Asked by Kaylee Greydanus on Jun 19, 2024

verifed

Verified

According to equity theory,equity exists when the ratio of a person's outcomes to inputs equals the ratio of outcomes to inputs for relevant others.

Equity Theory

A psychological theory suggesting that employees are motivated by fairness, and that perceived inequities can lead to dissatisfaction and changes in behavior.

Equity Exists

A condition or situation in which fairness is upheld, and all individuals have equal opportunities and treatment.

Relevant Others

Individuals or groups whose opinions, behaviors, or reactions are significant to one's self-concept and social standing.

  • Grasp the understanding of equity's role in the workplace and its effect on the motivation levels of employees.
verifed

Verified Answer

EM
Estefani MaldonadoJun 21, 2024
Final Answer :
True
Explanation :
Equity theory proposes that individuals seek fairness in social exchanges, meaning they want the ratio of what they get out of a situation (outcomes) compared to what they put into it (inputs) to be equal to the ratio of outcomes to inputs for relevant others (such as colleagues or peers). When this balance of outcomes and inputs is achieved, equity exists. Therefore, the statement in the question is true.