Gale works for 2 hours and earns $30. Allison also earns $30, but for 3 hours of work. Equity theory predicts which of the following might happen when Gale and Allison become aware of each other's earnings: I. Gale will ask for a raise
II. Allison will reduce her effort
III. Gale will reduce her effort
IV. Allison will ask for a raise
V. Allison will perceive an inequity
A) I and IV
B) II only
C) II, IV, and V
D) All but IV
E) I, II, and III

Question

Quizplus · Accepted Answer

Equity theory predicts that individuals compare their inputs (such as hours worked) and outcomes (such as pay) with those of others, and if they perceive an inequity, they may try to restore balance. Since Gale and Allison are earning the same amount, but Allison is working for longer, she may perceive an inequity and reduce her effort. Similarly, Gale may also reduce her effort, and both may ask for a raise to restore balance. Therefore, options II, IV, and V are correct, and the best choice is C. Option I is not applicable since Gale already earns the same amount as Allison. Option III is also unlikely since Gale's effort is already leading to the desired outcome (pay) and reducing it would not make sense.

Gale Works for 2 Hours and Earns $30