Equity Theory primarily addresses individuals' perceptions regarding what aspect?

Equity Theory focuses on individuals' perceptions of fairness in their relationships, particularly in the context of work and social exchanges. The theory posits that people evaluate their inputs (such as effort, skill, and time) and outputs (like salary, recognition, and benefits) in comparison to others. If individuals perceive an imbalance or unfairness in these exchanges, it can lead to feelings of dissatisfaction, demotivation, or decreased engagement.

Understanding fairness is crucial in workplace dynamics, as it directly influences employee morale and behavior. When employees feel that their contributions are valued and fairly compensated relative to their peers, they are more likely to be satisfied and committed to their roles. Thus, Equity Theory emphasizes the importance of fair treatment in relationships, highlighting how perceptions of equity affect motivation and job performance.