Kiara,a waitress,receives a salary increment.Even though Kiara's coworkers received five percent more increment than her,Kiara perceives the hike to be in line with her performance and experience.This scenario illustrates:

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The scenario illustrates equity theory, as Kiara perceives the hike to be fair and equitable based on her performance and experience, despite her coworkers receiving a slightly higher increment. Equity theory suggests that individuals are motivated when they perceive equity, or fairness, in their rewards and outcomes compared to others in similar situations.

Kiara,a Waitress,receives a Salary Increment