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 a recent college graduate with no experience has been hired at a higher salary than you are now making.
-Which of the following will you probably use to evaluate this situation?
A) equity
B) expectancy
C) goal setting
D) reinforcement
E) self-enhancement

Question

Quizplus · Accepted Answer

The situation described is a clear example of inequity, where a recent college graduate with no experience is being paid more than someone who has worked for the company for two years and has received good performance evaluations and a raise. Using the equity theory, the employee may feel that the pay they are receiving is not fair in comparison to someone with no experience. Therefore, the employee will use equity to evaluate this situation.

You Graduated from College Two Years Ago and Began Working