To Make Successful Use of the Equity Theory,managers Must Remember

question 183

Multiple Choice

To make successful use of the equity theory,managers must remember that

• A) over rewarded employees perform best.
• B) under rewarded employees perform best.
• 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 comparison other.
• E) employees must consider their outcomes equal to the outcomes of their comparison other.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes.

Expand

To increase in size, number, or scope, such as a business growing its operations or a market increasing its reach.

Internal Economies

Cost-saving measures that arise from the expansion of a firm, affecting the production process internally.

External Economies

Benefits that a firm obtains due to the actions of others or external factors, leading to reduced costs.