The equity theory proposes that :
1
Employees expect that exerting a given amount of effort will lead to a certain level of performance and will be demotivated if that does not happen.
2
Offering employees part of the company's shares or equity, motivates them to do their best because their performance directly lies in with the company.
3
An employee compares his or her job's input-outcomes ratio with that of relevant others and then takes steps to correct any inequity.
4
Employees are more likely to show initiative at work if they are more involved in decisions that affect their work.