Equity theory provides several insights for managerial applications to everyday situations in the workplace.Which of the following statements is NOT true in this regard?
A) People tend to take a multifaceted view of the rewards they receive from the organisation.
B) The basis for organisational rewards should be clearly communicated to employees.
C) People base their experience of equity on their perceptions, which don't necessarily match reality.
D) Formal and informal organisational rewards are equally observable to individuals when formulating equity perceptions.
E) Employees' perceptions may differ from the manager's perceptions.

Question

Quizplus · Accepted Answer

This statement is not true as formal and informal rewards may not be equally observable to individuals when formulating equity perceptions. Informal rewards such as recognition and praise may be more subjective and difficult to observe compared to formal rewards such as salary and promotions.

Equity Theory Provides Several Insights for Managerial Applications to Everyday