Karen graduated from college four years ago and has been working at Betaphy Inc. ever since. She has consistently received good performance evaluations for the quality of her work. She recently found out that her company hired a fresh college graduate with no experience at a salary higher than hers. Which of the following theories will Karen most likely use to evaluate this situation?
A) reinforcement
B) goal setting
C) equity
D) operant conditioning
E) expectancy

Question

Quizplus · Accepted Answer

Karen is likely to use equity theory to evaluate the situation because she perceives an inequity in the ratio of her experience and salary in comparison to the fresh college graduate who has no experience but is getting a higher salary. Equity theory suggests that individuals compare their inputs (such as effort and experience) and outcomes (such as salary and recognition) to those of others, and if they perceive an inequity, they may feel demotivated or dissatisfied.

Karen Graduated from College Four Years Ago and Has Been