Selection of an Equity Formula Appropriate for Organizational Behavior Research

Although equity theory originated in an organizational behavior context, most formulas purporting to be correct mathematical definitions of equity have evolved from other disciplines. This article reviews and compares proposed equity formulas and assesses their appropriateness for organizational behavior applications. A series of situational, definitional, and utility criteria are developed throughout the text. Because of its soundness as a mathematical definition of equity and because of its superior process for integrating multiple inputs and outcomes, the Farkas-Anderson (1979) equity summation formula is recommended as most appropriate for organization behavior research applications.