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one’s outputs can be achieved through legitimate means such as negotiating a pay
raise. At the same time, research shows that those feeling inequity sometimes resort
[3]
to stealing to balance the scales. Other options include changing the comparison
person (for example, Marie may learn that others doing similar work in different

organizations are paid only minimum wage) and leaving the situation by quitting
[4]
one’s job. We might even consider taking legal action as a potential outcome of
perceived inequity. For example, if Marie finds out that the main reason behind the
pay gap is gender, she may react to the situation by taking legal action because sex
discrimination in pay is illegal in the United States.
Overpayment Inequity
What would you do if you felt you were overrewarded? In other words, how
would you feel if you were the new employee, Spencer (and you knew that your
coworker Marie was being paid $4 per hour less than you)? Originally, equity theory
proposed that overrewarded individuals would experience guilt and would increase
their effort to restore perceptions of equity. However, research does not provide
support for this argument. Instead, it seems that individuals experience less distress as
[5]
a result of being overrewarded. It is not hard to imagine that individuals find
perceptual ways to deal with a situation like this, such as believing that they have
more skills and bring more to the situation compared with the referent person.
Therefore, research does not support equity theory’s predictions with respect to
people who are overpaid.
[6]
Individual Differences in Reactions to Inequity
So far, we have assumed that once people feel that the situation is inequitable,
they will be motivated to react. However, does inequity disturb everyone equally?
Researchers identified a personality trait that explains different reactions to inequity
[7]
and named this trait equity sensitivity. Equity sensitive individuals experience
distress when they feel they are overrewarded or underrewarded and expect to
maintain equitable relationships. At the same time, there are some individuals who
are benevolents who give without waiting to receive much in return and entitleds who
expect to receive a lot without giving much in return. Thus, the theory is more useful
in explaining the behavior of equity sensitive individuals, and organizations will need
to pay particular attention to how these individuals view their relationships.
Fairness Beyond Equity: Procedural and Interactional Justice
Equity theory looks at perceived fairness as a motivator. However, the way
equity theory defines fairness is limited to fairness regarding rewards. Starting in the
1970s, researchers of workplace fairness began taking a broader view of justice.
Equity theory deals with outcome fairness, and therefore, it is considered to be a
distributive justice theory. Distributive justice refers to the degree to which the
outputs received from the organization are fair. Two other types of fairness have been
identified: Procedural justice and interactional justice.
Let’s assume that Marie found out she is getting a promotion that will include a
pay raise, increased responsibilities, and prestige. If Marie feels she deserves to be
promoted, she would perceive high distributive justice (“getting the promotion is
fair”). However, Marie later found out that the department manager picked her name
out of a hat! What would she feel? She might still like the outcome but feel that the

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