Two employees are performing the same job and are required to meet the same standards; however, one employee makes $2 per hour more for the job. According to which theory will the lower paid employee be unsatisfied because he feels he is being treated unfairly in comparison to his coworker?
A) McClelland's needs theory
B) Equity theory
C) Expectancy theory
D) Consistency theory

Question

Quizplus · Accepted Answer

Equity theory suggests that employees are motivated by a sense of fairness and they compare their inputs (e.g. effort, skills) and outcomes (e.g. pay, recognition) with those of their colleagues. If they perceive an inequity, such as being paid less than a coworker for the same job, they will experience dissatisfaction and a sense of injustice. Therefore, the lower paid employee in this scenario is likely to be unsatisfied and demotivated according to equity theory.

Two Employees Are Performing the Same Job and Are Required