Jill operates her own small business and is a strong advocate of equity theory.Because of her acceptance of this theory,Jill is likely to try to assure employees that they are compensated in a way that reflects their efforts and contributions relative to those of other employees.
Equity theory suggests that employees attempt to maintain a balance between inputs and outputs of others in similar positions.If employees perceive that they are being unfairly compensated they are likely to reduce their effort and be less productive.
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