Final answer:
The assertion related to equity theory in the question is false. Equity theory posits that individuals are motivated by fair and equitable treatment. Unfair treatment typically leads to decreased motivation and potential negative behaviors.
Step-by-step explanation:
The statement that equity theory holds that individuals are more motivated if they perceive they are being treated unfairly as compared to their fellow workers or those in other firms is false. Equity theory actually proposes that individuals are motivated when they perceive they are being treated fairly and equitably, relative to others. When they feel unfairly treated, their motivation typically decreases, which can lead to negative outcomes such as reduced productivity or even withdrawing from the job completely. For example, research by Greenberg (1993) showed that a lack of procedural justice, or fairness in processes, can lead to negative behaviors like stealing. Additionally, market forces can influence businesses to act less discriminatorily if such actions result in losing employees to other firms that offer better pay and treatment, as suggested by the potential behavior shifts in discriminatory businesses due to employee turnover.