Barbara Subaru is a secretary with a prestigious law firm who has observed that other secretaries with the firm receive better pay and have better working conditions than she does, even though she is more productive than they are. Equity theory would label this condition as ________.

Question

Quizplus · Accepted Answer

Underpayment inequity occurs when an employee perceives that they are receiving less pay or benefits in comparison to their coworkers who are performing similar work. In this scenario, Barbara observes that her coworkers are receiving better pay and working conditions despite her being more productive, which is an example of underpayment inequity.

Barbara Subaru Is a Secretary with a Prestigious Law Firm