Which of the following statements accurately represents equity theory? equity causes people to doubt their capabilities. equity will result in an effort to restore balance. inequity and the positive feelings created by it may appear anywhere. assessments of equity are made objectively. people who feel inequitably treated are motivated to do something to restore equity?

The correct statement about equity theory is people who feel inequitably treated are motivated to do something to restore equity.

In management, there is a theory called equity theory. This theory assumes that humans need to be treated fairly or equally, especially if it relates to rational satisfaction in terms of the perception of a fair or unfair distribution of resources in interpersonal relations.

A psychologist Jhon Stacey Adam concluded that people must feel confident that they will be treated fairly or equally if they want to work together effectively because people are always motivated to look for social similarities in terms of the rewards they receive (output) for the performance they show (input) ). In conclusion, humans will be motivated when they consider input is proportional to output.

This theory assumes that when we are involved in interpersonal relationships, we will always evaluate it by comparing our input-output ratio with others so that we can determine under-rewarded, over rewarded and equitably rewarded.

Adam concluded that the feeling of inequality can create psychological tension whose magnitude is proportional to the imbalance that a person feels. This is the tension that motivates individuals to reduce this gap. As a result, the higher the sense of inequality or injustice, the stronger a person's motivation to reduce it.

The question arises, how do we reduce injustice? If you feel underpaid, you can increase productivity and ask for a raise, or you can decrease performance, or even think about quitting. If we are over-valued, we can also reduce gaps by mental processes such as changing our references.

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Class: High School

Subject: Business

Keyword: Equity theory

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.