What Is the Most Important Idea for Managers to Remember

question 78

Multiple Choice

What is the most important idea for managers to remember from equity theory?

• A) People who feel underrewarded may try to decrease the inequity by increasing their inputs.
• B) Employees must receive equal rewards irrespective of their overall performance.
• C) For rewards to motivate employees, employees must perceive them as being fair.
• D) Employees must consider their inputs equal to the inputs of their colleagues.
• E) Employees must consider their outcomes equal to the outcomes of their colleagues.

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Definitions:

Mutually Exclusive

Situations or choices where the acceptance or selection of one necessarily excludes the other(s).

Value Foregone

The benefit given up by choosing one investment or action over another alternative; essentially the opportunity cost of a decision.

IRR

The Internal Rate of Return is a financial measure utilized to calculate the expected profit of prospective investments.

Mutually Exclusive

Situations or events that cannot occur at the same time, where the selection or occurrence of one precludes the possibility of the other.