In Equity Theory, when perception of rewards is negative, what typically happens to employee motivation?

In Equity Theory, the perception of fairness in rewards is central to employee motivation. When employees perceive that they are receiving less than their peers in terms of rewards—whether it be salary, benefits, recognition, or opportunities for advancement—they are likely to feel a sense of injustice or inequity. This perception directly affects their motivation and can lead to negative outcomes.

When the perception of rewards is negative, employees may feel demotivated as they compare their input-output ratio with that of others. This feeling of inequity can result in decreased motivation, as employees may become disengaged, reduce their efforts, or even seek to rectify the imbalance by changing their behavior—such as asking for a raise or seeking employment elsewhere. Thus, as their sense of fairness diminishes, their overall motivation tends to drop significantly. This ties back to the foundational concept of Equity Theory, which emphasizes that perceived fairness is crucial for maintaining motivation and productivity in the workplace.