Title: Process-Based Theories
Course: Demo 1

Q: Equity theory deals with outcome fairness and rewards. It is considered to be a distributive justice theory. Distributive justice refers to the degree to which:
- fair decision-making procedures are used
- people are treated with respect, kindness, and dignity in interpersonal interactions
- the outputs received from the organization are fair
A: the outputs received from the organization are fair

Q: ________ is the theory that behavior is a function of its consequences.
- Expectancy theory
- Equity theory
- Reinforcement theory
A: Reinforcement theory

Q: Individuals are motivated by a sense of fairness in their interactions, and our sense of fairness is a result of the social comparisons we make. This is the ________.
- two-factor theory
- acquired-needs theory
- equity theory
A: equity theory

Q: With the equity theory, we:
- perceive fairness if we believe that the input-to-output ratio we are bringing into the situation is similar to the input/output ratio of a comparison person, or a referent
- compare our inputs and outputs with someone else’s inputs and outputs
- are driven to action that will reduce perceived inequity when perceptions of inequity create tension within us.
A: perceive fairness if we believe that the input-to-output ratio we are bringing into the situation is similar to the input/output ratio of a comparison person, or a referent; compare our inputs and outputs with someone else’s inputs and outputs; are driven to action that will reduce perceived inequity when perceptions of inequity create tension within us.

Q: George has been working as a laborer at a construction company for five years and receives $12 an hour. He is very diligent on the job and has never been late. As his skills have grown, he has become more like the manager of the work crew. He makes sure everyone has the correct tools and information to do their jobs effectively. George is a real asset to the team. Today, George shows up at work to discover a work crew manager has been hired to oversee the crew. He discovers that the new manager is paid $20 an hour. In this scenario what are the inputs according to equity theory?
- George working for the company diligently for five years.
- George taking responsibility for making sure the work team has correct tools and information.
- George’s pay of $12 an hour.
A: George working for the company diligently for five years.; George taking responsibility for making sure the work team has correct tools and information.

Q: George has been working as a laborer at a construction company for five years and receives $12 an hour. He is very diligent on the job and has never been late. As his skills have grown, he has become more like the manager of the work crew. He makes sure everyone has the correct tools and information to do their jobs effectively. George is a real asset to the team. Today, George shows up at work to discover a work crew manager has been hired to oversee the crew. He discovers that the new manager is paid $20 an hour. Equity theory suggests that:
- Someone in George’s position will react to inequity by putting forth less effort or even quitting
- Someone in George’s position will react to inequity by rationalizing his employer’s decision and assuming the new manager must be more qualified
- Someone in George’s position may react in a number of ways because different people perceive the same situation differently
A: Someone in George’s position may react in a number of ways because different people perceive the same situation differently

Q: Equity theory proposed that individuals who are over-rewarded would experience guilt and would increase their effort to restore perceptions of equity. The theory proved over time that:
- this argument is not supported
- many individuals experience little distress as a result of being over-rewarded
- many over-rewarded individuals identified the area of unfair advantage and corrected it
A: this argument is not supported; many individuals experience little distress as a result of being over-rewarded

Q: Employers should pay attention to procedural justice, distributive justice, and interactional justice because
- unfair working environments harm employees psychologically
- fair and just working environments lead to stronger employee commitment and job performance
- unfair working environments erode support for unions and labor organization
A: unfair working environments harm employees psychologically; fair and just working environments lead to stronger employee commitment and job performance

Q: Expectancy theory proposes that a rational calculation determines whether individuals are motivated to demonstrate more or less effort. Questions people ask themselves as part of this rational calculation include:
- Do I find the outcomes desirable?
- Will my effort lead to high performance?
- Will performance lead to outcomes?
A: Do I find the outcomes desirable?; Will my effort lead to high performance?; Will performance lead to outcomes?

Q: A computer hardware company is interested in decreasing its sales force turnover as it seems to be higher than the industry average. Management looks at the incentives for the sales force and realizes that it takes, on average, sixty days to close a sale. Currently there is no base salary for the sales force and they are paid only commission on their total sales. Management decides on a blended approach and makes changes to balance salary and commissions carefully to achieve optimum sales volume, profitability, and customer satisfaction. Over the next two quarters, there is no turnover and morale among the sales team is higher. This is an example of the application of:
- Equity theory
- Expectancy theory
- Reinforcement theory
A: Reinforcement theory