Unformatted text preview: Equity Theory –what’s fair is all a matter of perception A. An employee’s perception of equity (fairness) is based solely on a comparison to one’s peers B. Actual treatment or conditions are secondary to perceptions of what’s fair or unfair C. Employer must be able to explain disparities to avoid negative reaction by employees 1. If under-rewarded: pull back, quit, rationalize 2. If over-rewarded: increase effort, rationalize Exam: over chapters 7, 8, 10, and 12...
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- Spring '08
- Psychology, realistic C. Explain, B. Make expectations