Which one of the following statements about the application and/or implications of equity theory is INCORRECT?
A) What may seem fair and equitable to a team leader might be perceived as unfair and inequitable by a team member after comparisons are made with other team members.
B) Feelings of inequity are determined solely by an individual's interpretation of a situation.
C) People who feel they are overpaid tend to decrease the quantity or quality of their work, whereas people who feel they are underpaid tend to increase the quantity or quality of their work.
D) People are less comfortable when they are under-rewarded than when they are over-rewarded.
E) Perceived inequity creates a state of dissonance that people are motivated to eliminate.

Question

Quizplus · Accepted Answer

Statement C is incorrect because, according to equity theory, people who feel they are overpaid (over-rewarded) may actually increase their effort to reduce the dissonance created by feeling over-rewarded, while those who feel underpaid (under-rewarded) might decrease their effort or quality of work as a way to balance the perceived inequity.

Which One of the Following Statements About the Application And/or