Question Detail

IRP 321 Compensation Management policies Objective Question

Question

In the context of the Equity Theory example on page 15, if O(S)/I(S) < O(A)/I(A), what is the resulting perception for Sola?
Options
A Equity (No problem)
B Inequity (dissatisfaction - Ade is cheated)
C Inequity (dissatisfaction - Sola is cheated)
Correct Answer
D Satisfaction and motivation
Correct Answer

Option C is the correct answer.

Detailed Explanation

Page 15, Case III states: 'O(S)/I(S) < O(A)/I(A) i.e., Inequity (dissatisfaction - Sola is cheated)'. This means Sola perceives her output/input ratio as less favorable than Ade's.

Hint

Look at the third case presented in the Equity Theory section's formula and explanation.

Question Info