Question Detail

IRP 321 Compensation Management policies Objective Question
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Question

According to the Equity Theory of Compensation, what is the fundamental concern regarding how people perceive their treatment?
Options
A How their pay aligns with government regulations.
B How their inputs and outputs compare with those of significant others.
Correct Answer
C How their compensation motivates future performance.
D How their salary reflects their individual skill set.
Correct Answer

Option B is the correct answer.

Detailed Explanation

Page 14 states, 'Equity theory is concerned with the perceptions people have about how they are treated in comparison with significant others. It is concerned with inputs and outputs comparisons of significant others.'

Hint

The theory focuses on comparison and fairness in relation to others.

Question Info

Course: IRP 321
Topic: Compensation Management policies
Type: Objective
Difficulty: Not specified
Question 50 of 59
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