Effects of perceptions of equity and inequity on worker performance and satisfaction

Abstract

Hired 253 male undergraduates to perform clerical work for 7 consecutive 1/2-days. Feelings of inequity were experimentally induced by making ss feel overpaid, underpaid, or equitably paid. The naturally occurring induction was produced by changing the pay system 1/2 way through the week's work. Results in general are supportive of equity theory deductions. There were trends for (a) underpaid ss to decrease productivity in both conditions, and (b) overpaid ss to parallel the equitably paid groups over time. Effects on overall job satisfaction show that ss under both overreward and underreward conditions were less satisfied than ss made to feel equitably paid. Effects on job satisfaction were particularly strong under high-incentive conditions (modified piece-rate payment) as opposed to low-incentive conditions (flat hourly pay). (21 ref.) (PsycInfo Database Record (c) 2025 APA, all rights reserved)