Michelle and Alice both graduated in May, 2017 from UMASS and joined Hotel Fantasy in June 2017. They are working as front offic
e agent. Recently Michelle noticed that she is been paid 3 dollars less per hour compared with Alice. Michelle feels it is unfair given that she and Alice have similar qualifications. Which of the following theory best explained Michelle’s feeling?A. Economic Man Theory B. Herzberg's Two-factor Theory
C. Maslow's Need Hierarchy Theory
D. Equity Theory
Equity theory is based on the idea that individuals are motivated by fairness, and if they identify inequities in the input or output ratios of themselves and their referent group, they will seek to adjust their input to reach their perceived equity.
