Fundamentals of Management, 11/e

What Is Equity Theory?

Have you ever wondered what kind of grade the person sitting next to you in class makes on a test or on a major class assignment? Sure you have—most of us do! Being human, we tend to compare ourselves with others. If someone offered you $55,000 a year on your first job after graduating from college, you’d probably jump at the offer and report to work enthusiastic, ready to tackle whatever needed to be done, and certainly satisfied with your pay. How would you react, though, if you found out a month into the job that a coworker—another recent graduate, your age, with comparable grades from a comparable school, and with comparable work experience—was getting $60,000 a year? You’d probably be upset! Even though in absolute ...