Equity theory:
A) Proposes that employees are not motivated by factors in the work environment.
B) Suggests that employees are motivated by higher-order needs only after lower-level needs have been satisfied.
C) Explains how people strive for fairness in the workplace.
D) Holds that employees perform better when they believe their efforts lead to desired rewards.

Question

Quizplus · Accepted Answer

Equity theory suggests that people strive for fairness in the workplace. The theory proposes that employees compare their inputs (contributions to the organization) to their outcomes (rewards received) with those of others in similar positions. If employees perceive inequity (either over-rewarded or under-rewarded), they may modify their behavior or even leave the organization to restore equity.

Equity Theory