Equity theory proposes that individual rewards are based on employee motivation and not
based on individual efforts or performance.

Question

Quizplus · Accepted Answer

Equity theory suggests that employees compare their inputs (such as effort and performance) to their outcomes (such as rewards and recognition) with those of their coworkers. If an employee feels that they are not receiving equitable rewards based on their efforts, they may experience reduced motivation and job satisfaction. Thus, rewards are based on both employee motivation and individual efforts/performance.

Equity Theory Proposes That Individual Rewards Are Based on Employee