Recently Mario learned that a new employee was hired at his company,and that she was starting out at a salary that is equivalent to his.The only problem for Mario,however,is that he has been working at the company for two years already.He is suddenly gripped with the sense that he is being underpaid,even though he had no problem with his salary just yesterday.Mario's new sense of dissatisfaction is explained by the __________ theory.
A) equivalency
B) equity
C) even rewards
D) incentive

Question

Quizplus · Accepted Answer

The equity theory explains that people compare their inputs and outcomes to those of others in similar situations. In this case, Mario's sense of dissatisfaction stems from his perception that the new employee's salary is equivalent to his own, even though he has been working at the company for longer. This perception goes against the equity principle that people expect their rewards to be proportional to their inputs and experiences.

Recently Mario Learned That a New Employee Was Hired at His