Here is an equity equation for Louis and Rita, both of whom agree that all figures are accurate: Louis: Rita:
Outcomes = 19 Outcomes = 10
Inputs = 7 Inputs = 5
According to equity theory
A)Rita should be experiencing inequity.
B)Louis should be experiencing equity.
C)Louis and Rita should be experiencing equity.
D)Rita and Louis should be experiencing job satisfaction.
E)None of the above

Question

Quizplus · Accepted Answer

Equity theory suggests that individuals assess fairness in compensation by comparing their own balance of inputs and outcomes with others. Here, Louis's ratio is 19/7, and Rita's is 10/5, which simplifies to 2.71 and 2, respectively. Since Louis's ratio is higher, Rita would perceive inequity, feeling under-rewarded in comparison.

Here Is an Equity Equation for Louis and Rita, Both