Jim is a salaried employee whose job is to develop content for online web sites. He discovers that he is paid substantially more than his colleagues, even though their jobs and levels of performance are very similar. According to the equity theory, what impact is this discovery most likely to have on his behavior and performance?
A) He will reduce the amount of work that he does on a daily basis.
B) He will compare his earnings to those of another group of employees.
C) He will seek a position within the company commensurate with his pay.
D) He will increase his productivity and/or the overall quality of his work.
E) He will begin to look for a position outside of the company.

Question

Quizplus · Accepted Answer

According to the equity theory, individuals compare their inputs (e.g. effort, skill) and outcomes (e.g. pay, recognition) to the inputs and outcomes of their referent group (in this case, Jim's colleagues). When Jim discovers that he is being paid more than his colleagues for similar work, he may feel guilty or uncomfortable and thus be motivated to increase his own inputs (effort, quality of work) to justify his higher pay. Therefore, the most likely impact on his behavior and performance is that he will increase his productivity and/or overall quality of his work.

Jim Is a Salaried Employee Whose Job Is to Develop