Underpayment and overpayment, according to equity theory, tend to produce similar reactions to correct the inequities.

Question

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If we perceive our ratio to be equal to that of the relevant others with whom we compare ourselves, a state of equity exists: we perceive that our situation is fair and justice prevails.When we see the ratio as unequal and we feel under rewarded, we experience equity tension that creates anger.When we see ourselves as over rewarded, tension creates guilt.

Underpayment and Overpayment, According to Equity Theory, Tend to Produce