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20242m

The theory of motivation that focuses on the idea of employees comparing their inputs and outputs relative to others is called?

  • (i) Expectancy Theory
  • (ii) Herzberg's Two-Factor Theory
  • (iii) Equity Theory
  • (iv) Maslow's Hierarchy of Needs
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Correct Answer: (iii) Equity Theory

Explanation (2 Marks):

  • Equity Theory (J. Stacey Adams, 1963) states motivation depends on perceived fairness by comparing own Inputs (effort, skill, experience) and Outcomes (pay, promotion, recognition) ratio with that of referent others (colleagues/ peers).
  • If Own Outcomes/Inputs = Others' Outcomes/Inputs → Equity → Satisfaction & Motivation.
  • If inequity (under-reward/ over-reward) → tension → employee reduces inputs, demands more outcomes, or leaves org.

Why other options wrong:

  • (i) Expectancy Theory (Vroom) = Effort → Performance → Outcome expectancy
  • (ii) Herzberg = Hygiene vs Motivators
  • (iv) Maslow = Need hierarchy

Hence the input-output social comparison is Equity Theory.

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