Which theory suggests that employees strive for fairness between the contributions they make and the compensation they receive?

Establishing Strategic Pay Plans MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Establishing Strategic Pay Planshrm-mcqs › establishing-strategic-pay-plans
Published
26 Sept 2021
Last updated
28 May 2026

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Explanation

The equity theory of motivation explains that employees seek a balance between their inputs (efforts, skills) and outputs (salary, benefits). When they perceive fairness, motivation is maintained; otherwise, dissatisfaction may occur.

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