The equity theory proposes that ________.

Question

Quizplus · Accepted Answer

The equity theory proposes that employees compare their job's input-outcomes ratio with that of relevant others and then correct any inequity. This means that employees consider whether their inputs (such as effort, skills, and experience) are fairly rewarded with outcomes (such as pay, benefits, and recognition) compared to their coworkers. If they perceive any inequity, they may adjust their inputs or outcomes to restore fairness. Option A is incorrect because the proposal to offer employees part of the company's shares is related to the concept of ownership rather than equity theory. Option B is incorrect because it describes the expectancy theory, which suggests that employees expect a link between their effort, performance, and reward. Option D is incorrect because it refers to the concept of empowerment rather than equity theory.

The Equity Theory Proposes That ________