Home › MCQs › Business Administration › Question #2949
Back to Questions
Business Administration QUESTION #2949
Question 1
What does "Equity Theory" suggest regarding employee motivation?
  • Employees are motivated only by the absolute amount of their salary
  • Motivation depends on the perceived fairness of rewards relative to inputs✔️
  • All employees should be paid exactly the same regardless of performance
  • None of these
Correct Answer Explanation
Equity theory posits that employees compare their input/outcome ratio with that of others to determine if they are being treated fairly.