According to the _____ theory, relative pay is important as employees evaluate their pay-effort balance in comparison to other employees.
A)equity
B)expectancy
C)agency
D)reinforcement

Question

Quizplus · Accepted Answer

The equity theory states that employees evaluate their pay and level of effort in comparison with other employees, and fairness is important in determining job satisfaction and motivation. It suggests that employees strive for equity in their pay and will compare their inputs (time, effort, and skills) to their outcomes (pay and other rewards) in relation to other employees to determine if they are being treated fairly. This theory is concerned with the distribution of rewards and punishments among individuals in a group and how they are perceived to be fair or unfair.

According to the _____ Theory, Relative Pay Is Important as Employees