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Which of the following statements is/are true about Equity Theory?  a. Equity theory is strongly based on the concept of organisational justice. b. Equity theory suggests that people will compare themselves to employees in similar roles, both inside and outside of the organisation. c. According to Equity Theory, people will respond to perceptions of unfairness by retaliating against their organisation. d. (a) and (b) only.0.5 points   Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Question

Which of the following statements is/are true about Equity Theory?  a. Equity theory is strongly based on the concept of organisational justice. b. Equity theory suggests that people will compare themselves to employees in similar roles, both inside and outside of the organisation. c. According to Equity Theory, people will respond to perceptions of unfairness by retaliating against their organisation. d. (a) and (b) only.0.5 points   Click Save and Submit to save and submit. Click Save All Answers to save all answers.

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Solution

All of the statements a, b, and c are true about Equity Theory.

a. Equity theory is indeed strongly based on the concept of organisational justice. It suggests that employees perceive what they get from a job situation (outcomes) in relation to what they put into it (inputs) and then compare their input-outcome ratio with the input-outcome ratios of others.

b. Equity theory also suggests that people will compare themselves to employees in similar roles, both inside and outside of the organisation. This is known as social comparison.

c. According to Equity Theory, people will respond to perceptions of unfairness by retaliating against their organisation. This can take the form of decreased productivity, increased absenteeism, or even theft.

So, the correct answer would be: All of the above (a, b, and c) are true.

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