American employees put great value in being treated fairly. According to equity theory, if things seem unfair, they will do their best to make them equitable by withholding effort, increasing effort, or by rationalizing that they are undeserving of the same as others.

Question

Quizplus · Accepted Answer

Equity judgments are based on perceptions and are subject to errors and disagreements. It is not unusual for employees to overestimate their own contributions and to disagree with the evaluations of managers. When this happens, the employees may perceive the pay and recognition they receive as inequitable even if the manager was actually accurate in evaluating performance.

American Employees Put Great Value in Being Treated Fairly