You graduated from college two years ago and began working at Hampstead Electronics.You have received good performance evaluations and a raise.You just found out that a recent college graduate with no experience has been hired at a higher salary than you are now making. According to equity theory,you can be predicted to:
A)acknowledge that the new person hired is worth more.
B)work harder.
C)not work so hard.
D)do your work without any change.

Question

Quizplus · Accepted Answer

According to equity theory, individuals compare their inputs (such as effort, experience, education) and outcomes (such as salary, recognition, benefits) to those of others around them. When they perceive an inequity, such as someone else with less experience or effort receiving a higher salary, they may reduce their own inputs (e.g. work less hard) or try to change the outcomes (e.g. ask for a raise). In this scenario, the best prediction is that the individual will not work so hard, as they may feel undervalued and resentful towards the company for hiring someone else at a higher salary.

You Graduated from College Two Years Ago and Began Working