Question

Which of the following assumptions are correct about equity theory?

• A. Focuses on procedural justice
• B. Motivation is influenced by relative and absolute rewards
• C. Referent is the other-inside
• D. Achieving balance between input-output

Hint:

In equity theory, individuals are motivated to ensure a fair balance between their inputs and the rewards they receive, especially in relation to others.

Answer 1

The Correct Option is B, C, D

Step 1: Understanding equity theory.
Equity theory suggests that individuals are motivated by a desire for fairness in their relationships, particularly in the workplace. They compare their inputs (effort, time, skills) to their outputs (rewards, pay) relative to others.

Step 2: Analyzing the options.
- (A) Incorrect, equity theory does not focus specifically on procedural justice, though fairness is a part of it.
- (B) Correct, motivation in equity theory is influenced by both relative rewards (compared to others) and absolute rewards (compared to the effort or input).
- (C) Correct, the referent in equity theory is typically others, but "other-inside" might refer to comparing oneself to a reference group internally within the organization or context.
- (D) Correct, equity theory emphasizes achieving balance between input and output, ensuring fairness and motivation.
Step 3: Conclusion.
Thus, the correct answer is (B), (C), and (D).