This theory suggests that an employee must regard his own ratio of merit increase pay to performance as similar to the ratio for other comparably performing people in the company.
A) comparable ratio theory
B) comparable pay theory
C) equality theory
D) equity theory

Question

Quizplus · Accepted Answer

This theory is known as equity theory, which posits that employees compare their own inputs (e.g. effort, experience, skills) and outcomes (e.g. pay, benefits, recognition) to those of others in similar positions within the organization. The theory suggests that employees strive to achieve a sense of fairness or equity in these comparisons, such that they feel they are being treated similarly to others with comparable performance levels.

This Theory Suggests That an Employee Must Regard His Own