Equity theory is centered on employees’ perceptions about whether they

QUESTION

Equity theory is centered on employees’ perceptions about whether they are being paid fairly for the work they perform. What are the three key elements of this theory?

What will be an ideal response?

ANSWER

Answer: The key elements of equity theory are contributions (or inputs), returns (or outputs), and comparisons.
Explanation: In equity theory, contributions (inputs) refers to what employees think they put into their job, returns (outputs) refers to what employees think they get out of the job, and comparisons refers to employees’ perceptions of how the ratio of their contributions/returns compares to other employees.