Sandra works for a consulting company and is paid $100,000 per year. She recently found out that a new hire was offered twice her salary, and as a result Sandra has reduced her productivity. Which theory might explain her behavior?

Question

Quizplus · Accepted Answer

According to equity theory, individuals compare their inputs (such as effort, experience, and qualifications) with their outputs (such as pay and benefits) with others who are in a similar situation. If they perceive that they are not receiving fair compensation compared to others who have similar inputs, they may reduce their productivity or exhibit other negative behavior. In this case, Sandra's reduced productivity may be a result of perceiving inequity in her pay compared to the new hire.

Sandra Works for a Consulting Company and Is Paid $100,000