By Jeff Damulira
Equity theory is usually associated within organizational behaviour and management. But, the equity theory is based on how people measure their amount of input in correlation to the outcome and comparing input/outcome ratios to others. To oversimplify the similarity to our daily interactions with others could be measuring our contribution to colleagues lives or friend or spouse and noticing the recognition, rewards or returned bigger favour. Then, we can observe the ratio difference on the similar amount of input to other people and overall outcome. If, one person has a lower outcome, than the other person with higher outcome; then the person with less or no favour will lose influence and commitment in the long term.