Equity theory provides several insights for managerial applications to everyday situations in the workplace.Which of the following statements is NOTtrue in this regard?
A) People tend to take a multifaceted view of the rewards they receive from the organization.
B) The basis for organizational rewards should be clearly communicated to employees.
C) People base their experience of equity on their perceptions, which don't necessarily match reality.
D) Formal and informal organizational rewards are equally observable to individuals when formulating equity perceptions.
E) Employees' perceptions may differ from the manager's perceptions.

Question

Quizplus · Accepted Answer

The statement "Formal and informal organizational rewards are equally observable to individuals when formulating equity perceptions" is not true. Formal rewards, such as salary and benefits, are more easily observable and measurable than informal rewards like recognition and praise, which can vary greatly between individuals and departments. However, both types of rewards should be taken into account when considering equity perceptions.

Equity Theory Provides Several Insights for Managerial Applications to Everyday