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Equity Theory Explanation

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Describe Equity Theory. Use examples from your own experience.

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Solution Summary

This solution of 282 words defines and describes the Equity Theory in terms of employer and employee relationship. It contains real-life examples to illustrate the theory.

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Equity Theory is the concept that there should be fair compensation for the effort put into the job. The effort put into the job (or input), is not merely measured in terms of hours spend working, but also includes the employee's tolerance, perseverance, enthusiasm, flexibility, expertise, etc. The compensation (or output) is not merely in terms of salary, but also includes health benefits, retirement benefits, vacation ...

Solution provided by:
J Pye, MSc
Education
  • MSc, California State Polytechnic University, Pomona
  • MBA, University of California, Riverside
  • BSc, California State Polytechnic University, Pomona
  • BSc, California State Polytechnic University, Pomona
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