You graduated from University two years ago and began working at Dingo Electronics.You have received good performance evaluations and a raise.You just found out that a recent college graduate with no experience has been hired for a similar position in another company at a higher salary than you are now making. In this example,your referent comparison for equity theory is termed:
A)self-inside
B)self-outside
C)other-outside
D)other-inside

Question

Quizplus · Accepted Answer

In this scenario, the individual is comparing themselves to someone who is outside of their organization (i.e., the recent college graduate who was hired at a higher salary in another company). Therefore, the referent comparison for equity theory is other-outside (Choice C).

You Graduated from University Two Years Ago and Began Working