In the long term, White decides that equity theory will provide the best guidance for motivating and providing recognition to the employees. He is also aware that the unions may battle his new initiatives. Equity theory demonstrates that, for most employees, motivation is influenced
A)significantly by goal setting as well as by ability to be productive.
B)by union influence over their welfare.
C)solely by monetary rewards.
D)significantly by relative rewards as well as by absolute rewards.
E)significantly by goal setting as well as by absolute rewards.

Question

Quizplus · Accepted Answer

Equity theory states that motivation is not only influenced by absolute rewards (such as monetary compensation), but also by relative rewards (perceived fairness in comparison to others). Therefore, White's focus on equity theory, which includes providing recognition and addressing fairness concerns, is appropriate. The mention of unions in the question does not change the fact that equity theory is a relevant approach to employee motivation.

In the Long Term, White Decides That Equity Theory Will