Equity theory research shows that an egalitarian pay structure will be seen as more fair than a hierarchical structure.

Question

Quizplus · Accepted Answer

Equity theory suggests that fairness is perceived when the ratio of inputs to outcomes is equal among individuals, not necessarily when pay is equal. A hierarchical pay structure can be seen as fair if it reflects differences in inputs like experience and performance.

Equity Theory Research Shows That an Egalitarian Pay Structure Will