Equity Theory

How does equity theory compare to other motivational theories?

• Equity theory suggests that all individuals should be treated the same, unlike other motivational theories.

• Equity theory focuses on individual performance, while other motivational theories focus on group dynamics.

• Equity theory is based on intrinsic motivation, while other motivational theories are based on extrinsic rewards.

• Equity theory emphasizes fairness of outcomes in relation to inputs compared to others, while other motivational theories focus on different aspects like basic needs or hygiene factors.

What are the key components of equity theory?

• inputs, outputs, comparison with others

• inputs, outputs, rewards

• outputs, inputs, rewards

• comparisons, rewards, outputs

Discuss a real-world example where equity theory was applied successfully in an organizational setting.

• Fair compensation system based on performance

• Implementing a pay cut without explanation

• Ignoring employee feedback on compensation

• Equal distribution of resources regardless of effort

How does equity theory explain the concept of 'perceived fairness'?

• Equity theory explains perceived fairness by stating that individuals compare their input-output ratio to others, leading to feelings of equity or inequity.

• Equity theory explains perceived fairness by stating that individuals compare their output-input ratio to others, leading to feelings of equity or inequity.

• Equity theory suggests that perceived fairness is determined by the absolute value of inputs and outputs, rather than relative comparisons.

• Perceived fairness is solely based on individual perceptions and not influenced by social comparisons according to equity theory.

How do employees typically react when they perceive inequity in the workplace according to equity theory?

• Employees typically react by ignoring the perceived inequity and continuing as usual.

• Employees typically react by increasing their inputs and decreasing their outcomes.

• Employees typically react by reducing their inputs, seeking to increase their outcomes, changing their perceptions of inputs and outcomes, or leaving the situation altogether.

• Employees typically react by reporting the inequity to management and seeking resolution.

T/F: When employees feel they aren't being treated fairly, they will act out

• True

• False

T/F: Employees will decrease inputs if they feel they aren't being treated fairly

• True

• False

What is an example of an input?

• Money spent

• Educational background

• Food eaten

• Relationship with workers

Which of the following is NOT an example of output in Equity Theory?

• Salary

• Promotion

• Skill

• Recognition

I may not make as much as my brother-in-law. However, when compared to my Dad. I’m doing a lot better than my Dad did when he was my age.” This is an example of ________ .

• Changing output

• Changing input

• Distorting perception of self

• Choose a different referent