S1 : Equity theory is concerned with the perception people have about how they are being treated compared with others. P: To be dealt with equitably is to be treated fairly in comparison with another group of people or a relevant other person. Q: Equity involves feelings and perceptions and is always a comparative process. R: Equity theory states, in effect, that people will be better motivated if they are treated equitably and demotivated if they are treated inequitably. S: It is not synonymous with equality, which means treating everyone the same, since this would be inequitable if they deserve to be treated differently. S6 : This explains only one aspect of the process of motivation and job satisfaction, although it may be significant in terms of morale.