Equity theory holds that people who feel underpaid will decrease their level of effort and performance as a means of responding to feelings of inequity.

Question

Quizplus · Accepted Answer

Equity theory suggests that individuals who perceive themselves as being underpaid compared to their coworkers will likely reduce their effort and performance to address the imbalance they feel, aligning their input to what they perceive as fair output or compensation.

Equity Theory Holds That People Who Feel Underpaid Will Decrease