Question

If you were a manager who made sure that rewards were distributed to your employees fairly...

If you were a manager who made sure that rewards were distributed to your employees fairly based on their performance and that each employee clearly understood the basis for his or her own pay, you would be using

a.

equity theory.

b.

Theory X.

c.

motivation-hygiene theory.

d.

Theory Y.

e.

scientific management.

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Answer #1

Correct Answer is :(a) Equity Theory.

Justification:

Equity theory states that a employee is tend to be motivated when he considers that he is being paid fairly and according to their abilities. Since every employee knows the basis for their pay and rewards are distributed as per the performance , we are following equity theory.

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