Equity theory is concerned with differences in pay and is not applicable to intangible rewards in the workplace.

Question

Quizplus · Accepted Answer

Equity theory can also be applied to intangible rewards such as recognition, promotion, and job satisfaction. The theory suggests that individuals compare their outcomes to the outcomes of others in similar positions and may feel a sense of inequity if they perceive that others are receiving more or better rewards for the same level of effort or performance. Therefore, the theory is not solely focused on pay differences.

Equity Theory Is Concerned with Differences in Pay and Is