What is known as negative inequity in equity theory?

Negative inequity, as described in equity theory, refers to a situation where an individual perceives that they are receiving fewer outcomes relative to their inputs compared to others. This sense of unfairness can lead to feelings of demotivation or dissatisfaction. In essence, when a person contributes a certain level of effort, time, or resources (inputs) but feels they are receiving less in return (outcomes) than others who contribute similarly, this is recognized as negative inequity.

This concept emphasizes the importance of perceived fairness in the workplace and suggests that employees are motivated not just by their absolute rewards, but by how those rewards compare to the contributions of their peers. When employees feel they are at a disadvantage, their motivation to perform may decrease, which can impact overall organizational performance.

In this case, the other options refer to different aspects of equity theory but do not accurately represent the notion of negative inequity. For example, receiving more outcomes than inputs describes a situation of positive inequity, while feeling satisfied with rewards suggests a sense of fairness rather than inequity. Judging efforts based on personal standards does not directly relate to the comparative nature of equity theory but more to individual perceptions of performance.