Using Equity Theory in Practice Can Be Difficulty,because You Don't

question 33

True/False

Using equity theory in practice can be difficulty,because you don't know employees' reference groups and their views of inputs and outcomes.

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Definitions:

Reward Systems

Mechanisms or programs designed to motivate and compensate employees or participants by recognizing their achievements, contributions, or performance.

Profitability

The ability of a business to earn a profit, which is the surplus remaining after total costs are deducted from total revenue.

Flexible Benefit Plans

Employee benefit programs that allow workers to choose from a variety of pre-tax benefits to create a package tailored to their personal needs and preferences.

Goal Setting

The process of identifying specific, measurable, attainable, relevant, and time-bound objectives that guide individuals or teams.