You graduated from college two years ago and began working at Hampstead Electronics. You have received good performance evaluations and a raise. You just found out that your organization has hired a recent college graduate with no experience at a higher salary than you are now making. You consider this an unfair act and resolve to do something about it. Which of the following theories best describes such a situation?
A) equity theory
B) two-factor theory
C) goal-setting theory
D) theory of needs
E) self-determination theory

Question

Quizplus · Accepted Answer

This situation is best described by equity theory, which suggests that individuals compare their inputs (such as education and experience) and outcomes (such as salary) to those of others to determine if they are being treated fairly. In this case, the recent college graduate with no experience is receiving a higher salary than the individual who has been with the organization for two years and received good performance evaluations and a raise. This could lead to feelings of inequity and a desire to rectify the situation.

You Graduated from College Two Years Ago and Began Working