Question

You graduated from college two years ago and began working at Hampstead Electronics. You have received good performance evaluations and a raise. You just found out that your organization has hired a recent college graduate with no experience at a higher salary than you are now making. You consider this an unfair act and resolve to do something about it. Which of the following theories best describes such a situation?
a. equity theory
b. self-determination theory
c. goal-setting theory
d. two-factor theory
e. theory of needs

Answer 1

Definition:

Equity theory focuses on determining whether the distribution of resources is fair to both relational partners.

Answer:

A. Equity Theory

Explanation:

It is clearly unfair, for someone who has no experience in the field, yet they get a higher salary than you even though you have experience. You are trying to resolve that situation so it can be fair hence my reasoning for why the answer is A.