Question

Equity theory demonstrates that, for most employees, motivation is influenced by

a. relative rewards.
b. input-output ratio.
c. absolute rewards.
d. relative and absolute rewards.
e. job satisfaction.

Answer 1

Motivation is influenced by relative and absolute rewards according to equity theory. Employees weigh their inputs and outputs in relation to others to determine fairness, contributing to their motivation and job satisfaction.

Step-by-step explanation:

Equity theory suggests that motivation for most employees is influenced by their perception of fairness in the context of both relative and absolute rewards. Specifically, it's about how an employee's inputs (like effort and skill) compare to their outputs (such as compensation and recognition) in relation to the perceived inputs and outputs of others. Absolute rewards signify the direct pay or benefits an employee receives, while relative rewards are those considered in comparison to others, encapsulating a sense of equity or inequality. Therefore, in terms of equity theory, the answer is d. relative and absolute rewards.