Future Business Leaders of America (FBLA) Organizational Leadership Practice Test

In the context of Equity Theory, what happens when employees perceive inequity?

1. They will accept the situation

2. They attempt to correct the balance

3. They will work harder regardless

4. They will disengage completely

The correct answer is: They attempt to correct the balance

In the context of Equity Theory, when employees perceive inequity, they are motivated to address that perceived imbalance. This theory, developed by John Stacey Adams, suggests that individuals evaluate their work outcomes relative to their inputs and compare this ratio to that of others within their environment. When employees sense that their contributions (inputs) are not balanced with what they receive (outcomes) compared to their peers, they experience feelings of inequity. In an attempt to restore balance, employees may take various actions. They might seek to engage in discussions with management, alter their level of effort, adjust their perspectives about their contributions, or even look for opportunities elsewhere. This behavior is driven by the innate desire for fairness and equity in the workplace. Thus, the correct response reflects the proactive nature of employees when faced with perceived inequity, as they seek to correct the situation rather than simply accepting it, working harder, or disengaging completely.