BUSINESS ADMINISTRATION
PRINCIPLES AND PRACTICE OF MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -Equity theory is based on the idea that people compare their inputs (the work they do, the money they contribute, the effort they put forth) to their outcomes (the rewards they receive, such as salary, benefits, and recognition).
Detailed explanation-2: -Equity theory is a theory of motivation that suggests that employee motivation at work is driven largely by their sense of fairness. Employees create a mental ledger of the inputs and outcomes of their job and then use this ledger to compare the ratio of their inputs and outputs to others.
Detailed explanation-3: -Equity theory was first developed in 1963 by Jane Stacy Adams. It says that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequalities. The higher an individual’s perception of equity, the more motivated they will be.
Detailed explanation-4: -Adams’ Equity Theory calls for a fair balance to be struck between an employee’s “inputs” (hard work, skill level, acceptance, enthusiasm, and so on) and their “outputs” (salary, benefits, intangibles such as recognition, and more).