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GATE 2022 XH5 (Psychology) – Question 51

Clinical Psychology and Organizational Behavior · Organizational Behavior: Demographic and cultural diversity, organizational culture, decisions in organizations, power and politics · 2 marks · Multiple select

Which of the following assumptions are correct about equity theory?

  1. Focusses on procedural justice
  2. Motivation is influenced by relative and absolute rewards
  3. Referent is the other-inside
  4. Achieving balance between input-output

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Correct answer: (B) Motivation is influenced by relative and absolute rewards; (C) Referent is the other-inside; (D) Achieving balance between input-output

Explanation

Adams's equity theory says that people compare their input-output ratio with a referent (which may be someone inside or outside the organisation) and are motivated to restore balance, and both absolute and relative rewards matter. It concerns distributive justice, not procedural justice.