Which of the following theories suggests that employee motivation is influenced by what other people contribute to and receive from the organization?
A)Expectancy Theory
B)Equity Theory
C)Needs-based Theory
D)Need Theory
E)Goal Setting Theory

Question

Quizplus · Accepted Answer

Equity Theory suggests that people's motivation is influenced by their perception of the fairness of their treatment relative to the treatment of others in the organization. It focuses on the social comparison and evaluates the ratio between inputs and outcomes that individuals receive from their organization. The outcomes can be tangible or intangible, such as pay, recognition, promotion or respect, and status, while the inputs are individual efforts, skills, education, and experience. When employees perceive an imbalance in their inputs and outcomes compared to their peers or to their previous experiences, they may feel demotivated and reduce their effort or even quit. Conversely, when employees perceive fairness or equity in their treatment, they tend to be more satisfied and committed to their job.

Which of the Following Theories Suggests That Employee Motivation Is