Question

The basic principle of equity theory is that employees try to:

A. maintain equity between inputs and outputs compared to people in similar positions.
B. ensure that performance standards are fair and attainable.
C. earn as much as possible with as little work as possible.
D. achieve the mutually agreed upon goals of management and employees.

Answer 1

The basic principle of equity theory is that employees strive to maintain evenness between their contributions and rewards, compared to similar individuals, which aligns with the goal of achieving fairness and motivation in the workplace.

Step-by-step explanation:

The correct answer to the student's question is A: Employees try to maintain equity between their inputs (effort, skills, experience) and outputs (salary, benefits) compared to others in similar positions following the basic principle of equity theory. This theory suggests that employees seek to balance what they put into their job with what they get out of it, and they compare this balance with the perceived ratios of others to determine fairness. If they perceive inequity, they might become demotivated, which can impact their performance.

Economic performance, efficiency wage theory, and the Difference Principle are related concepts that reflect workers' feelings about their compensation and their productivity, as well as the moral considerations behind the set-up of economic structures and employment practices.

Answer 2

A

Step-by-step explanation:

Equity Theory is an important Behaviorist tool whose basic principle is there must be a balance between what the employee gives (input) to the company, through his job, to what He receives (output). This relation must be a symbiotic one and result in a fair balance, to have highly motivated workers.

Hence, it's A