Equity theory holds that people who feel underpaid will increase their efforts in order to increase their compensation.

Name: Equity theory holds that people who feel underpaid will increase their efforts in order to increase their compensation.
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Question

Quizplus · Accepted Answer

Equity theory actually suggests that people who feel underpaid are likely to decrease their efforts, as they perceive an imbalance between their inputs (effort, time, skills) and outputs (compensation, recognition), leading to feelings of inequity.

Equity Theory Holds That People Who Feel Underpaid Will Increase