Question

The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees. A. economic approach B. team production C. social comparison D. agency

Answer 1

Answer: (C) Social comparison

Step-by-step explanation:

The social comparison theory is one of the type of comparison in terms of socially and personally worth for the purpose of self motivation and self improvement or awareness about their image.

This theory is basically developed by the Leon festinger in the year 1954 for self evaluating their own abilities, skills and different opinions with others.

According to the given question, the social comparison theory maintain the relative relationship in an organization with the lower position employees.

Therefore, Option (C) is correct answer.