Serena and Norah are colleagues in an advertising firm. Norah has the same qualifications as Serena and puts in more visible effort into her work than her colleague. However, Norah finds out that Serena earns more than her and also gets better increments. This knowledge highly demotivates Norah and her productivity reduces drastically. This scenario is reflective of the assumptions of _____.

Question

Quizplus · Accepted Answer

The equity theory suggests that employees are motivated by fairness, and if they perceive an inequity in the workplace, it can lead to demotivation and reduced productivity.

Serena and Norah Are Colleagues in an Advertising Firm