Equity theory holds that when inequities occur, employees attempt to correct the situation.

Question

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Equity theory suggests that employees seek to maintain equity between the inputs they bring to a job and the outcomes they receive from it, compared to the perceived inputs and outcomes of others. When they perceive inequity, they are motivated to eliminate it, either by altering their inputs or outcomes, or by changing their perception of others' inputs and outcomes.

Equity Theory Holds That When Inequities Occur, Employees Attempt to Correct