Equity theory and expectancy theory make different predictions under conditions of perceived underreward coupled with strong performance-outcome expectancies. A synthesis of these theories is proposed: Equity performance effects depend on the strength of the performance-outcome expectancy. Free-agent nonpitchers in the 1977-1980 baseball seasons were compared with a random sample of nonpitchers. These free agents probably felt underrewarded before entering the free-agent market yet probably also had expectations of higher salaries after becoming free agents. These competing motivations were hypothesized to affect individual performance. Two types of performance were assessed. Batting average, which had a weaker relation to salary outcome, declined in the year before free agency, whereas home run ratio, which had a stronger relation with salary outcome, did not decline. These results are consistent with the proposed synthesis.A number of theories have been proposed to explain individual motivation to perform in organizations. Equity theory and expectancy theory are two approaches that have generated a considerable amount of research, but under some conditions, these two theories produce opposite predictions. One such set of conditions was explored in the current field study, which was designed to test alternative equity and expectancy theory predictions.According to equity theory (Adams, 1963(Adams, , 1965Walster, Walster, & Berscheid, 1978), outcomes will be perceived as fair when the ratio of outcomes to inputs is equal across individuals. Inequity exists when the outcome-input ratios between a focal person and a comparative referent are unequal. Inequity is posited to create tension, which motivates an individual to restore equity. This restoration of equity can be accomplished in a number of ways. Outcomes can be altered, objectively or psychologically; inputs can be altered, objectively or psychologically; comparative referents can be changed; or an individual can leave or psychologically withdraw from the situation. As Greenberg (1989) pointed out, however, equity research offers little guidance as to when psychological adjustments rather than objective adjustments will occur. Complicating the matter further, psychological adjustments are difficult to measure and vali-An earlier version of this article was presented at the April 1987 annual meeting of the Western Academy of Management, Hollywood, California. Barry Posner's encouragement in that endeavor was greatly appreciated.I gratefully acknowledge the comments of
Two studies tested the hypothesis that organizational decision makers attempt to counterbalance contribution-based distributions of financial~material rewards (a "merit" system that creates monetary inequality) with need-and equality-based allocations of socioemotional rewards, in effect allocating "roses" in lieu of more "bread. "Experiment I had a two-factor design (Reward
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