Question
As per equity theory of motivation, which of the following would be an impact of inequity on an employee?
A.   Perceived inequity creates tension in the person which is proportional to the magnitude of inequity.
B.   The tension created in the person will motivate him to reduce it.
C.  The strength of the motivation to reduce inequity is proportional to the perceived inequity
Solution
Adam’s equity theory is a process theory that how a person is motivated based on his perception of fairness and equity in rewarding by management . the theory points out that people are motivated to maintain fair relationship between their performance and reward in comparison to others. In case of equity, the person experiences satisfaction. The impact of inequity on the person is as follows: 1. Perceived inequity creates tension in the person. 2. The amount of tension is proportional to the magnitude of inequity. 3. The tension created in the person will motivate him to reduce it. 4. The strength of the motivation to reduce inequity is proportional to the perceived in equity.
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