BUS 272 Study Guide - Midterm Guide: Operant Conditioning, Interactional Justice, Flextime

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Equity theory: a theory that says that individuals compare their job inputs and outcomes those of others and then respond to eliminate any inequalities. If we perceive our ratio to be equal to that of the relevant others with whom we compare ourselves, a state of equity is said to exist. We perceive our situation as fair and justice prevails. When we see the ratio as unequal, we experience equity tension. When we see ourselves as underewarded, the tension creates anger. Which referent an employee chooses will be influenced the information the employee holds about the referents, as well as the attractiveness of the referent. Gender: research shows that both women and men prefer same-sex comparisons. Length of tenure: employees with short tenure tend to have little information about others inside the organization so they rely heavily on their personal experiences. Change their inputs: exert less effort if underpaid, more if overpaid.

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