Abstract

Although the concept of relevance of inputs and outcomes plays a central role in equity theory, it has not been clearly defined. This article attempts to answer the question of which inputs and outcomes are taken into account in perceptions of equitable treatment. Equity theory posits that an individual perceives equity or inequity in a work situation on the basis of organizational fairness. This research examines the factor structure of Organizational Fairness Questionnaire and Pay Satisfaction Questionnaire. Job satisfaction is important to individual's goal as well as job motivation and job performance. In this perspectives, this research explores the relationship between perceptions of equity and job satisfaction. Employee perceptions of equitable treatment were found to be stronger predictors of pay and job satisfaction variables.