Which of the following observations is true about the equity theory?
A)Equity theory suggests that managers compare the performance of employee's with their potential to improve.
B)Job evaluation is the primary administrative tool organizations use in choosing a pay level.
C)Internal equity pay comparisons focus on what employees in other organizations are paid for doing the same general job.
D)The organization's choice of job structure influences its employees' external comparisons and their consequences.
E)Employees' evaluations of their pay relative to that of other employees influence their work attitudes and behaviors.

Question

Quizplus · Accepted Answer

Equity theory's main implication for managing employee compensation is that to an important extent, employees evaluate their pay by comparing it with what others get paid, and their work attitudes and behaviors are influenced by such comparisons.

Which of the Following Observations Is True About the Equity