In the reading "Equity Theory and Research: An Overview" by Elaine Hatfield, she explains about the four propositions the equity theory is based upon. She explains that the first proposition is where individuals try to maximize their outcomes. For example, an employer may pay it's employees much less that they deserve which results in greater profits for that individual and maybe not thinking of the consequences this may bring, such as workers going on strike which then results in no production and no profit for that individual. …
