Equity theory states that employees will perform well if they:
Group of answer choices
C. ?believe the reward they receive fairly compensates them for their efforts when compared to others in similar positions.
B. ?have an opportunity to impress others in the organization.
D. ?know that their supervisor has set reasonable performance goals and communicated them clearly.
A. ?understand the nature of their responsibilities.
The correct answer and explanation is:
Correct Answer:
C. Believe the reward they receive fairly compensates them for their efforts when compared to others in similar positions.
Explanation:
Equity theory, developed by John Stacey Adams, focuses on the concept of fairness in the workplace and how perceptions of fairness impact employee motivation and performance. According to the theory, employees assess their work contributions (inputs) and the rewards they receive (outputs) in comparison to others within similar roles or positions. If employees perceive an equitable balance between their inputs and outputs compared to their peers, they are more likely to feel satisfied and motivated. Conversely, perceived inequities can lead to feelings of dissatisfaction, reduced effort, or even turnover.
Inputs refer to the effort, skills, experience, and time employees invest in their work. Outputs encompass tangible rewards such as salary, benefits, and bonuses, as well as intangible rewards like recognition and job security. Equity theory posits that employees constantly compare their input-output ratio to that of their colleagues, seeking to ensure fairness.
When employees feel that their rewards are commensurate with their efforts and comparable to those of others, they are likely to be motivated and perform well. For instance, if a pharmacy technician sees that their pay and recognition align with their responsibilities and are on par with their peers, they will feel fairly treated, fostering job satisfaction and productivity.
On the other hand, if an employee perceives an imbalance—such as earning less for the same amount of effort or responsibility—they may experience frustration, reduce their effort, or seek other employment opportunities.
In summary, equity theory highlights the importance of fairness in workplace rewards and reinforces that employees are not solely motivated by the absolute value of rewards but by how these rewards compare to others. Managers should strive to ensure transparency and equity in reward systems to maintain a motivated and high-performing workforce.