Equity Theory

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According to equity theory, there are four referents an employee can use:

  1. Self-inside: The employee's experience in a different position inside the employee's current organization
  2. Self-outside: The employee's experiences in a position outside the employee's current organization
  3. Other-inside: Another individual or group of individuals inside the employee's organization
  4. Other-outside: Another individual or outside of the employer's organization.