Equity theory suggests that if employees perceive inequity in the workplace, they might respond with reduced productivity, higher absenteeism, or even voluntary resignation.

Question

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Equity theory states that individuals compare their own inputs and outcomes (such as effort, performance, and rewards) to those of others in the workplace. If they perceive that others are getting more or less than they are for similar inputs and outcomes, they may feel a sense of inequity. This can result in negative behaviors such as reduced productivity, absenteeism, or turnover.

Equity Theory Suggests That If Employees Perceive Inequity in the Workplace