Constructing a Case for Equity Theory: An Exercise to Help Students Understand the Differences Between Equity and Equality

Abstract

This paper addresses the challenges students face in distinguishing between equity and equality, particularly in understanding the core principles of equity theory. While the theory is central to explaining perceptions of fairness and motivation, the term “equity” is often misunderstood due to its varied definitions across different fields. To clarify this concept, the paper presents a practical exercise that helps students recognize the difference between equity and equality, focusing on fairness in organizational rewards. The exercise draws on students’ innate sense of fairness, fostering peer discussions and building a foundation for understanding equity theory. Designed for undergraduate students with limited professional experience, the activity has proven effective in both in-person and online classes. Biblical principles are incorporated to provide additional context and emphasize fairness in decision-making. The exercise highlights the importance of equity theory in organizational settings, offering insights into motivation, justice, and the ethical distribution of rewards.