Megan graduated from college three years ago and has been working at Sterba Inc. ever since. A conscientious employee, she has consistently received good performance evaluations. She recently found out that a younger colleague, who was just recruited to her team, is drawing a higher salary than she is for doing the same type of work.
-Based on the equity theory, which of the following, if true, would strengthen the argument that Megan is trying to gain a sense of equity by distorting her perception of herself?
A) She thinks that her colleague is paid more because she is an Ivy League graduate.
B) She believes that she is less capable than her colleague.
C) She assumes that her colleague received a higher package due to changes in industry standards.
D) She believes that her salary is not commensurate with her skills and experience.
E) She believes that she is doing a lot better career-wise compared to the people with whom she graduated.

Question

Quizplus · Accepted Answer

Based on equity theory, employees who perceive inequity can distort their perceptions of themselves-"I used to think I worked at a moderate pace, but now I realize I work a lot harder than everyone else." If Megan believes that she is less capable than her colleague, then this would imply that she has distorted her perception of herself. If she thinks that her colleague is paid more because she is an Ivy League graduate, then she is distorting her perception of her colleague. This would also be true if she assumes that her colleague received a higher package due to changes in industry standards. If Megan believes that her salary is not commensurate with her skills and experience, then this neither strengthens nor weakens the argument-it only implies that she is experiencing a sense of inequity. If she believes that she is doing a lot better career-wise compared to the people with whom she graduated, then this would mean she is choosing a different referent.

Megan Graduated from College Three Years Ago and Has Been