Equity Theory Provides Several Insights for Managerial Applications to Everyday

question 17

Multiple Choice

Equity theory provides several insights for managerial applications to everyday situations in the workplace.Which of the following statements is NOT true in this regard?

• A) People tend to take a multifaceted view of the rewards they receive from the organisation.
• B) The basis for organisational rewards should be clearly communicated to employees.
• C) People base their experience of equity on their perceptions, which don't necessarily match reality.
• D) Formal and informal organisational rewards are equally observable to individuals when formulating equity perceptions.
• E) Employees' perceptions may differ from the manager's perceptions.

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Definitions:

Operating Decisions

Decisions related to the day-to-day operations of a business, often concerning production, sales, and management of resources.

Financial Condition

The status of a company's finances, including its assets, liabilities, and equity, indicative of its ability to meet financial obligations.

Future Performance

Predictions or expectations regarding a company or investment's actions, achievements, or financial results in upcoming periods.

Risk

The potential for losing something of value, weighed against the potential to gain something of value, often considered in financial investments and business ventures.