The basic principle of equity theory is that employees try to
A) maintain equity between inputs and outputs compared to people in similar positions.
B) ensure that performance standards are fair and attainable.
C) earn as much as possible with as little work as possible.
D) achieve the mutually agreed upon goals of management and employees.

Question

Quizplus · Accepted Answer

Equity theory suggests that individuals strive to maintain a balance between the inputs (effort, time, skills, etc.) they put into their jobs and the outputs (pay, recognition, benefits, etc.) they receive from it, compared to what other individuals in similar positions receive. This theory assumes that individuals constantly evaluate their situations, and if they perceive an inequity, they will try to restore equity by adjusting their inputs or outputs. Therefore, the correct answer is A. Option B suggests the concept of goal-setting theory, while option C is contradictory to the equity theory. Option D is unclear and does not represent the equity theory.

The Basic Principle of Equity Theory Is That Employees Try