Equity theory is useful to human resource managers because it:
A) relies on intrinsic motivation rather than on extrinsic motivation.
B) ensures that everyone shares equally in any outcomes regardless of their contributions.
C) makes it clear that any rewards associated with effort or performance will be evaluated.
D) focuses on what motivates a person, rather than on how that motivation occurs.

Question

Quizplus · Accepted Answer

Equity theory posits that individuals are motivated by fairness, and if they perceive an inequity in the reward system, their motivation will be affected. It emphasizes the importance of ensuring that rewards are perceived as equitable in relation to the effort and performance of employees. This is crucial for human resource managers in designing and implementing compensation and reward systems that are perceived as fair by employees.

Equity Theory Is Useful to Human Resource Managers Because It