Equity theory of motivation suggests that a person will be “motivated to obtain and preserve equitable treatment for themselves” (Pride, Hughes and Kapoor 2009, 289). Its focus is upon a person’s perceptions regarding the treatment they receive compared to the others (Daft 2007, 530).
Alan was being treated properly at the company he was working at, just like the other employees. Here the equity theory was in play. He was working under Steve who had a fine attitude with him. The company also paid his dues on time and he was respected. Because of such treatment he was fine with working at InsureCo. However, later on the attitude started changing. One day Steve was mistreated although he was senior to him. It was then that he realized that one day the same could happen to him as well. Therefore, he decided to leave the company as he felt that he could perform better and achieve more if he switched jobs.