Which theory involves creating a mental ledger to compare one's outcomes relative to others?

Equity theory is centered around the idea that individuals assess their own outcomes in relation to the outcomes of others. This evaluation process often involves creating a mental ledger or comparison where one analyzes inputs (like effort, skills, and time) against outputs (such as rewards, recognition, and pay) they receive relative to others. If a person perceives that their ratio of inputs to outputs is out of balance compared to peers, it can lead to feelings of inequity, dissatisfaction, and motivation to restore balance—either by adjusting their own efforts or by seeking changes to their outcomes. This theory highlights the importance of perceived fairness in social exchanges, making it a fundamental concept in understanding motivation and workplace dynamics.

In contrast to other theories presented, self-efficacy theory focuses on an individual's belief in their capabilities to perform tasks successfully. Empowerment theory emphasizes the process of enabling individuals or groups to gain control over their circumstances. Meaningfulness theory, while addressing motivation through finding significance in work, does not focus on comparisons to others. Thus, equity theory uniquely captures the concept of relational comparisons through the mental ledger.