In equity theory, what is important?
A) Social comparison of rewards and efforts
B) Equality of rewards
C) Equality of efforts
D) Absolute value of rewards
Answer: A
Explanation: A) Correct. This is because equity is based on workers' perceptions of fairness. Workers individually compare what they are getting out of the work relationship (outcomes) with what they are putting into the work relationship (inputs). The ratio is then compared to corresponding ratios of other individuals.
B) Incorrect. Equity theory does not require that all rewards be equal but rather the employees' perception of the relationship between efforts and rewards (or discipline) be fair.
C) Incorrect. Equity theory does not require that all efforts be equal but rather the employees' perception of the relationship between efforts and rewards (or discipline) be fair.
D) Incorrect. Equity theory does not consider the absolute value of rewards but rather the employees' perception of the relationship between efforts and rewards (or discipline) be fair.
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