Question

A problem associated with equity theory is that:

a) it focuses on providing incentives for the long run when most workers are mainly concerned with incentives that apply to their current situation
b) managers have a hard time applying it to real-world situations because of its abstract nature
c) worker motivation is based on perceptions of fairness, and the perceptions workers have about their contributions are not always accurate
d) it is concerned with the nature of the job itself rather than with what motivates the workers who perform the job

Answer 1

The problem associated with equity theory is that worker motivation is based on perceptions of fairness, and these perceptions about their contributions may not always align with reality.

Step-by-step explanation:

Equity theory posits that individuals assess the fairness of their outcomes (rewards) in relation to their inputs (contributions) compared to others. However, the issue arises because people's perceptions of their contributions might not accurately match the actual value they bring to their work. This discrepancy can lead to feelings of under or over-reward, affecting motivation and satisfaction. For instance, an employee might feel unfairly compensated compared to a colleague despite both contributing equally due to differing perceptions of effort or skill.

This gap between perceived and actual contributions challenges the application of equity theory in motivating individuals effectively. It complicates how managers design incentive structures and distribute rewards, as they must navigate subjective perceptions of fairness while maintaining productivity and morale.

Correct Answer: c) worker motivation is based on perceptions of fairness, and the perceptions workers have about their contributions are not always accurate.