Page "Equity theory" Paragraph 50

Criticism has been directed toward both the assumptions and practical application of equity theory.

Scholars have questioned the simplicity of the model, arguing that a number of demographic and psychological variables affect people's perceptions of fairness and interactions with others.

Furthermore, much of the research supporting the basic propositions of equity theory has been conducted in laboratory settings, and thus has questionable applicability to real-world situations ( Huseman, Hatfield & Miles, 1987 ).

Critics have also argued that people might perceive equity / inequity not only in terms of the specific inputs and outcomes of a relationship, but also in terms of the overarching system that determines those inputs and outputs.

Thus, in a business setting, one might feel that his or her compensation is equitable to other employees ', but one might view the entire compensation system as unfair ( Carrell and Dittrich, 1978 ).