Question

The idea that employees compare their own inputs/outcomes ratio with the inputs/outcomes ratios of others is a key component of which theory?

a) Equity Theory
b) Expectancy Theory
c) Two-Factor Theory
d) Hierarchy of Needs Theory

Answer 1

The idea that employees compare their own inputs/outcomes ratio with the inputs/outcomes ratios of others is a key component of Equity Theory.

Step-by-step explanation:

The concept that employees compare their own inputs/outcomes ratio with the ratios of others is a key tenet of Equity Theory. In Equity Theory, employees are posited to seek fairness in the compensation and treatment they receive based on their contributions in comparison to others. When employees perceive an imbalance, they may experience feelings of distress, which can motivate them to restore equity either by adjusting their inputs, seeking an adjustment of outcomes, or altering their perception of others' ratios.