Lesson 6 Equity Theory

Question 1

Comparison Ration

Answer 1

A person’s perceived ratio of inputs and outcomes, as compared to his or her perception of another person’s ratio of inputs and outcomes.

Question 2

Equity Theory

Answer 2

Motivational theory which assumes that people value fair treatment when comparing themselves with others, and that the perception of inequity motivates people to take action.

Question 3

Focal Leader

Answer 3

The organizational leader who directly supervises, manages, and leads the employee(s) involved in a given situation or case study.

Question 4

Focal Person

Answer 4

Any individual who perceives equity or inequity by comparing himself or herself with others.

Question 5

Inequity

Answer 5

Exists when someone perceives that the ratio of his or her outcomes to inputs is not equal to the ratio of someone else’s outcomes to inputs.

Question 6

Inputs

Answer 6

In the employee - employer exchange, this is what the focal person perceives are his contributions to the exchange, for which he expects a just return. Some examples include work effort, experience, education, training, and intelligence.

Question 7

Organizational Justice Theories

Answer 7

Theories dealing with perceptions of fairness in organizations.

Question 8

Outcomes

Answer 8

In the employee - employer exchange, this is what the employee perceives are the rewards he receives for his services. Examples include pay, benefits, praise, and promotion.

Question 9

Reference Source

Answer 9

The person or group that the focal person uses to evaluate the equity or inequity of his or her exchange relationship.