The Concept of Equity in the Perception of Pay

This paper discusses ambiguities in the formulation of equity theory, examines organizational variables that limit predictions of the theory, and suggests ways in which the theory can be extended. It is concluded that the content of laboratory experiments has led investigators to bypass some crucial issues in equity theory and that the theory seems to hold under a more limited set of conditions than investigators have claimed. The value of the theory for organizational research and the importance of identifying the limiting conditions are stressed. Karl E. Weick is associate professor of psychology and director of the Laboratory for Research in Social Relations at the University of Minnesota.