Employees make decisions concerning equity only after they compare their inputs and outcomes with those of comparable employees.

Question

Quizplus · Accepted Answer

This statement describes the equity theory of motivation, which suggests that employees compare their own inputs (such as effort, skills, and experience) and outcomes (such as pay, benefits, and recognition) with those of others who are similar to themselves (known as referent others). Based on this comparison, employees may make decisions about whether they feel fairly compensated, and may adjust their behavior (such as by seeking higher pay, reducing effort, or seeking recognition) accordingly.

Employees Make Decisions Concerning Equity Only After They Compare Their