GATE 2022 XH5 (Psychology) – Question 51
Which of the following assumptions are correct about equity theory?
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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.