According to equity theory, a person who earns $50 000 will be less satisfied with his/her pay than a person who earns $100 000.

Question

According to equity theory, a person who earns $50 000 will be less satisfied with his/her pay than a person who earns $100 000.

Quizplus · Accepted Answer

Equity theory suggests that satisfaction with pay is determined by comparing one's own pay ratio (input to outcome) to the pay ratios of others, not solely by the absolute amount of pay. A person earning $50,000 could be more satisfied if they perceive their pay as equitable or fair compared to their peers, while a person earning $100,000 might be less satisfied if they perceive their pay as inequitable compared to their peers.

According to Equity Theory, a Person Who Earns $50 000 Will