Megan owns her own business and is a strong advocate of equity theory. Because of her acceptance of this theory, she is likely to assure employees that they are compensated in a way that reflects their efforts and contributions relative to those of other employees.

Question

Quizplus · Accepted Answer

Equity theory suggests that employees attempt to maintain a balance between inputs and outputs of others in similar positions. If employees perceive that they are being unfairly compensated they are likely to reduce their effort and be less productive.

Megan Owns Her Own Business and Is a Strong Advocate