Which theory relies on the relationship between perceived inputs and outputs for motivation?

The correct answer is Equity Theory, which emphasizes the importance of perceived fairness in the distribution of rewards and contributions in a relationship, particularly in a workplace setting. According to this theory, individuals assess their own input-output ratio—what they contribute to a job (such as effort, skill, and time) compared to the outcomes they receive (such as salary, benefits, and recognition).

When individuals perceive that their ratio is equitable in relation to others, they are more likely to be motivated and satisfied. Conversely, if they feel that they are under-rewarded or over-rewarded compared to their peers, it can lead to feelings of resentment or guilt, respectively, which can detrimentally affect motivation and overall job satisfaction.

Equity Theory highlights the role of social comparison and the psychological processes that influence motivation, making the relationship between perceived inputs and outputs central to an individual's motivation in the workplace.