Another potential difficulty in interpreting the Adams and Rosenbaum study was foreseen and discussed by them, using data from a
thesis by Arrowood. 4 The criticism they bring up is that the differences
in productivity in the L H conditions (Ss told they were unqualified~
but hired anyway) might be interpreted as resulting from feelings of
job insecurity. If Ss who were told they were really unqualified for
the job perceived that they might be fired if they did not do an espeThe Arrowood thesis was n o t available to this author, and as such, we are once
again limited to what has been reported a b o u t it in other sources, especially Adams
(1963).
~8
ROBERT D. PRITCHARD
iciat'ly good job, they could have increased their job inputs to minimize
.this'l~ossibitity rather than to attempt to establish equity.
~ i l t ~ho~'ld :be~ noted, parenthetically, that this argument presented
by,~~dams ~nd ~Rosenbaum is similar to that presented above concerni~r/~ th6~p0ss~ble contaminating effects of lowered self-esteem. They are
taci~Jly aSmitting t h e possibility t h a t perceptions o f lowered lob seeu~ity:, would:" have differential effects on piece-work and hourly paid
workers~.numely, to:lower the piece-rate Ss' productivity and raise .the
p'roductivity!ib'f:.hour'ly p a i d Ss. This is the same possibility mentioned
~a'bove',~oneerning lowered self-esteem. The fact that Adams and Rosenbaum:~themselves feel this could occur gives some added credence:to
the= i~rgument for the contaminating effects of lowered self-esteem. :
Arrowood employed a .factorial design wherein Ss were either :oVer,
paid or,~eq~itably paid on an hourly basis, and performed under either
public ~r,: private c0nditions. The public-private manipulation .was
achieve~i by .'.having 8S submit the results o f their interviews t o the
eml~'l:oyer (the experimenter) or mail their work in preaddressed: er/Velopesl to:::an address several thousand miles a w a y . In the latter
,(privat6) conditions, Ss w e r e given the impression that the experi.
reenter would never see their work. The overpaid-equitably paid manipulation w a s similar to that used in the Adams and Rosenbaum (1962)
stud~)~ Ss hired at $3.50 per hour and made to feel qualified or unqualified for the job.
:If Ss increase inputs merely to decrease the possibility of being fired,
overpayment should not lead to higher productivity when job security
is maximized, i.e., the private condition. The data show that the equity
prediction does indeed occur in the private condition: overpaid Ss
conducted more interviews than the equitably paid Ss. Adams and
Rosenbaum interpret these results as showing that perceived job insecurity was not a contributor to the increased productivity of "unqualified" 8s.
Although there is very little information upon which to base an
evaluation of the Arrowood study, one consideration does deserve mention. Since the Arrowood manipulation attempted to make the overpaid Ss feet .unqualified, the possible contaminating effects of lowered
selfiesteem could have occurred here also. The results show a very
strong effect for the public-private manipulation: Ss whose productivity was not under E's surveillance conducted far fewer interviews
than the 'Ss who reported directly to E. This would seem to indicate
tha} since E had no access to the production figures of the Ss in the
pd~ate condition, these Ss did not work as hard as the Ss who reported
directly to E. There also was a main effect due to payment conditions,
EQUITY
THEORY
189
Adams
(1963D)
:.: ~:~
:..... :
i90
ROBERT D. PRITCHARD
his work. In the two previous studies, the task was so simple that it
was difficult for Person to manipulate work quality. In this study, the
task was such that Ss could differ in work qualiW, and this difference
could be measured.
Subjects were made to feel either qualified or unqualified for conducting open-ended interviews about opinions, and were paid on a
piece-rate basis. The quantity measure was simply the number of
interviews conducted, and quality was measured by the amount of
recorded information Ss elicited from the respondents.
The prediction made by equity theory is that (1) Ss overpaid on a
piece-rate basis will conduct fewer interviews, and (2) will record
more information per interview than Ss who were equitably paid. The
data support both hypotheses.
Two points should be discussed in regard to this study. The first is
the self-esteem problem discussed at length above. If we again assume
that feelings of lowered self-esteem were generated by the manipulation of job qualifications (the procedure was similar to the one used in
the two previous studies), possible modes of increasing self-esteem
appear to contaminate the results of this study even more than in the
previous two studies. In this study, Ss had much greater control over
the quality of their work, and thus one way to "do a good job" vis-a-vis
the experimenter or themselves would be to record very carefully everything the interviewee said, i.e., increase quality. Thus, the increased
quality of the underqualified (overpaid) Ss could have resulted from
measures to enhance their self-esteem.
T h e second point is one presented by Opsahl and Dunnette (1966)
in reference to the Adams and Jacobsen (1964) study, but which is
also relevant here. The manipulation used by Adams tells the overpaid 8s that the job is not as simple as it may seem and that they will
have to be extremely careful with the interviews. Thus in this experimerit, where Bs can affect the quality of their work, the initial contact
with the "employer" tells them to pay particular attention to qualiW!
Moreover, this is not the case for the equitably paid Ss; they are simply
hired and then the task is explained to them. Thus, the different quality
sets induced by E could have increased quality in the overpaid group,
and since doing a high qaulity job (recording many ideas) necessitares conducting fevcer interviews, have the additional effect of reducing quantity.
Adams and Jacobsen (1964)
This experiment employed a 3 X 2 factorial design with three conditions of equity and two conditions related to permanence of the job,
EQUITY THEORY
191
After completing a job application, the Ss took a contrived proofreading test. The E then interviewed the Ss to "decide" whether to hire
them for a proofreading task. In the overpaid condition, which Adams
and Jacobsen call high dissonance, Ss were told they did not have
enough experience; experience is important; accuracy was very important; their proofreading test was not really satisfactory; they would
be hired anyway; they should pay close attention to the instructions;
and that E would pay them at the going rate (30 per page). In the
second equity condition, termed the reduced dissonance condition, Ss
were also told they were unqualified and, because of their low qualifications would only be paid 20 per page instead of the rate of 30 for
"qualified" proofreaders. In the third condition (low dissonance) Ss were
told they were well qualified and would be paid 30, wages for qualified
people.
The other factor in the experiment was job prospectus. Subjects in the
high job prospectus condition were told that the book they were proofreading was one of a series he (the experimenter) would be working on,
and it was possible that the S would also be able to help him in the
future. In the low job prospectus, Ss were told that this particular
(small) book had to be returned to the publishers soon, and that it was
all the work that they would do.
Equity theory predicts that Ss who are overpaid (e.g., LH, HH)
should not produce as much as those who are equitably paid (since this
is piece-rate) and that these overpaid 5s should do higher quality work.
Subjects in the reduced dissonance and the low dissonance conditions
should not experience inequity, since the former would be more in a
position of e.g., LL, HH; and the latter a position of e.g., HH, HH.
The dimension of job prospectus was included to determine whether a
job security variable could account for the results. The argument is that
if unqualified Ss feel they may be fired at some later time, they may try
to do a good job to decrease the chances of being fired. However, the
prediction is that if underqualified Ss feel the job will be of short duration, there would be no reason to try to "look good" for future employment. Thus, the prediction is that if job security is a factor contributing
to increased inputs by the overpaid Ss, increased inputs should not result
in the low job prospectus condition; i.e., if job security is a contaminant,
equity prediction should not hold for the overpaid, low job prospectus
group.
The results support the predictions made by Adams and Jacobsen. The
high dissonance (overpaid) Ss proofed fewer pages than the reduced
dissonance and the low dissonance groups, and the high dissonance groups
showed higher quality scores than the other two groups. There were no
t92
ROBERT D. PRITCHARD
Andrews (1967)
This experiment considered three variables: amount of payment,
interestingness of the task, and previous wage experience. Subjects were
assigned to do one of two piece-rate tasks at either 15 per piece (underpayment), 20 per piece (equitable payment), or 30 per piece (overpayment). The asymmetry of the payments was employed to reflect the
proposed different thresholds for under- and overpayment.
EQUITY THEORY
193
194
ROBERT n. PRITCHARD
respectively. Since there were no differences between the two tasks, the
results of the two task treatments were combined in reporting the rest
of the data.
Andrews found that q u a n t i t y of work tended to decrease with increased
payment, i.e., underpaid Ss produced more than equitably paid Ss who,
in turn, produced more than overpaid Ss. Apparently, however, the only
statistically significant difference was between the two extreme payment
groups; overpaid vs. underpaid. It would seem that a more appropriate
analysis would be to separately compare both the overpayment and
underpayment group with the equitable payment group. Visual inspection
of these means indicates that the difference between the equitably paid
group's mean and the underpaid group's mean is twice as large as the
difference between the equitable payment mean and the overpaid group's
mean. Thus, most of the observed difference between the two extreme
payment groups is due to underpaid Ss producing more as opposed to
overpaid Ss producing less. These data, therefore, do not clearly support
the overpayment predictions.
There is a problem with interpreting Andrews' data in that, for
quantity of work at least, there appears to be a very marked interaction
between rate of pay and previous wage history. It is the author's opinion,
from inspection of the cell means, that an analysis of variance (which
is really more appropriate than the multiple t-tests used by Andrews)
would show not only a significant interaction, but would yield a nonsignificant difference between payment conditions. Since the interaction
appears to be so marked, it is really inappropriate to iust consider main
effects, rather the difference between levels of one variable should be
considered w i t h i n a particular level of the other.
Withothis in mind, a closer look at the quantity data indicates that in
the high wage history group, equity predictions do not hold up for overpayment since overpaid Ss produced more than equitably paid Ss. In
the medium wage history group, the predicted pattern occurs, while in the
low wage history group, there is practically no difference between the
quantity of the equitably paid group and quantity of the overpaid group.
Within each level of wage history, the predicted effects of underpayment
(increased quantity) do occur. Thus, while equity theory correctly
predicts the effects of underpayment, it fails to make accurate predictions
for overpayment.
Considering the effects of wage history on quantity, again the trend
is accurately predicted by equity theory, i.e., the higher the wage history,
the greater work quantity, but here again, the only significant difference
is between the extreme wage history groups. Looking at wage history
effects within levels of pay indicated that the equity prediction was
EQUITY THEORY
195
upheld in the under reward and over reward conditions, but was not
upheld in the equitably paid condition.
In reporting quality data we are faced with a simpler task in that the
Payment level X Wage history interaction does not appear very strong.
Comparison of quality scores between the overpaid and underpaid Ss
(the two extreme conditions) resulted in an insignificant 2-tailed t-test,
but significance (.05) was reached with a one-tailed test. The effects of
wage history on quality of work conformed to the direction predicted by
equity theory in that quality increased with lower wage history. Here,
however, while only the extremes are statistically significant, all of the
effect was due to the overpaid group producing higher quality work. It
is not known whether the more appropriate comparison between the
equitably paid group and the overpaid group would have been significant.
These results are very interesting in light of the fact that this is the
only study of overpayment that was not potentially contaminated by the
"self-esteem problem" nor the "set to increase quality problem." As such,
it is probably the best test of equity so far considered. The results, however, appear to be damaging to equity theory. The only finding that is
completely consistent with direct equity theory predictions is that underpaid Ss tend to produce a higher quantity of work. There is no firm
evidence that overpaid Ss produce less; that underpaid Ss produce lower
quality work; and at best only marginal evidence that overpaid Ss
produce higher quality work. We say this evidence is marginal since the
comparison was between the underpaid and overpaid groups rather than
the more appropriate comparison of the equitably paid group with the
overpaid group.
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ROBERT D. PRITCHARD
EQUITY THEORY
197
not occur. That is, there was no difference between overpaid and equitably paid subjects. When the subjects' perceptions of their qualifications were considered, the predictions were supported. Subjects who
perceived themselves as qualified produced more than those who perceived
themselves as less qualified regardless of whether they were in the overpaid or equitably paid condition. Recall, however, that the rationale for
the greater productivity of subjects who perceived themselves as qualified is different for the two payment conditions. For the overpaid Ss the
increase is postulated as being due to attempts to reduce the dissonance
created by the induced cognitions that the subject was not actually
qualified. The increased productivity of these Ss is seen as attempting
to reaffirm their cognitions of high qualifications by means of demonstrating to themselves and E that they were indeed:qualified. For the Ss who
felt they were qualified and were told they were (i.e., equitably paid)
the increase in productivity is said to be due to attempts to avoid the
dissonance which would be created by producing less than their own or
E's expectations.
In considering the data bearing on their other major hypothesis, the
authors show that the overpaid Ss who felt they were not qualified
produced more, but not significantly more than the equitably paid Ss
who initially felt they were unqualified~ but this overpaid group produced
less than the equitably paid group who felt they were qualified. There is
some question over which equitably paid group is the most appropriate
group to compare with the overpaid groups. If the equitably paid Ss who
felt they were qualified are used, equity predictions are clearly not
supported. However, the authors present some indirect evidence indicating that the equitably paid Ss used in the experiments by Adams and his
co-workers were most similar to those equitably paid Ss in this study
who felt they were not necessarily qualified. If we assume this to be the
case, the appropriate comparisons between overpaid and equitably paid
Ss should be made with this low initial perceptions of qualifications
group.
The overpaid Ss who felt they were qualified produced much more than
the equitably paid Ss and also much more than the overpaid Ss who did
not feel qualified. These data support the hypothesis that a large portion
of the observed increased performance of overpaid Ss in previous equity
research may be due to overpaid Ss, who feel they are qualified, producing
more to reduce the dissonance created by the overpayment manipulation.
As the authors point out, these results should not be taken as evidence
against the theory itself; the S's perceived qualifications are seen as an
uncontrolled variable that could account for at least part of the results
observed in other studies. The theory could account for these results by
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first session (r ---- .51) to the second and third sessions (r = .71 and .70,
respectively) it would seem that the need for money became more highly
related to production over time.
The major criticism of this study is the self-esteem problem which has
been discussed at length above. It could be argued that the overpaid Ss
in the first session were attempting to increase self-esteem vis-a-vis E
and themselves, and this could account for at least part of the decrease
in number of interviews. But why did the overpaid Ss increase their
productivity in the second and third sessions? It could very well be that
concern for money overcame the need to increase self-esteem or that the
feelings of lowered self-esteem tended to dissipate over time. However,
another explanation is also possible. After the Ss returned with their
first batch of interviews, "the experimenter did not comment on the
quality of the subject's work or indicate his approval or disapproval with
the subject's productivity (p. 259)." Thus, after he had been careful to do
a very good job, the experimenter gave no notice to his efforts. The
subject might, therefore, have felt it hopeless to attempt to increase E's
evaluation of him by his care in doing the job. The subject may have even
considered this lack of recognition a negative outcome, and decreased his
inequity (and thus raise his number of interviews) by incorporating it
into his inpuS-outcome ratio.
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The results showed that for those Ss whose quantity was emphasized,
the overpaid Ss produced more than the reduced dissonance and the
equitably paid groups, but the only statistically significant difference was
between the overpaid and reduced dissonance groups (the Ns, however,
were very small--from 6 to 12). Data relevant to the quantity--quality
set manipulation, which was used only for the overpaid Ss, generally
showed that when quantity was emphasized in the "hiring" situation, Ss
scored more questionnaires with lower quality, and when quality was
emphasized, the reverse held true. The hypothesis regarding known production rates was also supported in that for Ss who were told what other
qualified workers had done, a significant reduction in their productivity
variance was observed.
This study may be contaminated by the self-esteem problem. However,
in this study, as in the Adams and Jacobsen study (1964), the reduced
dissonance group, which was also "insulted," did not produce as much as
the overpaid (also "insulted") group, and, in fact, produced slightly less
than the equitably paid Ss. A possible reason for this finding is that
discussed by Opsabl and Dunnette (1966) and has been previously considered in discussing the Adams and Jacobsen (1964) study. The argument is that in the reduced dissonance condition, the subject may feel
that he is expected to perform poorly and the S might then perform in
accordance with E's implied expectation. This study offers some support
of this explanation in that those reduced dissonance Ss who were given
no knowledge of production "norms" scored fewer questionnaires than
any of the groups, while those who were told the "norms" produced more
than the overpaid Ss who knew the norms and nearly as much as those
overpaid Ss who did not know the norms. Thus, if one "controls" for
Opsahl and Dunnette's criticism by stating production norms, the "insulted" reduced dissonance S performs very much like the "insulted"
overpaid Ss.
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THEORY
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own ratio was unity but was not equal to Other's. This finding is consistent with equity theory.
Preferences between own-comparison and own equity were approximately equal.
The results generally show that comparison inequity is more uncomfortable than own inequity, and that own-comparison inequity is more
uncomfortable than own inequity. However, as Weick and Nesset point
out, there are some situations where own inequity is more bothersome
than comparison inequity.
The authors also consider other aspects of their data including preferences between overpayment and underpayment, and preferences between
the three types of overpayment and three types of underpayment described earlier. However, it seems very difficult to interpret these data
due to the fact that the effects are so confounded. There are three types
of preferences possible (own vs. comparison, own/comparison vs. own,
own/comparison vs. comparison) ; within each of these, there is overpayment and underpayment; and for both of these there are three different
configurations leading to inequity. This necessitates 18 separate types of
items in this 20 item questionnaire. Any grouping of items analyzed for
the effects of one variable must necessarily include items which are different on other variables. Due to this difficulty in interpretation, it seems
advisable to forego consideration of these analyses at the present time.
While it appears to us that the methodology employed in this study is
very valuable for generating hypotheses about equity, this methodology
is inferior to actually hiring Ss and e.g., paying them at different rates.
The first problem with this questionnaire approach is the validity of the
self-report technique. Specifically, even though S may honestly feel he
would resolve the inequity in a certain fashion if he were in that situation, or even that he would prefer to be in one situation as compared with
another, may or may not be identical to his feelings or actions if he were
actually in the situation. Secondly, it seems possible that some sort of
social desirability set could be affecting the results. S has to choose
between two situations: e.g., (1) he is earning high wages for little work
while his co-worker earns the same wages for a great deal of work; or (2)
a situation which is similar except that S earns wages more commensurate
with the amount of work he does. Clearly, the socially desirable response
is to prefer the latter. Employing social desirability set is made even
"easier" since it doesn't "cost" S anything to lower his own wages. The
authors report that, when asked the purpose of the experiment, the most
frequent answers were "how much you worry about the other guy" and
"how aftiliative you are with others." If we add the idea of demand
characteristics to the social desirability argument, there could be a
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marked tendency for S to choose comparison and own/comparison inequity as most uncomfortable. This is indeed what was found, and thus,
it seems impossible to separate the possible effects of social desirability
and demand characteristics from actual preference.
From the literature we have discussed, the predictions made by equity
theory regarding underpayment are generally supported. In two of the
studies (Homans, 1953, and Patchen, 1961) discrepancies in input-outcome ratios were related to feelings of dissatisfaction. In four studies
(Clark, 1958; Lawler and O'Gara, 1967; Adams and Rosenbaum, 1962;
Arrowood, 1961), perceived under-reward led to observable behavior that
tended to make input-outcome ratios more equitable. The effects reported by these studies were statistically significant, and in the :other
study of underpayment (Andrews, 1967), the results were in the predicted direction.
The effects of overpayment, however, have not been demonstrated to
our satisfaction. The only extensively discussed study which excluded
the possible contaminants of the "self-esteem" problem and the "set for
high quality" problem was that of Andrews (1967). Here overpaid Ss
did not produce significantly less work than the equitably paid Ss, and
there is only marginal evidence that overpaid Ss produced higher quality
work. Furthermore, an unpublished study by Lawler, reported by Goodman and Friedman (1968), also tends to confirm the self-esteem argument. He found that while Ss who were made to feel overpaid by implying they were unqualified produced more than the equitably paid group,
Ss who were overpaid "by circumstance," and thus should not experience
this generalized lowered self-esteem, did not produce more than the
equitably paid Ss.
It would seem appropriate at this time to briefly summarize the
methodological issues brought up by the previous studies with one eye
towards some guidelines for subsequent research in the area. The most
commonly used overpayment manipulation may be contaminated with
problems of self-esteem, both a generalized lowered self-esteem from the
"insult" and dissonance due to the subject's prior perceived qualifications.
A better manipulation may be to simply pay the overpaid Ss more, the
amount based on a pretest, and forego discussion of the S's qualifications.
Aside from the self-esteem problem, particular attention must be given
to any aspects of the manipulation which stress either quantity or quality
of subsequent work. Stressing either quantity or quality in the initial
contact may tend to effect the other, since they are inversely correlated.
Another issue is the use of piece-rate or hourly payment. In the piecerate condition, the subject will not initially be aware of how much he is
.earning unless he actually stops to count his work. Also, the modes of
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The notions of equity theory posit that (1) in certain situations Person
will experience inequity, (2) this experience of inequity will lead to some
form of discomfort, and (3) that Person will respond in ways to reestablish equity and reduce this discomfort. We will consider each of
these three notions in turn.
Determinants of Inequity
While Adams mentions that Person may use himself as an Other, he
primarily considers the case where Other is another individual or individuals. It seems to us that the former possibility, which we shall term
the "internal standard," is a very powerful concept. We shall use this
term to denote the amount of outcome Person perceives as being commensurate with his own inputs, without regard to any comparison
person. It is quite reasonable to assume that this internal standard exists,
and no matter how it was developedi can be t h e basis of satisfaction or
dissatisfaction in an exchange relationship. If a.graduate engineer were
paid $1.50 per hour, he would not need a comparison person to feel the
situation was inequitable. Equity theory as presented by Adams postulates that Person will:not experience inequity if he is in a position of
underpayment and those he compares with are in a similar plight. The
concept of the internal standard would suggest that if Person's inputs are
greater than his outcomes, he will experience some form of discomfort
whether or not comparison persons are in a similar plight.
The internal standard is based both on Person's past experience in
exchange relationships and his knowledge of the "market value" of
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comes at the impersonal end, and thus decrease the chances of felt
inequity.
We postulated previously that Person will not generally experience
dissatisfaction when his outcomes are greater than his inputs. We are now
in a position to clarify this. Person will tend to maximize gain and thus
will feel less inequity when his outcomes are greater than his inputs in
the situation where there is no one in a direct exchange relationship with
him whose input-outcome ratio is less than his. Thus, if Person's inputoutcome ratio is higher than that of an individual with whom he is in a
direct exchange relationship, he will experience inequity much easier than
if the same amount of over-reward existed on a job where rewards were
controlled by a third party. 5 Thus, it is not only the absolute discrepancy
between input-outcome ratios that determines the presence and amount
of inequity, but also, and more importantly, the amount of psychological
contact between Person and those who might be available for comparison.
This seems to be the basis of the postulated existence of a higher
threshold for over-reward than for under-reward. Under-reward will
always lead to dissatisfaction due to the maximum gain hypothesis ; overreward, on the other hand, will lead to satisfaction to the extent that
possible comparison persons are in an impersonal relationship with
Person. A person in an industrial setting will typically have available to
him possible comparison persons who are in a more impersonal relationship with him, and thus be relatively insensitive to over-reward.
Consideration of the intimate-impersonal continuum also yields a
prediction contrary to Adams in the situation where Person's inputs equal
his outcomes, but another individual in Person's psychological environment has inputs which are greater than his (Other's) outcomes (HH,
HL). We would predict that Person would experience inequity if he and
the other person are in a direct exchange relationship. However, Person
will not feel nearly as much inequity if the second person is expending
more inputs for the same amount of reward and t.hey are related to each
other by the fact that they are being rewarded by a third party, e.g., an
employer. Person may feel inequity in the sense that the other person
should work less or be paid more, but this will in no way lead to dissatisfaction with his own ratio, nor will it lead to Person engaging in behavior
to lower his own outcomes or raise his own inputs, but more on this later.
We postulated earlier that if Person's inputs were greater than his
5 I t might be argued t h a t the person who hired Person could be seen as the
partner in a direct exchange relationship, b u t we do n o t feel this would normally be
the case, since the person who does the hiring is usually n o t paying the person
out of his own pocket.
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outcomes, he will experience dissatisfaction regardless of the input-outcome ratio of other people in his psychological environment. We can now
add that if other people in Person's psychological environment have a
more advantageous ratio (i.e., they have HH or LH compared with
Person's HL), this will lead to even greater dissatisfaction. However,
based on the continuum idea, with a given amount of difference between
the two ratios, the dissatisfaction will be greater when two people are in
a direct exchange relationship than when their outcomes are controlled
by a third party.
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THEORY
209
Responses to Dissatisfaction
We have now said that when Person is under-rewarded he will experience dissatisfaction with his own situation, irrespective of any eomparison person; when over-rewarded in a. direct, face-to-face, exchange
relationship he will be dissatisfied with his own position; but when he is
relatively over-rewarded and both persons' rewards are controlled by
someone else, he will feel that the System is unjust, but will not feel
responsible for it.
In this situation we would make different predictions than Adams. If
Person feels relatively over-rewarded by a third party, he should make
no attempts to change his own inputs or outcomes, nor feel dissatisfied
when comparing his ratio with someone who has the same inputs as he
does, but lower outcomes.
We also said that when Person is in an equitable situation with regard
to his internal standard, and other people in his psychological environment are receiving more reward from the third party for the same inputs
(LL, LH) Person should experience dissatisfaction with the System. In
this case, we would agree with Adams in saying that Person will make
attempts to achieve a more "equitable" situation. However, we would
predict that he will attempt to raise his outcomes rather than lower his
inputs (maximum gain). Furthermore, he will not attempt to alter Other's
ratio by encouraging him to raise his inputs or lower his outcomes since
Person's dissatisfaction is not directed at any aspect of the other individual, but rather at the System.
It would be beneficial to conclude this section with a list of predictions
made by this formulation which are either not made or are at odds with
the predictions made by Adams.
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