Question

"I haven't missed a day of work in the past year, and I'm committed to this company, so I determined that a 20 percent salary increase is warranted for reasons of fairness," said Ted to his supervisor. In reply, Liz asked, "How did you determine that a 20 percent salary increase is fair?" If Ted had used equity theory as a basis for his request, he would have replied, "To determine a proper salary increase:______
a. I made comparisons with others' salaries."
b. I demonstrated a positive attitude as expected of me."
c. I evaluated how much I am respected."
d. I sought intrinsic rewards for myself."
e. I sought job enlargement in my position."

Answer 1

Answer: a. I made comparisons with others' salaries."

Explanation:

Equity theory simply refers to the principle that the actions of individuals are based on fairness and in a situation whereby there's no fairness or equity, the workers will seek to address such differences.

According to the equity theory, workers believe that everyone who puts in a similar input should get a similar reward. Therefore, in this case since Ted used the equity theory, he'll make a comparison with the salary of others.